Deferred expenses in accounting (financial) reporting: The current status

2021 ◽  
Vol 22 (11) ◽  
pp. 1208-1224
Author(s):  
Lidiya I. KULIKOVA
Keyword(s):  
Comparative Analysis ◽  
Financial Reporting ◽  
Current Practice ◽  
Financial Statements ◽  
Current Status ◽  
Information Presentation ◽  
Current State ◽  
Disclosure Of Information ◽  
Accounting Rules ◽  
Commercial Organizations

Subject. This article examines the current state of formation and disclosure of information on expenses of future periods in the accounting (financial) statements of top commercial organizations in Russia. Objectives. The article aims to study the current practice of forming information on expenses of future periods in the accounting and reporting of organizations engaged in various activities, identify the peculiarities of information presentation, and solve the identified problems. Methods. For the study, I used a comparative analysis, observation, comparison, generalization, and systematization. Results. Having considered the practices of presenting information on deferred expenses in the financial statements of the top Russian organizations for 2020, compiled in accordance with the Russian accounting rules, the article substantiates that the expenses of future periods (or deferred expenses) are a special object of accounting due to their uniqueness and information capability. Recognition of such expenses in accounting and reporting is possible if they lead to the receipt of income during several reporting periods. Conclusions. Currently, the presentation of information on deferred expenditures in the accounting (financial) statements causes many problems, for the structure and content of expenses of various organizations are heterogeneous, they depend on industry characteristics and professional accounting judgment of reporting accountants.

scholarly journals The business model in the light of the Conceptual framework for financial reporting of 2018

2021 ◽  
Vol 45 (1) ◽  
pp. 31-52
Author(s):  
Mariusz Karwowski
Keyword(s):  
Conceptual Framework ◽  
Business Model ◽  
Financial Reporting ◽  
Financial Statements ◽  
Value Judgments ◽  
Financial Report ◽  
Current State ◽  
Disclosure Of Information

Purpose: The purpose of the article is to indicate the possible impact of the business mod-el on financial statements in the light of the Conceptual Framework for Financial Report-ing (CF) of 2018. Methodology/approach: The current state is presented (the basis were CF of 2018), and value judgments are formulated regarding the considerations contained in the article. Findings: The business model has a limited influence on the scope of information included in financial statements. Measurement (and the associated choice of accounting policies) and the presentation and disclosure of information are areas of financial reporting in which the business model may apply. Originality/value: The attempt to indicate that the business model – although not directly – has an impact on some of the principles set out in the thoroughly rebuilt and hitherto un-explored CF.

Federal public finance accounting standard “Employee Payments”

2020 ◽  
pp. 5-10
Author(s):  
Olga Shinkareva
Keyword(s):  
Public Finance ◽  
Public Sector ◽  
Financial Reporting ◽  
Financial Statements ◽  
Employee Benefits ◽  
Reporting Standard ◽  
Accounting Standard ◽  
Disclosure Of Information

The article is devoted to the analysis of the Federal Accounting Standard of Public Finance “Payments to Personnel”, which will be applied in the conduct of accounting and reporting from January 1, 2021, including medical state and municipal institutions. The article considers the main provisions of this standard — peculiarities of recognition and evaluation of objects of personnel benefits accounting, termination of their recognition, as well as disclosure of information on objects of personnel benefits accounting in accounting financial statements. This standard is compared with the International Public Sector Financial Reporting Standard 39 “Employee Benefits”

scholarly journals The comparability of IFRS statements of cash flows in Poland. The influence of national regulations

2019 ◽  
Vol 2019 (101 (157)) ◽  
pp. 149-166
Author(s):  
Edyta Łazarowicz
Keyword(s):  
Literature Review ◽  
Research Methods ◽  
Financial Reporting ◽  
Financial Statements ◽  
Listed Companies ◽  
Cash Flows ◽  
Future Research ◽  
National Accounting ◽  
Accounting Rules ◽  
Statement Of Cash Flows

This paper analyses the comparability of the structure and content of IFRS consolidated statements of cash flows within Polish listed companies and the influence of national accounting rules on these statements. Two research methods have been used: a literature review and an analysis of the content of financial statements. It has been found that there are small differences in the structure and content of IFRS consolidated statements of cash flows in Poland. The results indicate that the options in IAS 7 and the lack of an obligatory format of the IFRS statement of cash flows do not significantly reduce the comparability of these statements in Polish practice. Moreover, it has been observed that Polish listed companies follow national regulations only in some aspects for which IAS 7 provides options or has no regulations at all. The findings of this study may be relevant for standard setters, in particular, the current IASB Primary Financial Statements project, for users of financial reporting, and for academics for future research.

Implementation of foreign practice of regulation and accounting and reporting in Russia

2020 ◽  
pp. 215-222
Author(s):  
N. Yu. Orlova
Keyword(s):  
Comparative Analysis ◽  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Statements ◽  
National Standards ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Tax Reporting ◽  
International Comparability

The reform of accounting and reporting in Russia began in the 1990s. The benchmark was taken on International Financial Reporting Standards, as many countries use these standards. IFRS have a number of advantages, such as simplicity, objectivity, international comparability. The author of the article gives the main problems, as a result of which, for almost thirty years, national standards have come very slightly closer to international ones. The author of the article gives the main problems, as a result of which, for almost thirty years, national standards have come very slightly closer to international ones. In the comparative analysis of accounting and the preparation of accounting and tax reporting according to Russian Accounting Standards (RAS) with International Financial Reporting Standards (IFRS), fundamental differences were revealed in the reflection of accounting objects in financial statements.

COMPONENTS OF FINANCIAL STATEMENTS AND PROCEDURE FOR SUBMISSION OF USERS: RUSSIAN AND INTERNATIONAL ASPECTS

2015 ◽  
Vol 10 (2) ◽  
pp. 53-55 ◽  
Author(s):  
Фахретдинова ◽  
Elvira Fakhretdinova ◽  
Гильмуллина ◽  
Aysylu Gilmullina
Keyword(s):  
Comparative Analysis ◽  
Financial Reporting ◽  
Financial Statements ◽  
International Standards ◽  
Economic Entity ◽  
International Aspects ◽  
Further Development

The article presents a comparative analysis of the requirements of Russian and international standards for financial reporting, its set, depending on the period of representation and members of the economic entity, the further development of the Russian legislation in this area.

scholarly journals Effect of IFRS adoption on financial reporting quality

2016 ◽  
Vol 29 (3) ◽  
pp. 292-312 ◽  
Author(s):  
Kerry Anne Bodle ◽  
Patti J. Cybinski ◽  
Reza Monem
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Bankruptcy Prediction ◽  
Fiscal Year ◽  
Quality Of Information ◽  
Content Type ◽  
Ifrs Adoption ◽  
Conservative Accounting ◽  
Accounting Rules

Purpose The purpose of this paper is to investigate whether International Financial Reporting Standards (IFRS)-based data improve bankruptcy prediction over Australian Generally Accepted Accounting Principles (AGAAP)-based data. In doing so, this paper focuses on intangibles because conservative accounting rules for intangibles under IFRS required managers to write off substantial amounts of intangibles previously capitalized and revalued upwards under AGAAP. The focus on intangibles is also motivated by empirical evidence that financially distressed firms are more likely to voluntarily capitalize and make upward revaluations of intangibles compared with healthy firms. Design/methodology/approach This paper analyses a sample of 46 bankrupt firms and 46 non-bankrupt (healthy) firms using a matched-pair design over the period 1991 to 2004. The authors match control firms on fiscal year, size (total assets), Global Industry Classification Standard-based industry membership and principal activities. Using Altman’s (1968) model, this paper compares the bankruptcy prediction results between bankrupt and non-bankrupt firms for up to five years before bankruptcy. In the tests, the authors use financial statements as reported under AGAAP and two IFRS-based data sets. The IFRS-based datasets are created by considering the adjustments on the AGAAP data required to implement the requirements of IAS 38, IFRS 3 and IAS 36. Findings This paper finds that, under IFRS, Altman’s (1968) model consistently predicts bankruptcy for bankrupt firms more accurately than under AGAAP for all of the five years prior to bankruptcy. This greater prediction accuracy emanates from smaller values of the inputs to Altman’s model due to conservative accounting rules for intangibles under IFRS. However, this greater accuracy in bankruptcy prediction comes with larger Type II errors for healthy firms. Overall, the results provide evidence that the switch from AGAAP to IFRS improves the quality of information contained in the financial statements for predicting bankruptcy. Research limitations/implications Small sample size and having data available over the required period may limit generalizability of findings. Originality/value Although bankruptcy prediction is one of the primary uses of accounting information, the burgeoning literature on the benefits of IFRS adoption has so far neglected the role of IFRS data in bankruptcy prediction. Thus, this paper documents a new benefit of IFRS adoption. In this paper, the authors demonstrate how the restrictions on the ability to capitalize and revalue intangibles enhance the quality of information used to predict bankruptcy. These results provide evidence to international standard setters of what they can expect if their efforts to remove non-restrictive accounting practices for intangibles are abandoned.

scholarly journals The impact of the IASB project ‘Better communication in financial reporting’ on financial statements – selected issues

2021 ◽  
Vol 45 (4) ◽  
pp. 49-76
Author(s):  
Mariusz Karwowski
Keyword(s):  
Performance Measures ◽  
Financial Reporting ◽  
Financial Statements ◽  
The Other ◽  
Current State ◽  
The One ◽  
The Impact ◽  
Infor Mation ◽  
Judg Ments

Purpose: The purpose of the article is to indicate the possible impact of the IASB project ‘Better communication in financial reporting’ on the presentation and disclosure of infor-mation in financial statements. Methodology/approach: On the one hand, the current state is presented (the basis was the project ‘Better communication in financial reporting’); on the other hand, value judg-ments were formulated regarding the proposed changes. The empirical study, which was based on content analysis, covered entities included in the WIG30. Findings: ‘Better communication in financial reporting’, in particular, IFRS X, will pri-marily affect the choice of the classification of expenses in the operating category of the profit or loss statement, as well as disclosure of management performance measures. Originality/value: The indication of the possible impact of the project ‘Better communication in financial reporting’ on the presentation and disclosure of information in the financial statements, which is unexplored so far. Keywords: primary financial statements, presentation, notes, disclosure, taxonomy, IFRS.

Necessity And Main Directions Of Improving Financial Reporting In Uzbekistan

2021 ◽  
Vol 03 (05) ◽  
pp. 61-67
Author(s):  
Boronov Bobur Farkhodovich ◽  
◽  
Abdurasulov Jamshidbek Ahmad Ugli ◽  
◽  
◽  
...  
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Statements ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Instruments ◽  
National Accounting ◽  
Financial Reporting Standards ◽  
Accounting Rules

The article highlights the need to improve financial reporting, the regulations adopted in Uzbekistan in this regard. The purpose of the concept required for the transition to International Financial Reporting Standards (IFRS) in Uzbekistan and the tasks to be included in it have been developed, a series of national accounting standards are presented. It was noted that today the standards for financial instruments need to be improved. For the transition to IFRS, the terms related to the information reflected in the financial statements are given. The work to be done in Uzbekistan to introduce the terms and accounting rules for the information reflected in the financial statements.

Goodwill accounting as a missing link between financial and management accounting: literature review and research agenda

2011 ◽  
pp. 17-39
Author(s):  
Alberto Quagli
Keyword(s):  
Financial Reporting ◽  
Value Relevance ◽  
Management Accounting ◽  
Financial Accounting ◽  
Accounting Research ◽  
Current State ◽  
External Reporting ◽  
Accounting Rules ◽  
Reporting Environment ◽  
Administrative Tasks

The main objective of this paper is to deal with the relationship between financial and management accounting concerning goodwill accounting. In this research I referred to the existing literature on goodwill accounting, impairment losses, and impairment testing, considering both the amortization and the impairment era in order to understand how interrelationships between financial and management accounting based on goodwill accounting were investigated theoretically. The results of the review still show a lack of dialogue in the accounting research. Even though the scant empirical evidence of operating practice within the companies demonstrate a natural linkage during the impairment era, internal and external reporting are still considered as two separate domains. This result, more logical in the amortization era, denotes by now a relevant gap in accounting research and it is time to pose some relevant research questions to open up an interdisciplinary (internal and external reporting) view. It is possible that the development of this new strand of research helps to advance our knowledge of business on many fronts. I refer to the advancement necessary to explain the mixed results of financial accounting studies such as the controversial value relevance of write-offs or the reason for opportunistic behavior in goodwill accounting, to interpret how financial accounting rules influence management accounting and, in the opposite sense, how management accounting represents a relevant factor in determining the financial reporting environment. A less myopic view, more open to a comparison between management and financial accounting, will also help standard setters , to understand if their rules require the disclosure of already adopted internal practices, if they favor company managerial growth, or if they add new and too sophisticated administrative tasks, too far from the current state of managerial thinking.

Financial statement audit: An investigation into laws and regulations

2020 ◽  
Vol 23 (4) ◽  
pp. 141-427
Author(s):  
S.V. Kozmenkova ◽  
V.I. Tsyganov
Keyword(s):  
Comparative Analysis ◽  
Financial Reporting ◽  
Russian Federation ◽  
Financial Statements ◽  
Theory And Practice ◽  
Financial Statement ◽  
International Standard ◽  
Legal Documents ◽  
Financial Statement Audit ◽  
The Russian Federation

Subject. This article deals with the matters related to the audit of financial statements. Objectives. The article aims to analyze the procedure for the study of financial and economic transactions in order to ensure compliance with legal documents regulating accounting and financial reporting. Methods. For the study, we used a comparative analysis, systematization, induction and deduction. Results. The article clarifies the objectives of financial statement audit, including verification of compliance of financial and economic transactions with the relevant regulations of the Russian Federation, as well as procedures for planning and documenting audit of financial statements based on the requirements of the International Standard on Auditing 250 (ISA 250) (revised). It also identifies problematic issues in the content of ISA 250 and formulates certain proposals to clarify it. Conclusions and Relevance. The article concludes that both the global and Russian audit practices require a thorough review of compliance of activities and financial reporting with the regulations in order to achieve the audit goal. The results presented can be applied in both audit theory and practice.

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