The “need to know” and the lack of online transparency among political parties

2015 ◽  
Vol 9 (1) ◽  
pp. 85-103
Author(s):  
Beatriz Cuadrado-Ballesteros ◽  
Luis Andrés Vaquero-Cacho
Keyword(s):  
Political Parties ◽  
Graphical Representation ◽  
Balance Sheet ◽  
Public Information ◽  
Financial Information ◽  
Content Type ◽  
Income Statement ◽  
Robust Control System ◽  
Political Foundations ◽  
Management Report

Purpose – This paper aims to analyse the level of informative transparency among Spanish political parties and political foundations, according to general and descriptive information (e.g. contact, ideas and values, electoral programmes, members, etc.) and economic, governance and financial information. Design/methodology/approach – The situation of the parties in each year is represented by a biplot, which is a graphical representation of a multivariate sample. The data for this analysis were obtained from the reports published by Fundación Compromiso y Transparencia (Foundation for Integrity and Transparency) for 2011 and 2012. Findings – This paper evidences the existence of serious problems of opacity, especially in relation to financial information (balance sheet, income statement, annual accounts and audit report) and information on the fulfilment of goals and programmes (management report and compliance report). Originality/value – This is the first attempt to analyse statistically the level of transparency of political parties and foundations, showing the need for a robust control system and for mechanisms to penalise conduct that limits citizens’ access to public information.

scholarly journals Cash flow disaggregation and prediction of cash flow

2017 ◽  
Vol 18 (4) ◽  
pp. 464-479 ◽  
Author(s):  
Ehsan Khansalar ◽  
Mohammad Namazi
Keyword(s):  
Cash Flow ◽  
Balance Sheet ◽  
Cash Flows ◽  
Prediction Errors ◽  
Content Type ◽  
Balance Sheets ◽  
Income Statement ◽  
Aggregated Model ◽  
Flow Components ◽  
Future Cash Flows

Purpose The purpose of this paper is to investigate the incremental information content of estimates of cash flow components in predicting future cash flows. Design/methodology/approach The authors examine whether the models incorporating components of operating cash flow from income statements and balance sheets using the direct method are associated with smaller prediction errors than the models incorporating core and non-core cash flow. Findings Using data from US and UK firms and multiple regression analysis, the authors find that around 60 per cent of a current year’s cash flow will persist into the next period’s cash flows, and that income statement and balance sheet variables persist similarly. The explanatory power and predictive ability of disaggregated cash flow models are superior to that of an aggregated model, and further disaggregating previously applied core and non-core cash flows provides incremental information about income statement and balance sheet items that enhances prediction of future cash flows. Disaggregated models and their components produce lower out-of-sample prediction errors than an aggregated model. Research limitations/implications This study improves our appreciation of the behaviour of cash flow components and confirms the need for detailed cash flow information in accordance with the articulation of financial statements. Practical implications The findings are relevant to investors and analysts in predicting future cash flows and to regulators with respect to disclosure requirements and recommendations. Social implications The findings are also relevant to financial statement users interested in better predicting a firm’s future cash flows and thereby, its firm’s value. Originality/value This paper contributes to the existing literature by further disaggregating cash flow items into their underlying items from income statements and balance sheets.

The relationship between managerial entrenchment and accounting conservatism

2021 ◽  
Vol 19 (5) ◽  
pp. 612-631
Author(s):  
Mahdi Salehi ◽  
Ebrahim Ghanbari ◽  
Saleh Orfizadeh
Keyword(s):  
Corporate Governance ◽  
Fixed Effects ◽  
Balance Sheet ◽  
Accounting Conservatism ◽  
Content Type ◽  
Managerial Entrenchment ◽  
Conservative Accounting ◽  
Income Statement ◽  
Study Results ◽  
The Relationship

Purpose This study aims to assess the relationship between managerial entrenchment and accounting conservatism in Iran. Design/methodology/approach To test hypotheses, all listed companies on the Tehran Stock Exchange during 2013–2018 (six years) that qualified were selected. Given the defined limitations of the study, a total of 120 firms with 720 year-observations was selected. After collecting data and figures, they were analyzed using EViews software. Having presented the inferential model tests, the panel data with fixed effects model is chosen. Findings The study results indicate a positive and significant relationship between managerial entrenchment and unconditional conservatism presented in the income statement. Moreover, the authors find a meaningful relationship between managerial entrenchment and unconditional conservatism about the balance sheet. Practical implications Managers will be more aware of the positive consequences of employment optimal corporate governance such as conservative accounting. Such corporate governance is likely to serve their interest in the long run by providing positive signals to the equity owners and board of directors. Originality/value By assessing conservatism’s literature in Iran, we observe many studies on this concept. Still, no investigation is carried out on the relationship between conservatism in accounting and managerial entrenchment. The present study is innovative because it evaluates the relationship between managerial entrenchment and two types of conservatism, namely, balance sheet and income statement conservatism, which have never been investigated by prior studies, notably in emerging markets.

Following beginning farm income and wealth over time

2017 ◽  
Vol 77 (1) ◽  
pp. 22-36 ◽  
Author(s):  
James M. Williamson
Keyword(s):  
Balance Sheet ◽  
Rapid Expansion ◽  
Farm Income ◽  
Cash Income ◽  
Content Type ◽  
Balance Sheets ◽  
Age Cohorts ◽  
Income Statement ◽  
Beginning Farmers ◽  
Over Time

Purpose The paper examines the evolution of beginning farms’ income statement and balance sheet items over a 15-year period. The purpose of this paper is to gain insight into the diversity of beginning farms from a financial point of view. Design/methodology/approach Using the USDA’s Agricultural Resource Management Survey (ARMS), the author constructs a synthetic panel of data consisting of age cohorts of beginning farmers and follow them over time. Baseline financial information for the farm income statement and balance sheet is examined in 1999 and again in 2014 for each cohort. Findings Overall, there is a marked contrast in the evolution in the income statement between beginning farmers who are under 45 years old and those over 45. The gross cash income of the youngest cohorts grows tremendously, as do their expenses, indicating rapid expansion in production on the part of the youngest cohorts. The change in the balance sheets of the cohorts also provides a glimpse into the changing roles of beginning famers over time. The youngest cohort of beginning farmers increase the current and non-current assets on their balance sheets by a substantial amount, more than doubling both. Furthermore, the youngest cohort is the only group to take on more current liabilities, indicating increased financing of the production expenses. Practical implications Differences in the evolution of financial profiles of beginning farms may predict differences in future output, and it could be a predictor of the farm’s operational goals or intentions, as well as predictor of future financial needs and challenges. Originality/value Knowing and understanding likely trajectories of beginning farmers may provide an opportunity to better tailor farm programs, outreach, and support to beginning farmers.

scholarly journals The importance to financial information in the decision-making process in company’s family structure

2018 ◽  
Vol 63 (2) ◽  
pp. 38 ◽  
Author(s):  
Joana Patrícia Friães dos Santos ◽  
Amélia Maria Pires ◽  
Paula Odete Fernandes
Keyword(s):  
Decision Making ◽  
Balance Sheet ◽  
Investment Decisions ◽  
Financial Statements ◽  
Financial Information ◽  
Financial Impact ◽  
Decision Making Process ◽  
Current Management ◽  
Family Pattern ◽  
Income Statement

<p class="Pa10"> In Portugal most enterprises have a family pattern and an important role. Its importance is recognized and justifies the option to develop this research, which aims to determine whether these enterprises assign importance to financial information in the decision-making process. The work allowed gathering enough evidence to conclude on the importance of financial statements for the decision-making process, in par­ticular as regards the use of the balance sheet and income statement. It was also concluded that financial information is primarily used to assess the financial impact, support the current management, investment decisions and comply with tax obligations.</p>

Revisiting estimation methods of business zakat and related tax incentives

2016 ◽  
Vol 7 (4) ◽  
pp. 349-364 ◽  
Author(s):  
Mohammed Obaidullah
Keyword(s):  
Balance Sheet ◽  
Alternative Methods ◽  
Estimation Methods ◽  
Economic Rationality ◽  
Business Organizations ◽  
Tax Reforms ◽  
Policy Makers ◽  
Content Type ◽  
Income Statement ◽  
Tax Benefits

Purpose Available zakat accounting standards as well as the laws governing business zakat suggest that the adjusted net working capital or the adjusted growth capital of a business may be regarded as the base for computation of its zakat liability. The apparent consensus follows from the fiqhi prescription of imposing zakat on urud al-tijarah or the inventory of goods available for trade. Some contemporary scholars however question the rationale underlying this method and argue that the objectives of the Shariah are better met by seeking recourse to alternative methods of zakat determination for business organizations. There is therefore a need to revisit the issues and subject them to fresh scrutiny in terms of economic rationality and consistency. Design/methodology/approach The paper examines the arguments of the “orthodox” school as well as those of some contemporary scholars on alternative methods of computing business zakat. It also undertakes a comprehensive review of the laws of zakat as they are related to businesses and the related accounting pronouncements along with their underlying rationale. As the issue of incentivizing zakat payment is an important one, and it is often linked to provision of tax benefits, the paper examines a few suggestions in this regard. Findings On examination of specific suggestions – specifically, of treating earnings as zakat base – to scrutiny in terms of economic rationality and consistency, the authors argue that the “orthodox” position is not only consistent but also makes enormous economic sense. Further, the issue of incentivizing zakat payment and that of lack of harmonization between business zakat accounting and taxation need not be and should not be resolved by making changes in the former because the same has a sound Shariah basis. It can be easily resolved, if need be, by making changes in methods of taxation (tax deduction or tax rebate) and base them on specific items in the balance sheet or the income statement. Practical implications The paper provides useful insights to policy makers who are concerned about the huge gap between actual and potential collection of zakat and are considering tax reforms for incentivizing business zakat mobilization. It highlights the diversity in practices relating to zakat computation and related taxation across Muslim countries. Originality/value The paper searches for and observes consistency and compatibility between the orthodox Shariah-legal position and several accounting and taxation-related policies relating to business zakat. The policy prescriptions are expected to rejuvenate and strengthen the global zakat sector.

Conglomerate diversification through cross-continent acquisition: Vedanta weds Cairn India

2011 ◽  
Vol 1 (1) ◽  
pp. 1-15 ◽  
Author(s):  
V.K. Nangia ◽  
Rajat Agarawal ◽  
Vinay Sharma ◽  
K. Srinivasa Reddy
Keyword(s):  
Mergers And Acquisitions ◽  
Balance Sheet ◽  
Business Environment ◽  
Subject Area ◽  
Research Field ◽  
Content Type ◽  
Cross Border ◽  
Policy And Strategy ◽  
Income Statement ◽  
The Impact

Subject area corporate policy and strategy – mergers and acquisitions. Study level/applicability Post graduation (MBA and other management degrees). It includes courses on Strategic Management, Business Environment and International Business. Case overview Markets are becoming highly connective, accessible and communicative and reaching maturity at a very high phase. Acquisition is a choice to enhance the emerging and diversified markets. This case paper presents insights on Vedanta – Cairn India cross-border acquisition deal in Indian oil and exploration industry. This case synchronizes the gap between strategic planning and outcome of actions. The study exclusively evidences the reaction of stocks of all attached parties against acquisition announcement and compares with market performance. Expected learning outcomes Strategic mapping of business negotiations, while in-organic choices, further the impact of economic, political, legal and regulatory factors on cross-border mergers and acquisitions (M&A), deliberate deal financing mechanism and leadership diplomacy. It proposes from the viewpoint of corporate in-organic alternatives and to strengthen the upcoming research field of strategy & policy. Supplementary materials Global M&A market, shareholding pattern, income statement and balance sheet of Cairn India Ltd, financial figures of Vedanta Resources, tabular data on stock and index performance, deal structure and teaching note.

An investment decision dilemma

2016 ◽  
Vol 6 (1) ◽  
pp. 1-25
Author(s):  
Sulagna Mukherjee ◽  
M. Durga Prasad ◽  
Sudeep S. Kumar
Keyword(s):  
Investment Decision ◽  
Balance Sheet ◽  
Cash Flows ◽  
Subject Area ◽  
Content Type ◽  
Public Transport System ◽  
Income Statement ◽  
Viable Solution ◽  
Bus Operator ◽  
Breakeven Analysis

Subject area Financial Accounting and Corporate Finance. Study level/applicability Undergraduate, Post Graduate and Executive Education. Case overview T.A. Pai Management Institute (TAPMI), a leading B School in South India had established its new campus in Badagabettu village, about 5 km away from Manipal, Udupi District, Karnataka. Though the campus housed about a thousand inmates, comprising students, staff and faculty members, a proper public transport system did not develop commensurate with other facilities. The TAPMI administration was flooded with requests from various stakeholders to find a solution to this vexed problem. The Dean Administration had three options before him namely convincing the existing private bus operator to run a new bus en route TAPMI, TAPMI purchases the bus by either paying cash or availing loan from a bank or TAPMI can take a bus on lease. The predicament before Dean was to find out the most economically viable solution. Expected learning outcomes At the end of this case discussion, the participants will be able to: understand the application of breakeven analysis; prepare income statement, balance sheet, cash flow statement and forecast of cash flows; evaluate financing and investing decisions by using various techniques; discuss and debate the different alternatives available to the organization. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 1: Accounting and Finance.

scholarly journals Can Fundamental Analysis Support Shareholder Value In A Transitional Market? Perspectives From Egypt

2011 ◽  
Vol 5 (1) ◽  
Author(s):  
Tarek Ibrahim Eldomiaty
Keyword(s):  
Capital Investment ◽  
Shareholder Value ◽  
Balance Sheet ◽  
Debt Financing ◽  
Financial Information ◽  
Fundamental Analysis ◽  
Short Term ◽  
Income Statement ◽  
Medium Firms

This study examines the informativeness of fundamental financial information to three levels of shareholder value. In general, the results show that the fundamental financial information is quite informative to shareholders using the MB ratio as a measure of shareholder value. According to the sensitivity analysis, (1) the balance sheet items are not quite informative, (2) the income statement items are consistently informative to shareholders at the three classes, and (3) the financial ratios, as a form of co-integrated financial information, are quite informative to the high and low shareholder value classes. The results regarding the fundamental analysis indicate that (a) in the three levels of MB firms, investors are concerned with the short-term horizon, (b) in the low MB firms, the investors are concerned with the long-term horizon, (c) in the high and low MB firms, the operating and total expenses are regarded as a capital investment, (d) in the high MB firms, the trend is to finance operations using equity rather than debt financing, (e) profitability affects low MB firms only rather than high and medium firms, (f) in the high and medium MB firms, investors do not regard the elements related to firms operations, (g) in the low MB firms, investors are concerned with the effects of capital structure on firms value although the results show that dividends have a reverse effect on firms market value.

scholarly journals Methodology of cash flows analysis

2021 ◽  
Vol 16 (1) ◽  
pp. 27-47
Author(s):  
Miloš Pavlović ◽  
Čedomir Gligorić ◽  
Jana Cvijić-Rodić
Keyword(s):  
Decision Making ◽  
Balance Sheet ◽  
Accounting Information ◽  
Cash Flows ◽  
Financial Information ◽  
Income Statement ◽  
Report Analysis ◽  
The Subject ◽  
Accounting Period ◽  
Statement Of Cash Flows

Cash flows are one of the main indicators of liquidity and solvency of the company. In practice, the Statement of cash flows is very often done as "following document" to Balance sheet and Income statement. This is wrong. The statement of cash flows can give the information to its users about the ability of the company to make cash. The balance sheet and Income statement, due to their accrual basis, are not saying anything about the cash flows of the accounting period, and that is why the Statement of cash flows is very important. A good analysis of this statement can be the basis and support to the process of decision making both for internal and external users of financial information. In this paper we are presenting the methodology of the Statement of cash flows report analysis. The subject of this paper is the analysis of the Cash Flow Statement. The aim of this paper is to point out the importance of reporting on cash flows and its information capabilities to users of accounting information.

scholarly journals Peranan Penyusunan Laporan Keuangan Dalam Penyajian Informasi Keuangan Pada BMT At-Taqwa Muhammadiyah Sumatera Barat

2020 ◽  
Vol 8 (1) ◽  
pp. 14
Author(s):  
Leli Wita Suwita
Keyword(s):  
Balance Sheet ◽  
Financial Statements ◽  
Financial Information ◽  
Financial Statement ◽  
Financial Reports ◽  
Income Statement ◽  
Corporate Entity ◽  
West Sumatra ◽  
And Performance

This study aims to analyze how the role of financial statement preparation is to find out information relating to the financial position and performance of a corporate entity which includes the realization of the budget report, balance sheet, cash flow statement, and reports on the financial statement notes. The research method used is a qualitative method that compares financial statements between 2016 and 2018. The financial statements presented by BMT At-Taqwa Muhammadiyah West Sumatra in the form of a balance sheet and income statement, where an increase in value from the reporting date of the current year with the previous year, of the report there are still shortcomings in the reporting. BMT At-Taqwa Muhammadiyah West Sumatra is recommended to make all financial reports needed by financial information from BMT At-Taqwa Muhhammadiyah West Sumatra.Keywords: Role; Financial Statements; Financial Information.

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