In Sweden, statistics show that accounting frauds have increased in number in recent

years and that the cases which have been clarified has fallen from 71 % in 2007 to 40 %

in 2016. In order to be convicted for a crime, two requisites must be met. The first

requisite is overriding uncertainty and the second is power uncertainty. These two props

are of 11 chapters. 5 § of the accounting act, which refers to the breach of the accounting

obligation from the accounting act. The good accounting practice can therefore be linked

to accounting errors, as it is written in the accounting act that the accounts should conform

to good accounting practice.

The accounting board has the greatest responsibility for the preservation and development

of the good accounting practice. In 2004, the K-project started, which consists of different

regulations that unlisted companies are expected to apply. The accounting board can’t

issue any binding rules but provides guidance, which, in their opinion, represents good

accounting for unlisted companies in categories 1-3. The accounting board has legal

support in chapter 8, section 1 of the accounting act to be responsible for the development

of the good accounting practice and thus have great power in assessing legal cases. The

courts hand over questions for referral where the accounting board can answer what

represents good accounting practice in a particular case.

The purpose of our study has been to investigate whether it is possible for a company to

breach only good accounting practice, which is a violation of the law, but not to be

convicted of a breach of accounting. We investigate if a company can report in a certain

way to avoid being convicted of an accounting violation. In order to draw a conclusion

and fulfill the purpose, we have with help of constructed cases, shown cases where

companies may commit a breach of accounts. As the accounting board works with good

accounting practice, most types of cases have been constructed using their K-regulations.

The cases have been reviewed by the economic crimes agency and subsequently analyzed

by us to see if the breach and power expulsion has been met.

The results of the study indicate that a company that deviates from the accounting practice

could have avoided being sentenced for an accounting breach. This could happen if the

companies had provided detailed information in the notes and information in the

management report regarding their choice of method. This could be weighed into the

assessment of a possible crime. This does not apply to all companies, as it is also required

that companies have a good motivation for their choice of method. With the right

information, it may result in power failure, thus avoid being sentenced for accounting

violations.