scholarly journals Construction contract revenue recording comparison

2008 ◽  
Vol 56 (3) ◽  
pp. 241-250
Author(s):  
Hana Bohušová
Keyword(s):  
Czech Republic ◽  
Accounting Standards ◽  
Financial Statements ◽  
Accounting System ◽  
International Accounting Standards ◽  
Publicly Traded ◽  
The Czech Republic ◽  
Publicly Traded Companies ◽  
Construction Contracts

Publicly traded companies prepare their consolidated accounts in conformity with the international accounting standards (IAS/IFRS) in accordance with the Regulation No. 1606/2002. This is obliged for all publicly traded joint-stock companies in the Czech Republic. Other companies prepare financial statements in accordance with national accounting standards. There are Accounting Act No. 563/1991 of Coll. and Regulation No. 500/2002 of Coll., Czech Accounting Standards in the Czech Republic. Both systems are based on different principles so there are many differences. The Czech Accounting System (CAS) is based on the rules while IAS/IFRS are based on principles (Kovanicová, 2005). These differences are mainly caused by the different philosophy. CAS prefers the fiscal policy to the economic substance while IAS/IFRS prefere the economic substance. One of the most significant dif­fe­ren­ces is in the field of revenue recording. There are two standards concerning the revenues recording (IAS 18 − Revenue, IAS 11 – Construction Contracts) in IAS/IFRS. CAS 019 – Expenses and Revenue are dealing with the revenue recording in the Czech Republic. The paper is aimed at the comparison of the methodical approaches for revenue recording used by IAS/IFRS and by CAS. The most important differences are caused by the different approach to the long term contracts (construction contracts, software development contracts) revenues recording.

scholarly journals Analisis Penerapan Pengakuan Pendapatan Kontrak Konstruksi Berdasarkan PSAK 34

2019 ◽  
Vol 7 (3) ◽  
pp. 391-396
Author(s):  
Riki Subagja ◽  
Didit Pradipto
Keyword(s):  
Accounting Standards ◽  
Financial Statements ◽  
Revenue Recognition ◽  
Short Term ◽  
Construction Contracts ◽  
Term Contract ◽  
Short Term Contract ◽  
The One ◽  
Construction Services

This study aims to analyze the implementation of contract revenue recognition based on PSAK 34. The problem that is often faced by companies that are particularly engaged in the field of construction services in the recognition of income is the method of revenue recognition what should be used or applied, because there are differences in recognition between the one method with others. Especially if a project is done is more than a year or the so-called Long-term project. In addition, the presentation of financial statements of income recognition in each accounting period must be reported in accordance with generally accepted Accounting Standards (PSAK No. 34 concerning Construction Contracts). There is only one method used or applied that is the percentage completion method. The percentage method recognizes income with two approaches, based on physical progress and cost-to-cost. PT X as a construction service company uses the percentage of completion method with a physical progress approach (Physical progress) in the recognition of his opinion for both long-term contract and short-term contract. The results of this study conclude that the accounting treatment of the application of revenue recognition of construction services by using the percentage of completion method with physical progress approach on PT X is in conformity with the accounting standards set in PSAK No. 34. However, when compared to revenue recognition using the percentage of completion method with a cost-to-cost approach the firm can recognize the revenue and expenses more to illustrate or show a more proportional calculation because it corresponds to the costs incurred or poured out.   Keywords: revenue recognition, expense recognition, PSAK no. 34

scholarly journals The Applicability of International Standards for Long-Term Leases through the Iraqi Government Accounting System

2019 ◽  
Vol 54 (6) ◽  
Author(s):  
Sattar Gaber Khallawy ◽  
Hagar Khadim Mohsen
Keyword(s):  
Accounting Standards ◽  
International Standards ◽  
International Accounting ◽  
Accounting System ◽  
International Accounting Standards ◽  
Government Accounting ◽  
Needed Information ◽  
The Government ◽  
One Year

The research highlights the long-term leases according to the international accounting standards in public sector within the economic units that apply the government accounting system. The long-term lease is a lease that has a framework of terms and conditions ratified between two persons; or it is a group of agreements which the two parties of the contract (lessor and lessee) are committed by. The lease is usually valid for over one year. The international accounting standards name several treatments in the lessor registry in order to get suitable measurement and disclosure of the users’ needed information and the statement of financial position of the economic unit. Measurements are one of the most important operations that facilitate accessing to reliable data; disclosure is the most significant operator in validity and accuracy of information about the building that is provided to the users.

scholarly journals Financial Statement according to National or International Financial Reporting Standards? A Decision Analysis Case Study from the Czech Republic at Industrial Companies

2020 ◽  
Vol 31 (3) ◽  
pp. 270-281
Author(s):  
Michal Krajňák
Keyword(s):  
Czech Republic ◽  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Statements ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
The Czech Republic ◽  
National Accounting ◽  
Financial Reporting Standards ◽  
Industrial Companies

Financial statements bring information about financial position, performance and changes in financial performance. These statements could be prepared in accordance with national accounting standards or in accordance with International Financial Reporting Standards. The scientific problem is to assess whether it is more beneficial to prepare financial statements according to national, transnational or both national and transnational accounting standards. Results show that it is more convenient to prepare financial statements only according to the legislation of national accounting standards. The advantage of this option is lower costs. However, the second best option, based on preparing financial statements according to International Financial Reporting standards, leads to higher quality, credibility and comparison of these statements. Options based on the gradual convergence of transnational and national accounting standards also do not represent an ideal situation. The utility of options is influenced by many criteria. The most important criterion according to the questionnaire survey is costs. The questionnaire survey was carried out in the year 2018 among 28 industrial companies in the selected region of the Czech Republic. The methods of description, analysis, synthesis, comparison and selected methods of multi-criteria decision-making are used in the article.

scholarly journals EXPENDITURES AND EXPENSES IN BUDGETARY INSTITUTIONS: ESSENCE, ACCOUNTING PROBLEMS AND WAYS TO IMPROVE

2021 ◽  
Author(s):  
Nadia Topolenko ◽  
Yulia Lavreniuk
Keyword(s):  
Public Sector ◽  
Financial Reporting ◽  
Reporting System ◽  
Accounting Standards ◽  
Financial Statements ◽  
Accounting System ◽  
International Accounting Standards ◽  
The Public ◽  
Budgetary Institutions

In the conditions of public sector entities, much more attention is paid to accounting for income, expenditures and expenses, primarily by practicing accountants. The revenues of public sector entities represent the main source of their activities, and the costs make it possible to analyze their effectiveness and rationality of the use of budget allocations, so the organization of accounting for these objects determines the effectiveness of the activities of public sector institutions. The accounting system of public sector institutions is formed according to the modernization schemes approved at the legislative level. The public sector accounting plan and national accounting regulations (standards) in the public sector have significantly changed the established methods of accounting for the implementation of budgetary institutions. The economic classification of expenditures has also changed, the division of operations into exchange and non-exchange operations in accordance with international accounting standards for the public sector has also changed. The above has led to significant changes in the method of accounting for income, expenditures and expenses, which is due to the relevance of the study. The article specified and proposed new definitions of economic concepts of «income», «expenditures» and «expenses» of budgetary institutions. Various approaches to their interpretation are considered, attention is focused on the key problems of adaptation of accounting for income and expenses of budget funds managers in accordance with the implementation of the Strategy for modernization of the accounting and financial reporting system in the public sector for the period up to 2025 and approximation to the generally accepted principles of international practice. Changes in the methodology of accounting and display in financial statements of income and expenses of public sector entities were studied, the theoretical and practical aspects of improving the accounting of income, expenditures and expenses by public sector entities were highlighted. Proposals for improving the accounting of income and expenses in the public sector are given and substantiated.

scholarly journals Relationship between legislation and accounting errors from the point of view of business representatives in the Czech Republic

2019 ◽  
Vol 10 (1) ◽  
pp. 193-210 ◽  
Author(s):  
Marie Paseková ◽  
Eva Kramná ◽  
Bohumila Svitáková ◽  
Miroslava Dolejšová
Keyword(s):  
Czech Republic ◽  
Goodness Of Fit ◽  
Accounting Standards ◽  
Value Added ◽  
Financial Statements ◽  
Point Of View ◽  
Goodness Of Fit Test ◽  
The Czech Republic ◽  
Non Profit ◽  
Accounting Errors

Research background: Previous studies have demonstrated that providing relevant information to users is positively affected by higher quality of accounting standards and adhering to ethical rules and accounting principles by accounting professionals. On the other hand, there are a lot of cases when the law was broken. The most common reason for committing financial statement´s fraud include in-creasing stock prices, getting loans from bank or avoiding payment of taxes. Purpose of the article: The aim of this paper is to evaluate both the relationship between using of legislation and accounting errors rate in the financial statements as well as the possible using of creative accounting from the point of view of enterprises and non-profit organizations in the Czech Republic. Methods: Among the quantitative research methods the questionnaire was used. The questionnaires were sent out to randomly 201 selected enterprises and non-profit organization. The survey was conducted from September 2017 to the end of January 2018. The data were analyzed by means of the tools of descriptive statistics and the chi-square goodness of fit test. The research questions sought to investigate whether Czech Accounting Standards helped in all areas of accounting and reporting and avoiding of errors in financial statements, and whether the respondents encountered fraudulent procedures in compiling financial statements. Findings & Value added: The results indicated that using Czech Accounting Standards was perceived as a useful tool in solving all situations in areas of accounting and avoiding accounting errors. Moreover, it was proved that the volume and frequency of errors were not significant in financial statements.

scholarly journals Extent Of Measurement And Disclosure Of Environmental Information In Financial Reports Under (IFRS & IAS) For Yemeni

2021 ◽  
Vol 319 ◽  
pp. 01079
Author(s):  
ali abdo Dhaif Allah ◽  
Salmane Bourekkadi ◽  
Aziz Babounia ◽  
Saliha Elhakmi
Keyword(s):  
Accounting Standards ◽  
Financial Statements ◽  
Environmental Information ◽  
Environmental Accounting ◽  
Annual Reports ◽  
Measurement Tool ◽  
International Accounting ◽  
Accounting System ◽  
International Accounting Standards ◽  
Environmental Disclosure

The study aims to determine the requirements for the disclosure of environmental information in the financial statements in light of international accounting standards and to study and determine the degree and nature of disclosure of environmental information in the financial statements of the sample companies, and the importance of environmental information in making decisions about setting plans and objectives and drawing policies that aim to protect and sustain the environment as It represents the comprehensive container of the elements of natural wealth, based on the information announced in the annual reports of the sample companies, which include an industrial and forestry company, and it was selected from the most environmentally sensitive sectors and the most impacting on the environment. Using the content analysis method, which will be the main measurement tool for the research, where the disclosure scale will be prepared using this method and in a similar way to the scale (1982, Wiseman), which includes 18 axes of environmental disclosure within 6 main axes covering all aspects of the environmental performance of the company. The results of the study showed that disclosure in the sample companies is restricted by what is imposed by the standard accounting system with regard to the disclosure of fuel or production waste, as the environmental accounting applications in industrial and strategic companies in Yemen did not take sufficient attention, and this comes as a result of the lack of awareness of industrial companies and their weak contribution to the responsibilities that should be borne in the field of environmental protection and society. This study represents the theoretical framework for understanding the nature of environmental accounting and reporting by providing a detailed review of environmental accounting, in addition to understanding the nature of environmental disclosures for industrial and extractive companies in Yemen and the extent of their application to international accounting standards. The research recommends the necessity of obligating industrial and extractive companies to environmental disclosure due to its low levels in the annual reports they issue, which reflect a state of lack of interest and awareness by the majority of Yemeni companies of their environmental role and responsibilities towards society.

scholarly journals Obstacles To The Adoption Of The IAS/IFRS In Tunisia

2016 ◽  
Vol 32 (3) ◽  
pp. 621-636 ◽  
Author(s):  
Salem Lotfi Boumediene ◽  
Ridha Zarrouk ◽  
Ines Tanazefti
Keyword(s):  
Internal Control ◽  
International System ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Information ◽  
International Accounting ◽  
Accounting System ◽  
International Accounting Standards ◽  
Economic Decision Making ◽  
Conservative Attitude

To guarantee the production of financial information that is useful for economic decision-making, most countries have a set of accounting standard used in preparing the financial statements. Indeed, the use of a common accounting language by all companies operating in the same economic space allows different users to monitor the activities of these entities in time and space and, therefore, take reasonable decisions. Thereby, the international accounting standards are a necessary to clarify the financial disclosure and make reading financial statements conform to a single repository easier. This strengthens the investor’s confidence, stimulates the financial market and ensures the best qualities that the financial information should be endowed. In deciding to adopt the international accounting standards IAS/IFRS, Tunisian authorities have launched a challenge to prompt a fast and adequate transition to a new accounting, financial, informational, organizational and internal control systems. However, this presents some obstacles related to the nature of the Tunisian economy which is characterized by a strong presence of small and medium companies, to the differences between the tax system and the accounting system, the conservative attitude of leaders and the high concentration of ownership. The results of our research analysis shows that the conservative attitude of managers and the lack of dynamic and efficient markets are the most important obstacles to adoption of IAS/IFRS in Tunisia according to the Tunisians Certified Public Accountants TCPAs). We detailed our analysis for the accounting, tax and economic obstacles. For the accounting, we found that the application of IAS 19, IAS 36 and IFRS 4 are the standards that cause more problems at the moment of their implementation according to the TCPAs. In addition, the deferred tax, the actuarial method and the treatment financial instruments are the most complex treatments in IAS/IFRS. Finally, the differences between the Tunisian accounting system and the international system are undoubtedly an important obstacle. Concerning the tax obstacles, we found that companies prepare their financial statements first in accordance with tax rules. In fact, the differences between the tax rules of the Tunisian accounting system and the IAS/IFRS are undoubtedly an obstacle to a better adoption of them. In addition, another obstacle is the readiness of tax administration for the adoption of the IAS/IFRS. Finally, for the economic obstacles, we found that the IAS/IFRS’ adoption and implementation costs and the costs related to their enforcement are the main economic obstacles.

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