The Impact of Inflation Accounting on Marketing Decisions

1980 ◽  
Vol 44 (4) ◽  
pp. 9-17 ◽  
Author(s):  
Frederick E. Webster ◽  
James A. Largay ◽  
Clyde P. Stickney
Keyword(s):  
Financial Reporting ◽  
Financial Accounting ◽  
Financial Statement ◽  
New Product Introduction ◽  
Managerial Accounting ◽  
Product Introduction ◽  
Accounting Data ◽  
Inflation Accounting ◽  
The Impact ◽  
American Economy

Persistent inflation in the American economy has led accounting rule makers to require large firms to report the effects of inflation on certain of their financial statement data. At present, these adjusted data are to be presented as supplementary disclosures under Statement of Financial Accounting Standards No. 33, “Financial Reporting and Changing Prices.” One major result will be significant changes in cost estimates and asset valuations. The changes in financial accounting requirements are likely to be reflected almost immediately in managerial accounting procedures, with specific implications for marketing decisions in such areas as new product introduction, pricing strategy, and the valuation of individual customers and market segments. The authors describe the new accounting data briefly and, using examples, illustrate the implications for marketing managers.

Evaluating Financial Results at Graphic Apparel Corporation (GAC): The Impact of Accounting Policies

2014 ◽  
Vol 30 (1) ◽  
pp. 1-12
Author(s):  
Fred Phillips
Keyword(s):  
Critical Thinking ◽  
Financial Reporting ◽  
Thinking Skills ◽  
Critical Thinking Skills ◽  
Financial Accounting ◽  
Financial Statement ◽  
Reporting Practices ◽  
Accounting Courses ◽  
The Impact

ABSTRACT This case requires students to evaluate financial reporting practices adopted by a small apparel company. The company's owner/manager has recently taken the business in a new direction, and is asking for help in determining whether the company's existing financial accounting policies continue to be appropriate and how alternative policies would affect the reported financial results. This case will require students to apply knowledge of financial accounting and financial statement ratios to judge the appropriateness of selected accounting policies. This case is designed for use in introductory and intermediate financial accounting courses that aim to develop students' critical thinking skills.

THE EVOLUTION OF FINANCIAL STATEMENT INDEXATION IN BRAZIL

1986 ◽  
Vol 13 (1) ◽  
pp. 1-18 ◽  
Author(s):  
Timothy S. Doupnik
Keyword(s):  
Financial Reporting ◽  
Financial Statement ◽  
The World ◽  
Inflation Accounting ◽  
History Of ◽  
Time Periods

Accounting for inflation is one of the more controversial topics in financial reporting. This paper traces the evolution of the system of inflation accounting used in one of the most highly inflationary economies in the world—Brazil. The history of inflation accounting in Brazil (known as monetary correction) is divided into three time periods: pre-1964, 1964 to 1976, and 1976 to the present. The events pertinent to the system of monetary correction in each of these periods are first discussed and then evaluated. It is shown that the system of monetary correction has been subject to massive political pressures since its inception, but gradual improvements have taken place over the years.

Selecting Railway Investments in 1890s America

2017 ◽  
Vol 44 (1) ◽  
pp. 77-93
Author(s):  
Joel E. Thompson
Keyword(s):  
Financial Reporting ◽  
Accounting Information ◽  
Accounting Standards ◽  
Financial Accounting ◽  
Investment Strategies ◽  
Financial Accounting Standards Board ◽  
Accounting Data ◽  
Rational Decisions

ABSTRACT The purpose of financial reporting is to provide information to investors and creditors to help them make rational decisions (Financial Accounting Standards Board [FASB] 2010). Tracing the development of investors' methods should help with understanding the role of financial accounting. This study examines investment practices involving railways in 1890s America. As such, it furthers our knowledge about the development of investment methods and their necessary information. Moreover, it shows that as investment methods grew in sophistication, there was an enhanced demand for greater comparability in accounting data to make meaningful analyses. Competing investment strategies, largely devoid of accounting information, are also discussed.

scholarly journals An Accounting Procedure for Bonds with a Double Currency Denomination in Accordance with the IFRS

2020 ◽  
Vol 7 (6) ◽  
pp. 55-63
Author(s):  
A. Yu. Kuz’min
Keyword(s):  
Interest Rate ◽  
Financial Reporting ◽  
Process Models ◽  
Financial Accounting ◽  
Practical Significance ◽  
Situational Analysis ◽  
Financial Reporting Standards ◽  
Mathematical Evaluation ◽  
The Impact ◽  
Accounting Procedure

The study is devoted to the development of accounting procedure and recording the financial results of bonds with a double currency denomination in accordance with International Financial Reporting standards (IFRS). The methodological base of the research includes system and dynamic-situational analysis, evaluation models of financial mathematics, accounting procedures of the theory of financial accounting. Based on the assumptions made at the formal mathematical level, this procedure is fully algorithmized, despite the ambiguity or impossibility of direct assessment of such basic accounting indicators as the initial estimate, the internal effective interest rate, and the amortized cost of a financial instrument. Considerable attention is paid to the issues of mathematical evaluation and reflection of financial results when preparing financial statements in accordance with the concept of amortized cost and effective interest rate, taking into account the impact of changes in the currency component in dynamics. The originality and uniqueness of the developed procedure is that it is applicable to the situations where coupon payments are paid several times a year. The theoretical and practical significance of the research is determined by the development of scientific and applied tools that include accounting and process models, evaluation algorithms and procedures that can be used by accounting and audit departments in practical work when solving problems of reporting in accordance with IFRS.

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.

scholarly journals Pelatihan Pembuatan Laporan Keuangan Bagi UMKM Sebagai Informasi Untuk Pengambilan Keputusan

2018 ◽  
Vol 2 (1) ◽  
pp. 63-82
Author(s):  
Sila Ninin Wisnantiasri ◽  
Irma Paramita Sofia ◽  
Fitriyah Nurhidayah ◽  
Karsam Sunaryo
Keyword(s):  
Financial Reporting ◽  
Business Performance ◽  
Financial Analysis ◽  
Financial Statements ◽  
Financial Statement ◽  
Educational Game ◽  
Financial Report ◽  
Study Approach ◽  
Income Statement ◽  
The Impact

The purpose of this dedication for Pisangan Village Community through financial statement training for small business in collaboration with partners of Citra Kencana Community is to improve the understanding of partners in making financial report especially income statement. The problem facing partners is not mastering how to create a correct financial statement. The financial statements can be used by partners as a benchmark of business performance and business financial analysis tools. Therefore, the methods used in this activity are: (1) convey material about basic concepts of accounting, (2) convey material about components of income statement, (3) provide business simulation and recording financial statements through educational game business accounting (4) the practice of preparing the business income statement and analysis by the entrepreneur, (5) advising / consulting the profit-loss statement. Besides, regression test is done through event study approach to know the impact of training for knowledge of financial report objectives and understanding of financial reporting from the community after getting the training. The result of this activity is increasing both knowledge and understanding of society in making financial report. This is shown by the direction of a positive and significant relationship between training with community knowledge and understanding. Keywords: Financial statement, Small entrepreneurship, Business analysis

scholarly journals The Impact of the Application of International Standard for Financial Reporting No (9) on the Faithful Representation of Financial Accounting Information in Jordanian Commercial Banks

2019 ◽  
Vol 14 (3) ◽  
pp. 88
Author(s):  
Amer Sulaiman Alkhresat ◽  
Tareq Hammad Almubaydeen
Keyword(s):  
Financial Reporting ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Accounting Information ◽  
Correlation Coefficients ◽  
Study Data ◽  
Financial Accounting ◽  
Faithful Representation ◽  
Ifrs 9 ◽  
The Impact

The purpose of this study is to demonstrate the impact of the application of IFRS 9 on the faithful representation of financial accounting information in Jordanian commercial banks. To achieve this objective, the study used the descriptive analytical approach to analyze a questionnaire that was answered by the managers of 13 commercial banks, which are listed in Amman stock exchange. The researchers distributed 78 questionnaires, while 76 were retrieved with a percentage of 97%. Additionally, the study relied on the descriptive statistics, correlation coefficients, and the simple regression to analyze the study data, and hypotheses. As a result, the study found a significant impact for the application of IFRS 9 to the faithful representation of financial accounting information. Relied on the aforementioned consequence, the study recommended that there is a necessity for financial departments to focus on measuring their financial obligations, as well as focusing on the development of accounting policies during the application of the standard. In addition, the study concludes that it is important for these banks to have an adequate knowledge of accounting standards in general, while standard No “9” specifically.

Baywatch International: A Case Linking Financial-Reporting, Business, and User Decisions

2000 ◽  
Vol 15 (4) ◽  
pp. 605-633 ◽  
Author(s):  
Fred Phillips ◽  
Kevin Morris ◽  
Kristina Zvinakis
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Financial Accounting ◽  
Financial Statement ◽  
Technical Knowledge ◽  
Capital Asset ◽  
Financial Statement Analysis ◽  
Accounting Courses ◽  
Reporting Decisions ◽  
Asset Depreciation

Baywatch International is a hypothetical company that manufactures figure-enhancement products—a rapidly growing industry that is featured frequently in Fortune and on CNNfn. The executives at Baywatch are making financial-reporting decisions pertaining to the company's receivables, inventories, loss contingencies, and capital asset depreciation. These decisions require technical knowledge of fundamental topics covered in introductory financial accounting courses, as well as an appreciation for relationships among financial-reporting, business, and user decisions. Consideration of the implications for financial statement analysis, earnings management, and financial-reporting ethics also is encouraged.

scholarly journals The Impact of Financial Statement Comparability on Earnings Management: Evidence from Frontier Markets

2020 ◽  
Vol 8 (4) ◽  
pp. 73
Author(s):  
Wil Martens ◽  
Prem W. S. Yapa ◽  
Maryam Safari
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Common Law ◽  
Accounting Standards ◽  
Real Earnings Management ◽  
Financial Statement ◽  
Financial Reporting Standards ◽  
Developed Markets ◽  
Accounting Comparability ◽  
The Impact

This paper examined whether financial statement comparability constrains opportunistic earnings management in frontier market countries. Using a large sample of 19 frontier market countries, and an accounting comparability method that maps comparability across several accounting standards, the results show that enhanced financial comparability constrains accruals earnings management (AEM). Contrary to developed markets and novel to this study, a significant relationship between financial comparability and real earnings management (REM) was not found. For greater robustness, AEM and REM were also tested on both International Financial Reporting Standards (IFRS) adopting and non-adopting countries. The results suggest IFRS adoption constrains AEM, yet exhibited no impact on constraining REM. Additionally, the use of BigN auditors failed to conclusively show an ability to moderate EM. When combined, the results suggest that frontier markets engage in less REM than expected. It is also noted that the legal roots (civil vs. common law) play a significant role in constraining earnings management. Common law countries exhibited lower AEM when comparability increased; this significance was not found in countries that were rooted in civil law. Contributions from this study show that findings from developed markets cannot be generalised to frontier markets.

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