scholarly journals TRUTH, FAITHFULLNESS AND RELIABILITY VAGUENESS IN THE ACCOUNTING THEORY AS A CHALLENGE FOR ACCOUNTING TEACHERS

2015 ◽  
Vol 68 (1) ◽  
pp. 36-51
Author(s):  
Ewa Wanda Maruszewska ◽  
Aleksandra Szewieczek ◽  
Marzena Strojek-Filus
Keyword(s):  
Financial Reporting ◽  
Algebraic Approach ◽  
Accounting Education ◽  
Financial Reports ◽  
Main Method ◽  
Polish Literature ◽  
Economic Reality ◽  
Accounting Theory ◽  
Business Entities ◽  
Theoretical Foundations

The study was aimed at examining the notion of truth, faithfulness and reliability approaches in chosen social sciences, and accounting theoretical foundations among them. In order to explore whether accounting conceptual framework together with accounting theoreticians have developed a satisfactory understanding of the notion of truth, faithfulness and reliability, a literature review was undertaken seeking the definitions and classifications of truth that might be useful in business practice, especially in accounting preparation of financial reports. The main method used in order to achieve the aim was a critical analysis of the contemporary English and Polish literature on accounting, philosophy, as well as psychology and sociology to go to the comparison of the truth and reality perception from various perspectives. The results have shown that the recent changes made in foundations of accounting theory did not provide a satisfactory solution to the problem. The researchers contribute to the existing literature as there is an on-going debate on the direction and extent of changes in the international harmonization and standardisation of accounting that is focused on the problem of faithfulness of the information disclosed in the financial reports. It is argued that the understanding of truth is a key to an understanding of accounting theory and an inevitable factor of proper practice of accounting. Considering accounting teaching process, there was a qualitative analysis conducted based on accounting curricula of Polish public university with long tradition in accounting undergraduate and graduate education. With regards to the accounting curricula of a chosen university, it has been observed that there is an urgent need for a discern of accounting curricula in order to make substantive contents corresponding with developing economic surroundings of business entities preparing financial reports. Moreover, the importance of non-algebraic approach is stressed as a result of the study. Key words: economic reality, faithfulness, faithful representation, financial reporting, truth in accounting, accounting education.

The Difficulties of Teaching IFRS in Russia

2012 ◽  
Vol 28 (2) ◽  
pp. 309-319 ◽  
Author(s):  
Anna Vysotskaya ◽  
Maria Prokofieva
Keyword(s):  
Financial Reporting ◽  
Foreign Investment ◽  
Accounting Education ◽  
Accounting System ◽  
Open Market ◽  
Private Business ◽  
Financial Reporting Standards ◽  
Existing Problems ◽  
Russian Economy ◽  
Business Entities

ABSTRACT: In recent years Russia has undergone radical changes in all spheres of life, prompted by the transition from a centrally planned economy to an open market-based economy. Dramatic changes such as privatization, the development of private business entities, and foreign investment in the Russian economy have brought changes in the accounting field, including those arising from a decision to adopt the International Financial Reporting Standards (IFRS). While Russia has not yet implemented IFRS in full for all types of businesses, it has made considerable steps over the years to introduce IFRS into its accounting system. From 2012, Russia is adopting IFRS fully for publicly listed companies. This paper provides an overview of the changes in accounting education that have ensued from the decision to adopt IFRS, including the educational reforms that have taken place. The paper reviews these changes from a historical perspective and investigates existing problems caused by the transition.

scholarly journals Fraud and Forensic Accounting Education: Prospects and Challenges in Nigeria

2017 ◽  
Vol 12 (7) ◽  
pp. 146
Author(s):  
Wilson E. Herbert ◽  
Francis Onyilo ◽  
Emeka E. Ene ◽  
Ioraver N. Tsegba
Keyword(s):  
Financial Reporting ◽  
Accounting Education ◽  
Market Demand ◽  
Chi Square ◽  
Financial Reports ◽  
Accounting Curriculum ◽  
Forensic Accounting ◽  
Financial Crimes ◽  
Adequate Coverage ◽  
And Training

This study first investigates the availability of fraud and forensic accounting (FFA) education in Nigeria. The paper then analyses the perceptions of academics and practitioners on the demand for, relevance and integration of, FFA in Nigeria. The data obtained through a questionnaire survey was analysed using descriptive statistics, Kruskal-Wallis (K-W) and Chi-Square tests. The results (i) indicate an increasing market demand for fraud examiners and forensic accountants; and (ii) suggest that FFA be given adequate coverage in the accounting curriculum in response to market demand. On the benefits of FFA education and training, there is virtual unanimity that it will: (i) widen the employment horizon and opportunities for graduates; (ii) help to combat fraud, corruption and financial crimes, (iii) strengthen the credibility of financial reporting, and (iv) help to rebuild investors’ confidence and trust in financial reports. The findings also support integration at both the undergraduate and postgraduate levels. The policy implication draws attention to regulatory importance and expediency of integrating FFA education into the accounting curriculum. This calls for regulatory initiative in developing the Benchmark Minimum Academic Standards (BMAS) for FFA programmes at the undergraduate and postgraduate levels.

scholarly journals The Procedure for Correcting Errors of Previous Periods in Financial Reporting According to IFRS

2018 ◽  
pp. 89-101
Author(s):  
S. I. Kovach ◽  
К. О. Sharapka
Keyword(s):  
Financial Reporting ◽  
Quality Criteria ◽  
Financial Statements ◽  
Financial Reports ◽  
Financial Reporting Standards ◽  
Current Period ◽  
Business Entities ◽  
Set Up ◽  
In The Beginning ◽  
Made In

The subject of the study is represented by errors which were made in financial statements of prior periods and order of adjusting them according to International Financial Reporting Standards (IFRS). The objective of the research was set to study out the materiality of errors made in financial statements of prior periods, determination of classification and order of adjusting the errors in accordance with IFRS. Different methods were used for achieving set up goals: induction and deduction, analysis, synthesis, causal relationships, abstractly logical, comparison, studying monographs and other generally accepted methods. According to IFRS errors might be made while recognizing, measuring, submitting and disclosing information about elements of financial statements. IFRS 8 divides such errors to errors of current period and prior reporting periods. Errors of prior reporting periods may influence or not influence the amount of undivided profit, material or not material, also intentional or not intentional.  IFRS/IAS do not set up any recommendations about quantity or quality criteria or characteristics of materiality of errors. Every business entity preparing financial reports sets up materiality of errors based on their own criteria of materiality of errors. According to IRFS 8 paragraph 42 business entities adjust material mistakes of the prior period retrospectively in the first set of financial statements confirmed before its disclosing after their revealing. There are two ways to adjust these kind of errors: by transferring comparable sums for prior period (periods) presented when the mistake was made. Also by transferring the residue of assets, liabilities and equity in the beginning of the period for the earliest of the prior period presented, if the errors were made before the earliest of the prior period presented. Information about errors of prior period must be disclosed. Practical use of the research consists in bringing its main ideas to life through methodical innovations and recommendations which may be applied while adjusting errors, by business entities preparing financial statements according to IFRS.

scholarly journals Towards the conceptualisation of flow in corporate financial reporting theory

2015 ◽  
Vol 11 (4) ◽  
Author(s):  
Antoinette Rehwinkel ◽  
Daniël Gouws
Keyword(s):  
Financial Reporting ◽  
Intellectual Capital ◽  
Global Economy ◽  
General Purpose ◽  
Theoretical Development ◽  
Theoretical Research ◽  
Science Technology ◽  
Economic Reality ◽  
Business Entities ◽  
Corporate Financial Reporting

Developments in science, technology and sophisticated interconnected social networks increase the speed and volatility of the flow of economic-related energies, such as financial and intellectual capital. These developments require an information theory on corporate financial reporting that is stable at a fundamental level and focused on the disclosure of those systemic attributes that are pivotal to the sustenance of business entities operating in the global economy, or in economies with similar traits. The limited success in attaining stability is caused by, among others, the application of diverse, restricted and even opposing perspectives, resulting in random theoretical development, often unaligned with economic reality. The main aim of the article is to investigate whether the introduction of an underlying concept, principle or theorem, founded on the phenomenon of flow, to general- purpose corporate financial reporting theory could contribute to rendering stable guidance for coherent theoretical development while simultaneously enhancing alignment with the current global economy. As the study was conducted at conceptual level, a qualitative, transdisciplinary theoretical research methodology was applied by taking into account related basic concepts of philosophy, corporate financial reporting theory, economics, management accounting, physics and complexity. The study suggests that the conceptualisation of flow in general-purpose corporate financial reporting theory could contribute to rendering stable guidance for further coherent theoretical development, and improve on the alignment of the theory with the dynamics of the current global economy. This finding creates the opportunity to explore a variety of new reporting approaches from a scientific perspective, which could aid to enhance the disclosure of useful financial information.

scholarly journals Normative Framework as the Basis for Quality Financial Reporting in the Republic of Slovenia, the Republic of Macedonia and the Republic of Serbia

2016 ◽  
Vol 54 (1) ◽  
pp. 129-154
Author(s):  
Dragana Ranđelović ◽  
Tadija Đukić
Keyword(s):  
Financial Reporting ◽  
Reporting System ◽  
Professional Organizations ◽  
Entrepreneurial Activity ◽  
Financial Reports ◽  
Developed Economies ◽  
Normative Framework ◽  
International Regulations ◽  
The Republic ◽  
Business Entities

Abstract Quality of financial reporting is the precondition for the effective functioning of capital market due to the globalization of business. In the countries of Eastern and Central Europe, during the period of socialism, accounting and preparation of annual accounts was adapted for needs of planned economy. Today, it is necessary to work on harmonization national with international legislation. Also, they need to promote a culture of financial reporting, because economic entities do not understand the essential role and importance of financial reporting for business potential. In this paper, we consider Slovenia’s, Macedonia’s and Serbia’s normative framework of financial reporting system, in order to give the assessment of the current situation and pointed out the possible directions of improvement of this process. The comparative analysis of legal and professional solutions, which regulates financal reporting system in these countries, we learned some inconsistencies of their legislation in relation to international regulations, especially in the part of financial reporting for small and micro entreprises. In Serbia and Macedonia, perceived insufficient engagement of of professional organizations and bodies, which requires the reaction of the country in terms of defining and monitoring the implementation of regulations governing the conditions and responsibility for performing accounting and auditing work. This would allow business entities to access financial sources under favourable terms, raising their competitive advantages to quality financial information within financial reports, as well as further development of entrepreneurial activity, which is the generator of the most developed economies in the world.

scholarly journals Balance Sheet Model for Small Economic Entities

2021 ◽  
Vol 6 (2) ◽  
pp. 7-11
Author(s):  
Halina Chlodnicka ◽  
Grzegorz Zimon
Keyword(s):  
Financial Reporting ◽  
Financial Crises ◽  
Small And Medium Enterprises ◽  
Balance Sheet ◽  
Financial Statements ◽  
Financial Data ◽  
Business Managers ◽  
Financial Reports ◽  
Business Entities ◽  
Medium Enterprises

Financial reporting still raises doubts and concerns among large and small entrepreneurs. When analyzing financial statements, the recipient often asks whether the current comprehensive forms of financial statements are not too vague and confusing. Data disclosed in the financial statements are often not easily read by ordinary users or even analysts. Maybe now it is worth looking for other new solutions that will allow business managers to obtain basic financial information from the financial reports in a quick and immediate way. The increase in competition and financial crises caused the largest number of bankruptcies in the group of small and medium enterprises. And it is to these small economic entities that it is worth facilitating the process of analyzing financial data. For this group of enterprises, it is worth highlighting in the financial statements those data that may inform about risks in conducting and continuing further operations. The article presents a balance sheet model for small business entities. Its layout and formula is designed to lighten the picture of the company’s financial situation and provide the most important information on the company’s financial safety.

Incorporating Ethics and Professionalism into Accounting Education and Research: A Discussion of the Voids and Advocacy for Training in Seminal Works in Business Ethics

2004 ◽  
Vol 19 (1) ◽  
pp. 7-26 ◽  
Author(s):  
Marianne M. Jennings
Keyword(s):  
Business Ethics ◽  
Financial Reporting ◽  
Ethics Education ◽  
Accounting Education ◽  
Accounting Students ◽  
Financial Reports ◽  
Earnings Restatements ◽  
Audit Firms ◽  
Reporting Decisions ◽  
New Policies

From 1999–2002, companies, the stock markets, audit firms, the accounting profession, and federal regulators were shaken with near-daily revelations in the form of earnings restatements or confessions of financial instability by firms that had been certified as ongoing entities. A guilty plea by one auditor and the criminal conviction of his audit firm have resulted in statutory reform, new policies on financial reporting, and stricter regulatory requirements for audit firms. When all the reform dust settles, however, and the new statutes, regulations, and rules are implemented, auditors and those who educate them will still be left with the same question: why were auditors willing to allow the types of financial reports and reporting decisions that produced fundamentally unfair and inaccurate portraits of the companies they were auditing? The answer to this question requires exploration of ethics education in both business schools and schools of accountancy. While there are voids in that training, there are also seminal works that could be used to help future accountants and auditors understand the dilemmas they will face and how to resolve such dilemmas. These voids are explored through a review of the literature in business ethics with accompanying suggestions for future direction for research. More importantly, this review offers a suggested list and discussion of the key works all accounting students should study as part of a degree program in order to inculcate in them a strong sense of ethics as a professional.

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.

PENGAKUAN DAN PENGUKURAN BELANJA SUBSIDI ENERGI BERBASIS AKRUAL – STUDI KASUS TAHUN 2015

2017 ◽  
Vol 1 (2) ◽  
pp. 115-124
Author(s):  
Azas Mabrur ◽  
Siswanto Siswanto
Keyword(s):  
Financial Reporting ◽  
Large Share ◽  
State Budget ◽  
Accounting Standard ◽  
Financial Reports ◽  
Government Accounting ◽  
Cash Transaction ◽  
Ministry Of Finance ◽  
Accrual Basis ◽  
Energy Subsidy

Subsidy spending has a large share in the state budget (APBN). Thereby affecting the audit results by Supreme Auditor on government financial reports (LKPP). with the implementation of accrual-based government accounting in 2015, subsidy spending not only records transactions/activities based on cash flow but also non-cash transaction such as subsidy expenses and subsidy payable. This study aims to determine the implementation of the accrual basis on the accounting of energy subsidy spending.This study examines whether the recognition and measurement of energy subsidy spending, energy subsidy expenses and energy subsidy obligations have been presented in accordance with accrual-based government accounting standard and whether the recognition and measurement issues set out in the relevant Ministry of Finance Regulation (PMK) are in conformity with the accrual basis of accounting principles.The results show that the accounting of energy subsidy spending has been implemented in accordance with the PMK. However, the results also show that the PMK that regulates the accounting and financial reporting system of accrual-based subsidy spending still needs improvement.The necessary improvements are related to the recognition of subsidy expense over a period, the measurement of subsidy expenses, and the mechanism of subsidy payable disposal.

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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