scholarly journals Proposals of changes in the financial statements of non-profit organizations

2013 ◽  
Vol 61 (2) ◽  
pp. 417-425 ◽  
Author(s):  
Milena Otavová
Keyword(s):  
Financial Analysis ◽  
Explanatory Power ◽  
Balance Sheet ◽  
Financial Statements ◽  
Formal Structure ◽  
Financial Statement ◽  
Non Profit ◽  
For Profit ◽  
Accounting Rules ◽  
Non Profit Organizations

Financial statements (balance sheet, profit and loss statement) intended for profit and non-profit organizations have large number of differences in terms of content of individual items and also with regard to their formal structure. This is due to the existence of different types of accounting entities for which there are created sets of accounting rules. Need for separate set of accounting rules results from their objectives, management rules, performed activities and certain specific of costs, revenues, assets and liabilities. The differences found on the basis of comparative analysis in this paper are evaluated and subsequently there are recommended changes of the statements so that they would be more useful for the purposes of economic analysis. The paper also identified problems that arise in connection with the evaluation of the efficiency of this type of organizations and subsequently there are recommended tools of financial analysis suitable for evaluation of non-profit organizations and the specifics of non-profit sector are pointed out. The paper presents also the proposal to change the Decree 504/2002 Coll. so as to avoid distortion of financial statement closing of non-profit organizations, and also with regard to their higher explanatory power.

Misrepresentation of financial statements

2014 ◽  
Vol 21 (2) ◽  
pp. 215-225 ◽  
Author(s):  
Cenap Ilter
Keyword(s):  
Design Methodology ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Financial Statements ◽  
Financial Statement ◽  
Accounting Fraud ◽  
Financial Statement Fraud ◽  
Content Type ◽  
The Public ◽  
Fraud Theory

Purpose – The purpose of this paper is to show the public, in general, and auditors, in particular, that in the absence of control there is always a risk of fraud. Fraud can be done in various forms. Larceny may be the most obvious case of fraud, but fraud may be done in many other ways too. Balance sheet fraud or financial statements fraud is a broader issue; it is far-fetched than a few hundred dollars of a larceny case. In financial statement fraud, the deep down effect may be millions or billions of dollars. Design/methodology/approach – The paper has been designed based on a fraud theory. The author has observed the implications of a possible fraud in a real audit case. The fraud theory has been tested through financial analysis and audit tests. The theory has then been revised and the existence of a financial statement fraud has been proven. Findings – The paper explores that banks and group companies controlled by unreliable owners can lead to misuse of public's funds in accordance with the directives of the owner. Public's money can be transferred to other group companies in an illegal manner – in excessive amounts – and never returned to the bank by means of applying different accounting fraud techniques. Research limitations/implications – Auditors, who may audit group companies that include a bank or banks with deposit receiving and lending rights, should pay attention to the transactions between the group's bank and the other group companies. The lending may be excessive in amount and/or never paid back and the financial statements would be misrepresented covering various fraud schemes. Originality/value – The case that the paper deals with reflects the author's own audit experiences. The names of the companies have been changed but not the essence of the events. From this perspective, it sheds light onto the path of an auditor who happens to be in a similar situation.

scholarly journals PENERAPAN PSAK NO. 45 REVISI TAHUN 2015 PADA YAYASAN MADRASAH IBTIDAIYAH BAITUL MAKMUR KOTA KOTAMOBAGU

2017 ◽  
Vol 6 (1) ◽  
pp. 92
Author(s):  
Aldiansyah Sugeha ◽  
Linda Lambey
Keyword(s):  
Elementary School ◽  
Financial Statements ◽  
Financial Statement ◽  
Qualitative Result ◽  
Non Profit ◽  
Non Profit Organizations ◽  
Student Fees ◽  
The Times ◽  
Cash Receipt ◽  
Descriptive Qualitative

Along with the times, now a non-profit organization has been growing rapidly, for example a foundation engaged in educational, religious, health and others. Kotamobagu State Islamic Elementary School is an example of a foundation that is engaged in the field of education are categorized into non-profit organizations because it has the resources coming from student fees and parental contributions. As with any profit organizations, non-profit organizations also require knowledge of accounting to record expenses and revenues. In order to provide some form of responsibility and accountability to the community, the foundation is also required to prepare financial statements in accordance with the rules or standards that already exist. The purpose of this study was to determine the Financial Statements of Government Elementary School Baitul Makmur when applying PSAK No. 45. The method used is descriptive qualitative. Result shows that Government Elementary School have made a financial statement is still as simple as cash receipt book, cash expenditure book, the book recapitulation and did not make statements as set forth in PSAK No. 45.Keywords : PSAK, Nonprofit, Financial Statement

scholarly journals Evaluasi Pengelolaan Organisasi Non Profit Untuk Menunjang Transparansi Dan Akuntabilitas Bagi Donatur

2018 ◽  
Vol 10 (1) ◽  
pp. 51-65
Author(s):  
Agung Sri Wardani ◽  
Bambang Herwanto ◽  
Ratnawati Hari Prayitno
Keyword(s):  
Strategic Management ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Statement ◽  
Technology Utilization ◽  
Web Based ◽  
Non Profit ◽  
Organization Management ◽  
Non Profit Organizations ◽  
Healthy Organization

Financial statement is one of the essential thing in managing finance in an organization. Both profit oriented organizations and non profit oriented organizations requires relevant, reliable, comparable and understandable information in financial statements presented. Moreover, the non profit organizations, which the largest source of funding is donated from donors, the possibility of fraud becomes bigger. It is usually done by several parties, even by the management itself. Therefore, the diclosure of relevant, reliable, comparable, and understandable financial statements, are necessary done by the non profit organizations. The disclosure of financial statement needs a healthy organization management, good strategic management, finance report based on the accounting standards (PSAK 45) and good technology utilization. The technology utilization by web based financial statement are expected to be faster in presenting the non profit organization financial statement. With the stages of process that are undertaken, hopefully it will increase transparency of accountability for the donors.

scholarly journals Non-profit organization’s endowment as a source of financing to improve its sustainability

2021 ◽  
Vol 91 ◽  
pp. 01027
Author(s):  
Filip Rebetak ◽  
Viera Bartosova
Keyword(s):  
Slovak Republic ◽  
Financial Statements ◽  
Financial Assets ◽  
It Use ◽  
Financial Situation ◽  
Non Profit ◽  
For Profit ◽  
Velvet Revolution ◽  
Non Profit Organizations

Non-profit organizations are an important part of the economy and are needed to fulfill many beneficiary roles that neither market, nor state would fill. Non-profit organizations in Slovakia became important after the 1989 Velvet revolution, the dissolution of the Czechoslovakia and creation of the free and democratic Slovak Republic. Ever since them, non-profit played a role in everyday life of people in Slovakia. Non-profit organizations exist with the aim of providing generally beneficiary services without the aim of making profit for their founders – which is what makes them distinct from for profit businesses. However, non-profit organizations need funding for their operations in the same way as any other organizations. They need to pay their bills, salaries, purchase materials, services, etc. Because of their non-profit nature, the sources of financing for these costs are different. The aim of this paper was to look at the endowment of non-profit organizations and its investment as a source of non-profit financing and the current situation in Slovakia regarding it use. We analysed financial statements of foundations available through Finstat.sk database. We found that the use of investing the endowment for self-financing of non-profit organizations is almost non-existent in conditions of Slovak non-profit sector, with only 13,7% of organizations having any long-term financial assets and only 3,9% having any substantial gains from them. Further, we proposed a framework for possible use of the endowment as a source of funding for more non-profit organizations in order to improve the financial situation and sustainability of the non-profit sector.

scholarly journals Evaluasi Pengelolaan Organisasi Non Profit Untuk Menunjang Transparansi Dan Akuntabilitas Bagi Donatur

2019 ◽  
Vol 10 (1) ◽  
pp. 51-65
Author(s):  
Agung Sri Wardani ◽  
Bambang Herwanto ◽  
Ratnawati Hari Prayitno
Keyword(s):  
Strategic Management ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Statement ◽  
Technology Utilization ◽  
Web Based ◽  
Non Profit ◽  
Organization Management ◽  
Non Profit Organizations ◽  
Healthy Organization

Financial statement is one of the essential thing in managing finance in an organization. Both profit oriented organizations and non profit oriented organizations requires relevant, reliable, comparable and understandable information in financial statements presented. Moreover, the non profit organizations, which the largest source of funding is donated from donors, the possibility of fraud becomes bigger. It is usually done by several parties, even by the management itself. Therefore, the diclosure of relevant, reliable, comparable, and understandable financial statements, are necessary done by the non profit organizations. The disclosure of financial statement needs a healthy organization management, good strategic management, finance report based on the accounting standards (PSAK 45) and good technology utilization. The technology utilization by web based financial statement are expected to be faster in presenting the non profit organization financial statement. With the stages of process that are undertaken, hopefully it will increase transparency of accountability for the donors.

scholarly journals REVIEW PENYUSUNAN LAPORAN KEUANGAN BERBASIS PSAK NO. 45 (STUDI KASUS PADA UNIVERSITAS MUHAMMADIYAH PONTIANAK)

2021 ◽  
Vol 4 (1) ◽  
Author(s):  
Fuad Ramdhan Ryanto ◽  
Laily Ramadhani
Keyword(s):  
Cash Flow ◽  
Research Method ◽  
Balance Sheet ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Reports ◽  
Non Profit ◽  
Balance Sheets ◽  
Income Statement ◽  
The University

The purpose of this study is to apply PSAK no. 45 Non-Profit Organization and compilation of financial reports at the Muhammadiyah Pontianak University. Financial statements, balance sheet and income statement are object of this analysis for the period September 2018 - August 2019. The research method used is descriptive qualitative. The analysis starts by reviewing the financial reports, examining the standards in PSAK, then compiling financial reports and classifying accounts according to PSAK no. 45 standard. The results showed that the University's financial statement is well system, record cash inflows and outflows clearly, has been report Income statement and balance sheets but for the posts, sequences, accounts valuation were not in accordance with PSAK no. 45 Non-Profit Organization. The university does not report cash flow statement and notes on financial statements.

scholarly journals STATEMENTS OF NON-BUDGETARY NON-PROFIT ORGANIZATIONS

2021 ◽  
Author(s):  
Iryna Borshchuk
Keyword(s):  
Capital Investment ◽  
Information Needs ◽  
Balance Sheet ◽  
Third Sector ◽  
Financial Statements ◽  
Information Support ◽  
National Agency ◽  
Maximum Information ◽  
Non Profit ◽  
Non Profit Organizations

The article attempts to structure various forms of reporting of non-budgetary non-profit organizations (financial, tax, statistical) taking into account the information needs of users. The urgency of the topic is related to the explosive development of the sector of non-governmental organizations in the economy of Ukraine and, at the same time, the fragmentary nature of research related to the formation of public reporting. It is established that taking into account the latest changes in NP(S)BO 25 “Simplified Financial Statements” non-budgetary non-profit organizations of Ukraine submit only two forms of financial statements to local statistics and fiscal services: Balance Sheet (f.№1-ms) and Report on Financial results (f.№2-ms). In this case, data on income and expenses from f.№2-ms of a non-budgetary non-profit organization must coincide with the relevant lines of the tax report on the use of income (profits), which ensures the comparability of basic indicators of financial and tax statements. The main forms of statistical statements of non-budgetary non-profit organizations are related to labor and its payment, availability and movement of non-current assets, provision of services: Labor report; Report on arrears of wages; Report on wages by professions of individual employees; Report on the availability and movement of non-current assets, depreciation and capital investments; Capital investment report; Report on the work of vehicles; Report on export-import of services. At the same time, other forms of quarterly and annual statements are distinguished, based on the specifics of non-budgetary non-profit organizations, including the Political party's report on property, income, expenses and financial liabilities, which requires audit confirmation and is submitted to the National Agency for Prevention of Corruption. Conclusions are made on the simplified reporting procedure for organizations of the third sector of the economy, provided by domestic legislation, which, at the same time, allows accountants to focus more on management accounting and maximum information support for general management, financial and project management. This highlights the relevance of further research related to the development of forms of internal management statements for the needs of Ukrainian non-budgetary non-profit organizations.

Rating Agency Adjustments to GAAP Financial Statements and Their Effect on Ratings and Credit Spreads

2014 ◽  
Vol 90 (2) ◽  
pp. 641-674 ◽  
Author(s):  
Pepa Kraft
Keyword(s):  
Default Risk ◽  
Credit Rating ◽  
Credit Ratings ◽  
Balance Sheet ◽  
Financial Statements ◽  
Financial Statement ◽  
Credit Spread ◽  
Credit Spreads ◽  
Term Structures ◽  
Interest Expense

ABSTRACT I examine a dataset of both quantitative (hard) adjustments to firms' reported U.S. GAAP financial statement numbers and qualitative (soft) adjustments to firms' credit ratings that Moody's develops and uses in its credit rating process. I first document differences between firms' reported and Moody's adjusted numbers that are both large and frequent across firms. For example, primarily because of upward adjustments to interest expense and debt attributable to firms' off-balance sheet debt, on average, adjusted coverage (cash flow-to-debt) ratios are 27 percent (8 percent) lower and adjusted leverage ratios are 70 percent higher than the corresponding U.S. GAAP ratios. I then find that Moody's hard and soft rating adjustments are associated with significantly higher credit spreads and flatter credit spread term structures. Overall, the results indicate that Moody's quantitative adjustments to financial statement numbers and qualitative adjustments to credit ratings enable it to better capture default risk, consistent with it effectively processing both hard and soft information.

scholarly journals EARNINGS MANAGEMENT AS A MANIPULATIVE FORM OF FINANCIAL REPORTING

2019 ◽  
Vol 34 (5) ◽  
pp. 1323-1328
Author(s):  
Marija Milojičić ◽  
Snežana Knežević ◽  
Aleksandar Grgur
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Financial Statements ◽  
Legal Framework ◽  
Business Decisions ◽  
Accounting Principles ◽  
The Republic

The financial statements, as the end product of the accounting information system, are a structural account of the financial position and financial success of an entity's business over a period. Earnings or net profit indicates an important position in the financial statements and is considered as a measure of a company’s success. Earnings management comes from the accounting skills that executives and business owners use when making business decisions. The Generally Accepted Accounting Principles set out in International Accounting Standards (hereinafter IAS) and International Financial Reporting Standards (hereinafter referred to as IFRS) generally give the owner or manager the choice between several accounting methods within the various stages of the accounting process. One of these methods is creative accounting, which is often correlated with the manipulation of financial statements. Creativity in accounting is known to be legal and to stay within the legal framework, but it is often the case that, with its creativity, it is beyond its boundaries. The way managers exercise this discretion is very important to the quality and objectivity of financial reporting.The tendency of the owners, and then the managers, to show the performance of the company better than they really are, is certainly not new. The reason that in the world from the beginning of the 2000s to the present day, both by the scientific and professional public and by the regulatory bodies in charge of financial reporting, particular attention is paid to this problem are the major political and economic scandals caused by the inaccurate presentation of financial statements. It is considered that manipulative accounting practices are applied in the preparation of financial statements when the application of accounting principles is made with the intention of achieving the desired objective, such as, for example, generating greater profit regardless of whether the procedures selected are in accordance with international and local prescribed rules.The prevalence of manipulation of financial statements depends on the situation in the environment, the quality of the normative basis of financial reporting, the quality of management and the ability of accountants to comply with professional and ethical standards. The environment implies the general economic situation, the existence or absence of appropriate legislation, including its implementation, as well as the relation to tax liabilities.The result of the original empirical research is presented in this paper. The research was conducted in the form of a case study of a domestic business entity (the Republic of Serbia), whose main activity is trade in sports and fashion products. The financial analysis was performed using the Beneish model, which was derived from the official financial statements of the companies, collected from publicly available databases (Balance Sheet and Income Statement 2016-2018) as the basic information base in order to discover the degree of possible manipulation of their own earning capacity. This model has become particularly popular since the Beneish M-scoring model revealed the manipulation of the financial results of the US company Enron, which went bankrupt in 2001.

scholarly journals Analysis of Financial Statement of NRC Agro with Special Reference to Goods and Service Tax

2019 ◽  
pp. 45-65
Author(s):  
Nalla Bala Kalyan ◽  
Toopalli Sirisha
Keyword(s):  
Service Provider ◽  
Central Government ◽  
Financial Analysis ◽  
Financial Statements ◽  
Financial Statement ◽  
Accounting Data ◽  
Goods And Services ◽  
The Past ◽  
Provision Of Services ◽  
The Impact

The analysis of financial statements is an important aid to financial analysis. They provide information on how the firm has performed in the past and what is its current financial position. Financial analysis is the process of identifying the financial strengths and weakness of the firm from the available accounting data and financial statements. The analysis is done by establishing relationship between the different items of financial statements. The target of this paper is to examine the major features of GST. GST also known as the Goods and Services Tax is defined as the giant indirect tax structure premeditated to maintain and enhances the economic enlargement of a country. Service tax was a tax levied by Central Government of India on services provided or agreed to be provided excluding services covered under negative list and considering the Place of Provision of Services Rules, 2012 and collected as per Point of Taxation Rules, 2011 from the person liable to pay service tax. Person liable to pay service tax is governed by Service Tax Rules, 1994 he may be service provider or service receiver or any other person made so liable. It is an indirect tax wherein the service provider collects the tax on services from service receiver and pays the same to government of India. This paper has also focused on the impact of GST (Goods and Services Tax) will be on Indian Tax Scenario.

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