Importance Reliability and quality of financial statements guarantee the confidence of State structures, creditors, potential investors and other stakeholders of a company. Objectives Our purpose is to discuss theoretical and methodological aspects of reliability of financial statements, build an indicator to reveal misstatements of financial results disclosed in accounting reports, define industry specifics in determining the indicators that characterize distortions in financial performance of companies. Methods We offer a technique to estimate the probability of distortions in financial statements of companies involved in mining operations. Results We built an integrated index to estimate the likelihood of misstated financial result in financial statements, i.e. its overstatement, for resource development companies. The paper proves that indicators characterizing distortions in financial statements of resource development companies do not coincide with indicators of construction companies. Conclusions The test of the proposed approach enabled not only to unveil misstatements in the financial results of companies of two economic sectors, but also to define the amount of overstatements. Furthermore, the paper proves the presence of industry specifics in choosing the indicators that characterize the misstatements of companies.
Sloan R.G. Do Stock Prices Fully Reflect Information in Accruals and Cash Flows About Future Earnings? The Accounting Review, 1996, vol. 71, iss 3, pp. 289–315.
Gordon E.A., Henry E., Jorgensen B.E., Lintchicum C.L. Flexibility in Cash Flow Classification under IFRS: Determinants and Consequences. Review of Accounting Studies, 2017, vol. 22, iss. 2, pp. 839–872. URL: http://dx.doi.org/10.1007/s11142-017-9387-1
Alekseev M.A. Informatsionnoe prostranstvo finansovogo rynka [Information space of the financial market]. Novosibirsk, NSUEM Publ., 2017, 247 p.
Alekseev M.A., Tyuzhina M.S. [Identification of the direction of distortion of financial statements]. Sibirskaya finansovaya shkola = Siberian Financial School, 2016, no. 6, pp. 129–133. (In Russ.)
Alekseev M.A., Dudin S.A. [Misstatement detection rate of company's performance]. Vestnik professional'nykh bukhgalterov = Bulletin for Professional Accountants, 2017, no. 6, pp. 37–48. (In Russ.)
Alekseev M.A. Teoreticheskie podkhody k ponimaniyu neopredelennosti. V kn.: Problemy ekonomicheskoi nauki i praktiki: sbornik nauchnykh trudov [Theoretical approaches to understanding the uncertainty. In: Problems of economic science and practice: proceedings]. Novosibirsk, NSUEM Publ., 2017, pp. 6–27.
Alekseev M.A., Likhutin P.N. [Methodological research aspects of the information space in the financial market]. Vestnik Samarskogo gosudarstvennogo ekonomicheskogo universiteta = Vestnik of Samara State University of Economics, 2017, no. 5, pp. 65–74. (In Russ.)
Alekseev M.A., Glinskii V.V., Likhutin P.N. [Statistical research of financial market information space]. Voprosy Statistiki, 2017, no. 5, pp. 28–38. (In Russ.)
Alekseev M.A., Glinskii V.V., Anokhin N.V. [To the manipulation in information space]. Vestnik NGUEU = Vestnik NSUEM, 2017, no. 4, pp. 10–21. (In Russ.)
Alekseev M.A. [Evolutionary Efficient Market Hypothesis]. Vestnik NGUEU = Vestnik NSUEM, 2017, no. 1, pp. 10–25. (In Russ.)
Alekseev M.A. O problemakh primeneniya indeksa f-score k finansovoi otchetnosti rossiiskikh kompanii. V kn.: Problemy ekonomicheskoi nauki i praktiki: sbornik nauchnykh trudov [On problems of applying the F-Score index to financial statements of Russian companies. In: Problems of economic science and practice: proceedings]. Novosibirsk, NSUEM Publ., 2016, pp. 22–32.
Gamarnikova N.V., Kalinichenko M.S., Savel'eva M.Yu. [Checking financial reporting reliability of Russian companies in the period of crisis phenomena in the economy]. Vestnik Samarskogo gosudarstvennogo ekonomicheskogo universiteta = Vestnik of Samara State University of Economics, 2018, no. 1, pp. 46–59. (In Russ.)
Laskina L.Yu. [Enhancing the analytical potential of cash flow-based solvency ratio analysis]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2017, vol. 16, iss. 11, pp. 2145–2162. URL: https://doi.org/10.24891/ea.16.11.2145 (In Russ.)
Malyshenko V.A., Malyshenko K.A. [The impact of the development of methods for financial stability analysis on the transformation of methods for stock market fundamental analysis]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2017, vol. 16, iss. 2, pp. 364–378. URL: https://doi.org/10.24891/ea.16.2.364 (In Russ.)
Pochitaev A.Yu., Akhmetov R.R. [Three-dimensional financial security model as a tool for financial strategy formation in the context of value-based management]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2017, vol. 16, iss. 3, pp. 545–560. URL: https://doi.org/10.24891/ea.16.3.545 (In Russ.)
Aliev A.A., Solov'eva N.G., Kachalina A.D. [Integral Estimation of the Company's Financial Condition]. Finansy i kredit = Finance and Credit, 2018, vol. 24, iss. 2, pp. 288–303. URL: https://doi.org/10.24891/fc.24.2.288 (In Russ.)