scholarly journals Are Discount Rates In Disarray In The First Year Adoption Of International Financial Reporting Standards?

2021 ◽  
Vol 7 (04) ◽  
Author(s):  
Manh Dung Tran ◽  
Thu Thuy Nguyen
Keyword(s):  
Hong Kong ◽  
Discount Rate ◽  
Financial Reporting ◽  
First Year ◽  
Reporting Standards ◽  
Discount Rates ◽  
Discounted Cash Flow ◽  
Financial Reports ◽  
Financial Reporting Standards ◽  
Rate Selection

In calculating recoverable amount of cash generating units (CGUs) under the implementation of value in use approach, discount rate selection represents a central point in deciding the magnitude of impairment charges under Hong Kong Financial Reporting Standards (HKFRSs). The selection of discretion discount rate in the discounted cash flow model (DCF) could be used opportunistically to misstate impairment losses for the benefit of financial statement preparers and causes the transparency of the financial reports. This study is conducted to provide evidence of opportunistic behaviours relating on goodwill impairment by reporting statement preparers. By comparing independently estimated risk adjusted discount rates and those subjectively presented by large listed Hong Kong firms in the first year adoption of HKFRSs, the results showed that discount rates were presented in disarray, in which discount rates were more overstated than understated in comparison with scientifically generated ones.

scholarly journals Combining Environmental and Spatial Discount Rates for Valuation of Assets According to International Financial Reporting Standards

2016 ◽  
Vol 13 (1) ◽  
pp. 14-20 ◽  
Author(s):  
Justine Sophia Jaunzeme
Keyword(s):  
Cash Flow ◽  
Discount Rate ◽  
Financial Reporting ◽  
Flow Model ◽  
Ecological Economics ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Discount Rates ◽  
Discounted Cash Flow ◽  
Financial Reporting Standards

Abstract Application of discount rate in finance and accounting is founded on the concept of time value of money. Discounted cash flow model is widely used for asset valuation under the International Financial Reporting Standards (in abbreviation, IFRS). The discount rate applied in valuation models normally is the best rate of return that investors would earn alternative investments. With emergence of ecological economics as a separate branch of economics, the concept of ecological (or in other words, environmental discount rate) has been elaborated. Muller (2013) in his paper ‘The Discounting Confusion: an Ecological Economics Perspective’, argues that traditional discounting can undermine long-term sustainability of the economy. In his work, Frank G. Muller considered adjusting the traditional discount rate in order to arrive at an environmental discount rate, which would help to ensure the sustainability of the economy. Hannon (2001) and Perrings (2001) in their paper ‘An Introduction to Spatial Discounting’ consider another variation of the discount rate - spatial discount rate. Spatial discount rate represents the rate at which the diffusion of environmental effects of economic activities is discounted over space. By February 2016, neither the application of environmental nor spatial discount rates under IFRS has been considered. The purpose of this paper is to analyse the implications that environmental and spatial discounting would have for the application of discounted cash flow model according to IFRS. The research methods applied are methods of economic analysis and synthesis.

scholarly journals DE JURE HARMONIZATION OF FINANCIAL REPORTING FOR LISTED COMPANIES: EVIDENCE FOR SELECTED CEE COUNTRIES

2021 ◽  
Vol 6 (1) ◽  
pp. 137-146
Author(s):  
Dijana Perkušić ◽  
◽  
Ivica Pervan
Keyword(s):  
Financial Reporting ◽  
Listed Companies ◽  
Influential Factors ◽  
Reporting Standards ◽  
Regulatory Requirements ◽  
Financial Reports ◽  
Financial Reporting Standards ◽  
Country Level ◽  
Eu Integration ◽  
The Eu

Globalization of business and free flow of capital resulted in strong demand for comparable financial reports worldwide. An important element of achieving de facto harmonization of financial reporting is de jure harmonization, i.e. harmonization of regulatory requirements on the country level. Although more than 100 countries have a requirement for use of IFRS (International Financial Reporting Standards) for listed companies, de facto harmonization is still an ongoing process. De facto harmonization is affected by many influential factors, among which de jure harmonization represents one of the most important factors. For the purpose of the study, the authors developed an index of de jure harmonization (IDJH) based on the EU regulatory framework and evaluated its value for 5 CEE countries (Croatia, Bosnia & Herzegovina, Montenegro, Slovenia and Serbia). Empirical findings reveal significant differences in de jure harmonization, related to the country's status in relation to EU integration processes. Keywords: de jure harmonization, financial reporting, CEE countries

scholarly journals Penerapan IFRS Dan Pengaruhnya terhadap Keterlambatan Penyampaian Laporan Keuangan: Studi Empiris Perusahana Manufaktur di Bursa Efek Indonesia Periode Tahun 2008-2010

2012 ◽  
Vol 3 (2) ◽  
pp. 993
Author(s):  
Stepvanny Margaretta ◽  
Gatot Soepriyanto
Keyword(s):  
Financial Reporting ◽  
Firm Size ◽  
Financial Statements ◽  
Influential Factors ◽  
Reporting Standards ◽  
Public Accounting ◽  
Financial Reports ◽  
Audit Opinion ◽  
Accounting Firm ◽  
Financial Reporting Standards

There are several factors that affect the company's delay in submitting the financial statements are often referred to as Audit Delay, among others IFRS (International Financial Reporting Standards), firm size, profitability, size public accounting firm, audit opinion, and complexity. One factor that is quite prominent is the application of IFRS that have not been uniform across all companies in Indonesia. It could also lead to Audit Delay. Firm size theoretically means companies bigger scale required to submit financial reports on time. As for profitability, KAP size, and complexity of the audit opinion is also decent enough to be considered as one of the influential factors on Audit Delay. The results of this study indicate that the application of IFRS, profitability, size KAP, audit opinion, and complexity does not have a significant impact on the delay for submission of financial statements. Finaly, a factor that leads to significant effect of time delay submission of financial statements is the size of the company.

scholarly journals International Financial Reporting Standards (IFRS) and Reporting Quality in Nigeria: An Assessment of Selected Quoted Firms

2020 ◽  
Vol 4 (1) ◽  
pp. 11
Author(s):  
Aminu Abdullahi ◽  
Musa Yelwa Abubakar
Keyword(s):  
Financial Reporting ◽  
Descriptive Analysis ◽  
Secondary Data ◽  
Reporting Quality ◽  
Reporting Standards ◽  
Financial Reports ◽  
Information Reduction ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Audit Firms

This study investigates the effect of IFRS adoption on reporting quality in Nigeria. Secondary data were sourced from financial reports of a sample of 79 quoted Nigerian firms, with the help of Nimegen Centre for Economics (NiCE) qualitative reporting index for reporting quality. The study covered a period of 10 years, i.e. 2007 to 2011 as SAS regime and 2012 to 2016 IFRS regime. ANOVA test and descriptive analysis, were utilised for the analysis. The study concludes that, IFRS adoption has made significant positive difference in the extent of reporting quality. It is recommended that Nigerian firms should adopt appropriate measures to improve the level of relevance, comparability and verifiability of their financial reports through provision of more forward looking information, reduction in the use of technical jargons and appointment of more reputable audit firms.

scholarly journals Factors Influencing the Extent of Corporate Compliance with International Financial Reporting Standards in South Africa

2021 ◽  
Vol 11 (12) ◽  
pp. 965-984
Author(s):  
Unity Maqeda Putsai ◽  
Msizi Mkhize
Keyword(s):  
South Africa ◽  
Financial Reporting ◽  
Stock Exchange ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reports ◽  
Listed Firms ◽  
Financial Reporting Standards ◽  
Johannesburg Stock Exchange ◽  
Compliance Level

The main objective of this study is to investigate the effects of company attributes on compliance with International Financial Reporting Standards (IFRS). The study used a sample of 46 listed companies on the Johannesburg Stock Exchange (JSE) covering the period from 1993 to 2017. With an average compliance level of 88.21304, it is concluded that South Africa’s listed firms have significantly complied with IFRS 1. Using panel data to analyze the effects of company attributes, size and leverage have a significant positive effect on IFRS 1 compliance. On the other hand, the coefficients of Earnings Per Share (EPS) and Return on Total Assets (ROTA) are negative and significant. This similarly implies that ROTA and EPS are important factors driving the compliance level of the companies in South Africa with the IFRS 1 disclosure. EPS and ROTA also exhibit an inverse relationship with the compliance level. Carrying out a longitudinal study helps to produce more recent evidence on the quality of IFRS financial reports in South Africa. The outcome of the study is beneficial to international literature as it provides enough evidence on the benefits of adopting IFRS adoption.

A Comparison of XBRL Filings to Corporate 10-Ks—Evidence from the Voluntary Filing Program

2011 ◽  
Vol 25 (2) ◽  
pp. 227-245 ◽  
Author(s):  
Jon Bartley ◽  
Al Y. S Chen ◽  
Eileen Z Taylor
Keyword(s):  
Technological Change ◽  
Financial Reporting ◽  
Large Scale ◽  
Accounting Standards ◽  
Reporting Standards ◽  
Technological Changes ◽  
Financial Reports ◽  
Business Reporting ◽  
Financial Reporting Standards ◽  
Over Time

SYNOPSIS eXtensible Business Reporting Language (XBRL) has the potential to improve the transparency of financial reports; however, its complexity creates the risk of introducing errors that are a threat to its usefulness. XBRL is a complex technological change in financial reporting of nearly unprecedented scope. Prior to June 2009, the date of the first mandated XBRL filings, the SEC made available a Voluntary Filing Program (VFP) to assist in addressing the difficulties of creating XBRL documents. This study examines errors in the VFP filings, and investigates whether stakeholders used their experience to improve the XBRL technology and processes. Findings indicate a reduction in errors over time, suggesting that the VFP for XBRL was successful. These results support the use of a VFP to identify and solve unanticipated issues and evaluate the feasibility of implementing large-scale technological changes in financial reporting and perhaps comprehensive changes in accounting standards such as the implementation of International Financial Reporting Standards.

scholarly journals Adoption of International Financial Reporting Standards (IFRS) in Ghana and the Quality of Financial Statement Disclosures

2014 ◽  
Vol 3 (2) ◽  
pp. 269 ◽  
Author(s):  
Ben Kwame Agyei-Mensah
Keyword(s):  
Regression Analysis ◽  
Financial Reporting ◽  
Firm Size ◽  
Financial Statements ◽  
Financial Information ◽  
Reporting Standards ◽  
Financial Reports ◽  
Listed Firms ◽  
Financial Reporting Standards

According to the IASB's IFRS framework, qualitative characteristics are the attributes that make the information provided in financial statements useful to others. This study was conducted to investigate the quality of financial reports before and after adopting IFRSs in Ghana, and also the influence of firm-specific characteristics which include firm size, profitability, debt equity ratio, liquidity and audit firm size on the quality of financial information disclosed by firms listed on the Ghana Stock Exchange.The research was conducted through detailed analysis of the pre-official adoption period, (2006) and post adoption period, (2008) financial statements of the listed firms.  Descriptive analysis was performed to provide the background statistics of the variables examined.  This was followed by regression analysis which forms the main data analysis.  The results of the quality of financial information disclosure mean of 76.80% (pre adoption) and 87.09% (post adoption) for the two years indicate that the quality of financial reports has improved significantly after adopting IFRSs. The study thus confirms that the implementation of IFRSs generally reinforce accounting disclosure quality.  It also indicates listed firms' overwhelming compliance with the IASB's IFRS Framework.The results of the multiple regression analysis show that company size, represented by net assets and Auditor type were found to be associated at a statistically significant level with the quality of financial information disclosed.  With the improvement in the quality of the financial reports after adopting IFRS users are assured of useful information for financial decision-making.Keywords: Quality of financial reports' disclosure, Firm-specific characteristics, International Financial Reporting Standards, Mandatory disclosure, Ghana. JEL Classifications: M40, M41, M48

scholarly journals PROCEDURES FOR PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS

2021 ◽  
pp. 217-226
Author(s):  
Лэйля Камаровна Мусипова
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Reporting Standards ◽  
Consolidated Financial Statements ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Financial Reports ◽  
Financial Reporting Standards ◽  
Business Structures ◽  
Performance Results

Помимо обычной финансовой отчетности некоторые предприятия Казахстана обязаны формировать и предоставлять консолидированную финансовую отчетность согласно требованиям международных стандартов финансовой отчетности. Статья посвящена особенностям составления и представления консолидированной отчетности в соответствии с международным стандартом финансовой отчетности 10 (IFRS) «Консолидированная финансовая отчетность». Целью исследования является рассмотреть понятие консолидированной отчетности, требования по ее составлению, порядок формирования и провести анализ потребность в составлении и представлении консолидированной финансовой отчетности. Наряду с этим представлена практика полной консолидации на условном примере с учетом требований международных стандартов финансовой отчетности, а также проблемы, с которыми сталкиваются представители бизнес-структур при формировании и представлении консолидированной финансовой отчетности. Научная новизна полученных результатов заключается в разработке приемов и методов составления и совершенствования консолидированной отчетности, которая позволит преодолеть сложности при формировании результатов деятельности за определенный отчетный период группы в целом. Along with the standard financial reports, some enterprises in Kazakhstan are required to form and submit consolidated financial reports in accordance with the requirements of international financial reporting standards. The article is devoted to the peculiarities of creating and presenting consolidated financial reports in accordance with International Financial Reporting Standard 10 (IFRS) «Consolidated Financial Reporting». The aim of the study is to examine the concept of consolidated financial statements, the requirements for its formation, and the analysis of the need for the preparation and presentation of consolidated financial statements. In addition, the practice of full consolidation was studied and presented on the example of all the consolidation requirements of IFRS 10 (IFRS) «Consolidated Financial Reporting», as well as various issues business structures deal with during the process of formation and presentation of consolidated financial statements. The scientific novelty of the results obtained is the development of techniques and methods for the preparation and improvement of consolidated reporting, which makes it possible to overcome the complexity of the formation of performance results for a certain reporting period of the group as a whole.

scholarly journals An Empirical Study - Adoption of International Financial Reporting Standards (IFRS) in Hong Kong Education

2013 ◽  
Vol 5 (4) ◽  
pp. 98
Author(s):  
Helen Wong ◽  
Raymond Wong
Keyword(s):  
Hong Kong ◽  
Empirical Study ◽  
Financial Reporting ◽  
Positive Impact ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Accounting Professionals ◽  
Hong Kong Students ◽  
Hong Kong Education

This study aims to investigate students’ knowledge and interest on adoption of IFRS in Hong Kong, the preferred strategy and pedagogy of introducing IFRS, and the usefulness of learning IFRS. The results show that most Hong Kong students are eager to learn IFRS and they understand the positive impact of learning IFRS. The Hong Kong accounting professionals and educators have to develop relevant materials on IFRS.

scholarly journals LICENÇAS DE EMISSÃO DE GASES DE EFEITO ESTUFA: TRANSPARÊNCIA DA INFORMAÇÃO FINANCEIRA

2022 ◽  
Vol 62 (1) ◽  
Author(s):  
Patricia Milanés-Montero ◽  
Esteban Pérez-Calderón ◽  
Ana Isabel Dias
Keyword(s):  
Decision Making ◽  
Financial Reporting ◽  
Ghg Emissions ◽  
Good News ◽  
Financial Statement ◽  
Decision Making Process ◽  
Reporting Standards ◽  
Financial Reports ◽  
Financial Reporting Standards ◽  
Efficiency Measures

ABSTRACT This research analyzes the influence that the performance of GHG emissions has on the level of transparency in financial reporting. Content analysis of the financial statement notes allowed the level of transparency to be measured. The results suggest that the level of transparency in financial reporting is negatively related to the performance of GHG emissions when financial reports are prepared on the basis of the International Financial Reporting Standards. It was also concluded that more ‘good news’ is disclosed by companies when their GHG emissions’ performance reduces. This study complements previous literature about transparency in financial reporting, and the necessity to relate it to eco-efficiency measures to empower the decision-making process of stakeholders. The study also provides a reference for European accounting regulators on the behavior of companies with regard to this issue.

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