Sachiko Corporation: A Case in International Financial Statement Analysis

2008 ◽  
Vol 23 (1) ◽  
pp. 77-101 ◽  
Author(s):  
Mahendra R. Gujarathi
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Business Environment ◽  
Financial Statement ◽  
Japanese Company ◽  
Financial Statement Analysis ◽  
International Context ◽  
Profitability Ratios

Sachiko is a comprehensive case on financial statement analysis within an international context. Upon reviewing the financial statements and relevant footnotes of Sachiko Corporation, a Japanese company, and U.S.-based Radiance Inc., you are required to restate the two companies' financials to evaluate whether the revised ratios are consistent with each company's strategy and business environment and, subsequently, to recommend the better investment prospect. The case provides a forum for you to examine the role of environmental differences (cultural, institutional, business, and financial reporting) in interpreting the risk and profitability ratios in an international context.

scholarly journals The Importance of the Audited Financial Statement in Attracting Foreign Investors in Private Sector in Kosovo

2017 ◽  
Vol 5 (1) ◽  
pp. 118-136
Author(s):  
Leonora Haliti Rudhani ◽  
Hysen Ismajli ◽  
Albulena Mustafa
Keyword(s):  
Private Sector ◽  
Financial Reporting ◽  
Foreign Investment ◽  
Financial Statements ◽  
Business Environment ◽  
Financial Statement ◽  
Foreign Investors ◽  
Financial Reporting Standards ◽  
Positive Effect

Abstract Responding to globalization of the international business environment the companies need to draw and present reliable and comparable audited financial statements, and consequently there is a vital need to implement international financial reporting standards. Foreign investments in Kosovo as a new developing country are growing. The purpose of this paper is to consider the role of audited financial statements in encouraging foreign investment in the private sector in Kosovo. To examine this issue, we have analysed three determinant factors in presenting financial statements to the foreign investors: auditor’s report, auditor reputation and relevance of auditor’s findings. The results of this study indicate that these variables have a positive effect on promotion of foreign investment. These results also revealed that audited financial statements are very important for Kosovo companies in order to ensure an equal worldwide treatment.

Financial Statement Analysis Under IFRS

2018 ◽  
pp. 696-712
Author(s):  
Yasemin Zengin Karaibrahimoglu ◽  
Gökçe Tunç
Keyword(s):  
New York ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Statement Analysis ◽  
Financial Reports ◽  
York Stock Exchange ◽  
Key Points ◽  
Recent Developments

This chapter provides a clear conceptual discussion on the recent developments in the Financial Statement Analysis (FSA). It presents how IFRSs changed the outlook of the financial reporting and the analysis and explains the key points that should be considered in FSA. Using a case study on the financial reports of Turkcell, a communication and technology company listed both on the New York Stock Exchange (NYSE) and the Borsa Istanbul (BIST), the differences between IFRSs and U.S. GAAP accounting standards in the measurement of overall financial performance and position are documented. Overall findings show that IFRSs change the appearance of financial statements significantly. While IFRS reporting extenuates “the bottom line” it accentuates total assets with higher shareholder equity compared to U.S. GAAP. This chapter might be a practical guide for users, preparers, and regulators to understand the cosmetic impact of IFRSs on financial statements.

Fintech in financial reporting and audit for fraud prevention and safeguarding equity investments

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Paulina Roszkowska
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Fraud ◽  
Financial Statement Fraud ◽  
Content Type ◽  
Financial Scandals ◽  
External Auditor ◽  
Equity Investments

Purpose The purpose of this paper is to explore the audit-related causes of financial scandals and advice on how emerging technologies can provide solutions thereto. Specifically, this study seeks to look at the facilitators of financial statement fraud and explain specific fintech advancements that contribute to financial information reliability for equity investments. Design/methodology/approach The study uses the case studies of Enron and Arthur Andersen to document the evidence of audit-related issues in historical financial scandals. Then, a comprehensive and interdisciplinary literature review at the intersection of business, accounting and engineering, provides a foundation to propose technology advancements that can solve identified problems in accounting and auditing. Findings The findings show that blockchain, internet of things, smart contracts and artificial intelligence solutions have different functionality and can effectively solve various financial reporting and audit-related problems. Jointly, they have a strong potential to enhance the reliability of the information in financial statements and generally change how companies operate. Practical implications The proposed and explained technology advancements should be of interest to all publicly listed companies and investors, as they can help safeguard equity investments, thus build investors’ trust towards the company. Social implications Aside from implications for capital markets participants, the study findings can materially benefit various stakeholder groups, the broader company environment and the economy. Originality/value This is the first paper that seeks solutions to financial fraud and audit-related financial scandals in technology and not in implementing yet another regulation. Given the recent technology advancements, the study findings provide insights into how the role of an external auditor might evolve in the future.

ANALISIS LAPORAN KEUANGAN HASIL PENGELOLAAN DANA PENGEMBANGAN USAHA AGRIBISNIS PERDESAAN (PUAP) (Kasus di Gapoktan Srijaya Sari Kecamatan Sukahening Kabupaten Tasikmalaya)

2017 ◽  
Vol 6 (2) ◽  
Author(s):  
Iwan Sugianto
Keyword(s):  
Rural Areas ◽  
Agricultural Sector ◽  
Development Program ◽  
Social Institution ◽  
Financial Statement ◽  
Financial Statement Analysis ◽  
Return On Equity ◽  
Calculation Results ◽  
Profitability Ratios

Rural Agribusiness Development Program (PUAP) implemented by the farmers (owners or tenants), farm laborers and poor farm households through coordination diperdesaan Gapoktan as an institution that is owned and managed by farmers. Gapoktan important role as a social institution peasant economy to be important in increasing production and the welfare of farmers. Given the role of the performance evaluation results gapoktan need to be input in developing Gapoktan development model so that it can better contribute in accelerating the improvement of the welfare of farmers, the growth of the agricultural sector and economic development of rural areas. The purpose of this research was to determine results financial statement analysis Gapoktan Srijaya Sari subdistrict Sukahening using Financial Ratios through Ratios Profitability who aim to measure the ability Gapoktan Srijaya Sari to generate profit, by using an approach on the calculation of Return On assest (ROA) and Return On Equity (ROE).Results in mind that the results of Financial Statement Analysis Rural Agribusiness Development (PUAP) which has been managed by Gapoktan Srijaya Sari subdistrict Sukahening has shown a number of very good because it has to generate profits for the group union. This is evident from the results with regard Profitability Ratios ROA calculation results (Renturn on Assets) amounted to 16.01% and ROE (ReturnOn Equity) amounted to 25.27%.

Financial Statement Analysis under IFRS

2014 ◽  
pp. 238-255
Author(s):  
Yasemin Zengin Karaibrahimoglu ◽  
Gökçe Tunç
Keyword(s):  
New York ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Statement Analysis ◽  
Financial Reports ◽  
York Stock Exchange ◽  
Key Points ◽  
Recent Developments

This chapter provides a clear conceptual discussion on the recent developments in the Financial Statement Analysis (FSA). It presents how IFRSs changed the outlook of the financial reporting and the analysis and explains the key points that should be considered in FSA. Using a case study on the financial reports of Turkcell, a communication and technology company listed both on the New York Stock Exchange (NYSE) and the Borsa Istanbul (BIST), the differences between IFRSs and U.S. GAAP accounting standards in the measurement of overall financial performance and position are documented. Overall findings show that IFRSs change the appearance of financial statements significantly. While IFRS reporting extenuates “the bottom line” it accentuates total assets with higher shareholder equity compared to U.S. GAAP. This chapter might be a practical guide for users, preparers, and regulators to understand the cosmetic impact of IFRSs on financial statements.

scholarly journals PERANAN LAPORAN KEUANGAN DALAM KEBIJAKSANAAN PEMBERIAN KREDIT KEPADA CALON NASABAH PADA PT. BPR BATANG KAPAS

2018 ◽  
Author(s):  
Ananda Rahmi Shanjaya ◽  
Doni Marlius
Keyword(s):  
Data Analysis ◽  
Research Method ◽  
Qualitative Data ◽  
Financial Statements ◽  
Financial Statement ◽  
Net Income ◽  
Financial Statement Analysis ◽  
Operating Income ◽  
Operating Profit

The objective to be achieved in this study is to find out how the financial statement analysis of PT. BPR Batang Kapas in giving credit to prospective customers. In analyzing data, the author uses qualitative data analysis as a research method that explains descriptively about the role of financial statements in the policy of giving credit to prospective customers of PT. BPR Batang Kapas. Research Results The total operating income of PT. BPR Batang Kapas in 2015 was Rp. 4,127,157,198 while in 2016 it was Rp. 4,614,930,633. While the operating profit and loss of PT. BPR Batang Kapas in 2015 was IDR 552,086,280 and in 2016 was IDR 627,180,472. it can be seen that the national financial profit of PT. BPR Batang Kapas has increased by Rp 75,094,192. It is clear that PT. BPR Batang Kapas benefited from 2015 to 2016. Both in terms of the amount of operating income, operating income or net income at PT. BPR Batang Kapas. But based on the data on the ratio of Liquidity, Solvability, and Profitability see the percentage that exists at PT. BPR Batang Kapas, there is a possibility that credit can be given to prospective customers.

scholarly journals ANALISIS KINERJA KEUANGAN PERUSAHAAN MENGGUNAKAN ANALISIS RASIO KEUANGAN DAN COMMON SIZE (Studi PT. Sekar Bumi Tbk. , PT. Sekar Laut Tbk. dan PT. Mayora Indah Tbk. Periode 2011 - 2014 periode 2011 - 2014)

2017 ◽  
Vol 2 (02) ◽  
Author(s):  
Nur Indah Lupitasri ◽  
Cholis Hidayati
Keyword(s):  
Financial Performance ◽  
Consumer Goods ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Ratios ◽  
Size Analysis ◽  
Financial Statement Analysis ◽  
Activity Ratios ◽  
Profitability Ratios ◽  
Average Average

ABSTRACTPT. Sekar Bumi Tbk. PT Sekar Laut, Tbk. and PT Mayora Indah Tbk is some food company that manufactures and sells consumer goods - day. The three companies are competing to increase its profit and to conduct its business expansion. Is inseparable from the three companies that are required to assess each year whether the financial statements are already meet the standard conditions of the financial performance of companies using financial statement analysis. For that conducted research at PT. Sekar Bumi Tbk. PT Sekar Laut, Tbk. and PT Mayora Indah Tbk with the aim of analyzing the results of the company's financial performance when seen from the analysis of the financial statements of these companies. The financial statements of the three companies are measured using financial ratios of liquidity ratios, activity ratios, solvency ratios and profitability ratios as well as using common size analysis. From the analysis conducted is as follows ratio of the financial statements. Sekar Bumi Tbk. PT Sekar Laut, Tbk. and PT Mayora Indah Tbk shows the average - average financial performance is good. Keyword: Financial Statement Analysis, Financial Performance

scholarly journals Financial Statement Analysis of Beximco Synthetics Limited

2017 ◽  
pp. 93-100
Keyword(s):  
Risk Analysis ◽  
Financial Statements ◽  
Financial Statement ◽  
Operating Efficiency ◽  
Ratio Analysis ◽  
Financial Statement Analysis ◽  
Profitability Ratios

This paper deals with the Financial Statement analysis of Beximco Synthetics Ltd. to get a practical view of how analysis is done using financial statements. We have taken the four year’s (2010-2013) financial statements of the company to complete the whole analysis. In ratio analysis we calculated various ratios such as Internal Liquidity Ratios, Operating Efficiency Ratios, and Ratios for Risk Analysis and Operating Profitability Ratios etc. At first the financial statements were reformulated to get pure views of the trends regarding different items of the statements.

Fraud of Financial Statements at Listed Enterprises on Ho Chi Minh City Securities Department

2018 ◽  
Vol 34 (4) ◽  
Author(s):  
Nguyen Tien Hung ◽  
Huynh Van Sau
Keyword(s):  
New York ◽  
Financial Reporting ◽  
Financial Statements ◽  
Financial Statement ◽  
Viet Nam ◽  
Fraud Triangle ◽  
Fraudulent Financial Reporting ◽  
Financial Statement Fraud ◽  
Corporate Fraud ◽  
Two Factors

The study was conducted to identify fraudulent financial statements at listed companies (DNNY) on the Ho Chi Minh City Stock Exchange (HOSE) through the Triangular Fraud Platform This is a test of VSA 240. At the same time, the conformity assessment of this model in the Vietnamese market. The results show that the model is based on two factors: the ratio of sales to total assets and return on assets; an Opportunity Factor (Education Level); and two factors Attitude (change of independent auditors and opinion of independent auditors). This model is capable of accurately forecasting more than 78% of surveyed sample businesses and nearly 72% forecasts for non-research firms.  Keywords Triangle fraud, financial fraud report, VSA 240 References Nguyễn Tiến Hùng & Võ Hồng Đức (2017), “Nhận diện gian lận báo cáo tài chính: Bằng chứng thực nghiệm tại các doanh nghiệp niêm yết ở Việt Nam”, Tạp chí Công Nghệ Ngân Hàng, số 132 (5), tr. 58-72.[2]. Hà Thị Thúy Vân (2016), “Thủ thuật gian lận trong lập báo cáo tài chính của các công ty niêm yết”, Tạp chí tài chính, kỳ 1, tháng 4/2016 (630). [3]. Cressey, D. R. (1953). Other people's money; a study of the social psychology of embezzlement. New York, NY, US: Free Press.[4]. Bộ Tài Chính Việt Nam, (2012). Chuẩn mực kiểm toán Việt Nam số 240 – Trách nhiệm của kiểm toán viên đối với gian lận trong kiểm toán báo cáo tài chính. [5]. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics, 3(4), 305-360.[6]. Võ Hồng Đức & Phan Bùi Gia Thủy (2014), Quản trị công ty: Lý thuyết và cơ chế kiểm soát, Ấn bản lần 1, Tp.HCM, Nxb Thanh Niên.[7]. Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston: Pitman independence on corporate fraud. Managerial Finance 26 (11): 55-67.[9]. Skousen, C. J., Smith, K. R., & Wright, C. J. (2009). Detecting and predicting financial statement fraud: The effectiveness of the fraud triangle and SAS No. 99. Available at SSRN 1295494.[10]. Lou, Y. I., & Wang, M. L. (2011). Fraud risk factor of the fraud triangle assessing the likelihood of fraudulent financial reporting. Journal of Business and Economics Research (JBER), 7(2).[11]. Perols, J. L., & Lougee, B. A. (2011). The relation between earnings management and financial statement fraud. Advances in Accounting, 27(1), 39-53.[12]. Trần Thị Giang Tân, Nguyễn Trí Tri, Đinh Ngọc Tú, Hoàng Trọng Hiệp và Nguyễn Đinh Hoàng Uyên (2014), “Đánh giá rủi ro gian lận báo cáo tài chính của các công ty niêm yết tại Việt Nam”, Tạp chí Phát triển kinh tế, số 26 (1) tr.74-94.[13]. Kirkos, E., Spathis, C., & Manolopoulos, Y. (2007). Data mining techniques for the detection of fraudulent financial statements. Expert Systems with Applications, 32(4), 995-1003.[14]. Amara, I., Amar, A. B., & Jarboui, A. (2013). Detection of Fraud in Financial Statements: French Companies as a Case Study. International Journal of Academic Research in Accounting, Finance and Management Sciences, 3(3), 40-51.[15]. Beasley, M. S. (1996). An empirical analysis of the relation between the board of director composition and financial statement fraud. Accounting Review, 443-465.[16]. Beneish, M. D. (1999). The detection of earnings manipulation. Financial Analysts Journal, 55(5), 24-36.[17]. Persons, O. S. (1995). Using financial statement data to identify factors associated with fraudulent financial reporting. Journal of Applied Business Research (JABR), 11(3), 38-46.[18]. Summers, S. L., & Sweeney, J. T. (1998). Fraudulently misstated financial statements and insider trading: An empirical analysis. Accounting Review, 131-146.[19]. Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1996). Causes and consequences of earnings manipulation: An analysis of firms subject to enforcement actions by the SEC. Contemporary accounting research, 13(1), 1-36.[20]. Loebbecke, J. K., Eining, M. M., & Willingham, J. J. (1989). Auditors experience with material irregularities – Frequency, nature, and detectability. Auditing – A journal of practice and Theory, 9(1), 1-28. [21]. Abbott, L. J., Park, Y., & Parker, S. (2000). The effects of audit committee activity and independence on corporate fraud. Managerial Finance, 26(11), 55-68.[22]. Farber, D. B. (2005). Restoring trust after fraud: Does corporate governance matter?. The Accounting Review, 80(2), 539-561.[23]. Stice, J. D. (1991). Using financial and market information to identify pre-engagement factors associated with lawsuits against auditors. Accounting Review, 516-533.[24]. Beasley, M. S., Carcello, J. V., & Hermanson, D. R. (1999). COSO's new fraud study: What it means for CPAs. Journal of Accountancy, 187(5), 12.[25]. Neter, J., Wasserman, W., & Kutner, M. H. (1990). Applied statistical models.Richard D. Irwin, Inc., Burr Ridge, IL.[26]. Gujarati, D. N. (2009). Basic econometrics. Tata McGraw-Hill Education.[27]. McFadden, D. (1974). Conditional Logit Analysis of Qualita-tive Choice Behavior," in Frontiers in Econometrics, P. Zarenm-bka, ed. New York: Academic Press, 105-42.(1989). A Method of Simulated Moments for Estimation of Discrete Response Models Without Numerical Integration," Econometrica, 54(3), 1027-1058.[28]. DA Cohen, ADey, TZ Lys. (2008), “Accrual-Based Earnings Management in the Pre-and Post-Sarbanes-Oxley Periods”. The accounting review.

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.

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