Stakeholder Requirements for Reporting Information and Digital Technologies

Auditor ◽  
2021 ◽  
pp. 43-48
Author(s):  
Alyeksandr Pyetrov ◽  
O. Petrova ◽  
M. Gaynutdinova
Keyword(s):  
Human Capital ◽  
Financial Reporting ◽  
Digital Technologies ◽  
Financial Information ◽  
Maximum Expansion ◽  
Modern System ◽  
Planning Function ◽  
User Orientation ◽  
Stakeholder Requirements ◽  
General User

The modern system of accounting and reporting is in the process of reforming, and a particularly important component of the reform is the modifi cation of fi nancial reporting, since on its basis decisions are made on the development of the economic system by investors and other stakeholders, namely: the maximum expansion of the circle of information users; presentation of information related to the implementation of the planning function; provision of non-financial reporting refl ecting the value of the organization and preparation of non-fi nancial reporting; reflection of financial information on human capital, brands, innovation, provision of fi nancial environmental and social reporting; formation of general user orientation of fi nancial statements.

scholarly journals Reliability of Financial Information from the Perspective of Benford’s Law

Entropy ◽  
2021 ◽  
Vol 23 (5) ◽  
pp. 557
Author(s):  
Ionel Jianu ◽  
Iulia Jianu
Keyword(s):  
Financial Reporting ◽  
Capital Market ◽  
Financial Statements ◽  
Financial Information ◽  
Benford’S Law ◽  
Professional Judgment ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Benford's Law ◽  
Before And After

This study investigates the conformity to Benford’s Law of the information disclosed in financial statements. Using the first digit test of Benford’s Law, the study analyses the reliability of financial information provided by listed companies on an emerging capital market before and after the implementation of International Financial Reporting Standards (IFRS). The results of the study confirm the increase of reliability on the information disclosed in the financial statements after IFRS implementation. The study contributes to the existing literature by bringing new insights into the types of financial information that do not comply with Benford’s Law such as the amounts determined by estimates or by applying professional judgment.

The effect of accounting methods on financial reporting quality

2018 ◽  
Vol 60 (6) ◽  
pp. 1401-1411
Author(s):  
Andrain Hadiyanto ◽  
Evita Puspitasari ◽  
Erlane K. Ghani
Keyword(s):  
Financial Reporting ◽  
Palm Oil ◽  
Reporting Quality ◽  
Fair Value ◽  
Financial Information ◽  
Financial Reporting Quality ◽  
Content Type ◽  
Historical Cost ◽  
Fair Value Measurement ◽  
Value Measurement

Purpose This study aims to examine the relationship between accounting measurement method of biological asset and financial reporting quality. Specifically, this study examines whether using fair value method or the historical cost method on biological asset provides different financial reporting quality. Design/methodology/approach This study uses data from 38 agricultural companies that are members of the Roundtable on Sustainable Palm Oil. The annual reports of 38 companies from the Palm Oil Growers over a five-year period starting from 2011 to 2014 are analysed. Findings This study shows that companies using historical cost measurement produce less reliable and less relevant information compared to the companies that are using fair value measurement. Research limitations/implications The results in this study imply that the use of fair value measurement improves the quality of financial information. Practical implications This study supports IASB’s justification of developing IAS 41 as the principle-based standard that better represents the financial information related to biological asset and subsequently lead to good accountability and harmonisation practices. Originality/value This study provides evidence on the best measurement to be used in agriculture activities using a larger sample size of few countries. In addition, this study contributes to the existing literature on the effect of accounting methods on financial reporting quality.

scholarly journals Do audit committee characteristics of Bahraini listed companies have an effect on the level of internet financial reporting?

2016 ◽  
Vol 13 (3) ◽  
pp. 131-147 ◽  
Author(s):  
Sara AbdulHakeem Saleh AlMatrooshi ◽  
Abdalmuttaleb M. A. Musleh Al-Sartawi ◽  
Zakeya Sanad
Keyword(s):  
Corporate Governance ◽  
Literature Review ◽  
Financial Reporting ◽  
Audit Committee ◽  
Positive Relationship ◽  
Listed Companies ◽  
Financial Information ◽  
The Internet ◽  
Regression Test ◽  
The Relationship

Corporate Governance and IFR are influential topics that need to be addressed nowadays due to its importance. Especially since companies are growing and extending globally. This research is conducted in Kingdom of Bahrain through the year 2014, where it investigates the relationship between Audit Committee characteristics as a tool of CG and IFR. Literature review has been conducted, not to mention Multi-regression test was used to evaluate the relationship between Audit Committee characteristics and IFR for Bahraini listed companies. The results have showed that the relationship between Audit Committee characteristics and IFR is negative, which indicates that the Audit committee characteristics have no influence over the disclosure of financial information over the internet. However, Frequency of meeting of the board and Big4 resulted in a positive relationship with internet financial reporting. The study ends with a main conclusion and recommendation that contain certain steps and advices of disclosing financial information in an appropriate way through the internet in order to improve the relationship between Audit committee characteristics and IFR.

scholarly journals Determination of earnings management: An application in BISTKazanç yönetiminin tespiti: BIST’de bir uygulama

2016 ◽  
Vol 13 (3) ◽  
pp. 6080
Author(s):  
Meral Gündüz
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Manufacturing Industry ◽  
Discretionary Accruals ◽  
Financial Information ◽  
Accounting System ◽  
Reporting Process ◽  
Management Application ◽  
Jones Model

Companies, by use of the flexibility of alternative applications in accounting system, apply profit management by organizing the financial tables unequal to the real situations. Profit management is to interfere external financial reporting process in order to gain special profits. With profit management, the main aim is to affect decisions and plans of the investors and the other financial information usersEarnings management is a kind of management which uses accounting techniques to meet the executives needs for earnings; it is a widely debated topic, hence it is worth looking at. Experts and professionals in this area found many approaches to detect the earnings management; within these approaches are the accrual-based models which include the modified Jones model, which currently is a favourite model to many researchers. In the study is aim to determine the earnings management application the data of 81 companies which were in business in Istanbul stock market (BIST-100) manufacturing industry between the years 2013-2015 is used. In this study regression analysis was made by using Modified Jones model and investigated whether their earnings management application or not , has also targeted to determine the companies applying for earnings management.The distribution of the average of discretionary accruals calculated for years as each company is analyzed; average of discretionary accruals shows a normal distribution, in this situation, It was concluded that there was no impact on the economic development of total accruals, depending on the establisded regression model. It can be expressed that the companies were in tendency to increase revenues for 2014 year and to decrease in revenue for 2013 and 2015 years.  In addition, companies which tend to manipulation in this study were identified. Özetİşletmeler, muhasebe sistemindeki alternatif uygulamaların sağladığı esneklikten yararlanarak, finansal tabloları gerçekte olduğundan farklı gösterecek şekilde düzenlemek suretiyle kazanç yönetimi uygularlar. Kazanç yönetimi, özel kazançlar elde etmeye yönelik dışsal finansal raporlama sürecine bu amaçlara uygun olarak müdahale etmektir. Kazanç yönetimi ile yatırımcıların ve diğer finansal bilgi kullanıcılarının karar ve düşüncelerini etkilemek amaçlanmaktadır.Kazanç yönetimi, yöneticilerin kazanç ihtiyaçlarını karşılamak amacıyla kullandıkları çok tartışılan bu yüzden araştırılmaya değer bir yöntemdir. Bu alanda uzman ve profesyoneller kazanç yönetimini tespit etmek için birçok yaklaşımı bulmuşlardır ki bu yaklaşımlar arasında birçok araştırmacı tarafından favori model kabul edilen tahakkuk esaslı Düzeltilmiş Jones Modelidir.Kazanç yönetimi uygulamalarının belirlenmesini amaçlayan bu çalışmada, BİST 100 endeksindeki 81 şirketin 2013-2015 yılları arasındaki verilerinden faydalanılmıştır. Araştırmada literatürde yer alan Düzeltilmiş Jones Modeli kullanılarak regresyon analizi yapılmış ve bu yöntemle şirketlerin kazanç yönetimi uygulaması yapıp yapmadığı araştırılmış, ayrıca kazanç yönetimi uygulayan şirketlerin belirlenmesine yönelik çalışma hedeflenmiştir. Yıllar itibariyle her bir şirket için hesaplanan ihtiyari tahakkukların ortalamalarının dağılımı incelendiğinde; ihtiyari tahakkukların ortalamalarının normal dağılım gösterdiği, bu durumunda kurulan regresyon modeline bağlı olarak toplam tahakkuklar üzerinde ekonomik gelişmelerin bir etkisinin olmadığı sonucuna varılmıştır.  Analiz sonucuna göre şirketlerin 2013 ve 2015 yıllarında gelir azaltıcı ve 2014 yılında gelir artırıcı bir manipülasyon eğiliminde oldukları ifade edilebilir. Ayrıca bu çalışmada kazanç yönetimi eğiliminde olan şirketler belirlenmiştir.

scholarly journals Assurance on non-financial reporting: theoretical underpinning, standards and practices of companies operating in Western and Eastern Europe

2021 ◽  
Vol 45 (1) ◽  
pp. 53-74
Author(s):  
Joanna Krasodomska ◽  
Paweł Zieniuk
Keyword(s):  
Eastern Europe ◽  
Financial Reporting ◽  
Western Europe ◽  
Information Assurance ◽  
Financial Information ◽  
Research Approach ◽  
Eastern European ◽  
Financial Reports ◽  
Sustainability Disclosure ◽  
Big Four

Objective: The paper presents the issue of non-financial information assurance and identifies the practices of companies operating in Europe in this regard. Methodology/research approach: The research is based on a literature review and analysis of a sample of 935 companies whose non-financial reports, prepared according to the GRI guidelines, are available from the GRI Sustainability Disclosure Database. In particular, we analyze how many companies had their non-financial information verified in 2017 and their previous practice in this regard (since 2005), as well as their structure according to the assuror type, the assurance standard used, the engagement type, and the assurance scope. Findings: Nearly half of the companies had their non-financial information independently and externally verified, including 34 Eastern European companies (30%) and 426 from Western Europe (52%). Most of the entities which provide assurance are so-called Big Four audit companies, mainly Deloitte and E&Y, which use the ISAE 3000 standard for this purpose. The most common engagement type is limited engagement. Limitations: The study is descriptive, which results from the nature of the data collected and the large disparity between companies using assurance in Western and Eastern Europe. Originality/value: The Article broadens accounting knowledge, in particular, on non-financial reporting. It indicates the need to take steps towards the wider use of non-financial information assurance in Eastern Europe.

scholarly journals Relevance of financial reporting quality - Theory and practice in Vietnamese enterprises

2017 ◽  
Vol 1 (Q2) ◽  
pp. 119-128
Author(s):  
Thuan Quoc Pham
Keyword(s):  
Conceptual Framework ◽  
Financial Reporting ◽  
Accounting Standards ◽  
Reporting Quality ◽  
Professional Associations ◽  
Financial Statements ◽  
Theory And Practice ◽  
Financial Information ◽  
Financial Reporting Quality

Financial reporting quality is one the most interesting topics which draw a great deal of attention to researchers and scientists in the field of accounting (Céline Michailesco, 2010). In the review of research on financial information from 1980 to 2016, Pham (2016) found that characteristics of useful financial information are relatively diverse with as many as 15 attributes being identified. In addition, he also found that all research in any period has employed the characteristics published by professional associations such as American Institute of Accountants, Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB as theoretical basis. Research on the quality of financial information is diverse yet have many things in common, above all is the Relevance characteristic which considered to be the basic qualitative component of the quality of financial information in financial statements. Conceptual Framework officially issued by FASB & IASB in 2010 (FASB & IASB 2010) has further confirmed Relevance is the basic quality component of financial information. Compared with previous announcements, there has been a considerable change in the criteria and attributes used to evaluate the appropriateness of Relevance characteristic of financial information in financial statements. This study aims at confirming the importance of the Relevance component in evaluating the quality of financial information, clarifyingg the characteristics of Relevance measurement before and after Conceptual Framework 2010 and constructing relevant scales as well as measuring the qualitative characteristic of Relevance among enterprises in Vietnam.

scholarly journals Adoption of IFRS in Ecuador and Colombia 2010-2016

2019 ◽  
Vol 16 (1-1) ◽  
pp. 178-184 ◽  
Author(s):  
José Villanueva García ◽  
Carmen Cordova Román ◽  
Maria Teresa Cuenca Jiménez
Keyword(s):  
Financial Reporting ◽  
Research Work ◽  
Balance Sheet ◽  
Accounting Standards ◽  
Nonparametric Test ◽  
Financial Information ◽  
International Accounting Standards ◽  
Financial Reporting Standards ◽  
Before And After ◽  
Mandatory Adoption

The International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB), have been adopted by a large number of countries, since they are considered an international benchmark for obtaining comparable quality financial information. The adoption by Ecuador and Colombia of IFRS as a transition from their previous local regulations based on provisions and decrees, justifies the present research work to provide knowledge of the regulatory reality of both countries. Behind this ambitious adoption of accounting standards, since they are costly processes both financially and in terms of training, there is a need to obtain consistent financial information that should attract investments and facilitate access to other less harmful financial markets. The purpose of this research is to perform an analysis of the effect on the accounting variables of the balance sheet and financial ratios, before and after the application of IFRS on large Ecuadorian and Colombian companies. To do this, Wilcoxon’s nonparametric test of related samples is used, on a total of 204 Ecuadorian companies and 60 Colombian companies. To compare the results of both countries, a non-parametric U Mann-Whitney test is carried out. The results show an impact in both countries on the variables studied after the mandatory adoption of IFRS, although the relative impact is greater in the Colombian case.

It is not always bad news

2018 ◽  
Vol 31 (5) ◽  
pp. 1319-1348 ◽  
Author(s):  
Mary-Anne McNally ◽  
Warren Maroun
Keyword(s):  
Impression Management ◽  
Financial Reporting ◽  
Value Creation ◽  
Sustainability Reporting ◽  
Management Control ◽  
Financial Information ◽  
Accounting System ◽  
Integrated Reporting ◽  
Content Type ◽  
Corporate Reporting

Purpose The purpose of this paper is to challenge the notion that non-financial reporting is mainly about impression management or is only a superficial response to the hegemonic challenges posed by the sustainability movement. It focuses on the most recent development in sustainability reporting (integrated reporting) as an example of how accounting for financial and non-financial information has the potential to expand the scope of accounting systems, promote meaningful changes to reporting processes and provide a broader perspective on value creation. Design/methodology/approach The research focuses on an African eco-tourism company which has its head office in South Africa. A case study method is used to highlight differences in the presentation of an integrated business model according to the case entity’s integrated reports and how individual preparers interpret the requirement to prepare those reports. Data are collected using detailed interviews with all staff members involved in the preparation process. These are complemented by a review of the minutes of the company’s sustainability workshops and integrated reports. Findings A decision by the case organisation to prepare an integrated report gives rise to different forms of resistance which limits the change potential of the integrated reporting initiative. Resistance does not, however, preclude reform. Even when individual preparers are critical of the changes to the corporate reporting environment, accounting for financial and non-financial information expands the scope of the conventional accounting system which facilitates broader management control and promotes a more integrated conception of “value”. Research limitations/implications Integrated reporting should not be dismissed as only an exercise in corporate reporting and disclosure; it has a transformative potential which, given time, can enable new ways of managing business processes and articulating value creation. Originality/value This study answers the calls for primary evidence on how the requirement or recommendation to prepare an integrated report is being interpreted and applied by individual preparers. The findings add to the limited body of interpretive research on the change potential of new reporting frameworks. In doing so, the research provides theoretical support for developing arguments which challenge the conventional position that integrated reporting is little more than an exercise in impression management.

PENGGUNAAN ]NFORMASI AKUNTANSI UNTUK MEMPREDIKSI RETURN SAHAM PADA PERUSAHAAN REAL ESTAT DAN PROPERTT YANG TERDAFTAR DI BURSA EFEK JAKARTA

2007 ◽  
Vol 3 (1) ◽  
pp. 47
Author(s):  
Felicia P. Bahari ◽  
Wirawan E.D. Radianto
Keyword(s):  
Real Estate ◽  
Financial Reporting ◽  
Stock Return ◽  
Financial Information ◽  
Ratio Analysis ◽  
Financial Ratio ◽  
Turnover Ratio ◽  
Financial Condition ◽  
One Year

The role of Jinancial ratio analysis is to investigate whether finorcial information is useful to predict stock return and corporate financial condition in the future.This study examines the use of financial ratio to predict stock return for one and two years ahead. This study is bosed on research by fuasikal (2002) and use listed real estate industies in 1999 as sample. CAR is used as proxy of stock return and window periode is used seven day before ond after financial reporting publication for 2000 and 2001. Financial reporting is taken from ICMD for 2001. Using multiple regressin, the outcome fum this research, price tobook value influence positively to predict stock return for two years ahead. While account receivable turnover ratio significantly can predict stock return foir one year ahead.Keywords: Financial information, stock return, financiol ratio, realestate and property.

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