Diskrecioni obračunski model u funkciji detekcije kreativnog računovodstva u Republici Srpskoj
Discretionary-accruals model in the function of detection of creative accounting in the Republic of Srpska

Summary/Abstract: In the last 40 years, many authors have tried to develop a perfect model that would help analysts, auditors, investors, creditors, the state, and other users make a distinction between financial statements that have been subject to manipulative financial reporting and those that have not. By applying multiple linear regressions, the paper constructs and tests a discretionary accounting model for detecting the representation of creative accounting in the financial statements of companies in the Republic of Srpska, appropriate and adapted to our business environment and market conditions. The constructed discretionary-accruals model was tested on the financial statements of a representative sample of 400 reporting entities for the period 2016-2019 (1,600 financial statements). In a total of 46 companies (11.5%), the average value of the discretionary-accruals (DACC) deviates statistically significantly from zero, which indicates the possible manipulation of financial statements in these reporting entities. The results showed that the mean value of discretionary accruals (DACC), as a earnings management measure, is 0.3% of the average value of total assets. According to the areas of activity, the findings showed that the largest deviations are in companies engaged in information (0.0608), health (-0.0531) and science (0.0486), while the highest average value of DACC in the observed four-year period was recorded in companies based in the regions of East Sarajevo (0.0158) and Doboj (- 0.0093).

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