Detecting Hidden Losses in the Financial Statements – Case of Serbia
Dr Ljubiša V. Stanojević, Mr Nenad. Kaludjerović, Dr Tomislav Brzaković, Slobodan Lj. Stanojević

Abstract
Detection of hidden losses versus gains in the financial statements of the Republic of Serbia (RS) is the primary task in the process of joining the EU. Officially disclosed, the financial statements for the multi-year period do not provide an objective and truthful picture of economic performance in Serbia. This raises the key question for investors to determine the actual healthy companies (real gainers) of the actual loss, and the methods applied in the order of their determination. The aim of the paper is a methodological detection of actual profit-loss vs the application of qualitative and quantitative methods. In this paper, we tried applying qualitative and quantitative methods (Data Mining) to show the ways of discovering hidden losses, suggesting methods to manipulate financial results, citing in particular, the advantage of qualitative methods in detecting hidden losses, and the advantage of quantitative methods in the field of predicting hidden losses.

Full Text: PDF