Disclosure Overload? A Professional User Perspective on the Usefulness of General Purpose Financial Statements

Even though the IFRS for SMEs does provide some relief in respect of the financial reporting burden for non-public entities, there still seems to be a need for an even lower level of financial reporting. In recent years South Africa embarked upon the development of a financial reporting framework for non-public entities and various versions of this so-called micro GAAP have been issued. However, the Accounting Practices Board raised some concerns about the then proposed micro GAAP. This article highlights the South African accounting practitioners’ views from different professional bodies on micro GAAP. They generally believe that micro GAAP will represent fair presentation and that the financial statements prepared under micro GAAP can still be regarded as general purpose financial statements. Furthermore, the majority of accounting practitioners believe that there is a definite need for a third tier of financial reporting in South Africa and indicated their preference of which entities may apply micro GAAP. Legal backing of micro GAAP is also considered appropriate by the practitioners.

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Professional Securities Analysts Meet Professors Of Financial Analysis: A Pilot Study Of Financial Statement Assessment Differences

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v7i12.2361 ◽

2011 ◽

Vol 7 (12) ◽

Author(s):

Robert L. Webster ◽

Jeanie Curry

Keyword(s):

Private Sector ◽

Financial Analysis ◽

Financial Statements ◽

General Purpose ◽

Financial Statement ◽

Font Size ◽

Financial Condition ◽

Securities Analysts ◽

Data Collection Process ◽

User Groups

This multivariate behavioral research investigates whether the financial assessments made by professors of financial analysis differ from those made by private sector financial analysts.  Professors of financial analysis and professional private sector securities analysts were put into separate groups for the study.  Members of the two groups were asked by way of a mailed survey to analyze multi-year comparative financial statements of a business enterprise using variables related to liquidity, long term debt, cash flow, dividend prospects, profitability, and overall financial condition.  The study found a significant statistical difference in assessment results of the analysts and the professors. These results indicate that general purpose financial statements convey different information to the two user groups.  The paper describes the data collection process, statistical analysis, and results of the research as well as limitations and a call for additional research.

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Exemptions Resulting from the International Public Sector Accounting Standards (IPSAS) and European Standards for Intangible Investment, Inventories and Personnel Expenditures in Public Entities

Scientific Bulletin ◽

10.2478/bsaft-2019-0014 ◽

2019 ◽

Vol 24 (2) ◽

pp. 124-130

Author(s):

Corina Enache

Keyword(s):

Public Sector ◽

Accounting Standards ◽

Financial Statements ◽

General Purpose ◽

Employee Benefits ◽

International Accounting Standards ◽

Adoption And Implementation ◽

Public Sector Accounting ◽

Personnel Expenses ◽

European Standards

Abstract Simultaneously with the globalization of economies, it was necessary the adoption and implementation of international accounting standards for the public sector also. In 1996 a set of accounting standards for public sector entities was developed, namely International Public Sector Accounting Standards (IPSAS). After 31st July 1998, 32 IPSAS standards, mostly inspired by IASs, centered on model and engagement-based accounting, were issued. IPSAS 1 – Presentation of financial statements relating to the place of intangible assets, inventories and personnel expenses in the content and format of the financial statements is applied to all general purpose financial statements realized under accrual accounting. The IPSAS 12 – Inventory objective is to state the stock accounting treatment. The IPSAS 25 objective – Employee benefits is to state the employee benefits from an accounting perspective.

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IMPLEMENTASI PENCATATAN KEUANGAN PADA USAHA KECIL DAN MENENGAH

Jurnal Ilmiah Bisnis dan Ekonomi Asia ◽

10.32812/jibeka.v12i1.16 ◽

2018 ◽

Vol 12 (1) ◽

pp. 59-65

Author(s):

Pipit Rosita Andarsari ◽

Justita Dura

Keyword(s):

Descriptive Analysis ◽

Financial Statements ◽

General Purpose ◽

Accounting Systems ◽

Analytical Technique ◽

Accounting Practice ◽

Business Units ◽

Qualitative Descriptive ◽

The Mind ◽

Depth Interviews

This study aims to determine the application of financial records on small and medium business units (SMEs) because the SME sector is currently the sector that became the government's flagship. The analytical technique used qualitative descriptive analysis, using intepretive paradigm. Data collected through observation and in-depth interviews to informants to see the practice of applying financial records has been presented properly and correctly and refers to the theory of accounting systems associated with general-purpose financial records. There are two forms of accounting practice in SME Sanan - Malang, which is accounting only practiced in the mind / memory and made some accounting records to the preparation of financial statements balance and L / R. The benefits of these two forms of accounting are limited to the control of some business activities. In this case, SMEs still do not have the ability to present complete and appropriate financial information.

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Information and Strategic Aspects of Financial Statements in the Assessment of their Users

Folia Oeconomica Stetinensia ◽

10.2478/foli-2019-0021 ◽

2019 ◽

Vol 19 (2) ◽

pp. 176-187

Author(s):

Grażyna Voss

Keyword(s):

Decision Making ◽

Research Methodology ◽

Financial Statements ◽

General Purpose ◽

Financial Information ◽

Accounting Ethics ◽

Decision Making Processes ◽

Principles Of Accounting ◽

First Time

Abstract Research background: General purpose financial statements constitute a source of financial information used by different groups of stakeholders. However, the frequency of changes concerning the form and content of reports insinuates uncertainty in relation to the credibility and thorough understanding of included information. Purpose: The aim of the article is to verify the suitability and utilisation of financial statements in decision-making processes and evaluation of their reliability as assessed by unit managers and tax advisors. Research methodology: In the first half of 2018 a survey was conducted among 60 tax advisors concerned with legal and tax services of economic entities and an identical survey was conducted among 60 managers of entities recognised as big economic entities functioning in the area of Kuyavian-Pomeranian and Pomeranian Voivodships. Results: The surveys conducted in selected groups of stakeholders make it possible to indicate the areas in which the presented contents are not fully used and do not provide any basis for them to be recognised as compatible with the rules of ethics. Novelty: For the first time, questionnaires were conducted in various groups of users of financial statements, they determined the level of their interest in particular elements of the report and the principles of accounting ethics.

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The impact of latest changes in Financial Reporting on Stakeholders’ Confidence and Satisfaction.

Journal of University of Shanghai for Science and Technology ◽

10.51201/jusst/21/07248 ◽

2021 ◽

Vol 23 (07) ◽

pp. 930-949

Author(s):

Dr. Dolly Roy Choudhary ◽

Keyword(s):

Financial Reporting ◽

Information Needs ◽

Financial Statements ◽

General Purpose ◽

Corporate Disclosure ◽

The Public ◽

Common Information ◽

External Stakeholders ◽

Important Input ◽

The Impact

This paper focuses on how the latest changes in corporate financial reporting have an impact on the stakeholders i.e. the shareholders, employees, management, creditors, auditors, suppliers, and the public in general. Financial information serves as an important input and guides for informed decision-making in an economic environment. The financial statements are one of the most important bases on which the internal and external stakeholders reach effective decisions. The idea of “General Purpose Financial Reporting” is directed to the common information needs of users and stakeholders. This study attempts to assess whether the stakeholder’s confidence and satisfaction are enhanced by the nature and extent of information that is made available to the stakeholders and the practices of corporate disclosure in annual accounts.

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The Effect of Adoption of International Public Sector Accounting Standards on General Purpose Financial Statements in the Public Sector : A Case Study of Local Governments / Local Council Development Areas in Lagos State

Journal of Policy and Development Studies ◽

10.12816/0056337 ◽

2020 ◽

Vol 12 (2) ◽

pp. 59-65

Author(s):

Abata , Matthew Adeolu ◽

Lamidi , Olabode

Keyword(s):

Public Sector ◽

Local Governments ◽

Accounting Standards ◽

Financial Statements ◽

General Purpose ◽

Local Council ◽

The Public ◽

Lagos State ◽

Public Sector Accounting

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TENDENCIJE U RAZVOJU EKSTERNE I INTERNE REVIZIJE U JAVNOM SEKTORU U ZEMLJAMA EU I BALKANA

Facta Universitatis Series Economics and Organization ◽

10.22190/fueo1801057b ◽

2018 ◽

pp. 057

Author(s):

Ljiljana Bonić ◽

Dejan Jakšić ◽

Kristina Mijić

Keyword(s):

Public Sector ◽

Good Governance ◽

Internal Audit ◽

Financial Statements ◽

General Purpose ◽

Integral Approach ◽

Public Funds ◽

The Public ◽

Public Resource ◽

Assurance Services

Although they have different and clearly defined roles, the general purpose of external and internal audit in the public sector is to contribute to good governance of public funds, that is, efficiency, effectiveness and economy of public administration. As part of the numerous reforms in the public sector of the EU countries, as well as the Balkan countries, which began at the beginning of the 21st century, the external audit of the public sector (state audit) is developing an integral approach in its scope of work, which means providing attestations to the Parliament and the citizens of the state that the public funds are used effectively, efficiently and economically, and that the financial statements and operations of the public sector entities are in line with professional and legal regulations (emphasis is on the performance audit). The internal audit of public funds users, in addition to providing assurance services, is increasingly focused on advisory services with the aim of providing management with support in improving public resource and risk management, the efficiency of spending public funds and the provision of quality public services.

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Disclosure of Financial Statements: A Study on Mobile Telecommunication Companies in Bangladesh

American Journal of Trade and Policy ◽

10.18034/ajtp.v3i1.397 ◽

2016 ◽

Vol 3 (1) ◽

pp. 29-38

Author(s):

Taposh Kumar Neogy

Keyword(s):

Balance Sheet ◽

Accounting Information ◽

Financial Statements ◽

General Purpose ◽

Mobile Telecommunication ◽

Accounting Information Systems ◽

Income Statement ◽

Significant Difference ◽

Telecommunication Companies ◽

Effective Decision

Accounting information produced by AIS through preparing the different financial statements of the selected mobile telecommunication companies is used to meet the needs of interested stakeholders for taking effective decision to serve the different purpose. The selected mobile telecommunication companies follow the provision of IASs/BASs and IFRSs/BFRSs for preparing and presenting the different financial statements. The selected mobile telecommunication companies also follow the Companies Act, 1994, the Securities and Exchange Rules 1987 and other applicable laws in Bangladesh. Accounting Information Systems of the selected mobile telecommunication companies collects stores and disseminates data for the purpose of providing meaningful information to the interested users that assist planning, controlling, coordinating, analyzing and taking effective decision. The general purpose of preparing the different financial statements of the selected mobile telecommunication companies is to provide accounting information to the interested users for taking every effective decision making process. Accurate judgments are impossible unless financial statements are clear and understandable by the interested parties. The study focuses the extent of disclosure scores of the income statement and balance sheet items of the selected mobile telecommunication companies over five years from 2008 to 2012. The results show that the average disclosure scores of income statement and balance sheet items are satisfactory and there is significant difference in disclosure scores of income statement and balance sheet items of the selected mobile telecommunication companies during the period under study. The results also show that most of the respondents reveal that the accounting information produced by AIS of the selected mobile telecommunication companies is moderately adequate and informative and there was significant and non significant difference of opinions among the respondents regarding the adequacy and informativeness of accounting information produced by AIS of the selected mobile telecommunication companies. JEL Classifications Code: M41, F38

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Carving Nature at Its Joints: The Entity Concept in an Entangled Society

Accounting Historians Journal ◽

10.2308/aahj-10556 ◽

2017 ◽

Vol 44 (2) ◽

pp. 125-138 ◽

Cited By ~ 2

Author(s):

Louella Moore

Keyword(s):

Financial Reporting ◽

Natural Kinds ◽

Financial Statements ◽

General Purpose ◽

Cultural Bias ◽

Cultural Significance ◽

Accounting Practice ◽

History Of ◽

Philosophical Pragmatism ◽

Reporting Entity

ABSTRACTParsing the dividing lines between financial reporting entities and individual elements poses significant professional challenges. In contrast, FASB/IASB exposure drafts on The Reporting Entity describe the boundaries of reporting entities as self-evident and objectively determinable. This paper argues that the entity problem in accounting is much broader than merely a question of determining what activities to include in general purpose financial statements. The history of the accounting entity concept and Scott's (1931) monograph, The Cultural Significance of Accounts, are revisited to explain the weak philosophical basis for modern accounting practice. The paper argues that the FASB/IASB conceptual frameworks exhibit a cultural bias of finite objectivism grounded in philosophical pragmatism and an Aristotelian logic of “natural kinds” sorted into disjoint categories. Alternative conceptualizations from outside the accounting literature depict reality as intertwined, unbounded, and not easily sorted into disjoint categories. The paper concludes that while some disciplines are beginning to view firms as entangled social organisms with problematic boundaries, the accounting profession's ability to adapt may be constrained by a philosophical foundation that treats boundaries of reporting units, accounting practice, and even academic discourse as self-evident.

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