ACCOUNTING AND CONSTRUCTIONISM: THE SUBTLE ART OF MANIPULATING VOLUNTARY DISCLOSURES IN FINANCIAL STATEMENTS.

Abstract

This conceptual paper examined Accounting constructionism and the manipulation of figures through falsification of the facts usually presented in some financial reports and statements. The main objective of this study is to discuss the impact of accounting constructionism on the voluntary disclosures in financial reports. The study sought to promote the need for Accountants to take advantage of the dignified position of informing the users of accounts and the society at large of useful information that will trigger a well informed decision about the happenings in a business organization. The qualitative research methods was used. It was found that the position for a socially constructed accounting presentation based on their opinion that accounting does not present reality but constructs reality as majority of the researchers opines that accountants usually perceive themselves as though involved in an objective, independent opinion, unbiased disposition, but in reality they are subjective “constructors of reality”. Presenting circumstances in limited and biased views in some cases. In conclusion, the notion of a true and fair view of information as shown in a financial statement is developed by the accountant and introduced to the users of the information. If this reality fails to expose the true condition of an entity, there is sure to be manipulation of facts which has an unfavorable repercussion on the company, public and other users of the information. Hence in such a situation, the accountant would be said to be a constructor of reality. The paper recommended that the accountant’s duty in constructing reality has a formidable impact and effects in the organization and community at large. It therefore should be upheld with utmost objectivity, integrity and transparency to enable the various stakeholders depending on the financial information to be guided properly.