scholarly journals Development of information supplement of reporting forms as an effective way of business management

2021 ◽  
Vol 5 (4(61)) ◽  
pp. 6-14
Author(s):  
Anna Hevchuk ◽  
Liudmyla Shevchuk
Keyword(s):  
Financial Reporting ◽  
Agricultural Sector ◽  
Business Management ◽  
Financial Statements ◽  
Information Support ◽  
Sufficient Information ◽  
Management Decisions ◽  
Use Of Resources ◽  
The Status ◽  
The Impact

The object of research is the information support of settlement operations as an effective way of business management to minimize risks and their consequences in the agricultural sector in today's global economy. This study is due to the lack of accounting practices, namely the low informativeness of reporting forms for business management, which needs to be improved in terms of settlement operations, which should be aimed at the efficient use of resources by agricultural companies. The analysis of the current state of reporting as information support of business management calculations is carried out. It is determined that the internal and financial reporting does not contain sufficient information on the settlement operations of business units, especially taking into account the emergence of new settlement instruments and a system of support for their implementation, including agricultural receipts. The use of agricultural receipts as a new financial calculation tool and an alternative mechanism for agribusiness lending requires informational reporting, which allows to increase the efficiency of management decisions. The study used the stages of modeling the calculation management process for users. For their implementation, the main directions for supplementing the content and components of financial statements f. No. 1 «Balance Sheet» (Statement of Financial Position) and f. No. 5 «Notes to the annual financial statements» are suggested. Management reporting is proposed, namely «Report on the status of settlements within accounts payable» and «Report on the status of settlements within accounts receivable». As well as the development of Section 4 «Risk Report» and Section 5 «Liquidity and Liabilities» of the Management Report. This provides an opportunity to generate useful, objective and relevant information adapted to the taxonomy of financial reporting (according to international financial reporting standards) in Ukraine. This information will assist company management, current and potential investors, lenders and other lenders in making effective management decisions. Compared to similar known methods, the proposed approaches allow to effectively manage the business, providing a high level of control over the state of settlements. The received information support will allow to minimize losses through the impact on risks due to the predictability of their potential consequences, which will contribute to the observance of financial independence and development of the agricultural sector.

scholarly journals Globalisation of accounting standards and competitive posture of Indian companies

2011 ◽  
Vol 59 (2) ◽  
pp. 279-290
Author(s):  
Monica Singhania ◽  
P. K. Gupta
Keyword(s):  
Financial Reporting ◽  
Reporting System ◽  
Accounting Standards ◽  
Financial Statements ◽  
Regulatory Issues ◽  
Ifrs Adoption ◽  
The Status ◽  
International Investors ◽  
The Impact ◽  
Chartered Accountants

Unification of the global financial reporting system is essential to enable comparability of financial statements at the international level in post crisis competitive environment. IFRSs are increasingly gaining acceptance as global accounting standards. With European Union adopting the IFRS in 2005, as on date over 116 countries have already either converged their accounting standards with IFRS or adopted IFRS as such and many more are in the process. Countries refusing IFRS are likely to be viewed as more risky by the international investors thereby affecting the inflow of capital to such countries. In India, the Institute of Chartered Accountants of India (ICAI) the apex body dealing with accounting standards has declared the roadmap of IFRS convergence in a phased manner from April 1, 2011. Our paper highlights the status of Indian accounting standards converging to IFRS as of now. In addition, a full fledged theoretical framework is developed showcasing, the convergence timeline, the major differences in the treatment of select items under these two alternative accounting environments, exact stage at which the Indian accounting standards are today in view of the announced convergence to IFRS and the legal and regulatory issues in converging to IFRS in India. We investigate the case of 150 odd firms and show the impact of convergence on financial ratios and the related valuation concerns. Finally, we indicate the strategic implications of IFRS adoption to Indian companies.

scholarly journals Methodological approaches to assessing companies contribution to the implementation of SDGs and counteraction to COVID-19

2020 ◽  
Vol 2020 (10) ◽  
pp. 47-63
Author(s):  
Ljudmyla LOVINSKA ◽  
◽  
Yana OLIYNYK ◽  
Maria KUCHERIAVA ◽  
◽  
...  
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Information Support ◽  
Unified Approach ◽  
National Legislation ◽  
Data Transparency ◽  
Methodological Approaches ◽  
The Impact ◽  
Limited List ◽  
Management Report

The methodological approaches to improving the non-financial reporting of Ukrainian enterprises in the context of implementing the provisions of the document issued by UNCTAD (GCI), in terms of the private sector's contribution to the COVID-19 are highlighted. The authors identified the lack of unified approach to the standardization of non-financial reporting and the harmonization of companies' core indicators with macro-indicators of SDGs' achievement in the relevant areas. The hypothesis of the study: the GCI as an effective tool to ensure comparability of information disclosed in non-financial statements between companies, industries, geographical areas, countries, can be used to quantify core indicators that should be disclosed by Ukrainian companies for providing the information suport for SDGs monitoring. The purpose of the study is to substantiate information support and assessment of business contribution to process of SDGs' monitoring and overcoming the effects of the COVID-19 pandemic, including indicator 12.6.1, by defining the limited list of universal indicators within the national legislation, GCI recommendations and initiatives aimed at disclosure of coronavirus disease's impact on the company's activities. The authors within the study proved that the application of core indicators suggested by the GCI would not only promote the level of data transparency on the impact of reporting entities, but also provide the opportunity to compare information between companies, industries, geographical areas, countries. Based on the results of the study and conducted analysis of international initiatives, the institutional basis for improving the preparation of non-financial reporting within the crisis caused by the COVID-19 pandemic was formulated. This allowed to substantiate the suggestion on inclusion of additional indicators in the management report in terms of disclosing information about the impact of the COVID-19 pandemic on the activities of enterprises and their contribution to combating the spread of the disease.

Particularities of the independent auditor's report on reliability of accounting (financial) statements for 2019: COVID-19 as qualitatively essential information (Part 2)

2020 ◽  
Vol 23 (7) ◽  
pp. 777-799
Author(s):  
O.I. Shvyreva ◽  
Z.I. Kruglyak ◽  
A.V. Petukh
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Economic Situation ◽  
Risk Disclosure ◽  
Essential Information ◽  
Logical Method ◽  
Annual Reporting ◽  
The Face ◽  
Key Aspects ◽  
The Impact

Subject. This article discusses the issues related to the practice of financial reporting in the face of uncertainties caused by the coronavirus contagion, as well as the specifics of the audit strategy and formation of an audit opinion on this reporting. Objectives. The article aims to identify the quality characteristics of financial reporting prepared in the context of the COVID-19 pandemic and justify the key aspects of assurance engagement completion in an extremely uncertain epidemiological and economic situation. Methods. For the study, we used an abstract-logical method, content analysis techniques, systematization, and classification. Results. Analyzing the impact of the extremely uncertain epidemiological and economic situation on financial statements, the article clarifies aspects of disclosure of events after the reporting date and threats to business continuity in the annual reporting of economic entities. The article identifies possible alternative procedures and algorithms to obtain proper evidence when it is insufficient in the face of the inability to meet certain audit standards requirements in a remote audit environment. The article defines the impact of COVID-19 risk disclosure on the structure of the audit report and opinion. Relevance. The results of the study can be used in the practical activities of economic entities that prepare financial statements in the face of significant uncertainty, as well as auditors and audit organizations.

IFRS IMPLEMENTATION AS ONE OF THE FACTORS FOR IMPROVING THE INVESTMENT CLIMATE IN UKRAINE

2017 ◽  
Author(s):  
Kateryna Sova ◽  
◽  
Natalia Yatsenko ◽  
Denys Zagirniak ◽  
◽  
...  
Keyword(s):  
Financial Reporting ◽  
Direct Investment ◽  
Financial Statements ◽  
International Standards ◽  
Investment Climate ◽  
The European Union ◽  
Economic Activities ◽  
Financial Reporting Standards ◽  
Almost All ◽  
The Impact

The article is devoted to the study of the impact of the introduction of International Financial Reporting Standards (IFRS) on changes in the investment climate in Ukraine. The relevance of the topic is that improving the practice of applying IFRS as a tool for exchanging financial information is one of the key conditions for improving the investment climate in Ukraine. The authors have created the generalized scheme that illustrates the chronological list of enterprises that are required by law to prepare financial statements in accordance with IFRS. It was noted that in 2018, in accordance with Part 2 of Article 12 of the law on accounting and financial reporting in Ukraine and resolution of the Cabinet of Ministers of Ukraine No. 547 from 11.07.2018, the criteria of enterprises that are required to prepare financial statements in accordance with IFRS were updated. This step significantly increased the level of application of international standards due to the adoption of such a decision at the legislative level. The dynamics of the number of IFRS enterprises in Ukraine was analyzed. The analysis showed that over the past three years, the number of almost all enterprises that must apply international standards has been growing. The advantages of using IFRS for different users of financial statements were determined. It was determined that the priority users of IFRS financial statements are investors. At the same time, it was noted that the main advantage for other users of financial statements prepared in accordance with international standards is the improvement of the investment climate. The dynamics of the Investment Attractiveness Index of Ukraine based on the Likert scale in the period from 2016 to 2020 was analyzed. The direct investment receipts to Ukraine from the European Union countries were studied. The dynamics of direct investment in the Ukrainian economy was analyzed for two types of economic activities that should form financial statements in accordance with IFRS, namely, the extractive industry and quarrying, as well as financial and insurance activities.

scholarly journals Statutory audit in Slovakia – significant phenomenon of global European changes

2020 ◽  
Vol 74 ◽  
pp. 06006
Author(s):  
Denisa Domaracká ◽  
Veronika Kňažková
Keyword(s):  
Financial Reporting ◽  
Global Economy ◽  
Financial Statements ◽  
Legislative Regulation ◽  
Significant Phenomenon ◽  
The Subject ◽  
The Impact ◽  
Regulation Changes ◽  
Audit Performance

The changing global economy environment also affected the area of statutory audit. Nowadays, statutory audit faces the significant changes not only because of the processes of digitization and automation in accounting and auditing, but because of increased and tightened legislative regulation, too. The most important aspects of financial reporting and auditing are subject to EU Regulations and EU Directives. For this reason, the issue of legislative regulation changes in field of statutory audit in Slovakia has become the subject of our article. Currently, the proposal of amending and supplementing Act. No 431/2002 Coll. on Accounting, as amended underwent an interdepartmental comment procedure. The proposal includes the changes on requirements for statutory audit. This article examines the current proposal to change (mainly increase) the conditions for performing the mandatory statutory audit of financial statements in Slovak audit environment. Our goal is to clarify the reasons and implications behind the changes of Slovak legislation as well as the impact of these changes on audit performance in Slovakia. We believe conducting statutory audits in accordance with the applicable legislation accepted and implemented at international European level can contribute to transparency and improve the quality of audit performance. In order to achieve the goal, it was necessary to choose a purposeful work methodology and research methods.

scholarly journals Financial statements as the main source of information on the enterprise activity

2021 ◽  
Vol 11/1 (-) ◽  
pp. 27-30
Author(s):  
Nina OVSIUK ◽  
Zhanna SHALIIEVSKA ◽  
Kateryna HULKO
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
International Standards ◽  
Foreign Banks ◽  
Practical Implementation ◽  
Economic Activities ◽  
Management Decisions ◽  
Economic Relations ◽  
Intelligent Technology ◽  
Transparency And Disclosure

The essence of effective management of each business entity depends primarily on transparency and disclosure of information about its financial and economic activities. The financial report itself covers all important information about the state of the enterprise and provides an opportunity to obtain financial status with it by the interested user for further analysis and decision-making on further activities. As a rule, investors of creditors, state bodies, representatives who are preparing in construction with the business entity are interested in financial reporting. In order to provide more detailed and informative financial reporting to users, it is necessary to compile it with international standards, which act as tools for globalization of the economy and contribute to the development of global economic relations. During 2020–2021, the activities of enterprises took place in extremely difficult conditions, which is why the pandemic significantly affected the financial reporting indicators. Today, there is an appropriate use of intelligent technology and computer technology in the formation of financial statements. Financial statements based on taxonomies of financial statements for IFRS are prepared and presented in a single electronic format using Extensible Business Reporting Language (XBRL). XBRL is a generally accepted international standard for presenting financial statements in accordance with IFRS in electronic form. With the help of IFRS, Ukrainian companies have more effectively solved the following tasks: attracting investments and loans from the world's largest companies and banks, the ability to service financing from foreign banks and other organizations; placement of shares on international stock exchanges; providing the company's management with reliable information for making management decisions, as well as evaluating their adoption. Thus, today the economy of Ukraine depends on the choice of IFRS as a conceptual basis for accounting and its practical implementation. After all, the financial statements are fully open to internal and external users to make informed management decisions regarding cooperation with the relevant entity.

scholarly journals A literature review on the impact of IAS/IFRS and regulations on quality of financial reporting

2016 ◽  
Vol 6 (4) ◽  
pp. 102-114 ◽  
Author(s):  
Newman Wadesango ◽  
Edmore Tasa ◽  
Khazamula Milondzo ◽  
Ongayi Vongai Wadesango
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Reporting Quality ◽  
Financial Statements ◽  
Conclusive Evidence ◽  
Financial Reporting Quality ◽  
International Accounting Standards ◽  
Ifrs Adoption ◽  
The Impact

The International Accounting Standards Board (IASB) in its objectives and preamble, presume that IFRS adoption and perceived compliance to regulatory framework is associated with increased financial reporting quality. Based on these assumptions, this desktop study reviewed several documents to determine whether the IFRS adoption has led to increased financial reporting quality in Zimbabwe. The researchers reviewed literature on how the IAS/IFRS and regulations affect the financial reporting quality of listed companies. The factors around IFRS adoption were identified (mandatory, voluntary and convergence) and discussed in relation to the financial reporting quality. Evidence from previous studies conducted in line with this same issue shows that there is no conclusive evidence on how IFRS and regulations affect the financial reporting quality. Issues to be addressed in further studies include the importance of financial statements prepared under IFRS framework and the importance of compliance with accounting and auditing requirements.

scholarly journals Formation of XBRL reporting

2020 ◽  
pp. 95-102
Author(s):  
Нalyna Umantsiv ◽  
Yevheniia Polovyk
Keyword(s):  
Financial Reporting ◽  
Reporting System ◽  
Financial Statements ◽  
Developed Countries ◽  
Inductive Method ◽  
Basic Material ◽  
Problem Statement ◽  
Or Methodology ◽  
The Developed Countries ◽  
The Impact

Relevance of the research topic. At the present stage of transformational transformation of the economy, the issue with the use of the XBRL format in Ukraine, which is a prerequisite for successful interaction of enterprises in the global financial market and enhancing the competitiveness of domestic enterprises. Problem statement. The absence of the practice of applying taxonomy of financial statements in Ukraine, causes the relevance of this study. The developed countries of the world have already introduced this format, because it allows to make the reporting not only transparent and accessible to potential investors, but also convenient for analysis. Analysis of recent studies and publications. The process of functioning of the financial reporting system in the format XBRL is the newest, it was researched in works: Kuznetsova S. A., Borisenko A. A., Boyko R. V., Ostrovskaya O. A., Khatib E., Yassin M., Harber M., Marx B., De Jager P. and other. Highlighting unexplored parts of a common problem. Particular attention is needed to develop solutions that will minimize potential problems associated with the implementation and use of the XBRL format in Ukraine. Setting of the task, objectives of the research. Analyzing the implementation of XBRL format in Ukraine. Identifying prospects for using and setting the potential issues in the preparation of new financial statements using global experience. Research method or methodology. Dialectical methods of scientific cognition, collection and analysis of information and inductive method were used in the course of the research. Basic material presentation (results of work). The article defines the essence of the XBRL format, analyzes the stages of its implementation in Ukraine. Prospects and typical errors in the preparation of financial statements using the format have been identified. Measures have been developed to minimize the likelihood of occurrence and to overcome problems associated with its application, taking into account world experience. Areas of application of the results. The results of this study may be applied in the preparation of financial statements in accordance with the specified format. Conclusions to the article. All of the benefits of implementing XBRL far outweigh the impact of its application Its use in Ukraine shall allow reporting entities to properly prepare financial statements, adjust the requirement for duplicating financial statements while presenting to regulators, and help woo investors through formation of the qualitative financial statements.

scholarly journals Analysis on the Effects of Quality of Financial Statements, Over GDP Forecasting Models. An Empirical Cross-Country Approach

2020 ◽  
Vol 15 (3) ◽  
pp. 236-260
Author(s):  
Burca Valentin ◽  
Mates Dorel ◽  
Bogdan Oana
Keyword(s):  
Economic Growth ◽  
Financial Reporting ◽  
Structural Changes ◽  
Causal Relation ◽  
Forecast Error ◽  
Financial Statements ◽  
Institutional Framework ◽  
Gdp Growth ◽  
The Impact

Abstract Under increasing macroeconomic uncertainty, governments base their economic policies on high-precision GDP estimates. The models considered based on building-up government budgets incorporate main drivers of economic growth, identified along a large range of empirical studies, mostly focused on economic productivity, factor accumulation, human capital, innovation and transfer of technology, structural changes, or institutional framework. However, there is little evidence related to the impact of accounting and assurance regulation on economic growth. Our study attempts to assess the significance of causal relation between forecasting error on GDP growth and quality of accounting standards, respectively quality of financial statements. The study analyzes the causal relation between country level measures of quality of financial reporting, synthetized by Isidro et. al. (2019), and the measure of GDP growth estimate mean error. Our results confirm a significant impact of quality of the output of financial reporting practice, related to disclosure quality and asymmetric timeliness. The results remain similar, even after controlling for accounting convergence influence. Checking for robustness of the model, we observe the main drivers of one year ahead GDP forecast error are related to institutional framework to issue high quality standards and enforce them properly. The results emphasize once again the role of economic development and corresponding complexity of economic activities and political framework impact on accounting regulation and subsequently on macroeconomic measures.

scholarly journals The Strategy for Harmonizing Financial and Non-financial Reporting on Climate Risk Disclosures. Part 2

2020 ◽  
Vol 7 (4) ◽  
pp. 6-17
Author(s):  
O. V. Efimova ◽  
O. V. Rozhnova
Keyword(s):  
Climate Change ◽  
Financial Reporting ◽  
Financial Statements ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Climate Risks ◽  
Change Impact ◽  
Internal Accounting ◽  
Risk Disclosures ◽  
The Impact

The article is devoted to the harmonization of financial and non-financial reporting of the organization and the development of a strategy in the field of climate risks. In the first part of the article the main attention is paid to the analysis of the impact of these risks on the indicators of financial statements, the requirements for the disclosure of information, the relevance of reflecting the impact of climate change on the business, financial performance and the strategy. The second part formulates the recommendations for developing a strategy of harmonizing financial and non-financial reporting in the field of climate risks and for preparing disclosures regarding the interdependence of climate change impact and the company’s activities. The study is intended for government agencies of the Russian Federation, professional international organizations involved in the development of financial and non-financial reporting standards, interested users, as well as economic entities that develop internal accounting and reporting standards.

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