Sun Airlines, Inc.: Financial Reporting of Point and Loyalty Programs

2003 ◽  
Vol 18 (4) ◽  
pp. 359-368
Author(s):  
Mahendra R. Gujarathi ◽  
Ralph J. McQuade
Keyword(s):  
Financial Reporting ◽  
Business Strategy ◽  
Loyalty Programs ◽  
Technical Literature ◽  
Generally Accepted Accounting Principles ◽  
Entry Level ◽  
Market Participants ◽  
Economic Reality ◽  
Accounting Policy

This case presents a multifaceted, decision-oriented context to assess the appropriateness of accounting policy for ensuring a faithful representation of underlying economic reality. It will enhance your: (1) appreciation for the role of judgment in accounting decision making, (2) identification of the appropriate sources of generally accepted accounting principles (GAAP) and their authoritative status, (3) understanding and application of the technical literature, and (4) evaluation of accounting policy in the context of an entity's business strategy and potential reactions of capital market participants. The case serves as a basis for developing the functional, personal, and broad business perspective competencies identified as desirable by the AICPA (1999) for entry-level professionals.

Prestige Projects Limited: Challenges in Transitioning to New Accounting Policy

2021 ◽  
Author(s):  
Samir Kumar Barua ◽  
Mahendra R. Gujarathi
Keyword(s):  
Financial Reporting ◽  
Professional Judgment ◽  
Accounting Standard ◽  
Construction Contracts ◽  
Policy Choices ◽  
Accounting Courses ◽  
Business Functions ◽  
Accounting Policy

This case provides an experiential learning opportunity to (a) appreciate the role of professional judgment in accounting policy choices, (b) evaluate the effect of accounting decisions on other business functions, and (c) understand the challenges in transitioning to a new accounting standard. Prestige’s previous auditors were fine with its use of output-based measure (milestones completed) to compute the percentage-of-completion (POC) for its long-term construction contracts. However, the newly appointed auditors recommended Prestige to switch over to input-based measure (costs incurred) to compute POC. Students need to choose the appropriate financial reporting policy considering accounting and non-accounting issues. The case addresses an important context, long-term construction contracts. Although the case setting is in India, it can be used in any country given its GAAP-agnostic nature. The case is best suited for intermediate accounting courses in which the topic of revenue recognition is addressed.

scholarly journals THE DOMESTIC AUDIT DIGITALIZATION: TRENDS AND PROSPECTS

2021 ◽  
Author(s):  
Valentyna Panasyuk
Keyword(s):  
Financial Reporting ◽  
Business Processes ◽  
Digital Technologies ◽  
Market Participants ◽  
Current Trends ◽  
Large Databases ◽  
Discrete Nature ◽  
Development Assessment

In the context of economic globalization, expansion of international relations, creation of a single economic information space, rapid changes in external and internal environment, devastating effects of economic crises, increasing the role of digitalization, the number of market participants interested in obtaining reliable information and reducing information risks work. That is why today there is a growing demand for audit services to identify and further analyze the distortions of financial and economic performance, as well as to assess promising areas of business development. The purpose of this article is to analyze the stages of audit development, assessment of current trends, problems and prospects for digitalization of audit in Ukraine. The article identifies three evolutionary stages of audit development, during which it acquired a confirmatory, system-oriented and risk-oriented nature. Emphasis is placed on changing the passive function of modern audit to active, associated with the expansion of its tasks and facilities. The author found that the new objects of audit are indicators of non-financial reporting and business processes of the client company. The main advantages of non-financial reporting are identified and classified into external and internal. Innovative areas of audit development have been studied and three have been identified, each of which can change the system of modern auditing: digitalization of business, the ability to work with large databases, accounting and reporting in real time. The necessity of digitalization of audit and the need for the use of digital technologies, which mark a new revolutionary stage of its development, are substantiated. It is indicated that the audit acquires a fourth digitally-oriented form, which will change the discrete nature of the audit to a continuous one and will cause new audit risks. It was found that the audit using digital technologies will improve the quality of services provided on the basis of the transition from sample to continuous research. The author proved that digital technologies can simplify and streamline the organization of the audit, taking into account the characteristics of the client, but associated with the emergence of new audit risks.

The role of local accounting standard setters in institutional complexity

2018 ◽  
Vol 31 (1) ◽  
pp. 96-111 ◽  
Author(s):  
Saori Matsubara ◽  
Takahiro Endo
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Local Context ◽  
Multiple Sources ◽  
Institutional Complexity ◽  
Accounting Standard ◽  
Content Type ◽  
Generally Accepted Accounting Principles ◽  
Local Standard

Purpose The purpose of this paper is to locate the role of local standard setters in institutional complexity, where multiple sources of pressure for change and continuity coexist. The existing research does not fully explore this since it tends to illustrate the way in which a particular interpretation concerning certain accounting standards prevails over time (Archel et al., 2011; Murphy and O’Connell, 2013; Pelger, 2016; Young, 2014). Design/methodology/approach It empirically examines and critiques the Japanese experience through the concepts of institutional complexity and translation that specify the relationship between the name and types of practice of accounting standards in the local context (Czarniawska and Sevón, 1996, 2005; Erlingsdóttfr and Lindberg, 2005; Røvik, 2016; Sahlin and Wedlin, 2008). Data sources are texts produced (between 2001 and 2015) by the local accounting standard setter and relevant organisations that represent firms, the certified public accountants and regulatory agency, respectively. Findings The local accounting standard setter in Japan was exposed to competing pressures between change and maintenance, which was translated by the standard setter in Japan. Consequently, the translation led to an “explosion” of local accounting standards (“pure” International Financial Reporting Standards (IFRS), Japanese Generally Accepted Accounting Principles (GAAP), modified IFRS and US GAAP). Originality/value This paper is the first attempt to systematically examine the role of a local standard setter under institutional complexity. It illustrates how institutional complexity is turned into divergent outcomes against the assumption of previous research that indicates multiple interpretations of particular accounting standards finally merging into a specific one.

Business Model Literature Overview

2014 ◽  
pp. 79-130 ◽  
Author(s):  
Ales Novak
Keyword(s):  
Business Model ◽  
Financial Reporting ◽  
Business Models ◽  
Potential Role ◽  
Financial Instruments ◽  
Business Logic ◽  
Literature Overview ◽  
Ifrs 9 ◽  
Definition Of

The term ?business model' has recently attracted increased attention in the context of financial reporting and was formally introduced into the IFRS literature when IFRS 9 Financial Instruments was published in November 2009. However, IFRS 9 did not fully define the term ‘business model'. Furthermore, the literature on business models is quite diverse. It has been conducted in largely isolated fashion; therefore, no generally accepted definition of ?business model' has emerged. Therefore, a better understanding of the notion itself should be developed before further investigating its potential role within financial reporting. The aim of this paper is to highlight some of the perceived key themes and to identify other bases for grouping/organizing the literature based on business models. The contributions this paper makes to the literature are twofold: first, it complements previous review papers on business models; second, it contains a clear position on the distinction between the notions of the business model and strategy, which many authors identify as a key element in better explaining and communicating the notion of the business model. In this author's opinion, the term ‘strategy' is a dynamic and forward-looking notion, a sort of directional roadmap for future courses of action, whereas, ‘business model' is a more static notion, reflecting the conceptualisation of the company's underlying core business logic. The conclusion contains the author's thoughts on the role of the business model in financial reporting.

THE ROLE OF COMMUNICATIVE AND FUNCTIONAL APPROACH IN THE TRANSLATION OF SCIENTIFIC AND TECHNICAL LITERATURE (Ukrainian — German discourse)

2019 ◽  
Vol 26 (27) ◽  
pp. 68-74
Author(s):  
Svitlana Gruschko
Keyword(s):  
Key Words ◽  
Information Exchange ◽  
Functional Approach ◽  
Communication Structure ◽  
Technical Literature ◽  
Translation Strategy ◽  
Purposeful Activity

The article investigates the role of communicative-functional approach in the translation of scientific and technical literature, when the translation itself is seen as a tool to accomplish purposeful activity of communicators, representatives of different interlingual groups. In practical terms, the difficulties of translating scientific and technical texts are due to the peculiarities of scientific style, insufficient understanding of the terminology of a particular field of knowledge, which complicates the choice of adequate translation solutions. In this context, an important role is played by the translation strategy, where the communicativefunctional approach dominates. The translation is implicitly included in the communication structure between the author and the recipient. The relevance of the article is determined by the necessity of studying the problems of scientific and technical literature translation, taking into account the current realities of interlanguage information exchange. Key words: communicative-functional approach, interlingual communication, translation, structure

Composition and characteristics of the financial statements elements in accordance with IFRS

2020 ◽  
pp. 36-42
Author(s):  
Mohammad Tariq Jassim
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
International Financial Reporting Standards ◽  
International Accounting ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Current Trends ◽  
Similarities And Differences ◽  
Qualitative Characteristics

In a market economy, the role of International Financial Reporting Standards is increasing. In order to understand their significance in modern conditions it seems necessary to consider the peculiarities of evolution of IFRS formation. The article reflects actual issues concerning the role and significance of International Accounting and Reporting Standards in modern conditions. The author has defined the necessity of applying International Accounting and Reporting Standards by Russian companies. The article highlights the main elements and users of financial statements prepared on the basis of IFRS, and analyzes the similarities and differences that exist in the formation of financial statements, based on the requirements of IFRS and RAS. The main qualitative characteristics of financial statements are considered in detail. Based on the results of the research, the author has identified current trends in the transition to international financial reporting standards.

Labor and Finance: The Role of Financial Reporting Quality

2019 ◽  
Author(s):  
Boochun Jung ◽  
Woo-Jong Lee ◽  
David P. Weber ◽  
Daniel Yang
Keyword(s):  
Financial Reporting ◽  
Reporting Quality ◽  
Financial Reporting Quality

Does Recent Academic Research Support Changes to Audit Reporting Standards?

2016 ◽  
Vol 30 (2) ◽  
pp. 255-275 ◽  
Author(s):  
Jean Bédard ◽  
Paul Coram ◽  
Reza Espahbodi ◽  
Theodore J. Mock
Keyword(s):  
Financial Reporting ◽  
Academic Research ◽  
Financial Statements ◽  
Future Research ◽  
Research Support ◽  
The Public ◽  
Market Participants ◽  
Information Gap ◽  
Public Company ◽  
Reporting Process

SYNOPSIS The Public Company Accounting Oversight Board (PCAOB), the International Auditing and Assurance Standards Board (IAASB), and the U.K. Financial Reporting Council (FRC) have proposed or approved standards that significantly change the independent auditor's report. These initiatives require the auditor to make additional disclosures intended to close the information gap; that is, the gap between the information users desire and the information available through the audited financial statements, other corporate disclosures, and the auditor's report. They are also intended to improve the relevancy of the auditor's report. We augment prior academic research by providing standard setters with an updated synthesis of relevant research. More importantly, we provide an assessment of whether the changes are likely to close the information gap, which is important to financial market participants and other stakeholders in the audit reporting process. Also, we identify areas where there seems to be a lack of sufficient research. These results are of interest to all stakeholders in the audit reporting process, as the changes to the auditor's report are fundamental. Additionally, our summaries of research on the auditor's report highlight where there is limited research or inconsistent results, which will help academics identify important opportunities for future research.

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