2015 | 2015(84(140)) | 95-114
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The valuation of finished products as an important risk factor in the distortion of financial statements

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The aim of the study was to answer the following questions:1. Is the correct valuation of products significant from the point of view of economic risk?2. Are there situations in Polish practice of inaccurate valuations that lead to material misstatements of financial statements?3. Is there a risk of inaccurate cost information being used by the management of Polish companies?The review of published materials on the topic has shown that inaccuracies in the calculation of indivi-dual product costs, or overlooking the issue of idle capacity, may increase the economic risk of faulty decisions.A survey conducted among Polish companies has demonstrated that, in many cases, cost accounting does not allow for the accurate calculation of individual product costs or the cost of idle capacity. In addition, the research has highlighted the issue of idle capacity in many Polish companies that hold a significant level of inventories. All of this indicates a risk of distortion in financial statements due to the faulty valua-tion of products in the reports of those companies.
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