scholarly journals Financial reporting by Small and Medium sized Entities in Mongolia and the International Financial Reporting Standard for Small and Medium sized Entities

2021 ◽  
Author(s):  
◽  
Uyanga Jadamba
Keyword(s):  
Financial Reporting ◽  
Ordinary Least Squares ◽  
Survey Questionnaire ◽  
Structured Interviews ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Reporting Practices ◽  
Low Level ◽  
Reporting Practice ◽  
Accounting Practitioners

<p>This study examines three important aspects of financial reporting practice of Small and Medium sized Entities (SMEs) in developing economy. First, the study investigates the existing reporting practices of SMEs in Mongolia. Second, the study considers the expected impact for Mongolian SMEs of adopting the International Financial Reporting Standard for Small and Medium sized Entities (IFRS for SMEs). Third, the study examines the relationships between the economic characteristics of SMEs and both their reporting practice and the expected impact of adoption of the IFRS for SMEs. The study adopts a mixed method approach with a quantitative survey questionnaire and qualitative semi-structured interviews. The study developed a survey questionnaire and obtained 102 responses: 67 responses from employee account preparers of SMEs and 35 responses from accounting practitioners of Public Accounting Firms (PAFs) engaged with SMEs. The results of the survey were analysed using a range of non-parametric tests and Ordinary Least Squares (OLS). The qualitative semi-structured interviews were carried out with eight standard-setters, educators and information users and analysed using Nvivo. Overall, the research findings suggest that in Mongolia there is a low level of compliance with international financial reporting standards. It appears that preparers and users perceive a low level of net benefits from compliance. Surprisingly, the results indicate that the economic characteristics of SMEs do not appear to influence their reporting practice. Adoption of the IFRS for SMEs is expected to increase the level of compliance by SMEs.</p>

scholarly journals Financial reporting by Small and Medium sized Entities in Mongolia and the International Financial Reporting Standard for Small and Medium sized Entities

2021 ◽  
Author(s):  
◽  
Uyanga Jadamba
Keyword(s):  
Financial Reporting ◽  
Ordinary Least Squares ◽  
Survey Questionnaire ◽  
Structured Interviews ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Reporting Practices ◽  
Low Level ◽  
Reporting Practice ◽  
Accounting Practitioners

<p>This study examines three important aspects of financial reporting practice of Small and Medium sized Entities (SMEs) in developing economy. First, the study investigates the existing reporting practices of SMEs in Mongolia. Second, the study considers the expected impact for Mongolian SMEs of adopting the International Financial Reporting Standard for Small and Medium sized Entities (IFRS for SMEs). Third, the study examines the relationships between the economic characteristics of SMEs and both their reporting practice and the expected impact of adoption of the IFRS for SMEs. The study adopts a mixed method approach with a quantitative survey questionnaire and qualitative semi-structured interviews. The study developed a survey questionnaire and obtained 102 responses: 67 responses from employee account preparers of SMEs and 35 responses from accounting practitioners of Public Accounting Firms (PAFs) engaged with SMEs. The results of the survey were analysed using a range of non-parametric tests and Ordinary Least Squares (OLS). The qualitative semi-structured interviews were carried out with eight standard-setters, educators and information users and analysed using Nvivo. Overall, the research findings suggest that in Mongolia there is a low level of compliance with international financial reporting standards. It appears that preparers and users perceive a low level of net benefits from compliance. Surprisingly, the results indicate that the economic characteristics of SMEs do not appear to influence their reporting practice. Adoption of the IFRS for SMEs is expected to increase the level of compliance by SMEs.</p>

scholarly journals Implementation of International Financial Reporting Standard as a Tool for the Performance of Nigerian Insurance Companies

2019 ◽  
pp. 1-10
Author(s):  
J. C. Unachukwu
Keyword(s):  
Financial Performance ◽  
Organizational Performance ◽  
Financial Reporting ◽  
Ordinary Least Squares ◽  
Regulatory Control ◽  
Insurance Companies ◽  
Insurance Company ◽  
Statistical Tools ◽  
Reporting Standard ◽  
International Financial Reporting Standard

Implementation of international financial reporting standard (IFRS) in terms of quality financial reporting, information disclosure pattern, transparency, auditing, reporting standards, regulatory control and flexibility, corporate governance, and financial scandals have an influence on organizational performance. This study sought to investigate the influence of implementation of IFRS on organizational performance with specific reference to the Nigerian insurance industry. Purposive sampling method was used to select the accountants and auditors of twenty- nine (29) insurance companies listed on the Nigerian Stock Exchange (NSE) market, totaling 58 respondents. The data collection instruments for the study were structured questionnaires designed for the study.  Data analysis was performed with the aid of descriptive statistical tools such as frequencies, percentages and mean, and inferential statistical tools such as Pearson Product Moment Correlation Coefficient and Ordinary Least Squares (OLS) method of estimation. The finding revealed that there is a strong relationship between financial performance and implementation of IFRS. The finding also indicated that implementation of IFRS has a significant influence on investment decision making. This connotes that the implementation of IFRS is a veritable tool to financial performance of Nigerian insurance companies. Subsequently, the study recommended that the management of insurance companies should embrace International Financial Reporting Standard (IFRS) with immediate effect so that the sector can attract both local and foreign investors. Also, National Insurance Commission (NAICOM) should sanction any insurance company fails to implement IFRS on or before the year 2020.

Factors Affecting the Value-Relevance of Capitalized Exploration and Evaluation Expenditures Under IFRS 6

2020 ◽  
pp. 0148558X2091633
Author(s):  
Andrew Ferguson ◽  
Stephen Kean ◽  
Gabriel Pündrich
Keyword(s):  
Financial Reporting ◽  
Value Relevance ◽  
Economic Benefits ◽  
International Accounting Standards ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Nonfinancial Information ◽  
Factors Affecting ◽  
Reporting Practices ◽  
High Uncertainty

This study examines factors affecting the value-relevance of financial and nonfinancial disclosure in the context of the long contentious International Financial Reporting Standard 6 (IFRS 6). Relative to the capitalization of R&D expenditures, IFRS 6 follows a far less restrictive approach, delaying the requirement for probable future economic benefits in settings of high uncertainty. We compare the value-relevance of this asset with that of nonfinancial information commonly reported by mining firms, namely mineral resource estimates. We report evidence that investors utilize nonfinancial information to assess the value-relevance of financial information, initially focusing on whichever information is timelier. We do not find evidence that investors prefer conservative reporting practices in a setting with high uncertainty; rather we provide evidence that investors interpret the capitalization decision as a signal of project viability. This finding is of particular relevance to the ongoing Intangible Assets project being conducted by the International Accounting Standards Board (IASB). JEL classifications: G12, G14

scholarly journals Differences between National Reporting Practices and IFRS for SMEs Presentation and Disclosure Requirements: Evidence from Italy

2016 ◽  
Vol 6 (2) ◽  
pp. 146
Author(s):  
Diego Valentinetti ◽  
Michele Antonio Rea ◽  
Caterina Basile
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Econometric Analysis ◽  
Parent Company ◽  
Manufacturing Companies ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Reporting Practices ◽  
Disclosure Requirements ◽  
Management Commentary

The aim of this paper is to assess the differences between the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) requirements and national financial reporting practices. For this purpose, the IASB’s checklist was applied to a sample of financial statements prepared in Italy by non-listed manufacturing companies. The results reveal the major differences existing in the presentation of financial statements, as well as in narrative disclosure practices in management commentary and notes. Furthermore, econometric analysis suggests that the differences are influenced by certain exploratory factors, namely, profitability, leverage, size and parent company relationship. This study offers new insights into the roles of certain exploratory factors that are likely to influence the movement towards the application of the IFRS for SMEs.

scholarly journals Operating Segments (IFRS 8)-Required Disclosure and the Specific-Characteristics of Kuwaiti Listed Companies

2015 ◽  
Vol 9 (1) ◽  
pp. 136
Author(s):  
Faisal S. Alanezi ◽  
Mishari M. Alfraih ◽  
Saad S. Alshammari
Keyword(s):  
Financial Reporting ◽  
Listed Companies ◽  
Ordinary Least Squares ◽  
Average Level ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Audit Firm ◽  
Ifrs 8 ◽  
Segment Disclosure ◽  
Segment Disclosures

<p>The aim of this article is to assess and examine the operating segment required-disclosure of companies listed on the Kuwait Stock Exchange (KSE) and the influence of certain variables that determine their extent of operating segment disclosures. Similar to the previous studies, the degree of operating segment disclosure is tested based on a disclosure index of the compulsory items of the International Financial Reporting Standard (IFRS) 8 (Operating segment). A regression model is estimated using Ordinary Least Squares analysis for a sample of 150 Kuwaiti companies listed on the KSE at the end of 2013 to examine the relationship between the degree of operating segment disclosure and the specific characteristics of Kuwaiti listed companies. The results reveal that the average level of operating segment disclosure was 54%, ranging from 3% to 95%. The results revealed that Kuwaiti listed companies with a higher level of compliance with the IFRS 8-required disclosures (Operating segment)  were expected to be larger, highly growth and audited by audit firm associated with a Big-4 audit firm. In contrast with the more compliant, Kuwaiti listed companies with a lesser level of compliance with the IFRS 8-required operating segment disclosure were likely to be profitable. In contrast, company age, ownership diffusion, leverage and type of industry, were found to be not influencing the compliance with the IFRS 8-required operating segment disclosure. The findings deliver valuable insights and assistance to the regulatory and enforcement official bodies and to the investors in Kuwait on evaluating the existing operating segment disclosure practice among KSE-listed companies. Since the average level of operating segment disclosure was 54%, this result recommends reviewing the monitoring system of the enforcement of required operating segment disclosure. Additionally, the results provide feedback about the drivers of operating segment disclosures practice.</p>

scholarly journals Preliminary Insights on the Adoption of International Financial Reporting Standard (IFRS) for Small and Medium Enterprises (SMEs) in Pakistan

2018 ◽  
Vol 4 (1) ◽  
pp. 95-110
Author(s):  
Zeeshan Mahmood ◽  
Allah Bakhsh Khan ◽  
Asad ur Rehman ◽  
Samreen Atta
Keyword(s):  
Financial Reporting ◽  
Small And Medium Enterprises ◽  
Securities And Exchange Commission ◽  
Structured Interviews ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Firm Level ◽  
Adoption Decision ◽  
Medium Enterprises ◽  
Chartered Accountants

This study aims to investigate the perceptions of accountants regarding the possible adoption of International Financial Reporting Standards (IFRS) for SMEs in Pakistan. IFRS for SMEs were issued by the IASB in 2009. The adoption of the IFRS for SMEs in Pakistan has been proposed by the Institute of Chartered Accountants of Pakistan (ICAP) and in 2015 the Securities and Exchange Commission of Pakistan (SECP) has approved the adoption of the 'International Financial Reporting Standard for Small and Medium Sized Entities. We conducted seven semi-structured interviews with the chartered accountants based in Multan that were providing accounting and consultancy services to various SMEs. The findings of the research confirmed the reasonable level of awareness among chartered accountants regarding IFRS for SME. Our respondents perceive high-quality comparable financial information as the most significant advantage of applying IFRS for SMEs whereas cost burdens on firms and lack of trained personnel were perceived as major obstacles for the adoption decision. The findings also suggest that diligent IFRS awareness and training programs must be organized by all regulatory and professional bodies (like SECP and ICAP) on both country and firm level to achieve the true purpose of this adoption.

scholarly journals Adapting the Default Weighted Survival Analysis Modelling Approach to Model IFRS 9 LGD

Risks ◽  
2021 ◽  
Vol 9 (6) ◽  
pp. 103
Author(s):  
Morne Joubert ◽  
Tanja Verster ◽  
Helgard Raubenheimer ◽  
Willem D. Schutte
Keyword(s):  
Survival Analysis ◽  
Financial Reporting ◽  
Proportional Hazards ◽  
Proportional Hazards Model ◽  
Survival Curve ◽  
Cox Proportional Hazards ◽  
Cox Proportional Hazards Model ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Ifrs 9

Survival analysis is one of the techniques that could be used to predict loss given default (LGD) for regulatory capital (Basel) purposes. When using survival analysis to model LGD, a proposed methodology is the default weighted survival analysis (DWSA) method. This paper is aimed at adapting the DWSA method (used to model Basel LGD) to estimate the LGD for International Financial Reporting Standard (IFRS) 9 impairment requirements. The DWSA methodology allows for over recoveries, default weighting and negative cashflows. For IFRS 9, this methodology should be adapted, as the estimated LGD is a function of in the expected credit losses (ECL). Our proposed IFRS 9 LGD methodology makes use of survival analysis to estimate the LGD. The Cox proportional hazards model allows for a baseline survival curve to be adjusted to produce survival curves for different segments of the portfolio. The forward-looking LGD values are adjusted for different macro-economic scenarios and the ECL is calculated for each scenario. These ECL values are probability weighted to produce a final ECL estimate. We illustrate our proposed IFRS 9 LGD methodology and ECL estimation on a dataset from a retail portfolio of a South African bank.

scholarly journals Lobbying na Regulação Contábil: Evidências do Setor Petrolífero

2014 ◽  
Vol 25 (65) ◽  
pp. 124-144 ◽  
Author(s):  
Odilanei Morais dos Santos ◽  
Ariovaldo dos Santos
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Status Quo ◽  
International Accounting ◽  
International Accounting Standards ◽  
Discussion Paper ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
International Accounting Standards Board

Este trabalho tem como objetivo identificar os fatores determinantes à submissão de cartas comentários, como estratégia de lobbying no contexto da regulação contábil, à audiência pública do Discussion Paper Extractive Activities do International Accounting Standards Board IASB).Os resultados mostram o tamanho como fator determinante, em todas as modelagens utilizadas, indicando que grandes empresas petrolíferas possuem maior probabilidade para realizar lobbying. Essa propensão é verificada para posicionamentos essencialmente desfavoráveis às propostas apresentadas pelo IASB, o que implica em considerar que a revisão/substituição do International Financial Reporting Standard -IFRS6 será um processo complexo e sujeito a pressões por parte das empresas petrolíferas para manter o status quo.

Accounting Standards and Earnings Quality — Evidence from Registered ADRs

2018 ◽  
Vol 21 (04) ◽  
pp. 1850022
Author(s):  
Yaseen S. Alhaj-Yaseen ◽  
Kean Wu ◽  
Leslie B. Fletcher
Keyword(s):  
Financial Reporting ◽  
Earnings Quality ◽  
Accounting Standards ◽  
Securities And Exchange Commission ◽  
High Quality ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
The Us ◽  
Us Gaap

This paper examines the changes in earnings quality of registered American Depositary Receipts (ADRs) as a result of switching accounting standards. We aim to shed light on the potential impact of International Financial Reporting Standard (IFRS) adoption on US firms. A suboptimal approach to achieve this goal is through examination of US firms’ surrogates such as ADRs. Unlike previous studies, we made a distinction between registered and unregistered ADRs and affirmed that registered ADRs are the closest surrogates with which to conduct our analysis because they are exclusively required to adhere to the Securities and Exchange Commission (SEC)’s stringent disclosure requirements. When cross-listing their equity on the US exchanges, foreign issuers can file their financial reports with the SEC using IFRS, US GAAP (generally accepted accounting principles), or their domestic GAAP with reconciliation to US GAAP. An improvement in earnings quality is documented when ADRs adopt US GAAP or IFRS versus domestic GAAP. However, when the comparison is made between US GAAP and IFRS, no difference in earnings quality is documented. These results indicate that switching to high-quality accounting standards is likely to improve earnings quality. This improvement is maximized when the difference between reporting standards is high and minimized if otherwise. Our conclusion is that the adoption of IFRS in the US is unlikely to change earnings quality of local issuers. Moreover, we drew a distinction between reconciliation with and adoption of high-quality accountings standards and find that while the former can enhance earnings quality, the latter can further improve it.

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