Orcena, Kleah Maye M.

AIS2A

Misleading Forecasts in Accounting Estimates: A Form of Ethical Blindness in

Accounting Standards?

Objective/s of the Findings or Conclusion Application

Article Important Points

The article aims to The article discussed The findings of the This article made me
enlighten the readers that fraudulent facts study proved that realize the
about the implication and fraudulent misuse of accounting importance of using
of misuse or overuse forecasts contribute estimates in accounting estimates
of accounting greatly to frauds in measuring assets correctly by
estimates for the financial reporting. and liabilities can considering internal
whole accounting Adding to the main greatly influence the and external factors
profession and the points of the study, it performance or affecting the
public. is stated that the financial reporting performance of an
newly proposed practices of an organization.
conceptual institution. Moreover, Through this, as a
framework and the authors future CPA, I will be
criteria is flawed as it concluded that the able to adhere to the
can promote a high contradiction faithful representation
level of uncertainty between having quality of my financial
with estimations of faithful representation reports even if new
amounts, thus also and the new proposal standards on
having the possibility of IASB for accounting estimates
of fraudulent accounting estimates were proposed.
estimates being creates a potential
tolerated, being risk when reporting
considered relevant the amounts of
by the standard. assets and liabilities.
Thus, with all this, the
researchers pointed
out that the absence
of limitations in
uncertain estimations
will significantly affect
financial reporting.