The determinants of segment disclosure: an empirical analysis on Italian listed companies

2012 ◽  
pp. 113-132 ◽  
Author(s):  
Sabrina Pisano ◽  
Loris Landriani
Keyword(s):  
Empirical Analysis ◽  
Accounting Standards ◽  
Listed Companies ◽  
Fiscal Year ◽  
International Accounting Standards ◽  
Proprietary Costs ◽  
Industry Competition ◽  
Ifrs 8 ◽  
Segment Disclosure ◽  
Segment Disclosures

In November 2006 the International Accounting Standards Board issued IFRS 8, which replaced IAS 14-Revised and became effective for the fiscal year beginning on or after 2009. IFRS 8 changed the items of information that companies have to disclose for each segment. The aim of the research is to examine the determinants of segment disclosures provided by Italian companies in both 2008 and 2009 using the framework of the proprietary costs theory. Moreover, the research investigates whether the implementation of IFRS 8 has brought companies operating in less competitive industries to adopt some opportunistic behaviors, reducing the level of segment disclosure provided in 2009, compared to that disclosed the previous year under IAS 14-R. The results show that higher levels of industry competition are associated with higher levels of segment disclosure. Moreover, we find that firms operating in less competitive industries decreased the items of information provided for each segment under IFRS 8, compared to those released the previous year.

scholarly journals Analisis Penerapan PSAK 5 (Revisi 2009) terhadap Pengungkapan Segmen Operasi pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia (BEI)

2018 ◽  
Vol 5 (2) ◽  
pp. 157-163
Author(s):  
Robert Pius Pardede ◽  
Tri Ernawati
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Statements ◽  
Management Approach ◽  
International Accounting ◽  
International Accounting Standards ◽  
Segment Disclosure ◽  
Segment Disclosures ◽  
The Impact ◽  
Segment Information

The International Accounting Standards Board (IASB) is committed to improve their standards’ quality, which is the global accounting standards that reflect information in financial statements as transparent and comparable for public purposes. The International Accounting Standards (IAS) and the International Financial Reporting Standards (IFRS) provide guidelines in creating and interpreting companies’ financial statements (Iatridis & Dalla, 2011). The purpose of this research was to assess the impact of the application of PSAK 5 (revised 2009). PSAK 5 (revised 2009) requires segment disclosure based on the internal reporting reviewed by the operation decision maker. PSAK 5 (revised 2000) requires companies to disclose segments information based on the format of the primary and secondary segments as identified per products / services that generate the same level of risk and return. The six analytical frameworks developed for this research, namely: (1) analysis of the presentation of segment information based on PSAK 5 (revised 2000) versus PSAK 5 (revised 2009), (2) analysis of the determination and identification of operational decision-making, (3) the analysis of the definition and identification operating segments between industry sectors, (4) analysis of segment aggregation, (5) analysis of determination of the reportable segments, and (6) analysis of reported segment disclosures. In conclusion, generally, the disclosure of segment information based on PSAK 5 (revised 2009) by using the management approach yields a more complete segment report, by conveying more relevant segmental information from the standpoint of management's internal performance than the previous standard, which was PSAK 5 (revised 2000). This research found significant changes related to an increase in the disclosure of segment disclosure in business segments, segment aggregation, and basic information on company's segmental performance measurement in Indonesia.

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 DETERMINANTS OF THE QUALITY OF OPERATING SEGMENT DISCLOSURE

2021 ◽  
Vol 4 (1) ◽  
Author(s):  
Arina Adilla Hidayat ◽  
Mekani Vestari
Keyword(s):  
Audit Quality ◽  
Manufacturing Sector ◽  
Reporting Quality ◽  
Manufacturing Companies ◽  
Industry Competition ◽  
Analysis Technique ◽  
External Pressures ◽  
Segment Disclosure ◽  
Segment Disclosures

The Indonesian government encourages the manufacturing sector to diversify its business. The operating segments disclosures will be more important. Meanwhile, the provisions regarding this disclosure are still voluntary. There are several studies in Indonesia. However, the proxies used do not reflect the quality of the operating segment disclosures comprehensively. Therefore, this study aims to get empirical evidence on the determinants of the quality of operating segment disclosure by using Reporting Quality Index. The population was manufacturing companies listed on the IDX for 2015 - 2018. The data analysis technique uses multiple linear regression. The results show that firm size, leverage, degree of internationalization, and audit quality have a positive effect, while industry competition, profitability, and company growth have no effect on the quality of disclosure in the operating segment. This implies that external pressures have higher impact.

scholarly journals International Accounting Standards (IAS). Transition of Existing to New Accounting Standards in a Rapid Changing Environment. The Impact of Adoption of New Accounting Standards in the Developed Economies in European Union. Conclusions, Expectations and Perspectives

2021 ◽  
Vol 7 (4) ◽  
pp. p78
Author(s):  
Efthalia Tabouratzi ◽  
Orestis Katsidis ◽  
Eleftherios Charamis
Keyword(s):  
Accounting Standards ◽  
International Accounting Standards ◽  
Global Level ◽  
Future Perspectives ◽  
Segment Reporting ◽  
Developed Economies ◽  
Global Pandemic ◽  
Ifrs 8 ◽  
The Impact ◽  
The Eu

Adopting a set of accounting standards on a global level derives from the growing globalization of international economies. However, the transition from old to new ones is challenging in a rapidly changing economic environment. This article presents an assessment of IFRS 8 (Operating Segments) adoption, after replacing IAS 14 (Segment Reporting), and examines the impact occurred in the developed economies within the EU, with relevant considerations referring to the current COVID-19 global pandemic situation.This study analyzes the effect of this controversial standard on segment reporting and attempts to identify the determinants of changes in disclosure practices. Based on a four country sample, the current research identifies specific significant financial information changes, although segmentation remains relatively stable. Furthermore, the study includes relevant considerations on reporting, as reflected from current COVID-19 pandemic.The present research includes a historical reference to the development of the accounting standards under examination. Conclusions, expectations, and future perspectives are also presented in the paper.

Evidence from China on Whether Harmonized Accounting Standards Harmonize Accounting Practices

2002 ◽  
Vol 16 (3) ◽  
pp. 183-197 ◽  
Author(s):  
Shimin Chen ◽  
Zheng Sun ◽  
Yuetang Wang
Keyword(s):  
Earnings Management ◽  
Empirical Evidence ◽  
Accounting Standards ◽  
Listed Companies ◽  
International Accounting Standards ◽  
Accounting Earnings ◽  
Financial Reports ◽  
Accounting Regulation ◽  
Earnings Gap ◽  
Research Opportunity

While international harmonization of accounting is gaining momentum in recent years, there is little empirical evidence on whether the harmonization of accounting standards leads to harmonized accounting practices and comparable financial reports. Benefiting from a unique research opportunity in China, this study provides such evidence. Since January 1, 1998, a newly promulgated Accounting Regulation for Listed Companies is in effect. This new regulation is the most comprehensive effort at harmonizing Chinese generally accepted accounting standards (GAAP) with International Accounting Standards (IAS). Based on a sample of listed companies required to reconcile accounting earnings from Chinese GAAP to IAS, we find no evidence that the Chinese government's efforts eliminated or significantly reduced the gap between Chinese and IAS earnings despite harmonized accounting standards. We explore reasons for the continued earnings gap after the 1998 regulation and find that a lack of adequate supporting infrastructure, manifested in excessive earnings management and low quality auditing, may explain the gap.

scholarly journals The impact of IFRS 7 on the significance of financial instruments disclosure

2016 ◽  
Vol 29 (3) ◽  
pp. 241-273 ◽  
Author(s):  
Yasean A. Tahat ◽  
Theresa Dunne ◽  
Suzanne Fifield ◽  
David M. Power
Keyword(s):  
Balance Sheet ◽  
Accounting Standards ◽  
Fair Value ◽  
Listed Companies ◽  
International Accounting ◽  
International Accounting Standards ◽  
Financial Instruments ◽  
Content Type ◽  
Ifrs 7 ◽  
The Impact

Purpose The main aim of this paper is to investigate Financial Instruments (FIs) disclosures provided by Jordanian listed companies under International Financial Reporting Standard No. 7 (IFRS 7) as compared to those supplied under International Accounting Standards (IAS) 30/32. Design/methodology/approach A sample of 82 Jordanian listed companies is used in this monograph. A disclosure index checklist was constructed to measure FI information provided by the sample companies. Findings The study finds that a larger number of Jordanian listed companies provided a greater level of FI-related information after IFRS 7 was implemented. Specifically, the sample firms provided 47 per cent of the disclosure index items after implementing IFRS 7 as compared to 30 per cent under IAS 30/32. In addition, the industrial analysis of FI disclosure revealed that the highest level of disclosure was provided by firms in the banking sector over the two periods; these companies disclosed 44 per cent of FI-related items pre-IFRS 7 and 69 per cent of items post-IFRS 7. Moreover, the industrial analysis of FI disclosure pre-and post-implementation of IFRS 7 revealed specific aspects of usefulness. In particular, some components of FI disclosure (Balance Sheet and Fair Value) showed no significant differences within and across sectors post the implementation of IFRS 7, suggesting that the new standard may have enhanced the comparability of such information. Research limitations/implications The results provide timely findings to Jordanian authorities who may be trying to evaluate the current reforms adopted; stringent enforcement mechanisms are needed to ensure full compliance with accounting standards. However, the present investigation was conducted on a single nation (Jordan); the circumstances in Jordan gave rise to the importance of the current study. A cross-country comparative analysis is needed in order to examine the application of IFRS 7 in a developing country context. Practical implications The results of the current study have a number of implications for policymakers. First, they provide a great deal of insight for the International Accounting Standards Board about the relevance of its standards to countries outside the Western context. In addition, the findings provide valuable insights for policymakers in Jordan who are concerned about the implications of mandatory disclosures. Originality/value The analysis of FI disclosure in developing countries in general, and in Jordan in particular has been overlooked by the extant literature and therefore this study is the first of its kind to examine this research issue for a sample of Jordanian firms.

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