AU -C 806 Reporting on Compliance with Aspects of Contractual Agreements or Regulatory Requirements in Connection with Audited Financial Statements

This article derives a framework for annual financial statements of a property-casualty insurer from first principles using Adam Smith’s statement of the operation of an insurer as the point of departure. The derivation incorporates’ current standard accounting principles and regulatory requirements. In the end it will be seen that a substantial correlation exists between the final derived framework and current published statements of a modern property-casualty insurer. It remains to be seen if a similar correlation will continue to exist once the long awaited international accounting standard for insurers is finalised. The article accordingly demonstrates that Adam Smith’s statement can be used to derive a workable framework for the accounting and hence management of modern property-casualty insurers. A number of important conclusions flow from the article. Firstly the distinction between provisions and reserves must be understood and maintained failing which solvent insurers may be portrayed as being insolvent, second a new provision should be raised, a Year to Close Provision where it is unclear that existing provisions adequately cover outstanding liabilities and third the IBNR provision should be restricted to claims in the pipeline for the year under consideration.

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Management Report as a Component of Nonfinancial Reporting in Ukraine: Theory and Practice of Drafting

Independent Journal of Management & Production ◽

10.14807/ijmp.v12i3.1523 ◽

2021 ◽

Vol 12 (3) ◽

pp. s054-s070

Author(s):

Olena Petryk ◽

Alla Basok ◽

Tetiana Marenych ◽

Natalia Yatsenko ◽

Sergіy Kalinichenko

Keyword(s):

Performance Measures ◽

Financial Reporting ◽

Financial Statements ◽

Theory And Practice ◽

The European Union ◽

Regulatory Requirements ◽

Legislative Framework ◽

European Union Legislation ◽

Management Report

The article covers the issue of compiling the Management Report. The need to implement a management report in Ukraine is caused by the processes of implementation of the European Union legislation on accounting in the national regulatory framework. The purpose of this report is to complement the annual financial statements with the necessary information, which should contain a reliable overview of development, activities and condition, as well as a description of the main risks and uncertainties in the work of an enterprise. This paper reviews the legislative framework for the preparation and publication of the Management Report and analyzes the Management Reports of domestic enterprises for compliance with regulatory requirements and the quality of these indicators. It has been defined that the lack of common normatively approved qualitative issues of the report and requirements for it are the significant problems. The format, scope, structure and accuracy of the information are determined at the discretion of an enterprise. The contained performance measures of enterprises significantly differ from each other and are not always given in comparison with the similar measures for the previous periods. Such presentation of data causes poor and uninformative reports. The results of the study prove that the Management Report should be based on the following principles: reliability and completeness, materiality, conciseness, integrity and comprehensibility; comparability of indicators. It is necessary to apply a risk-oriented approach and adhere the logic of presenting information with the elements of its visualization for its preparation. The study is based on the requirements of Directives 2013/34 / EU and 2014/95 / EU, the Law of Ukraine On Accounting and Financial Reporting in Ukraine, Methodological recommendations for the preparation of a management report, as well as empirical data obtained in the analysis of reports on management of Ukrainian enterprises.

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Compliance of Financial Statements of Islamic Banks of Pakistan with AAOIFI Guidelines in General Presentation and Disclosure

SEISENSE Journal of Management ◽

10.33215/sjom.v2i1.53 ◽

2018 ◽

Vol 2 (1) ◽

pp. 12-21 ◽

Cited By ~ 1

Author(s):

Asim Ehsan ◽

Syed Kashif Saeed ◽

Muhammad Asghar Shahzad ◽

Hafiz Rauf Iqbal

Keyword(s):

Financial Reporting ◽

Empirical Evaluation ◽

Accounting Standards ◽

Financial Statements ◽

Decision Makers ◽

Financial Statement ◽

Islamic Banks ◽

Voluntary Disclosures ◽

Regulatory Requirements ◽

Financial Reporting Standards

Objective - This study intends to investigate the extent of voluntary financial reporting compliance made by Islamic banks of Pakistan as suggested by Islamic accounting standards (i.e. AAOIFI). Design/Methodology - The study is based on an empirical evaluation of financial statements of Islamic banks of Pakistan. Data sample consists of financial statements for the years 2009, 2015, 2016 and 2017 relating to of all four full-fledged Islamic banks in Pakistan. The first standard in Islamic accounting standards suggests a total of 111 items for compliance while preparing a financial statement of Islamic Banks. As per existing regulatory requirements, Islamic banks in Pakistan are required to adopt International Financial Reporting Standards while preparing their financial statements. Findings - However, the analysis suggests Islamic banks in Pakistan are in compliance of more than 50% of requirements as suggested by Islamic accounting standards. Implications – The insights will help the industry decision makers to increase the voluntary disclosures by the Islamic banks.

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