Beyond Financial Reporting. Integrated Reporting and its determinants: Evidence from the context of European state-owned enterprises

2019 ◽  
pp. 43-72
Author(s):  
Giuseppe Nicolò ◽  
Gianluca Zanellato ◽  
Francesca Manes-Rossi ◽  
Adriana Tiron-Tudor
Keyword(s):  
Financial Reporting ◽  
Empirical Investigation ◽  
Gender Diversity ◽  
Accounting Standards ◽  
International Accounting Standards ◽  
Integrated Reporting ◽  
Financial Reports ◽  
The Public ◽  
Explanatory Factors ◽  
Board Gender Diversity

Integrated reporting (IR), which aims to overcome the limitations of both tradi-tional financial and stand-alone non-financial reports, has gained momentum as a single comprehensive tool merging financial and non-financial information. Initially conceived for private sector entities, IR is also establishing itself in the public sector context as a vehicle for transparency and accountability. This research offers an empirical investigation of IR practices in the State-Owned Enterprises (SOEs) context. More specifically, the paper investigates the levels of disclosure provided through IR by a sample of 34 European SOEs and explores the effects of potential explanatory factors. The results indicate a fair level of IR disclosure and a trend of reporting information already requested under international accounting standards. The findings also highlight that industry (basic materials and financials) and size positively influence the level of IR disclosure in a particularly strong way, while governance features (board size and board gender diversity) and the provision of external assurance do not exert any impact.

scholarly journals Dilemmas of Financial Reporting as the Reliable Information Source of an Entity Performance Results

Equilibrium ◽  
2012 ◽  
Vol 7 (2) ◽  
pp. 77-95
Author(s):  
Joanna Zuchewicz
Keyword(s):  
Financial Reporting ◽  
Information Needs ◽  
Information Source ◽  
Accounting Standards ◽  
Global Market ◽  
International Accounting ◽  
International Accounting Standards ◽  
Financial Reports ◽  
Economic Entity ◽  
Basic Source

The objective of the hereby paper is to indicate, on the one hand, the need for transformations in financial reporting as the basic source of information about the financial situation of an economic entity indispensable in the decision making process by its users, and on the other to provide the analysis of the adopted reporting reconstruction directions validity, as suggested by international financial community. On the basis of comments and reservations presented by practitioners and the analysis of research conducted by scientific circles the thesis is put forward by the Author that the suggested extension of information scope to be disclosed in obligatory financial reports proposed by the authorities responsible for the preparation of international accounting standards will not increase the usefulness of information they include and will not influence higher security of business transactions. The paper is divided into there interrelated parts. The first presents the overview of critical opinions expressed by financial circles regarding accounting as the system generating information about the achievements of entities operating at the global market. The second refers to an entity stakeholders and their information needs. Irrespectively of opinions about the primacy of investors and their rights in making investment decisions it is of great importance to meet the needs of the remaining interest groups by means of providing both reliable and useful information in financial statements. The final part of the paper presents an outline of undertaken and suggested restructuring directions in financial reporting proposed by IASB and FASB, as the institutions responsible for preparing international accounting standards. This part also discusses the selected suggestions by Polish researchers regarding the form and content of particular components included in a financial statement.

Harmonising European Public Sector Accounting Standards (EPSAS): Issues and Perspectives for Europe’s Economy and Society

2014 ◽  
Vol 4 (3) ◽  
Author(s):  
Yuri Biondi
Keyword(s):  
Public Sector ◽  
Financial Reporting ◽  
Accounting Standards ◽  
International Accounting Standards ◽  
Accounting Systems ◽  
The Public ◽  
Financial Reporting Standards ◽  
Adoption And Implementation ◽  
European Public ◽  
Public Sector Accounting

AbstractAccounting systems play a hidden but fundamental role as mode and instrument of representation, coordination and organisation for the public sector and its specific public action. Therefore, financial and accounting reforms transform, implement and reshape public policies as well as the working and very existence of public administration. Last March 2013, the European Commission started a relevant project with the intention to create harmonised “European Public Sector Accounting Standards” (EPSAS) and implement them in the Member States. Between 1995 and 2002, a similar project was already achieved for private sector accounting standards-setting, leading to adoption and implementation of International Financial Reporting Standards (IFRS) issued by International Accounting Standards Board (IASB). The EPSAS project should decide if public sector accounting standards-setting shall follow a similar pattern to converge towards the International Public Sector Accounting Standards (IPSAS) that transplant the IFRS in the public sector. This choice may have fundamental implications for the European (Monetary) Union, since public sector accounting and public finances are fundamental elements of its institutional framework. This thematic issue aims to provide analyses and perspectives on this ongoing public sector accounting harmonisation process in Europe, addressing its governance and contents, as well as its consequences and implications for Europe’s economy and society.

scholarly journals Adoption of IFRS for SMEs in Albania

2021 ◽  
Vol 12 (2) ◽  
pp. 158
Author(s):  
Albana Gjoni ◽  
Shpresa Cela ◽  
Drini Salko ◽  
Migena Qerimi
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Reporting Quality ◽  
Financial Statements ◽  
Financial Reporting Quality ◽  
International Accounting Standards ◽  
Reporting Standard ◽  
Financial Reports ◽  
Financial Reporting Standards ◽  
National Economic

Small Medium-Sized Enterprises (SMEs) is one of the most important engines of economic growth in Albania. They make a significant contribution to local and global trade and also to the national economic development. SMEs have the largest proportion of total Albanian employment, almost 78% of the total number of employed people. They generally face difficulties in financing and investing decisions, globalization, and other matters, mainly because of their inappropriate formal financial reports. These enterprises must prepare adequate financial statements and proper accounts to deal with third parties’ needs and ensure stakeholder’s confidence. This requires financial statements to be prepared by international financial reporting standards (IFRS), national accounting standards, and local government laws. Therefore, the International Accounting Standards Board (IASB) provided a new standard to ensure the required financial reporting quality for SMEs. The main focus of this study is to examine the attitudes of financial statement’s information’ users in Albania towards the adoption of this financial reporting standard for SMEs as progress on the general financial reporting process in Albania, and also to estimate their capabilities and interests on this matter.

scholarly journals EXPENDITURES AND EXPENSES IN BUDGETARY INSTITUTIONS: ESSENCE, ACCOUNTING PROBLEMS AND WAYS TO IMPROVE

2021 ◽  
Author(s):  
Nadia Topolenko ◽  
Yulia Lavreniuk
Keyword(s):  
Public Sector ◽  
Financial Reporting ◽  
Reporting System ◽  
Accounting Standards ◽  
Financial Statements ◽  
Accounting System ◽  
International Accounting Standards ◽  
The Public ◽  
Budgetary Institutions

In the conditions of public sector entities, much more attention is paid to accounting for income, expenditures and expenses, primarily by practicing accountants. The revenues of public sector entities represent the main source of their activities, and the costs make it possible to analyze their effectiveness and rationality of the use of budget allocations, so the organization of accounting for these objects determines the effectiveness of the activities of public sector institutions. The accounting system of public sector institutions is formed according to the modernization schemes approved at the legislative level. The public sector accounting plan and national accounting regulations (standards) in the public sector have significantly changed the established methods of accounting for the implementation of budgetary institutions. The economic classification of expenditures has also changed, the division of operations into exchange and non-exchange operations in accordance with international accounting standards for the public sector has also changed. The above has led to significant changes in the method of accounting for income, expenditures and expenses, which is due to the relevance of the study. The article specified and proposed new definitions of economic concepts of «income», «expenditures» and «expenses» of budgetary institutions. Various approaches to their interpretation are considered, attention is focused on the key problems of adaptation of accounting for income and expenses of budget funds managers in accordance with the implementation of the Strategy for modernization of the accounting and financial reporting system in the public sector for the period up to 2025 and approximation to the generally accepted principles of international practice. Changes in the methodology of accounting and display in financial statements of income and expenses of public sector entities were studied, the theoretical and practical aspects of improving the accounting of income, expenditures and expenses by public sector entities were highlighted. Proposals for improving the accounting of income and expenses in the public sector are given and substantiated.

AUDIT OF FINANCIAL REPORTS, BASED ON INTERNATIONAL ACCOUNTING STANDARDS

2011 ◽  
Vol 2 ◽  
Author(s):  
Islom Kuziev
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
International Accounting ◽  
International Accounting Standards ◽  
Financial Reports ◽  
International Standard ◽  
Main Notion

In this article are given main notion about international standard of financial reporting, order of the auditing on the base of IFRS, scheduling the report of the auditor, auditor conclusions and are given analysis of reporting based on the auditor procedures. At the audit of financial reporting are taken into account international standard to financial reporting 29 "Financial reporting in hyperinflationary economies".

CONCEPTUAL FRAMEWORK OF INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS: WORLD EXPERIENCE AND UKRAINE

2017 ◽  
Vol 6 (2) ◽  
pp. 78-85
Author(s):  
Svitlana Zubilevych ◽  
Nataly Poznyakovska
Keyword(s):  
Public Sector ◽  
Conceptual Framework ◽  
Financial Reporting ◽  
Reporting System ◽  
Accounting Standards ◽  
Financial Statements ◽  
General Purpose ◽  
International Accounting Standards ◽  
The Public

The article discusses the role of the "Conceptual framework for general purpose financial reporting of public sector entities" in connection with the reform of the accounting and reporting system in the public sector of Ukraine on the basis of harmonization with International Accounting Standards. The chronology of the development of the Conceptual Framework and its brief content are generalized. An analysis of the purpose of the Conceptual Framework for General Purpose Financial Statements was conducted. Conclusions on the need to develop a national conceptual framework are made.

scholarly journals CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING: INTEGRATED POLICY

2021 ◽  
Vol 1 (36) ◽  
pp. 76-83
Author(s):  
N. Savina ◽  
N. Pozniakovska ◽  
O. Miklukha
Keyword(s):  
Public Sector ◽  
Conceptual Framework ◽  
Financial Reporting ◽  
Accounting Standards ◽  
International Standards ◽  
National Standards ◽  
International Accounting ◽  
International Accounting Standards ◽  
Business Sector ◽  
The Public

The project of the International Accounting Standards Board that updates and develops international accounting standards (IASB) has been lasting more than twenty years. In Ukraine, International accounting standards were adopted as the national standards for business and public sectors. The article analyzes the Conceptual Framework for Financial Reporting for the business sector entities, compares it with the Conceptual Framework for financial reporting for the public sector entities, and the current requirements of the Ukrainian legislation in the field of accounting and financial reporting. The necessity of creating a single Conceptual Framework for financial reporting, based the needs of information users, is substantiated. The relevant International Standards for the business sector entities became fundamental for the development of International Public Sector Accounting Standards. The similar needs of financial reports users support this approach. At the same time, part of the IPSAS, and the Conceptual Framework take into account the functional peculiarities of the entities in this sector of the economy. Financial reporting concepts for entities in any sector of the economy determine the aim of financial reporting as that to acquire information concerning the entity. Investors, creditors, other lenders are prior users of financial information in the business sector while society as a whole uses information in the public sector. The Conceptual Framework for the public sector takes into account the peculiarity of this sector of the economy, the main purpose of which is to provide services to society, rather than generating profits and ensuring the return on capital of investors. The common features of financial reporting standards and their Conceptual Framework, taking into account current trends and global challenges, indicate the possibility and feasibility of creating a unified (integrated) Conceptual Framework for Financial Reporting.

scholarly journals Non-financial reporting in the public sector: alternatives, trends and opportunities

2019 ◽  
Vol 22 (2) ◽  
pp. 122-128 ◽  
Author(s):  
Vicente Montesinos ◽  
Isabel Brusca
Keyword(s):  
Public Sector ◽  
Financial Reporting ◽  
Balance Sheet ◽  
Sustainability Reporting ◽  
Financial Information ◽  
Integrated Reporting ◽  
Financial Reports ◽  
The Public ◽  
Information Models ◽  
Private And Public

In recent years, different non-financial information models have arisen, both in the private  and  public sectors, trying to complete the traditional financial reports prepared by companies and public administrations. The fundamental objective of these models has been to satisfy the interest of the stakeholders, which goes beyond the numbers included in the balance sheet and the income statement. In the case of the public sector, this is coupled with the discontent and distrust of citizens towards politicians and administrators of institutions, which makes it necessary to emphasize tools and strategies that can improve the transparency and accountability of administrations and restore citizen trust. Therefore, this article highlights the different non-financial information alternatives that have emerged in the literature, their practical application in the public sector and the opportunities that these models offer for the future. Specifically, we refer to sustainability reporting, integrated reporting, the non-financial report recently regulated for the business sector and, finally, popular reporting. En los últimos años han irrumpido con fuerza distintos modelos de información no financiera, tanto en el sector privado como en el público, tratando de completar el tradicional informe financiero preparado por empresas y administraciones públicas. El objetivo fundamental de estos modelos ha sido satisfacer el interés del conjunto amplio de los stakeholders, que va más allá de los números recogidos en el balance de situación y la cuenta de resultados. En el caso del sector público, a esto se une el descontento generalizado y la desconfianza de los ciudadanos hacia los políticos y administradores de las instituciones, lo que hace necesario poner el acento en todas aquellas herramientas y estrategias que puedan perfeccionar la transparencia y responsabilidad de las administraciones y reintegrar la confianza de sus administrados. Por ello, en este artículo se ponen de relieve las distintas alternativas de información no financiera que han ido surgiendo en la literatura, su aplicación práctica en el ámbito del sector público y las oportunidades que estos modelos ofrecen para el futuro. En concreto nos referimos a la información sostenible, la información integrada, la información popular y por último, al informe no financiero regulado en nuestra normativa para el sector empresarial.

scholarly journals STANDAR AKUNTANSI INTERNASIONAL: HARMONISASI VERSUS KONVERGENSI

2013 ◽  
Vol 2 (1) ◽  
Author(s):  
Novi Kurniawati
Keyword(s):  
Financial Reporting ◽  
Small And Medium Enterprises ◽  
Accounting Standards ◽  
International Standards ◽  
International Accounting ◽  
International Accounting Standards ◽  
Financial Reports ◽  
State Sector ◽  
Financial Disclosures ◽  
Medium Enterprises

<p><em>Globalization brings changes to the capital markets and business operations across borders. State sector in a multinational company is required to make financial reports that can be received throughout the world, but in every country have their own accounting standards are of course different between a country's accounting standards with other countries. For it requires the international accounting standards, so that financial disclosures made by a company in a country multinational globally acceptable. Application of international accounting standards is very difficult because of differences in both legal, environmental, social and economic conditions between one country to another and to bridge it then requires the process of harmonization and convergence. There is a difference between the process of harmonization and convergence of international accounting standards. Only at the stage of harmonization, alignment of accounting standards issued by standard-setting bodies in each country with International Accounting Standard (IAS), while convergence is the next stage of the harmonization of accounting standards which are expected in the context of international standards aimed at eventually there would be only one standard. The process of harmonization and convergence of international accounting standards is not easy to just run, many obstacles and criticisms of the process of harmonization and convergence in which the harmonization and convergence is only suitable for large companies are multinational companies rather than small and medium enterprises, although there are also advantages that can be obtained from the harmonization and convergence of international accounting standards, among others comparable financial reporting, increase transparency, reduce costs and increase global investment capital. </em></p> <p><em> </em></p> <p><strong><em></em></strong><em></em></p>

The Adoption of Financial Accounting Standards for Small Medium Enterprises by Muslim Entrepreneurs

2020 ◽  
Vol 27 (2) ◽  
pp. 54
Author(s):  
Muslichah Muslichah ◽  
Sunarto Sunarto ◽  
Anang Amir Kusnanto ◽  
Sri Indrawati ◽  
Hariyanto Hariyanto
Keyword(s):  
Financial Reporting ◽  
Quantitative Data ◽  
Accounting Standards ◽  
Financial Accounting ◽  
Unexpected Finding ◽  
Financial Reports ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
Chartered Accountants ◽  
Structured Questionnaire

This study aims to discuss the adoption of financial reporting and accounting standards for small-medium enterprises (SMEs) by Muslim entrepreneurs. A structured questionnaire was used to collect quantitative data from the SME owners. 214 Muslim owners of SME businesses participated in the survey. The results show that only a few Muslim entrepreneurs prepared financial reports regularly. The main reason for preparing the statement is for calculating tax, borrowing money, and decision making. An unexpected finding from this study is that most of the Muslim owners are unaware of Standard for SMEs. Users of SME financial reports include tax authority, banks, and owners, or shareholders. This study enriches the financial reporting studies by examining the accounting standards for SMEs in a Muslim dominated country. The findings of this study also have implications for the Institute of Indonesia chartered accountants (IICA) as standard setter. IICA must routinely disseminate these standards to SMEs and also assist them in preparing financial reports

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