scholarly journals DEVELOPING ACCOUNTABILITY DISCLOSURE INDEX FOR MALAYSIAN STATE ISLAMIC RELIGIOUS COUNCILS (SIRCS): QUANTITY AND QUALITY

2018 ◽  
Vol 17 (1) ◽  
pp. 1 ◽  
Author(s):  
Rosnia Masruki ◽  
Khaled Hussainey ◽  
Doaa Aly
Keyword(s):  
Financial Reporting ◽  
Financial Statement ◽  
Financial Disclosure ◽  
Annual Reports ◽  
Financial Reporting Standards ◽  
Wide Range ◽  
Ifrs Conceptual Framework ◽  
Study Setting ◽  
Qualitative Characteristics

This study aims to develop Accountability Disclosure Index (ADI) for Malaysian State Islamic Religious Councils (SIRC), concerning both quantity and quality. In this case, the quality of disclosure items was developed based on the qualitative characteristics, which rely on the International Financial Reporting Standards (IFRS) conceptual framework; namely, relevance, faithful representation, understandability, comparability and timeliness. Each characteristic is scored based on the ‘benchmark’ score, ranging from poor (1) to excellent (5). However, some of the characteristics have been modified to contextualize the SIRC study setting. Both quantity and quality of disclosure items index might contribute to a methodology for analysing and evaluating annual reports. Results show fifty-seven items of disclosure information, which were regarded by stakeholders relevant to be disclosed by SIRC. Indeed, all these disclosure items should be disclosed in SIRC annual reports, so as to meet the expectations of a wide range of stakeholders. With regards to the quality of disclosure, two different sets of qualitative characteristics for non-financial and financial statement disclosure were designed. All five qualitative characteristics were adapted to measure the quality of financial disclosure, whereas for non-financial disclosure, 'timeliness' was dropped due to the voluntarily nature of non-financial disclosure.

scholarly journals Impaired translations: IFRS from English and annual reports into English

2018 ◽  
Vol 31 (7) ◽  
pp. 1981-2005 ◽  
Author(s):  
Christopher Nobes ◽  
Christian Stadler
Keyword(s):  
Financial Reporting ◽  
English Language ◽  
Annual Reports ◽  
Content Type ◽  
Listed Firms ◽  
Financial Reporting Standards ◽  
Wide Range ◽  
English Translations ◽  
Core Section ◽  
One Year

Purpose The purpose of this paper is to examine translation in the context of International Financial Reporting Standards (IFRS) by taking the example of the English term “impairment” in IAS 36, and following it into 19 translations. The paper then examines the terms used for impairment in English translations of annual reports provided by firms. Consideration is given to the best approach for translating regulations and whether that is also suitable for the translation of annual reports. Design/methodology/approach The two empirical parts of the paper involve: first, identifying the terms for impairment used in 19 official translations of IAS 36, and second, examining English-language translations of reports provided by 393 listed firms from 11 major countries. Findings Nearly all the terms used for “impairment” in translations of IAS 36 do not convey the message of damage to assets. In annual reports translated into English, many terms are misleading in that they do not mention impairment, peaking at 39 per cent in German and Italian reports in one year. Research limitations/implications Researchers should note that the information related to impairment in international databases is likely to contain errors, and the authors recommend that data should be hand-collected and then carefully checked by experts. The authors make suggestions for further research. Practical implications Translators of regulations should aim to convey the messages of the source documents, but translators of annual reports should not look only at the reports but also consult the terminology in the original regulations. The authors also suggest implications for regulators and analysts. Originality/value The paper innovates by separately considering regulations and annual reports. The authors examine a key accounting term systematically into a wide range of official translations. The core section of the paper is a new field of research: an empirical study of the translations of firms’ financial statements.

scholarly journals IFRS Adoption and Reporting Quality: An Assessment of User’s Perception in Nigeria

2021 ◽  
pp. 1-9
Author(s):  
Aminu Abdullahi ◽  
Hadiza Ahmed Suleiman
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Reporting Quality ◽  
Financial Statements ◽  
Financial Statement ◽  
Comparative Approach ◽  
Financial Reports ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Qualitative Characteristics

The study assessed the perception of financial statement users on the extent of reporting quality following IFRS adoption in Nigeria. A comparative approach was utilized, where users’ (investors)opinions on reporting quality between the Statement of Accounting Standards (SAS) regime and the International Financial Reporting Standards regime were sought and compared. The results obtained from the structured Likert scale questionnaires were analyzed using the T-Test. It was found that all the qualitative characteristics of financial reporting which were used as reporting quality variables in the study have improved with the adoption of IFRS except for the extent of the ability of financial reports to confirm or correct prior user’s expectation which was discovered to be better during SAS regime. It was recommended that the Financial Reporting Council of Nigeria (FRCN) should embark on advocacy aimed at educating investors’ especially, institutional on the issue of prediction and assessment of IFRS-based financial statements.

Qualitative Characteristics of Financial Information: Are Changes Possible?

Auditor ◽  
2020 ◽  
Vol 6 (9) ◽  
pp. 50-55
Author(s):  
N. Mislavskaya
Keyword(s):  
Financial Reporting ◽  
Modern Society ◽  
Financial Statements ◽  
Accounting System ◽  
Financial Reporting Standards ◽  
Economic Reality ◽  
Economic Formation ◽  
Qualitative Characteristics ◽  
Reporting Data

Th e article discusses the development trends of modern society, their interdependence on the quality of information flows provided by the accounting system at the international level. An analysis of the transformation of the socio-economic formation of capitalism leads to a new understanding of the qualitative characteristics of financial statements in accordance with the requirements of International Financial Reporting Standards. Th e author comes to the conclusion that it is necessary to provide users with reporting data not only predicted, but also real information that corresponds to economic reality.

scholarly journals IFRS Adoption and Financial Reporting Quality: A Review of Evidences in Different Jurisdictions

2016 ◽  
Vol 69 ◽  
pp. 93-106
Author(s):  
Habeeb Mohamed Nijam ◽  
Athambawa Jahfer
Keyword(s):  
Financial Reporting ◽  
Value Relevance ◽  
Reporting Quality ◽  
Economic Consequences ◽  
Financial Statement ◽  
Financial Reporting Quality ◽  
Book Value ◽  
Financial Reporting Standards ◽  
Ifrs Adoption

Conventional and commonly held wisdom with respect to the adoption of International Financial Reporting Standards (IFRS) is that they lead to improved financial reporting quality and comparability and thereby favorable economic consequences. There are however contradicting evidences disproving this conventional wisdom or rejecting its gross generalization over the entire jurisdictions harmonizing on IFRS. Driven by this fact, quests for knowledge about the dynamics and contexts that lead to differential effects of IFRS get momentum. In an attempt to explore the insight into the effects of international accounting harmonization by way of IFRS adoption, this paper reviews selected literatures on the consequences of IFRS adoption. This review discusses some empirical evidences that have been reported in various countries that include Europe, USA, United Kingdom, Germany, Spain, Norway, Greece, Poland, Belgian, France, Italian, Turkey, United Arab Emirates (UAE), Kuwait, Jordan, China, Malaysia, Australia, Hong Kong, New Zealand, Kenya and Nigeria. Our review focuses on the aspects of value relevance, disclosure quality, cost of capital, earning management and financial statement impact due to the IFRS adoption. This review reveals that the economic consequences of IFRS adoption is significantly different though its impact reported to be positive in majority of cases. There are also notable number of studies that report indifferent and or negative effects of IFRS adoption. When IFRS studies report mixed evidence with respect to value relevance of book value of equity and earing, book value of equity supersedes the earning parameters. IFRS are found to supersede many other domestic financial reporting standards in terms of amount and the quality of disclosures in financial statement. This review also obtains that IFRS’s impact on the reduction of cost of capital depends on financial reporting incentives, law enforcement, types of legal systems and various other country-specific and capital market characteristics. Further, though there are some evidences to the contrary, the quality of earnings reported under IFRS has been established to be superior to other local standards.

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.

Effect Technology Information On Quality Financial Statement With Internal Control As Moderating Variable

2021 ◽  
Vol 2 (1) ◽  
pp. 9-13
Author(s):  
Aris Eddy Sarwono ◽  
Asih Handayani
Keyword(s):  
Information Technology ◽  
Control System ◽  
Financial Reporting ◽  
Internal Control ◽  
Local Governments ◽  
Sampling Technique ◽  
Financial Statement ◽  
Financial Reports ◽  
Internal Control System

The problem with the low quality of financial reports in local governments is the reason this research was conducted. This research was conducted with the aim of analyzing the use of information technology on the quality of financial reports by considering the internal control system (SPI) factor. The location of this research is in the Karisidenan Surakarta area which includes 6 districts and 1 city. The population of this research is all state civil servants (ASN) in local governments who work in accounting. The sampling technique was using purposive sampling method. The results showed that the use of information technology had a positive effect on the quality of financial reporting in local governments, while the internal control system moderated the effect of the use of information technology on the quality of financial reporting in local governments.

scholarly journals Opportunities to improve the measurement of audit quality: a call for collaboration between the profession and academics

2016 ◽  
Vol 90 (9) ◽  
pp. 352-351 ◽  
Author(s):  
Jeroen van Raak ◽  
Ulrike Thürheimer
Keyword(s):  
Audit Quality ◽  
Audit Fees ◽  
Class Action ◽  
Financial Statement ◽  
Accrual Quality ◽  
Wide Range ◽  
External Stakeholders ◽  
Insight Into ◽  
Considerable Doubt

Audit research relies on a wide range of publicly available measures to examine which factors influence the quality of financial statement audits. While research to date has to rely largely on remote proxies due to a lack of access to proprietary data, there is considerable doubt about the validity of these proxies and the inferences drawn based on these proxies. In order to provide insight into the reliability of these measures, Rajgopal, Srinivasan & Zheng (2015) investigate whether commonly used proxies for audit quality (i.e. auditor size, abnormal audit fees, accrual quality, and the propensity to meet and beat analyst targets) are associated with deficiencies reported in SEC investigations and class-action lawsuits. Such alleged deficiencies reflect how external stakeholders assess audit performance. Their study indicates that the use of such proxies is highly problematic and that the performance of these measures, with the exception of auditor size, is poor.

How Does Local Adoption of IFRS for Those Countries That Modified IFRS by Design, Impair Comparability with Countries That Have Not Adapted IFRS?

2017 ◽  
Vol 16 (3) ◽  
pp. 59-90 ◽  
Author(s):  
Elizabeth Felski
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Statement ◽  
International Accounting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Study Results ◽  
Reporting Environment ◽  
Proper Translation

ABSTRACT Global adoption of International Financial Reporting Standards (IFRS) is thought to increase financial statement reliability and comparability. Although IFRS is required or allowed in over 130 nations, some countries modify IFRS as issued by the International Accounting Standards Board (IASB). This study is designed to closely examine each country that modifies IFRS in an effort to determine whether these modifications impair financial statement comparability. First is that countries lack the resources to implement the newest version of IFRS or ensure proper translation of the standards. Second is that countries make specific changes to allow IFRS to better meet the needs of their financial reporting environment. I categorize the first set of countries as default countries and the second set as design countries. The study results in several interesting and useful contributions. First, I develop a new typology for future IFRS research that includes not only the locally adopted category, but also the default and design categories. Second, the details of how countries modify IFRS make it clear that differences can exist in financial statements prepared in different countries both using IFRS. The users must be careful to understand how comparability may be impacted by these modifications.

Determinant Factors of the Quality Management Commentary Reports

2018 ◽  
pp. 301-315
Author(s):  
Alexandros E. Garefalakis ◽  
Augustinos I. Dimitras ◽  
Panagiotis Ballas
Keyword(s):  
Quality Management ◽  
Financial Reporting ◽  
Banking Sector ◽  
Economic Life ◽  
Annual Reports ◽  
Determinant Factors ◽  
Financial Reporting Standards ◽  
Management Commentary ◽  
Formal Communication ◽  
The Impact

The adoption of International Financial Reporting Standards (IFRS) is now accepted by all researchers in the last decade at least. At the same time, researchers show particular interest in the impact of adoption of IFRS in several areas of economic life and particularly in the banking sector. What IFRS offer is standardization in accounting principles based on which companies prepare their financial statements, which allow for comparisons of performance of companies around the globe. Investors and creditors belong to the long list of stakeholders of a business entity, who require information regarding specific companies and business sectors in order to make their decisions. Annual reports are a formal communication channel for the company to contact with its stakeholders and to report details about its performance and future progress. That is why annual reports include both quantitative and qualitative data; the former could take the form of figures, tables, and ratios, whereas the latter are expressed as management views on present situation, future prospects, risks, and proposed strategy. Our study investigates the disclosure policy that companies follow in their published statements focusing on the determinant factors of quality Management Commentary Reports.

Sign in / Sign up

Export Citation Format

Share Document