Assessing the actual value of the share of a company participant in the context of accounting (financial) statements distortion: A forensic expert's view

Subject. The article discusses the assessment of the actual value of a company participant's share in the context of distortion of accounting (financial) statements. Objectives. The aim is to identify and outline the features of assessing the actual value of a company participant's share in the context of misrepresentation of accounting (financial) statements from the perspective of a judicial expert engaged by a court in a corporate dispute. Methods. The study employs the expert method, i.e. solving problems based on the judgment of highly qualified specialists in the relevant field of knowledge. Results. The paper reveals the specifics of conducting complex forensic examinations to determine the actual value of a company participant's share. Important are the abilities (competencies) of a forensic expert to identify motivational factors, risk markers for unreliability of financial statements, expressed in significant changes in financial and economic indicators, the ability to distinguish between creative (acceptable) and aggressive (unacceptable) accounting methods, and to reconstruct indicators. Creative accounting should be considered as a complex financial and accounting, legal, ethical and psychological phenomenon inherent in relationships within corporations, while understanding that the size of corporate assets and liabilities may depend on the professional judgment of those involved in valuation or accounting, which must also be taken into account when conducting a forensic examination. Conclusions. The findings will enable expert economists and appraisers to obtain more reasonable and reliable results of economic assessment of assets and liabilities, net assets.