The impact of changes in accounting standards on financial statement: A case study of a state-owned company

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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Olympus Corporation Financial Statement Fraud Case Study: The Role That National Culture Plays On Detecting And Deterring Fraud

Journal of Business Case Studies (JBCS) ◽

10.19030/jbcs.v10i2.8506 ◽

2014 ◽

Vol 10 (2) ◽

pp. 175-184 ◽

Cited By ~ 4

Author(s):

Anita R. Morgan ◽

Cori Burnside

Keyword(s):

Corporate Governance ◽

National Culture ◽

Corporate Culture ◽

Fraud Detection ◽

Financial Statement ◽

Japanese Culture ◽

Financial Statement Fraud ◽

The Impact ◽

Insight Into

Recent cases provide insight into the role that an unethical corporate culture plays in financial statement fraud. The case of financial statement fraud in Olympus Corporation, a Japanese firm, provides the opportunity to examine how national culture plays a role in corporate governance and fraud detection. This case study focuses on the impact of Japanese culture on the corporate culture of The Olympus Corporation, and how that corporate culture resulted in financial statement fraud.

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Rules-Based Accounting Standards and SEC Enforcement

JABM JOURNAL of ACCOUNTING - BUSINESS & MANAGEMENT ◽

10.31966/jabminternational.v27i2.695 ◽

2020 ◽

Vol 27 (2) ◽

pp. 101

Author(s):

Devon Baranek

Keyword(s):

Multivariate Analysis ◽

Opposite Effect ◽

Accounting Standards ◽

Financial Statement ◽

Enforcement Action ◽

Two Samples ◽

The Impact ◽

Archival Study

This archival study investigates the association between rules-based violations and the likelihood of SEC enforcement. I utilize two samples of firms subject to SEC investigations: 1) firms with investigations that end in an enforcement action and 2) firms with investigations that are dropped, and examine the impact of rules-based accounting violations on enforcement. Each enforcement action in the sample specifically cites the GAAP standard violated, and the degree to which the standards contain rules-based characteristics is quantified. The violations are classified as either rules-based or principles-based and a multivariate analysis is performed. The “roadmap” theory suggests that firms who commit rules-based violations are more likely to be subject to SEC enforcement, while the “roadblock” theory predicts the opposite effect. Overall, the results suggest the SEC is less likely to litigate cases that involve rules-based accounting violations, or more likely to drop/dismiss investigations centered on rules-based violations, consistent with the “roadblock” theory. No evidence is found of a relation between rules-based accounting violations and the dollar magnitude of penalties assessed. These results are relevant for financial statement preparers, auditors, and regulators.

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Rules-Based Accounting Standards and SEC Enforcement

JABM JOURNAL of ACCOUNTING - BUSINESS & MANAGEMENT ◽

10.31966/jabminternational.v27i1.566 ◽

2020 ◽

Vol 27 (1) ◽

pp. 101

Author(s):

Devon Baranek

Keyword(s):

Multivariate Analysis ◽

Opposite Effect ◽

Accounting Standards ◽

Financial Statement ◽

Enforcement Action ◽

Two Samples ◽

The Impact ◽

Archival Study

This archival study investigates the association between rules-based violations and the likelihood of SEC enforcement. I utilize two samples of firms subject to SEC investigations: 1) firms with investigations that end in an enforcement action and 2) firms with investigations that are dropped, and examine the impact of rules-based accounting violations on enforcement. Each enforcement action in the sample specifically cites the GAAP standard violated, and the degree to which the standards contain rules-based characteristics is quantified. The violations are classified as either rules-based or principles-based and a multivariate analysis is performed. The “roadmap” theory suggests that firms who commit rules-based violations are more likely to be subject to SEC enforcement, while the “roadblock” theory predicts the opposite effect. Overall, the results suggest the SEC is less likely to litigate cases that involve rules-based accounting violations, or more likely to drop/dismiss investigations centered on rules-based violations, consistent with the “roadblock” theory. No evidence is found of a relation between rules-based accounting violations and the dollar magnitude of penalties assessed. These results are relevant for financial statement preparers, auditors, and regulators.

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Singapore Airlines: Accounting for Income Taxes

Asian Case Research Journal ◽

10.1142/s0218927502000221 ◽

2002 ◽

Vol 06 (02) ◽

pp. 241-254

Author(s):

Winston Kwok ◽

Yew Kee Ho

Keyword(s):

Accounting Standards ◽

Income Taxes ◽

Financial Statement ◽

Financial Analyst ◽

Deferred Taxes ◽

Accounting Courses ◽

Accounting Changes ◽

Accounting For Income Taxes ◽

The Impact

Singapore Airlines: Accounting for Income Taxes. A proposed standard on accounting for income taxes would affect the bottomline figures of many companies in Singapore, including a major international company, Singapore Airlines Ltd (SIA). Students have to assume the role of a financial analyst who would have to assess the impact of the change. This is a case that introduces some of the more contentious issues relating to deferred taxes and can be used in intermediate or advanced accounting courses, M.B.A. or executive programs, and courses in financial statement analysis. The objectives of the case are threefold. First, it helps students understand better the conceptual issues associated with deferred taxes. Secondly, it requires students to assess the impact of the proposed accounting changes on key financial figures and ratios. Thirdly, it engages the student to discuss the strategic implications of accounting standards on taxes in relation to management's ability to manage their bottomline numbers.

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Client use of blockchain technology: exploring its (potential) impact on financial statement audits of Australian accounting firms

Accounting Auditing & Accountability Journal ◽

10.1108/aaaj-07-2020-4681 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Maria Cadiz Dyball ◽

Ravi Seethamraju

Keyword(s):

Financial Statement ◽

Structured Interviews ◽

Accounting Firms ◽

Content Type ◽

Blockchain Technology ◽

Potential Impact ◽

Second Tier ◽

Nuanced Understanding ◽

The Impact

PurposeThe paper reports on a study that investigated the (potential) impact of client use of blockchain technology on financial statement audits of Australian accounting firms.Design/methodology/approachData were primarily collected from semi-structured interviews with a range of stakeholders including audit partners from first- and second-tier accounting firms in Australia. The interviews focused on the perceived (potential) impact of blockchain on the stages of obtain (retain) engagement, engagement planning, risk assessment, audit evidence and reporting of financial statement audits of clients that use blockchain technology. Perceptions of changes to financial statement audits were interpreted using the logics of professionalism and commercialism.FindingsAustralian accounting firms have either obtained or considered engagements with clients with a cryptocurrency business or that use a blockchain platform although they are a small group. There is a view that blockchain technology is distinctive and therefore poses risks not encountered before in audit engagements. These risks would most likely shift how firms plan, design audit methodologies and execute financial statement audits. The study showed that the logics of professionalism and commercialism are not conflicting but instead complementary. They present both opportunities and challenges for firms to apply and develop audit expertise in an emerging area in audit.Research limitations/implicationsBeing an exploratory study, the findings are tentative. A case study of an audit engagement with a cryptocurrency business will add to a nuanced understanding of the challenges posed to financial statement audits by blockchain technology.Originality/valueThis study is novel because of its focus on the impact of an evolving technology on the stages of financial statement audits.

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Excel For Accounting Untuk Penyusunan Laporan Keuangan Pada Yayasan Panti Asuhan

Akuntansi dan Manajemen ◽

10.30630/jam.v15i1.61 ◽

2020 ◽

Vol 15 (1) ◽

pp. 102-107

Author(s):

Eka Rosalina ◽

Wiwik Andriyani ◽

Afridian Wirahadi ◽

Fera Sriyuniati ◽

Desi Handayani

Keyword(s):

Accounting Standards ◽

Financial Statements ◽

Financial Accounting ◽

Financial Statement ◽

Needs Analysis ◽

Legal Entity ◽

And Training ◽

Made In

Financial Statements is an accounting process that are arranged and reported objectively which can be useful for its users. Each financial statement preparation must be based on applicable financial accounting standards. One of them is the preparation of financial statements for the foundation. A foundation is a legal entity that has the aims and objectives of social, religious and humanitarian benefits. Case Study conducted at the Shine Al-Falah Foundation. The procedures in preparing the financial statements of the Al Falah foundation start from with studying the transactions in the form of cash in and cash out transaction books. After that, a needs analysis is made in the preparation of financial statements using Exel For Accounting which starts from plan the Account List, making ledgers, work sheet and continuing to design the Financial Statements of the Foundation. Last is to provide assistance and training to the preparation of financial statements using Exel for Accounting.

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KAJIAN PENDAPATAN NON HALAL DAN DAMPAK PENGGUNAANNYA TERHADAP REPUTASI DAN KEPERCAYAAN NASABAH PERBANKAN SYARIAH

JRAK Jurnal Riset Akuntansi dan Komputerisasi Akuntansi ◽

10.33558/jrak.v9i1.1363 ◽

2018 ◽

Vol 9 (1) ◽

pp. 75-101

Author(s):

Saiful Muchlis ◽

Husain Soleh Utomo

Keyword(s):

Qualitative Method ◽

The Other ◽

Financial Statement ◽

Case Study Approach ◽

Study Approach ◽

Interpretive Paradigm ◽

The Social ◽

Customer Trust ◽

The Impact

This study aims to determine the form of non-halal income and the impact on reputation and customer trust that is found in sharia banking, especially in PT Bank Muamalat Indonesia Makassar branch. This study used qualitative method based on interpretive paradigm with case study approach, to explain the phenomena that occur in the social scope or the scope of the company. Interview and financial statement analysis is used to gather data. The results of this study indicate that the non-halal income in PT Bank Muamalat Indonesia, Makassar Branch is from interest revenue of deposit in the other banks, and it’s derived to the declining of customer trust, then it can affect to the Bank’s reputation.

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Analisis Penerapan PSAK No.24 (Revisi 2013) tentang Imbalan Kerja pada PT. XYZ

Majalah Sainstekes ◽

10.33476/ms.v6i1.1213 ◽

2019 ◽

Vol 6 (1) ◽

Author(s):

Auliffi Ermian Challen

Keyword(s):

Financial Statement ◽

Case Study Approach ◽

Collection Method ◽

Employment Benefits ◽

Study Approach ◽

The Difference ◽

Difference Calculation ◽

The Impact ◽

Descriptive Method

The purpose of this study is to determine the difference between SFAS 24 revision 2013 and SFAS no 24 revised 2010, as well as the impact of the application of SFAS no 24 revision 2013 on the Company's Financial Statement of PT XYZ with the difference calculation by independent actuaries. The research was conducted by descriptive method through case study approach at PT XYZ with data collection method, and analysis of document obtained from company. The results of this study indicate that there is a difference between PSAK No. 24 revised 2010 and PSAK no 24 revision 2013. The difference is the acknowledgment of actuarial gains/losses, the components of the post-employment benefits expenses, and the components of the post-employment liabilities obligations (liabilities). Thus, the adoption of PSAK No. 24 revision 2013, provides an impact on the need to reevaluate the post-employment benefits and post-employment benefits obligations (liabilities) benefits by an independent actuaries. This application leads to a restatement of the post-employment benefits fee and post-employment liability (liabilities) obligations. The balance of post-employment benefits expense decreased and post-employment liabilities liabilities increased significantly.

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RANCANGAN PENYUSUNAN LAPORAN KEUANGAN BERBASIS MICROSOFT ACCES BERDASARKAN SAK EMKM PADA UKM DEWI PROL TAPE

El Muhasaba Jurnal Akuntansi ◽

10.18860/em.v10i1.5800 ◽

2019 ◽

Vol 10 (1) ◽

pp. 63

Author(s):

Fitroh Marga Mila Aria Admaja ◽

Ulfi Kartika Oktaviana

Keyword(s):

Accounting Standards ◽

Financial Statements ◽

Financial Accounting ◽

Financial Statement ◽

Study Approach ◽

Microsoft Access ◽

Income Statement ◽

Collection Data ◽

The Cost

Dewi Prol Tape is one of Micro Small and Medium Entities which already have Micro Small Business Permit (IUMK) and turnover which increase every year. With administrative completeness as well as a good turnover increase, in the preparation of its financial statements are still not compiled well and in accordance with SAK EMKM. The preparation of the required financial statements is software-based for easy use by the UKM. Software used is microsoft acces where in operation does not require high accounting skills and does not require the cost to get it.So with that background this research is done with the title: "Design of Preparation of Financial Statements Based in Microsoft Access Based on Financial Accounting Standards of Small and Medium Entities (SAK EMKM) at UKM Dewi Prol Tape".This research used qualitative method with case study approach. The location of the research is UKM Dewi Prol Tape located on Danau Paniai street 2 c7 e5 Sawojajar, Madyopuro, Kedungkandang, Malang City. The subject of research is the owner of UKM Dewi Prol Tape. The data was collected by triangulation method. Data analysis methods that used consist of: data collection, data reduction, data presentation and conclusion.The result of the research shows that the design of preparation of financial statements based in Microsoft access based on Financial Accounting Standards of Small and Medium Entities (SAK EMKM) for UKM Dewi Prol Tape is: report of cost of goods manufactured, income statement, statement of financial position and notes to financial statement. And the obstacles that faced in the presentation of financial statements are: a) lack of human resources in preparing financial statements, b) lack of knowledge of Financial Accounting Standards of Small and Medium Entities (SAK EMKM).

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