An analysis about correction and purification process on financial statements of a company that request credit from banks

In today's conditions, the competition about supply of resource and findingcredit customers for the purpose of assesing resources is increasing day by day forbanks and other financial institutions. Credit process is required great attentionand care in market conditions. Because problematic loans are still one of the mostimportant risk of banks. If we take the market conditions and economic situation inour country into consideration, it looks as if problematic loans won?t lose itsimportance.Level of credit risk undertaken by banks, is directly related to the quality ofthe credits they have. During the periods when credit costs are high , the risk of thereturn of the loan increases inevitably. The banks have to reveal the real economiccondition of the credited customers, in order to minimize the risk of the return ofthe loan and make more accurate decisions. For this reason, financial reports arerequired which contains understandable, comparable, timely and accurateinformation.Since the own resources can't meet the financial need that will providegrowth and development for the companies, the need of foreign resource hasincreased. The increase of demand for credit has given rise to detailed and intensiveanalysis period for banks and financial institutions about handing out insufficientresources.Lack of the credit resources has led to a tendency to create accountingrecords and financial statements which improve the credit worthines of companies .In this evaluation process, correction procedures have been inevitable for financialstatements which provided by the firms to reflect the real situation of company.In this study, It will be discussed that the correction and purification processat financial statements of a company which demanded credit from banks.Key Words: Financial Analysis, Evaluating of Credit Demands, Correction Prosedures