scholarly journals Consolidation of Specific Items of Financial Statements of Company Group: Principles, Conditions and Features

2020 ◽  
Vol 87 (4) ◽  
pp. 117-128
Author(s):  
I. M. Dmytrenko ◽  
N. V. Shaimukhometova
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Subject Area ◽  
Consolidated Financial Statements ◽  
External Auditors ◽  
Financial Reporting Standards ◽  
Economic Decision Making ◽  
Company Group ◽  
The Impact ◽  
A Company

The impact of the adequacy of the application of the basic principles, conditions and order of consolidation by a company group, to ensure the reliability of the most specific items of financial statements, is considered as a subject matter of internal and external auditors. The components of the consolidated financial statements, its structural elements, specific items and a set of necessary disclosures in the notes are distinguished on the basis of comparative analysis. The conditions for the parent company’s control as an investor over the activities of its subsidiaries as an investee for the purpose of applying the consolidation procedure are systematized. The prerequisites for ensuring the reliability of the consolidated reporting information are generalized. The characteristics of these prerequisites are given in view of the parent company’s ownership of a certain share of the net assets of the subsidiaries at the reporting date and its investments in the subsidiaries during the reporting year with their inclusion in the book value. The necessary emphasis is placed on the proper disclosure of information about all subsidiaries in accordance with the principles of financial reporting. The subject area of internal and external audit is analyzed with focus on the most specific items of the consolidated financial statements: uncontrolled interest, goodwill and intra-group transactions. The factors for minimizing the risk of distortion at the level of individual articles and the consolidated financial statements of a company group as a whole are identified. The instruments of ensuring the proper degree of completeness and reliability of disclosure in the consolidated statements of a company group in accordance with the requirements of international financial reporting standards are considered. In particular, the specificity of the disclosure of the influence of related parties on the profit, loss and financial position of the group is discussed. The pragmatic value of disclosures is determined in view of providing users with consolidated financial statements that are transparent and relevant to economic decision making.

scholarly journals The influence of culture on disclosures in financial statements prepared under International Financial Reporting Standards

2019 ◽  
Vol 2019 (101 (157)) ◽  
pp. 111-132 ◽  
Author(s):  
Jerzy Gierusz ◽  
Katarzyna Koleśnik
Keyword(s):  
Financial Reporting ◽  
Comparative Studies ◽  
Financial Statements ◽  
Arab Countries ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Consolidated Financial Statements ◽  
Financial Reporting Standards ◽  
Financial Disclosures ◽  
The Impact

The primary objective of this article is to investigate the impact of culture (as measured by Hofstede) on disclosures in financial statements prepared under International Financial Reporting Standards (IFRS) by firms from different countries. The sample comprises 2011−2013 consolidated financial statements of stock companies (excluding banks, insurance, and other financial institutions) from four countries repre- senting different cultural areas: the United Kingdom (Anglo), Germany (Germanic), Poland (Central Eastern Europe; CEE) and Kuwait (Arab). The research material came from 312 annual consolidated financial statements from 104 companies. The results reveal that cultural values have a significant impact on financial disclosures even after the use of IFRS. The paper is one of the few comparative studies attempting to assess the effects of culture on financial disclosures in Western Europe countries, CEE countries and Arab countries. Most of the international comparative studies in this research area have neglected CEE and Arab countries.

IFRS IMPLEMENTATION AS ONE OF THE FACTORS FOR IMPROVING THE INVESTMENT CLIMATE IN UKRAINE

2017 ◽  
Author(s):  
Kateryna Sova ◽  
◽  
Natalia Yatsenko ◽  
Denys Zagirniak ◽  
◽  
...  
Keyword(s):  
Financial Reporting ◽  
Direct Investment ◽  
Financial Statements ◽  
International Standards ◽  
Investment Climate ◽  
The European Union ◽  
Economic Activities ◽  
Financial Reporting Standards ◽  
Almost All ◽  
The Impact

The article is devoted to the study of the impact of the introduction of International Financial Reporting Standards (IFRS) on changes in the investment climate in Ukraine. The relevance of the topic is that improving the practice of applying IFRS as a tool for exchanging financial information is one of the key conditions for improving the investment climate in Ukraine. The authors have created the generalized scheme that illustrates the chronological list of enterprises that are required by law to prepare financial statements in accordance with IFRS. It was noted that in 2018, in accordance with Part 2 of Article 12 of the law on accounting and financial reporting in Ukraine and resolution of the Cabinet of Ministers of Ukraine No. 547 from 11.07.2018, the criteria of enterprises that are required to prepare financial statements in accordance with IFRS were updated. This step significantly increased the level of application of international standards due to the adoption of such a decision at the legislative level. The dynamics of the number of IFRS enterprises in Ukraine was analyzed. The analysis showed that over the past three years, the number of almost all enterprises that must apply international standards has been growing. The advantages of using IFRS for different users of financial statements were determined. It was determined that the priority users of IFRS financial statements are investors. At the same time, it was noted that the main advantage for other users of financial statements prepared in accordance with international standards is the improvement of the investment climate. The dynamics of the Investment Attractiveness Index of Ukraine based on the Likert scale in the period from 2016 to 2020 was analyzed. The direct investment receipts to Ukraine from the European Union countries were studied. The dynamics of direct investment in the Ukrainian economy was analyzed for two types of economic activities that should form financial statements in accordance with IFRS, namely, the extractive industry and quarrying, as well as financial and insurance activities.

Megascreens USA Inc.—A Foreign Operations Case

2007 ◽  
Vol 22 (4) ◽  
pp. 579-590 ◽  
Author(s):  
Charles A. Carslaw ◽  
S. E. C. Purvis
Keyword(s):  
Financial Reporting ◽  
Foreign Currency ◽  
Financial Statements ◽  
The United States ◽  
Cash Flows ◽  
Consolidated Financial Statements ◽  
Comprehensive Overview ◽  
Financial Reporting Standards ◽  
Foreign Operations ◽  
Statement Of Cash Flows

This relatively short case gives students a comprehensive overview of the steps required to prepare consolidated financial statements under U.S. GAAP when a subsidiary prepares its accounts under a foreign GAAP—in this case, International Financial Reporting Standards (IFRS). While the case is closely based on an actual Australasian company seeking listing in the United States, the product and the exact financial details are disguised. Specifically, the case exposes students to the following: accounting for foreign currency transactions; adjustments to convert foreign GAAP to U.S. GAAP (accounting for license fees); translation of financial statements; change of functional currency; remeasurement of financial statements; and foreign consolidation and statement of cash flows with foreign operations. The case has been field-tested in an advanced accounting course and is also suitable for use in international accounting courses. Both undergraduate and graduate students have profited from the case.

scholarly journals The Strategy for Harmonizing Financial and Non-financial Reporting on Climate Risk Disclosures. Part 2

2020 ◽  
Vol 7 (4) ◽  
pp. 6-17
Author(s):  
O. V. Efimova ◽  
O. V. Rozhnova
Keyword(s):  
Climate Change ◽  
Financial Reporting ◽  
Financial Statements ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Climate Risks ◽  
Change Impact ◽  
Internal Accounting ◽  
Risk Disclosures ◽  
The Impact

The article is devoted to the harmonization of financial and non-financial reporting of the organization and the development of a strategy in the field of climate risks. In the first part of the article the main attention is paid to the analysis of the impact of these risks on the indicators of financial statements, the requirements for the disclosure of information, the relevance of reflecting the impact of climate change on the business, financial performance and the strategy. The second part formulates the recommendations for developing a strategy of harmonizing financial and non-financial reporting in the field of climate risks and for preparing disclosures regarding the interdependence of climate change impact and the company’s activities. The study is intended for government agencies of the Russian Federation, professional international organizations involved in the development of financial and non-financial reporting standards, interested users, as well as economic entities that develop internal accounting and reporting standards.

A Study of Impact of IFRS Convergence in India on Debt–Equity Components of Financial Statements

2020 ◽  
pp. 097215092091846
Author(s):  
Saumya Jain ◽  
Chandra Prakash Gupta
Keyword(s):  
Decision Making ◽  
Financial Reporting ◽  
Financial Statements ◽  
Annual Reports ◽  
Practical Relevance ◽  
Reporting Standards ◽  
Financial Instruments ◽  
Financial Reporting Standards ◽  
Significant Difference ◽  
The Impact

The present article analyses the impact of International Financial Reporting Standards (IFRS) convergence on financial statements in India. Our focus is on the most significant and challenging standard, that is, IND-AS (financial instruments). Our focus is on the most significant and challenging standard i.e IND-AS(Financial Instruments) and their impact on debt-equity classification brought about by the new standard(s). We analyse the annual reports of 30 listed entities having outstanding preference share capital for the years 2015–2016 and 2016–2017. We redefine the formulae of ratios most commonly used in loan agreements (popularly referred to as ‘debt covenants’) from lenders’ perspective and empirically examine the impact of IFRS convergence on the value of these ratios for the same financial year, that is, 2015–2016. Our results show that there is a significant difference in the value of ratios calculated using newly developed formulae and by applying the old formulae on new data. The study is the first of its kind to empirically examine the impact of IND-AS specifically standard relating to financial instruments on debt ratios in India. Our contribution to the literature is that we not only examine the impact on ratios on transition to IND-AS but also offer a solution as to how the users can mitigate this impact by making adjustments to the debt ratios taking into account the recognition, measurement and presentation changes brought about by IND-AS, so that they can apply our newly developed formulae directly on IND-AS statements and derive the same meaning and interpretation from the ratios as before retaining their practical usage. Thus, our study is of immediate practical relevance to lenders, credit managers and investors aiding their decision making.

scholarly journals TAX RISKS IN THE OIL AND GAS SECTOR OF THE RUSSIAN ECONOMY 

2019 ◽  
Author(s):  
А.Х. Цакаев ◽  
А.Р. Батукаева
Keyword(s):  
Financial Reporting ◽  
Oil And Gas ◽  
Financial Statements ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Consolidated Financial Statements ◽  
Financial Reporting Standards ◽  
Russian Economy ◽  
Oil And Gas Companies ◽  
Oil And Gas Sector

Представлены результаты оценки налогового риска ПАО НК Роснефть , ПАО Газпром и ПАО ЛУКОЙЛ согласно общедоступным критериям самостоятельной оценки рисков для налогоплательщиков Концепции планирования выездных налоговых проверок, исходя из данных консолидированной финансовой отчетности, подготовленной в соответствии с международными стандартами финансовой отчетности, позволившие сделать вывод о предложении по преобразованию данной Концепции под международные стандарты финансовой отчетности. Сформулированы предложения по обеспечению снижения уровня налоговых рисков в деятельности российских нефтегазовых компаний Results of assessment of tax risk of PJSC Rosneft, PJSC Gazprom and PJSC Lukoil according to public criteria of independent risk assessment for taxpayers of the Concept of planning of exit tax audits, proceeding from data of the consolidated financial statements prepared according to International Financial Reporting Standards, allowed to draw a conclusion on the offer on transformation of this Concept under International Financial Reporting Standards are presented. Offers on ensuring decrease in level of tax risks in activity of the Russian oil and gas companies are formulated.

scholarly journals HARMONIZATION OF UKRAINIAN ACCOUNTING AND FINANCIAL REPORTING STANDARDS IN ACCORDANCE WITH THE ACCOUNTING DIRECTIVE (2013/34/EU) REQUIREMENTS

2014 ◽  
Vol 9 (1) ◽  
pp. 290-294
Author(s):  
Svitlana Zubilevych
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Reporting Standards ◽  
Consolidated Financial Statements ◽  
Association Agreement ◽  
Financial Reporting Standards ◽  
Current Classification ◽  
The Eu

The paper considers the possible impact of the Directive 2013/34/EU on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings on reporting in Ukraine with reference to signing the EU-Ukraine Association Agreement. The author then suggests possible changes in the current classification of companies, formats and components of financial statements, as well as accounting methods.

scholarly journals International Financial Reporting Standards: A Review of Status of Adoption and Approaches for Evaluation

2016 ◽  
Vol 69 ◽  
pp. 69-78 ◽  
Author(s):  
Habeeb Mohamed Nijam ◽  
Athambawa Jahfer
Keyword(s):  
Financial Reporting ◽  
Empirical Studies ◽  
Financial Statements ◽  
Technical Quality ◽  
Adoption Studies ◽  
Accounting Standard ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
The Impact ◽  
International Accounting Standard

The purpose of this review is to explore various approaches and perspectives that are currently being used by empirical studies reporting the impact of IFRS adoption in different jurisdictions around the globe. For this purpose to be better served, this study also presents at the outset an overview of the scope, objectives and current adoption status of IFRS. This study reviewed the literature on classifications of IFRS adoption studies with the view of deducting methodical frameworks outlining the dimensions that may warrant investigation for IFRS to be consented as a set of quality and global accounting standards. This study concludes that the success of IFRS as an international accounting standard depends on one hand in its technical quality economically yielding to both uses and reporters of financial statements and on the other hand their acceptance across different jurisdictions despite their political, cultural and economic diversities.

scholarly journals The effects of the International Financial Reporting Standards (IFRS) adoption on earnings quality: evidence from Korea

2017 ◽  
Vol 14 (3) ◽  
pp. 243-250
Author(s):  
Jee Hoon Yuk ◽  
Wook Bin Leem
Keyword(s):  
Financial Reporting ◽  
Institutional Environment ◽  
Earnings Quality ◽  
Financial Statements ◽  
Consolidated Financial Statements ◽  
Listed Firms ◽  
Financial Reporting Standards ◽  
Ifrs Adoption

This study investigates whether earnings quality of Korean listed firms was substantially improved after the IFRS adoption in long-term aspect and which firms listed in KOSPI or KOSDAQ market had been more enjoyed the benefit. Prior studies related to this subject don’t provide consistent results and have a limitation of insufficiency of research periods. Therefore, this study analyzes the positive effect of the IFRS adoption in Korea using long-term based approach and comparative analysis on each Korean stock market. Furthermore, this study considered Korean specific institutional environment in which main financial statements prepared and disclosed by listed firms were changed from individual financial statements to consolidated financial statements after the IFRS adoption. Results of the study found that earnings quality of Korean listed firms had been significantly improved during 5 years after the IFRS adoption. In addition, earnings quality on consolidated financial statements of KOSDAQ listed firms has improved more than that of KOSPI listed firms. The results provide meaningful implications to evaluate the effects of IFRS adoption on earnings quality and to assess accomplishment of fundamental purpose of the IFRS adoption in Korea.

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