scholarly journals Is Capitalization of Operating Lease Way to Increase of Comparability of Financial Statements Prepared in Accordance with IFRS and US GAAP?

2015 ◽  
Vol 63 (2) ◽  
pp. 507-514
Author(s):  
Hana Bohušová
Keyword(s):  
Financial Analysis ◽  
Negative Impact ◽  
Stock Exchange ◽  
Accounting Standards ◽  
Financial Statements ◽  
Common Effort ◽  
One Year ◽  
Lease Contracts ◽  
The Impact ◽  
Us Gaap

The paper is concerned with an evaluation of possibilities of companies using operating lease and prepared financial statements under IFRS or US GAAP comparison. The data of non-financial companies listed on the Prague Stock Exchange and reporting information on operating lease in accordance with IAS 17 are used. The study presents the impact of operating lease capitalization on companies’ financial statements and financial analysis ratios. The results show a negative impact of operating lease capitalization on financial analysis ratios. The study was motivated by a common effort of the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) to develop the common standard for Lease reporting. In 2013, a joint exposure dra of standard (ED2013/6) Leases was published. Under the new standard, it is required to capitalize all lease agreements over one year. The distinction between operating leases and finance leases should not exist anymore. The study was carried out to demonstrate the potential impact resulting from the proposed adoption of the new accounting standard concerning mandatory capitalization of all lease contracts.

scholarly journals The adoption of IFRS in publicly listed enterprises of high and medium capitalization and the impact of the size of the audit firm in Greece

2014 ◽  
Vol 11 (4) ◽  
pp. 707-716 ◽  
Author(s):  
Michail Pazarskis ◽  
Andreas Koutoupis ◽  
George Drogalas ◽  
Konstantinos Tsakiris
Keyword(s):  
Stock Exchange ◽  
Accounting Standards ◽  
Financial Statements ◽  
International Accounting Standards ◽  
Audit Firm ◽  
The Past ◽  
Big 4 ◽  
The Difference ◽  
Athens Stock Exchange ◽  
The Impact

In 2002, developments in the global markets during the past decades have highlighted the need for common accounting standards among companies all around the world so as the financial statements to be comparable. From 2005 onwards the Greek Companies listed on the Athens Exchange was an accounting “revolution” of the 21st century, given the difference in philosophy between the Greek GAAP and the International Accounting Standards-IAS (next, IFRS). This study evaluates the implementation of IFRS on the financial statements of Greek publicly listed companies of high and medium capitalization, which are companies that are included in the FTSE 20 and FTSE 40 indexes of the Athens Stock Exchange-ASE, respectively. Also, for those firms we examined the effect of the size of the audit firm. The research was conducted based on the analysis of thirteen ratios. According to our analysis only few of the ratios have changed significantly. Finally, regarding the impact of the size of the audit firm the results reveal controversy with the present bibliography concerning “Big 4” in comparison with “non-Big 4” firms in Greece

scholarly journals PENCADANGAN PIUTANG PADA PERUSAHAAN SUB SEKTOR PERBANKAN DI INDONESIA: DAMPAK PENERAPAN PSAK 71

2021 ◽  
Vol 2 (1) ◽  
pp. 122-142
Author(s):  
Amrie Firmansyah ◽  
Muhammad Nizar Arifullah
Keyword(s):  
Content Analysis ◽  
Qualitative Methods ◽  
Stock Exchange ◽  
Sample Selection ◽  
Accounting Standards ◽  
Secondary Data ◽  
Financial Statements ◽  
Accounts Receivable ◽  
The Impact

This study aims to review PSAK 71 (2017) implementation on the provision of accounts receivable in banking sub-sector companies in Indonesia. This implementation includes the value of reserves for accounts, preparation of the company, and the impact of company capital. This research uses qualitative methods with content analysis. This research's data uses secondary data in the form of data and information on financial statements of banking companies listed in Indonesia. The research sample selection was carried out with the criteria, namely the banking sub-sector companies listed on the Indonesia Stock Exchange based on ownership and total assets in 2019. The number of samples used in this study was six companies. This study concludes that not all companies disclose information on the allowance for accounts receivable using the new accounting standards, namely PSAK 71 (2017). Besides, companies in the banking sub-sector are generally ready to implement PSAK 71 (2017). Furthermore, the implementation of PSAK 71 impacts the decrease in the capital in each company.

scholarly journals Reporting of right-to-use according to International Accounting standards Principles

2010 ◽  
Vol 58 (6) ◽  
pp. 523-532 ◽  
Author(s):  
Patrik Svoboda
Keyword(s):  
Public Interest ◽  
Accounting Standards ◽  
Financial Statements ◽  
International Accounting Standards ◽  
Financial Position ◽  
Fixed Part ◽  
The Subject ◽  
The Right ◽  
Lease Contracts ◽  
The Impact

The problem of whether and how to report in financial statements the right to use property and the obligation to pay rent or return the used property to the lessor after leasing is a fairly complex area in which it is difficult to find a generally acceptable accounting treatment. Especially for entities that are the subject of public interest, it is being demanded that in view of space comparability operative leasing should be reported on the side of lessee in the statement on financial position, both on the liabilities side, as well as on the assets side. Some possible approaches to reporting these facts are analyzed in this paper. At first the attention was paid to the simple operational lease contracts with a fixed term lease – there were compared the impacts of this way of reporting with the impact of existing accounting solutions. Moreover, the attention was also paid to the complicated lease contracts, such contracts with an option to extend contract or leasing contracts in which rents are divided into a fixed part and a part constructed variable. There were evaluated the effects of different views on the reporting of these contracts, in particular the views of the IASB and the FASB. Many preparers of accounts, however, justifiably concerned that this solution is quite complicated and the entity would be unduly burdensome due to the benefits achieved. This problem could be even more pronounced for smaller entities for potential adjustments to standards for SMEs. Such entities are often against mere change over to the principle based on the transfer of risk and commissions connected with leasing.

scholarly journals THE IMPACT OF CORPORATE CULTURES AND FINANCIAL RATIOS ON THE FRAUDULENT FINANCIAL REPORTING

2017 ◽  
Vol 8 (1) ◽  
pp. 39
Author(s):  
Agung Prajanto ◽  
Ririh Dwi Pratiwi
Keyword(s):  
Logistic Regression ◽  
Financial Reporting ◽  
Corporate Culture ◽  
Negative Impact ◽  
Stock Exchange ◽  
Supervisory Board ◽  
Financial Statements ◽  
Financial Ratios ◽  
Fraudulent Financial Statements ◽  
The Impact

<p>This study aims to examine and analyze financial statement fraud through financial ratios and corporate culture, case study of companies listed on the Indonesia Stock Exchange Year 2006-2010. The research was conducted at the companies included in the sanctions issued by Capital Markets Supervisory Board (Bapepam) in the period 2006-2010 for companies that committed fraud. While for the companies that did not do fraud, sample was obtained randomly by same asset and industry size. Testing was conducted by using logistic regression to determine the effect of financial ratios and corporate culture on financial statements fraud. Results of research conducted using logistic regression showed that liquidity ratio had positive effect on fraudulent financial statements. While the ratio of gross profit margin and capital turnover indicated a negative impact on financial reporting fraud. Variable of corporate culture was proxied by special relationship transaction, the composition of the founders in board of directors and directors who titled accountant did not effect on fraudulent financial statements.</p>

scholarly journals The evaluation of new methodological approaches to lease reporting on the side of lessor

2013 ◽  
Vol 61 (4) ◽  
pp. 881-891
Author(s):  
Hana Bohušová ◽  
Patrik Svoboda
Keyword(s):  
Financial Analysis ◽  
Current System ◽  
Methodological Approach ◽  
Accounting Standards ◽  
Financial Accounting ◽  
Financial Accounting Standards Board ◽  
Income Statement ◽  
Methodological Approaches ◽  
Lease Contracts ◽  
The Impact

Since 2002 the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) has begun significantly cooperate in the development of standards based on the same principles. The cooperation is realised through a series of short term or long term projects. Revenue recognition and lease reporting projects represent priority areas of convergence. The development of methodological approaches for lease reporting on the side of lessee and lessor that would eliminate the main weaknesses of the current system of reporting based on the classification of lease contracts in connection with the lease term and the transfer of risks and benefits associated with the lease to the lessee should be the result of the convergence activity in the area of lease reporting. The evaluation of the impact of the newly proposed methodological approaches to lease reporting in the field of operating leases into the financial statements of lessor that will be affected by this change of methodology (financial position, comprehensive income statement) is the main aim of the paper. The impact into selected indicators of financial analysis with a focus on indicators, in whose construction are used items of statements that are significantly affected by the change of the methodological approach is evaluated as well.

Corporate Social Responsibility and Earnings Management: The Moderating Role of Family Ownership

2019 ◽  
Vol 12 (1) ◽  
Author(s):  
Asif Saeed ◽  
Aijaz Mustafa Hashmi ◽  
Attiya Yasmin Javid
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Family Firms ◽  
Negative Impact ◽  
Stock Exchange ◽  
Least Square ◽  
Family Ownership ◽  
Corporate Social ◽  
The Impact

This study aims to explore the impact of family ownership on the relationship among corporate social responsibility (CSR) and earning management (EM) in Pakistan. Data is collected from nonfinancial listed firms on Pakistan Stock Exchange (PSE) for the period 2009-2017. Our results of pooled ordinary least square regression indicate that CSR has significant negative impact on EM. Furthermore, results also indicate that association between CSR and EM is moderated by family ownership. Family firms which perform CSR activities are less involved in EM as compare to nonfamily firms perform CSR activities. This variation in behavior of EM in family and non-family firms can possibly be explained by socioemotional wealth theory. Keywords: Corporate Social Responsibility, Earnings Management, Family Ownership

Epidemics and Chinese firms' stock returns: is COVID-19 different?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Quang Thi Thieu Nguyen ◽  
Dao Le Trang Anh ◽  
Christopher Gan
Keyword(s):  
Stock Returns ◽  
Negative Impact ◽  
Stock Exchange ◽  
Market Performance ◽  
Disease Outbreaks ◽  
Stock Exchanges ◽  
Content Type ◽  
Event Study Method ◽  
Economic Shock ◽  
The Impact

PurposeThis study investigates the Chinese stocks' returns during different epidemic periods to assess their effects on firms' market performance.Design/methodology/approachThe study employs an event study method on more than 3,000 firms listed on Shanghai and Shenzhen stock exchanges during periods of SARS, H5N1, H7N9 and COVID-19FindingsEpidemics' effect on firms' stock returns is persistent up to 10 days after the event dates. Although the impact varies with types and development of the disease, most firms experience a negative impact of the epidemics. Among the epidemics, COVID-19 has the greatest impact, especially when it grows into a pandemic. The epidemics' impact is uneven across industries. In addition, B-shares and stocks listed on Shanghai Stock Exchange are more negatively influenced by the epidemic than A-shares and those listed on Shenzhen Stock Exchange.Research limitations/implicationsThe results of the study contribute to the limited literature on the effects of disease outbreaks as an economic shock on firm market performance. Given the possibility of other epidemics in the future, the study provides guidance for investors in designing an appropriate investing strategy to cope with the epidemic shocks to the market.Originality/valueThe research is novel in the way it compares and assesses the economic impact of different epidemics on firms and considers their impact at different development stages.

The relationship between narcissism, managerial overconfidence and comparability of financial statements of listed companies

2021 ◽  
Vol 19 (5) ◽  
pp. 681-700
Author(s):  
Mohammad Almaleki ◽  
Mahdi Salehi ◽  
Mahdi Moradi
Keyword(s):  
Stock Exchange ◽  
Chief Executive ◽  
Financial Statements ◽  
Business Environment ◽  
Multiple Regression Model ◽  
Content Type ◽  
Institutional Settings ◽  
Managerial Overconfidence ◽  
The Impact ◽  
The Relationship

Purpose This study aims to investigate the impact of managerial narcissism and overconfidence on financial statements’ comparability. In other words, this paper seeks to answer the question of whether the personality characteristics of managers may affect the level of financial statements’ quality of commercial entities or not. Design/methodology/approach The research hypotheses are tested using a sample of 896 observations taken from the Tehran Stock Exchange and 245 observations from the Iraqi Stock Exchange during 2012 and 2018 using the multiple regression model based on the combined data technique. Findings The findings show that managerial narcissism is positively and significantly associated with Iran’s financial statement comparability. In contrast, Iraqi data articulate a negative association between these two variables. This paper finds that Chief Executive Officer overconfidence and financial statements’ comparability are negatively related in both countries. Following the market variation, the different findings suggest that institutional settings such as the general managerial style, adopting international accounting standards (now IFRS) leading to the extent of auditing market globally in Iraq and suffering from international sanctions in Iran, the governing business environment may play an allocative role in preparing financial statements. Originality/value The present research is the first research conducted in two emerging markets (Iran and Iraq) examining the relationship between managers’ narcissism and overconfidence and financial statements’ comparability. Therefore, the present research in this area can significantly contribute to the development of science and knowledge.

RASIO FUNDAMENTAL TERHADAP PERTUMBUHAN LABA: VARIABEL MODERASI UKURAN PERUSAHAAN (Fundamental ratio on income growth: Variables of company size moderation)

2021 ◽  
Vol 5 (1) ◽  
pp. 261
Author(s):  
Andri Gunawan Putra As'ari ◽  
Tri Kartika Pertiwi
Keyword(s):  
Financial Analysis ◽  
Stock Exchange ◽  
Research Result ◽  
Sampling Technique ◽  
Financial Statements ◽  
Company Size ◽  
Analysis Technique ◽  
Solvency Ratio ◽  
A Company ◽  
Profit Growth

To find out the performance of a company it is necessary to have a financial analysis, where in analyzing the financial statements will get a view of the good and bad financial performance. For this reason, this study aims to analyze the effect of the Liquidity Ratio, Solvency Ratio, Profitability Ratio, and Activity Ratio on profit growth with company size as a moderating variable. The population in this study was all trade retail companies that listed in Indonesia Stock Exchange in the period 2015-2018. The research samples was determined by using purposive sampling technique, so that obtained 21 trade retail companies that quality as the sample. The analysis technique used is moderation regression analysis. Based on the research result showed that Solvability, Profitability and Activity ratios has an effect on profit growth and company size is a moderation variabel. Liquidity Ratio has no effect on profit growth and company size not a moderating variable between Liquidity on profit growth.

scholarly journals KOMITE AUDIT SEBAGAI PEMODERASI PENGARUH WORKLOAD DAN MASA PERIKATAN AUDIT PADA KUALITAS AUDITe

2016 ◽  
Author(s):  
Theresia Julina Rusli ◽  
I Dewa Nyoman Wiratmaja
Keyword(s):  
Audit Committee ◽  
Sampling Method ◽  
Audit Quality ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Manufacturing Companies ◽  
Quality Audit ◽  
Final Sample ◽  
The Impact

This  research  aims to find empirical evidence  about the impact  of  workload  and  audit tenure  on  audit quality  and  using audit  committee  as  a  moderating  variable. This  research  focused  on  manufacturing companies  that  listed  on  the  Indonesia Stock Exchange. Sample was collected using   purposive sampling method and resulted 31  companies as a final sample.  The  data are analyzed by using Moderated Regression Analysis (MRA). The results of  this research indicate  that the  workload  has a negative  impact on  audit quality.  Audit tenure has a positive impact on audit quality. Audit committee reduces the negative impact of workload on audit quality. And audit committee reduces the positive impact of audit tenure on audit quality.

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