scholarly journals Empirical Verification of the Existence and Functioning of Internal Controls in the Preparation of a Consolidated Property Balance Sheet for the State and Municipalities in Slovenia

2014 ◽  
Vol 9 (4) ◽  
Author(s):  
Jasna Ida Zafred
Keyword(s):  
Public Sector ◽  
Balance Sheet ◽  
Accounting Standards ◽  
Financial Statements ◽  
Opinion Poll ◽  
International Accounting Standards ◽  
Consolidation Process ◽  
Balance Sheets ◽  
Controlling System ◽  
Information And Communication

The consolidation process, where a group of enterprises is presented as a single one, is prescribed by international accounting standards, and in accordance with them it has been taken over by Slovenian accounting standards and International Public Sector Accounting Standards. It may be conducted after prior preparation of basic financial statements of the controlling and the controlled enterprise. From the professional directives derives one of the demands that between consolidated standings there must not be any so-called "quasi-differences" due to unregulated accounting. In spite of the fact that Slovenian subjects of the public sector do not prepare financial statements in a way as determined by the standards, consolidation is being carried out, but for certain data of the balance sheets and based on a special regulation. This regulation allows the appearance of differences between the budgets users what influences the standing of the general state fund. In the research, by the method of random sampling by the use of an opinion poll according to the components of the COSO model, we empirically verified the effectiveness of the internal controlling system in the preparation of original documents of the balance sheets in the Slovenian public sector. We found out that formally differences are allowed, even quasi-differences, due to which reliability of a consolidation financial statement is questionable. Verification of the component of the controlling environment has shown for example that legal limitation periods for the confirmation of open positions are determined too early, and the proceedings are not agreed upon exactly enough when there is an imbalance between receivables and liabilities in the consolidation. In situations of short-term receivables and liabilities towards budget users in 31.12., there are standings that may lead to the risk of appearance of differences in the consolidation and for a string of accounts we found in the component of the controlling activity that budget users did not even the standings successfully or did not even balance the standings in 31.12., due to what differences appeared. This was the cause that measures were determined by accounting offices for the avoiding of an appearance of differences. The question of the component of information and communication was answered by accountants who wish they had more education, and the superiors who could use the information from financial statements better for their decision-making. Their software is still not safe enough, as in some cases the database of financial data is accessed. The results in the component of following showed that in several places audits of the procedure of preparation of property balance sheets were not performed.

scholarly journals Exemptions Resulting from the International Public Sector Accounting Standards (IPSAS) and European Standards for Intangible Investment, Inventories and Personnel Expenditures in Public Entities

2019 ◽  
Vol 24 (2) ◽  
pp. 124-130
Author(s):  
Corina Enache
Keyword(s):  
Public Sector ◽  
Accounting Standards ◽  
Financial Statements ◽  
General Purpose ◽  
Employee Benefits ◽  
International Accounting Standards ◽  
Adoption And Implementation ◽  
Public Sector Accounting ◽  
Personnel Expenses ◽  
European Standards

Abstract Simultaneously with the globalization of economies, it was necessary the adoption and implementation of international accounting standards for the public sector also. In 1996 a set of accounting standards for public sector entities was developed, namely International Public Sector Accounting Standards (IPSAS). After 31st July 1998, 32 IPSAS standards, mostly inspired by IASs, centered on model and engagement-based accounting, were issued. IPSAS 1 – Presentation of financial statements relating to the place of intangible assets, inventories and personnel expenses in the content and format of the financial statements is applied to all general purpose financial statements realized under accrual accounting. The IPSAS 12 – Inventory objective is to state the stock accounting treatment. The IPSAS 25 objective – Employee benefits is to state the employee benefits from an accounting perspective.

scholarly journals ¿Ingresos integrales, teoría de la entidad o concepto de entidad? Un compromiso diplomático en la redacción de informes financieros

2017 ◽  
Vol 13 (25) ◽  
pp. 8
Author(s):  
Marco Angelo Marinoni ◽  
Andrea Cilloni
Keyword(s):  
Balance Sheet ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Accounting ◽  
International Accounting ◽  
International Accounting Standards ◽  
Financial Accounting Standards Board ◽  
Accounting Systems ◽  
Generally Accepted Accounting Principles ◽  
Income Statement

The globalizations of markets and increased international cooperation in the harmonized accounting systems have highlighted the difficulties inherent in the development of generally accepted accounting principles. The Financial Accounting Standards Board, FASB, and the International Accounting Standards Board, IASB, are therefore working - through shared projects – in conducting a “Conceptual Framework Project”, which will lead to increased knowledge and understanding of the principles of international accounting convergence.The process of international harmonization has defined the concept of “Comprehensive Income”, i.e. a new structure of the Income Statement, in which they reside clearly even charges and unrealized gains (as final assets adjustments, monetary exchange variations and so on). The Balance Sheet and the Financial Statements in general, continue to maintain an approach prone to theory of property valuation, given the shareholder, as the main carrier of social interest.

scholarly journals Financial Reporting Impact Of The Operating Lease Classification

2012 ◽  
Vol 28 (6) ◽  
pp. 1509 ◽  
Author(s):  
John Kostolansky ◽  
Dora Altschuler ◽  
Brian B. Stanko
Keyword(s):  
North America ◽  
Financial Reporting ◽  
Balance Sheet ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Accounting ◽  
International Accounting Standards ◽  
Financial Accounting Standards Board ◽  
Operating Leases ◽  
The Impact

The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are preparing to make changes to accounting standards for leasing that will have a significant impact on the financial statements of a large number of companies. The proposed standard will eliminate the operating lease classification, and if passed, companies using this classification will be required to report additional assets and liabilities on the balance sheet. This study estimates the impact of this change in accounting standards on the financial statements and several key financial ratios for an extensive sample of companies and industries from the Compustat North America database. It is important that users of financial statements understand and are prepared for these changes prior to implementation, particularly for industries in which operating leases are heavily utilized.

scholarly journals EXPENDITURES AND EXPENSES IN BUDGETARY INSTITUTIONS: ESSENCE, ACCOUNTING PROBLEMS AND WAYS TO IMPROVE

2021 ◽  
Author(s):  
Nadia Topolenko ◽  
Yulia Lavreniuk
Keyword(s):  
Public Sector ◽  
Financial Reporting ◽  
Reporting System ◽  
Accounting Standards ◽  
Financial Statements ◽  
Accounting System ◽  
International Accounting Standards ◽  
The Public ◽  
Budgetary Institutions

In the conditions of public sector entities, much more attention is paid to accounting for income, expenditures and expenses, primarily by practicing accountants. The revenues of public sector entities represent the main source of their activities, and the costs make it possible to analyze their effectiveness and rationality of the use of budget allocations, so the organization of accounting for these objects determines the effectiveness of the activities of public sector institutions. The accounting system of public sector institutions is formed according to the modernization schemes approved at the legislative level. The public sector accounting plan and national accounting regulations (standards) in the public sector have significantly changed the established methods of accounting for the implementation of budgetary institutions. The economic classification of expenditures has also changed, the division of operations into exchange and non-exchange operations in accordance with international accounting standards for the public sector has also changed. The above has led to significant changes in the method of accounting for income, expenditures and expenses, which is due to the relevance of the study. The article specified and proposed new definitions of economic concepts of «income», «expenditures» and «expenses» of budgetary institutions. Various approaches to their interpretation are considered, attention is focused on the key problems of adaptation of accounting for income and expenses of budget funds managers in accordance with the implementation of the Strategy for modernization of the accounting and financial reporting system in the public sector for the period up to 2025 and approximation to the generally accepted principles of international practice. Changes in the methodology of accounting and display in financial statements of income and expenses of public sector entities were studied, the theoretical and practical aspects of improving the accounting of income, expenditures and expenses by public sector entities were highlighted. Proposals for improving the accounting of income and expenses in the public sector are given and substantiated.

CONCEPTUAL FRAMEWORK OF INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS: WORLD EXPERIENCE AND UKRAINE

2017 ◽  
Vol 6 (2) ◽  
pp. 78-85
Author(s):  
Svitlana Zubilevych ◽  
Nataly Poznyakovska
Keyword(s):  
Public Sector ◽  
Conceptual Framework ◽  
Financial Reporting ◽  
Reporting System ◽  
Accounting Standards ◽  
Financial Statements ◽  
General Purpose ◽  
International Accounting Standards ◽  
The Public

The article discusses the role of the "Conceptual framework for general purpose financial reporting of public sector entities" in connection with the reform of the accounting and reporting system in the public sector of Ukraine on the basis of harmonization with International Accounting Standards. The chronology of the development of the Conceptual Framework and its brief content are generalized. An analysis of the purpose of the Conceptual Framework for General Purpose Financial Statements was conducted. Conclusions on the need to develop a national conceptual framework are made.

scholarly journals Specifics of the Unearned Premium Reserve in the Accounting of Commercial Insurance Companies

2014 ◽  
Vol 62 (6) ◽  
pp. 1271-1277
Author(s):  
Jana Gláserová
Keyword(s):  
Income Tax ◽  
Balance Sheet ◽  
Accounting Standards ◽  
Financial Statements ◽  
Legal Regulation ◽  
Equity Capital ◽  
Insurance Companies ◽  
International Accounting Standards ◽  
Tax Base ◽  
Commercial Insurance

Commercial insurance companies are liable to create, on the basis of risks arising from the fulfillment of the object of their activity, technical reserves, which are used to cover liabilities arising to insurance companies from insurance and reinsurance activity. The paper focuses on the technical reserve which is, in accordance with the accounting-legal regulation, created obligatorily in commercial insurance companies – it is the unearned premium reserve.The paper explores the role and place of this technical reserve in the accounting of the commercial insurance companies based on the analysis of its substance, i.e. the objective definition. The paper is based on the methodology of the accounting, evaluation and methods of determining the amount of the technical reserve which will affect the income from operations as well as income tax base of commercial insurance companies. The paper also studied the method of reporting of unearned premium reserve in accounting according to Czech accounting legislation in comparison with International Accounting Standards (IAS/IFRS). The aim of this paper is to determine the impacts of the creation and application of the unearned premium reserve on some important items of the financial statements, which are mainly the income of operations, equity capital and balance sheet as well as to identify the impacts of different reporting of this reserve according to Czech accounting legislation and in accordance with IAS/IFRS. Performing the analysis of the accounting-legal regulation of the unearned premium reserve in the insurance companies, the analysis of the method of accounting of this reserve and also the comparison of reporting of this reserve according to both mentioned regulations is a prerequisite for the fulfillment of the aim.

scholarly journals Isu Penyatuan Akuntansi Atas Aset Tak Berwujud

2013 ◽  
Vol 4 (2) ◽  
pp. 821-833
Author(s):  
Rosinta Ria Panggabean
Keyword(s):  
Intangible Assets ◽  
Balance Sheet ◽  
Accounting Standards ◽  
Financial Statements ◽  
International Accounting Standards ◽  
Financial Position ◽  
Knowledge Based ◽  
The Impact ◽  
Accounting Convergence ◽  
Alternative Solutions

Globalization, technological innovation, and intense competition made companies change from laborbased business to knowledge-based business. Investors use financial statements published by the company as a basis for their investment decisions. Difficulties to compare and interpret financial statements prepared by different rules have led to demands from practitioners and academics on international harmonization, and even support for the unification of accounting standards around the world. Thus, the unification (convergence) of accounting is a big issue, especially at this time which the balance sheet of asset is increasingly dominated by intangible assets. Difficulties to recognize and to record the intangible assets in the financial statements especially Statement of Financial Position are regarded as a major issue in accounting for intangible assets. This article is a literature review of accounting for intangible assets and the impact of globalization, science, and technology against it. The discussion began with outlining the issue of unification of international accounting standards, the advantages, disadvantages, and the parties concerned in relation to accounting convergence. Article discussed later on intangible assets, along with the controversy issues that arised. Alternative solutions along with conclusions and suggestions were at the end of this article.

scholarly journals Distortions in the measurement of the efficiency of financial leverage strategies in the airline industry when operating leases are ignored

2014 ◽  
Vol 25 (1) ◽  
pp. 21-36
Author(s):  
Carl A Sheraga ◽  
Paul Caster
Keyword(s):  
Airline Industry ◽  
Balance Sheet ◽  
Accounting Standards ◽  
Financial Accounting ◽  
International Accounting Standards ◽  
Financial Accounting Standards Board ◽  
Financial Leverage ◽  
Balance Sheets ◽  
Operating Leases ◽  
Management Perspective

The Financial Accounting Standards Board and the International Accounting Standards Board have set forth a proposal requiring companies to capitalize operating leases and include them as assets and liabilities on their balance sheets. The proposal is motivated by the fact that current methods accounting for operating leases hide a great deal of off-book leverage and thus are misleading to investors. Such a change would have a significant impact on the U.S. airline industry where aircraft and property operating leases are quite prevalent. This study utilizes an in-depth strategic management perspective in examining how well U.S. airlines pursue optimization strategies with regard to the management of financial leverage in order to achieve desired targets of growth and profitability. Such benchmarking is accomplished by utilizing the DEA model suggested by Capobianco and Fernandes (2004). This study demonstrates the distortion inherent in inter-airline benchmarking when operating leases are not capitalized on the balance sheet.

scholarly journals Comparison of Valuation of Financial Instruments according to the International and Czech Accounting Standards in the Context of Performance Reporting

2016 ◽  
Vol 7 (1) ◽  
pp. 34-49
Author(s):  
Jaroslav Sedláček
Keyword(s):  
Financial Analysis ◽  
Balance Sheet ◽  
Accounting Standards ◽  
Financial Statements ◽  
International Accounting Standards ◽  
Financial Instruments ◽  
Performance Reporting ◽  
The Subject ◽  
Made In

The paper is devoted to a comparison of the valuation of financial instruments according to the international and Czech accounting standards in the context of performance reporting of trade corporations. Differences in valuation and reporting of financial instruments are examined in connection with the upcoming amendments to the international accounting standards, which are currently the subject of scientific and expert discussions. The research focused on the comparison of classification methods of financial instruments according to the international and Czech standards and the resultant methods of recognition, valuation and reporting with the aim of identifying possible differences. The research arrived at the discovery of what causes the differences and the assessment of their impact on the financial statements of trade corporations. A different concept of accruals on long-term receivables and variant calculations of present value affected the amount of the reported balance sheet as well as performance. Calculations of specific values of differences in financial instruments are made in two model examples in the categories Held-to-maturity investments (HTMI) and Loans and receivables (L&R), both from the viewpoint of owners, as well as from the perspective of debtors. The development of these differences in time is described graphically. The differences in the reported values manifested themselves in overvaluation or undervaluation during the life of the financial instrument, but the values were identical at the time of their maturity. It has been proved that differences between the reported financial situation and the performance of trade corporations persist even after the amendment to the Czech accounting legislation, and it is necessary to take them into account in financial analysis.

The Reporting Entity in Private-Public Accounting Harmonisation. Is Control Enough for the Local Government Consolidated Financial Statements?

2017 ◽  
pp. 5-29 ◽  
Author(s):  
Cristian Carini ◽  
Laura Rocca ◽  
Claudio Teodori ◽  
Monica Veneziani
Keyword(s):  
Public Sector ◽  
Local Government ◽  
Accounting Standards ◽  
Financial Statements ◽  
Consolidated Financial Statements ◽  
The Public ◽  
Financial Accountability ◽  
Public Sector Accounting ◽  
Definition Of ◽  
Reporting Entity

The European Commission initiated a discussion on the expediency of using the International Public Sector Accounting Standards (IPSAS), based on the IAS/IFRS, as a common base for harmonizing the public sector accounting systems of the member states. However, literature suggests that accounting is not neutral with respect to the economic, social and political dimensions. In the perspective of evolution of the accounting regulation outlined, balanced between accountability, with the need to represent phenomena for reporting pur-poses, and decisionmaking issues, which concentrates on the quantitative importance of the values, the paper aims to analyse the effects of the application of different criteria for the definition of the reporting entity of the local government consolidated financial statements (CFS). The Italian PCA 4/4, the test of control and the financial accountability approaches are examined. The evidence that emerged from the case studies examined identifies several criticalities in the Italian PCA 4/4 and support the thesis that the financial accountability approach is more effective in providing a complete representation of the public resources entrusted to and managed by the group, whereas the control approach better approximates quantification of the group results in terms of central government surveillance. The analysis highlights the importance of the post implementation review period and the opportunity to contextualize the adoption of the consolidated financial statement in the broader spectrum of the accounting harmonization process, participating in the process of definition of the European Public Sector Accounting Standards (EPSAS).

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