تفکر انتقادی در مورد حسابداری خلاق در مواجهه با رسوایی اخیر در بخش بانکداری ترکیه
|کد مقاله||سال انتشار||مقاله انگلیسی||ترجمه فارسی||تعداد کلمات|
|317||2009||23 صفحه PDF||سفارش دهید||محاسبه نشده|
Publisher : Elsevier - Science Direct (الزویر - ساینس دایرکت)
Journal : Critical Perspectives on Accounting, Volume 20, Issue 5, July 2009, Pages 651–673
In the last two decades, serious accounting scandals occurred in large companies (e.g. WorldCom and Enron) and in the banking sector (e.g. BCCI, Barings, Allied Irish Bank and Baninter). Then the problem of creative accounting with its legal and illegal aspects has come into agendas of business firms and governments. In this paper, a certain type of creative accounting practices (i.e. fraud) has been examined in the light of a Turkish case (i.e. the Imarbank Scandal). It has been found that deficiencies in the legal frameworks for banking and accounting, inadequacies in the autonomy of governmental regulation and supervision bodies, practical difficulties in enforcing legal and ethical rules due to the slow functioning of the judicial system are significant reasons for creative accounting practices in addition to the personal greed of both owners&top management of Imarbank and its customers. However, the intention and capability of political power in combating such kind of corruption are also crucial.
The subject of “creative accounting” has received importance due to the recent serious accounting scandals that occurred in large companies (e.g. WorldCom and Enron) and in the banking sector (BCCI, Barings, Allied Irish Bank, Baninter and Imarbank) of developed and developing countries. Since those scandals have deeply influenced both the national economies and the world economy, the concept of creative accounting and the ways of tackling this problem have come into agendas of business firms and governments. The interesting point with respect to creative accounting is that the creative accounting practices have both legal and illegal aspects due to the flexibility of accounting policy, as well as fraud, manipulation or deceit. In addition to the legal measures, the effective implementation of generally accepted accounting principles, the autonomy of auditing private firms and supervising governmental bodies, ethical rules and transparency are regarded as important professional–administrative cures for creative accounting practices. In this paper, it is aimed to examine a certain type of creative accounting practices (i.e. fraud) deeply in the light of a recent banking scandal in Turkey (i.e. the Imarbank Scandal). Within this framework, the concept of creative accounting and its various forms, the reasons and cures for creative accounting practices will be overviewed. Then the process of creative accounting that occurred in the Imarbank case will be presented. It will also be questioned how effective legal and professional–administrative measures are in curing creative accounting practices and how important the intention and capability of political power are in combating such kind of corruption. Creative accounting practices, which are highly influential in the largest corporate collapses in the U.S. economic history, i.e. Enron and WorldCom Scandals, can be analysed within the framework of “principal–agent relationship”. The “agency theory”, or in other words, information asymmetry between principals (owners or shareholders) and agents (managers and auditors), opportunistic behaviour of agents and the inability of the principals to control the desired action of the agent provides a theoretical framework to establish an understanding of how such companies collapsed (Arnold and Lange, 2004). Although Imarbank was not a publicly held company and it was not audited by independent private auditing firms, the relationship between the owners&top management of the Bank (so-called agents) and the depositors (so-called principals) may partly be considered within a similar principal–agent relationship. The owners&top management of the Bank manipulated information deliberately through creative accounting practices to present wrong image to the depositors and the banking sector authorities. This policy made it difficult for anyone outside the top-circle of the Bank to understand Imarbank's financial condition truly. Therefore, the deliberate manipulation of financial figures by the owners&top management of the Bank, ineffective auditing and supervising strategies of the public authorities, the individual and collective greed of both sides (i.e. the owners&top management of the Bank and the depositors) lead us to keep this explanatory framework in mind throughout this paper. This also indicates that how the unethical dimension of creative accounting matches with the agency theory (see Amat et al., 1999, p. 9; Omurgonulsen, 2003, p. 349–350).
نتیجه گیری انگلیسی
There are many lessons to be taken from the recent accounting scandals around the world since they have adversely affected the owners, shareholders and employees of the companies and finally the taxpayers of a country. In the case of Imarbank Scandal, after the take-over of the Bank due to illegal creative accounting practices, many professional people became unemployed. Many depositors lost the control of their money for sometime but some of them lost their money and happiness forever. Finally, taxpayers have indirectly taken some parts of the financial burden of Imarbank Scandal. Lessons to be drawn from the Imarbank Scandal can be summarised as follows. First, it has been proved once more by the Imarbank Scandal that the most crucial step in the banking sector is “licensing”. As a matter of fact, more serious legal and financial principles have been accepted in the field of banking licensing through the Banks Act dated 1999 and numbered 4389 and the Banking Act dated 2005 and numbered 5411 (BDDK, 2003, p. 111). Second, it has been once more recognised that giving “a high-level or even a full guarantee to deposits” is only a “temporary remedy” to be used in “extraordinary periods” in order to “avoid panic”. It has also been understood that depositors may loose “risk-avoidance attitude” due to continuous and full guarantee to deposits provided by government (BDDK, 2003, p. 111). Therefore, full guarantee for deposit accounts is not always an effective means to sustain the health of the overall banking sector. Third, “deficiencies in external auditing and supervision and internal control systems” create a suitable atmosphere for all kinds of corruption. The responsibility of auditing, supervision and control authorities here is to keep corruption at a minimum level through developing and using techniques that can capture such events in the fastest and most effective way (BDDK, 2003, p. 112 and 113). At this point, the “independence of external governmental auditing and supervision” and the “ethical conduct and transparency of internal control and accounting functions” become crucial. Fourth, either in developed or developing countries; and either in well-established or weak-structured financial institutions, where there is a human factor involved, there is always fraud and corruption as an “operational risk factor”. Not only human factor by itself, “data-processing system” created and operated by human beings may also be “another source of operational risk” in spite of many benefits provided in terms of productivity (BDDK, 2003, p. 112). Fifth, it can also be said that governments and responsible governmental bodies related with the banking and the capital market were unable to show the “necessary awareness and to take enough courage and agility” in time in the face of illegal transactions of Imarbank in the form of creative accounting. As a matter of fact, the 10th Administrative Court of Ankara rendered a judgment that the loss of an account holder who had bought government securities from Imarbank has to be recovered by the BRSA and the CMB. In the court judgment, it was stated that the selling of government securities short by Imarbank was announced to public through mass media as if Imarbank had the right of selling government securities short; and that the BRSA did not take any necessary precaution despite it had been notified about this situation. Therefore, the Court decided that the interest of the account holder could not be protected by the negligent authorities, the BRSA and the CMB (http://www.trt.net.tr/wwwtrt/hdevam.aspx?hid=162316&k=3; see also similar judicial decisions, Anon, 2007b and Anon, 2007c). Finally, it has become more crucial that depositors need to have a more critical analysis in deciding the bank to make business with. Economic-financial, legal and professional-administrative measures taken after the recent serious economic crises have already made it difficult for the banks to hide their financial deficiencies. The ethical problems of the creative accounting, which matches with the agency theory, can also, at least partly, be sorted out by developing the independency of auditing and transparency of accounting processes.