Buhalterinės apskaitos teorija ir praktika https://www.journals.vu.lt/BATP <p>Founded in 2007 and dedicated to publishing articles on accounting, audit, and analysis.</p> Vilnius University Press en-US Buhalterinės apskaitos teorija ir praktika 1822-8682 <p>Please read the Copyright Notice in&nbsp;<a href="http://www.journals.vu.lt/BATP/journalpolicy">Journal Policy</a>.&nbsp;</p> Assumptions, Types of Accounting Manipulations and Their Application https://www.journals.vu.lt/BATP/article/view/23089 <p><span lang="en">The article describes the bonus plan, debt/equity and political cost hypotheses, based on a positive accounting theory, with reference to opportunistic approach, explaining the reasons for choosing accounting methods. Research based on these hypotheses has revealed the main types of financial information manipulation - earnings management and creative accounting. After conducting the analysis of scientific sources, the article presents the definitions of earnings management and creative accounting of various authors, distinguishes the types of earnings management –&nbsp;</span><span lang="en-US">accrual-based earnings management&nbsp;</span><span lang="en">and real earnings management. After analyzing the manipulation methods indicated in the literature, a comprehensive list of profit management and creative accounting methods are presented. The methods are structured and classified according to their compliance with accounting standards, types of profit management and their impact on accounting areas. The provided list and classification of methods is useful in a scientific sense for further research on this phenomenon.</span></p> Diana Bachtijeva Copyright (c) 2021 Diana Bachtijeva https://creativecommons.org/licenses/by/4.0 2021-05-06 2021-05-06 23 5 5 10.15388/batp.2021.33 Application of Big Data in the Financial Audit Procedures https://www.journals.vu.lt/BATP/article/view/22728 <p lang="en-US"><strong>Annotation.&nbsp;</strong>Big Data (BD) is one of the most commonly used terms in the modern world of business and information technology. The main features of BD (quantity, speed, and variety) introduce to unique processing of large information amounts, regardless of their scale, storage and computational complexity, analytical and statistical correlation. The significant emergence and potential use of BD has affected business accounting and financial auditing by replacing the long-used mechanical data collection and completion processes with automatic ones, comparing and searching for correlations between different structure and nature data.</p> <p lang="en-US">According to analysis, the main advantages of applying the BDA in the audit process are related to faster and more efficient execution of procedures, obtaining more detailed results, grouping and comparing data according to selected criteria. In the meantime, cons of BD application are related to the additional professional supervision requirements and the proper data analysis in order for the correct results interpretation.</p> <p lang="en-US">The paper presents the conceptual model, which shows the relationships between BDA tools and financial audit procedures. In addition, the model shows factors and risks, which have impacts on internal and external environment of clients, the applicability of specific audit procedures. It was found that the application of the model in the procedures includes testing of 5 relationships, i. e. classification, clustering, regression and time series analyses, the method of association rules and text research, visualization tool.</p> <p lang="en-US"><strong>The Aim of the Study</strong>&nbsp;is to identify the application of DDA tools in financial audit procedures.</p> <p lang="en-US"><strong>Research Methods:</strong>&nbsp;comparative and systematic analysis of the literature; content analysis; statistical data analysis; graphical analysis.</p> <p lang="en-US"><strong>Keywords:&nbsp;</strong>Big data, Big data Analytics, Financial Audit, Financial Audit Procedures.</p> <p><strong lang="en-US">JEL Code:&nbsp;</strong>M15, M40, M42.</p> Kotryna Nagytė Lina Dagilienė Copyright (c) 2021 Kotryna Nagytė | Lina Dagilienė https://creativecommons.org/licenses/by/4.0 2021-03-30 2021-03-30 23 4 4 10.15388/batp.2021.32 Evaluation of the European Union’s Policy of Cryptocurrencies‘ Regulation https://www.journals.vu.lt/BATP/article/view/22956 <p>In 2008, a global financial crisis happened. It led to strong currency price volatility. Because of that, discussions on the need for an alternative, institution-independent currency occurred. Due to this reason the first decentralized cryptocurrency Bitcoin was created. The new and not yet explored concept of cryptocurrency changed the previously strictly defined role of money. Currently, with the growth of the cryptocurrency market, the most important regional institutions (e.g. FED, EBA) provide regulatory guidelines of a recommendatory nature. The regulations of these institutions remain significant, reflecting the dominant approach to digital money. Because of this reason, the aim of the study is to identify the factors that determine the difficulties in the legalization process of cryptocurrencies and to investigate the features of the European Union's cryptocurrency regulatory policy. Methods used: analysis of scientific literature and legal documents, systematization, comparison, interpretation and generalization of information.<strong>&nbsp;</strong>The results of the study show that the European Union has taken active regulatory action with the growing importance of cryptocurrencies in the world. To date, a document regulating the definition of cryptocurrencies has not yet been adopted at Union level, but the adoption of the cryptocurrency regulation proposal presented in 2020 would mean greater clarity and security for cryptocurrency issuers, intermediaries and users.</p> Ieva Turskytė Alfreda Šapkauskienė Copyright (c) 2021 Ieva Turskytė | Alfreda Šapkauskienė https://creativecommons.org/licenses/by/4.0 2021-03-30 2021-03-30 23 3 3 10.15388/batp.2021.31 Measures Taken by Governments to Mitigate the Effects of the COVID-19 Pandemic: Indirect Financial Support to Business https://www.journals.vu.lt/BATP/article/view/22618 <p><span lang="en-GB">The COVID-19 pandemic crisis differs in nature from the previous financial crisis and therefore different solutions must be taken. In this context, governments are seeking to help businesses deal with the effects of the pandemic, which have had the greatest impact on corporate liquidity. The analysis of government support measures in the context of the COVID-19 pandemic has shown that EU governments use not only direct but also indirect financial support to business. However, the latter is not sufficiently analysed in scientific works. The aim of the study is to analyse the measures of indirect financial support for business applied by EU governments and to provide the classification of the measures described. In order to achieve the aim, the following methods of scientific research were used: analysis, synthesis, induction, deduction, abstraction, and analogy of scientific literature, normative documents, reports and reviews of international organisations, and support measures applied in governments’ practice.</span></p> <p lang="en-GB">The study developed an original structure of government indirect financial support measures for business, comprising three components of government support measures: (1) minimisation of legal norms related to corporate finance; (2) indirect financial assistance related to labour law; (3) strengthening the legal framework for corporate finance. The measures analysed are described in more detail by distinguishing them into separate groups. The structure developed is based on concrete examples of application in EU countries and could contribute to a more targeted approach to business support in the future.</p> Rasa Kanapickienė Greta Keliuotytė-Staniulėnienė Deimantė Teresienė Daiva Budrienė Mantas Valukonis Copyright (c) 2021 Rasa Kanapickienė | Greta Keliuotytė-Staniulėnienė | Deimantė Teresienė | Daiva Budrienė | Mantas Valukonis https://creativecommons.org/licenses/by/4.0 2021-03-30 2021-03-30 23 2 2 10.15388/batp.2021.30 Research on the Awareness and Application of Strategic Management Accounting Instruments in Lithuanian Companies https://www.journals.vu.lt/BATP/article/view/22597 <p>In recent decades, as the newly created internal and external environment conditions have radically changed the environment of business, the process of creating and implementing business strategy became more relevant. The data, generated by strategic management accounting, makes this process more efficient. The article examines the concept of the strategic management, its importance and related instruments. The article provides results of the research carried out to determine the level of awareness and application of strategic management accounting instruments in Lithuanian companies. Empirical research has shown that the level of awareness and application of the strategic management accounting instruments in Lithuanian companies is minor. The most common strategic management accounting instruments are as follows: customer profitability analysis, benchmarking, competitive position monitoring, strategic pricing, and strategic costing. The least known and, according to the research, the least applicable strategic management accounting instruments are: attribute costing, product life cycle accounting and brand value budgeting. According to the study, the most significant reason for the difficulties in implementing strategic management accounting instruments is the lack of time required to implement the instruments.</p> Kamilė Medeckytė Daiva Tamulevičienė Copyright (c) 2021 Kamilė Medeckytė | Daiva Tamulevičienė https://creativecommons.org/licenses/by/4.0 2021-03-08 2021-03-08 23 1 1 10.15388/batp.2020.29 Problematics of Creative Accounting and Earnings Management in the Context of the Development of Accounting Theories https://www.journals.vu.lt/BATP/article/view/22420 <p>The beginnings of accounting can be found even in the 14st century, when trade transactions began to be recorded in the books of account. To this day, accounting has evolved at certain stages, depending on goals were set for the accounting for that period. In the article after concluding the analysis of scientific sources the following are presented: the stages of accounting development, which were influenced not only by different Anglo-Saxon, Germanic and Latin accounting systems, but also by economic and political factors; the influence of accounting on the development of accounting theories is revealed. The concept of positive accounting theory, assumptions for manipulating accounting and the concept and application methods of earnings management and creative accounting are presented. Based on the research, a model of multi-paradigm approach is presented, in which the methodologies of normative and positive accounting theory can be fully applied. The proposed complexity of methodologies can help to solve not only the problems of creative accounting and earnings management, but also other problems of the 21st century. accounting issues.</p> Diana Bachtijeva Copyright (c) 2020 Authors http://creativecommons.org/licenses/by/4.0 2021-01-28 2021-01-28 23 6 6 10.15388/batp.2020.28 Determinants of Tax Planning: Theoretical Analysis https://www.journals.vu.lt/BATP/article/view/22133 <p><strong>Annotation. </strong>Tax planning is a topic of interest for taxpayers, practitioners, public authorities and academics. Analyzing scientific literature on tax planning shows that some authors are looking at the tax planning process, while others are looking at the factors that determine tax planning. Although there are a number of scientific literature analysing these factors, it is noted that there is a need to systematize this literature. The purpose of the article is to identify the determinants of tax planning activities in companies and households. Methods used in the article: systematic analysis of scientific literature, systematization of information, comparison, generalization. After analyzing the scientific literature, authors provide a concept of tax planning and selected determinants that encourage and inhibit the involvement of both types of taxpayers in tax planning activities. After a theoretical analysis, it was found that corporate tax planning is influenced by the company's profitability, profit begor taxes, internationalisation, the scale of foreign operations, listing, capital receptivity and growth, development, size and leverage of the company, optimism of the company CEO, experience of his military service, lobbying, reputation and financial accounting issues. Household tax planning is influenced by taxpayers' age, income, intra-household income inequality, experience, a compendium tax system, its complexity, fines, the likelihood ofecassionisation. Religiousity is a factor that hampers the involvement of both businesses and households in tax planning activities.</p> <p>&nbsp;</p> <p><strong>Keywords: </strong>tax planning, determinants, tax avoidance, households, company.</p> <p><strong>JEL Code: </strong>H26</p> Lina Matusevičienė Kristina Rudžionienė Copyright (c) 2020 Kristina Rudžionienė https://creativecommons.org/licenses/by/4.0 2021-01-20 2021-01-20 23 5 5 10.15388/batp.2020.27 Evaluation of alternatives of cryptocurrency accounting https://www.journals.vu.lt/BATP/article/view/21003 <p>The emergence and popularity of the cryptocurrency has caused a great deal of controversy in the scientific community over market development opportunities, further use of virtual money, and its integration into traditional accounting systems. The global financial market creates many opportunities to use electronic and virtual money for various types of transactions, and the question of how to record cryptocurrency and related transactions in accounting remains relevant. The aim of the research is to evaluate the alternatives of cryptocurrency accounting. For the research methods of scientific literature analysis, comparison, interpretation, information systematization, generalization were used. Although various authors, national and international accounting standards regulators provide their insights and recommendations on cryptocurrency accounting, a unified system has not been formed yet. Currently are analysed such alternatives of cryptocurrency accounting as financial asset, intangible asset or inventory.</p> Rasa Subačienė Natalija Kurauskienė Copyright (c) 2020 Rasa Subačienė | Natalija Kurauskienė https://creativecommons.org/licenses/by/4.0 2020-12-11 2020-12-11 23 4 4 10.15388/batp.2020.26 Expectations for competencies of top managers: changes and good practice https://www.journals.vu.lt/BATP/article/view/19163 <p>As the economic situation develops, the competencies of top managers are subject to extremely high requirements. This starts with functional and formal leadership as well as clearly defined status and job functions. It ends with the image of a modern leader who possesses a myriad of competencies and character traits, the criteria of which change constantly. It is observed that the importance of competencies, cooperation between top managers, personal development and leadership are most often studied. There are no questions raised in the research that would analyse the change of competencies of top managers over time and expectations for competencies in a constantly changing environment. The aim of this article is to examine expectations of top managers' competencies in context of good practices. To achieve this goal an analysis of the scientific literature was performed, systematisation and generalisation methods were used, good practice was observed and a survey was conducted. The results of the analysis of the scientific literature revealed which competence groups are most valued in today's business environment, as well as what opportunities opened up and what challenges the quarantine regime posed for today's leaders. The study identified key competencies, such as high ethical and moral standards and openness to new ideas and perspectives. The motivation behind the scientific problem formulated in this article was the lack of research and information, especially in view of the quarantine period, which significantly impacted the normal rhythm of work and life.</p> Gintarė Markauskienė Copyright (c) 2020 Gintarė Markauskienė https://creativecommons.org/licenses/by/4.0 2020-10-15 2020-10-15 23 3 3 10.15388/batp.2020.25 Origins of a performance audit and development in the world and in Lithuania https://www.journals.vu.lt/BATP/article/view/19186 <p>As the need for rational use of resources, environmental protection and social welfare increases, so does the importance of performance auditing. Historical knowledge of its origins and evolution makes it possible to understand what a performance audit is, for whom it is intended and what the purpose of its performance is. The aim of the article - to present the development stages, regulation and peculiarities of performance audit in the theoretical aspect in foreign and Lithuanian literature. Research methods of scientific literature analysis, historical, comparative, information grouping, systematization and generalization were applied to achieve the goal. The article reveals the transformation of performance auditing from social auditing to private equity entities to the current performance auditing, which is regulated and applied in the assessment of the performance of public entities. The article examines the development of performance auditing in four stages: 1940-1950, the first attempts to evaluate performance by social parameters; 2) 1950-1970 develops two approaches distinguishing social and economic parameters; 3) 1970-1990 regulation of the field of performance audit, the first research; 4) 1990-2020 adjusts and approves performance audit standards and guidelines, extensive research. During the relevant period, there were different scientific discussions on performance evaluation and performance auditing. The article reveals the problem of the versatility of performance auditing, which creates preconditions for further research.</p> Jonas Mackevičius Asta Šalienė Copyright (c) 2020 Jonas Mackevičius | Asta Šalienė https://creativecommons.org/licenses/by/4.0 2020-09-21 2020-09-21 23 2 2 10.15388/batp.2020.24