scholarly journals Do IFRS Promote Transparency? Evidence from the Bankruptcy Prediction of Privately Held Swedish and Norwegian Companies

2021 ◽  
Vol 14 (3) ◽  
pp. 123
Author(s):  
Akarsh Kainth ◽  
Ranik Raaen Wahlstrøm
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Listed Companies ◽  
Bankruptcy Prediction ◽  
Future Research ◽  
Financial Reports ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards ◽  
Creative Accounting ◽  
Privately Held

The purpose of our paper is to investigate whether any differences between International Financial Reporting Standards (IFRS) and local Generally Accepted Accounting Principles (GAAP) impact the transparency of financial reporting of non-listed companies through bankruptcy prediction. This contributes to extant research that has focused on the effects of IFRS adoption in the context of listed companies. For our investigation, we used logistic regression, well-established accounting-based predictors, and a sample of financial statements from privately held Swedish companies using IFRS, and Norwegian companies using Norwegian GAAP. The results indicate that financial statements made under IFRS may be better suited for bankruptcy prediction than those made under Norwegian GAAP. Our findings suggest that the use of IFRS could aid in increasing the informativeness of financial reports by promoting transparency and prevent managers of firms facing insolvency from engaging in creative accounting practices. Our results should, however, be applied with caution, as they may be due to the differences in characteristics across firms that are not captured by our research design. We leave this issue open to future research.

scholarly journals The disclosure of events after the reporting period. The example of listed companies from selected European countries

2020 ◽  
Vol 109 (165) ◽  
pp. 139-156
Author(s):  
Małgorzata Szulc ◽  
Paweł Zieniuk
Keyword(s):  
Empirical Research ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Listed Companies ◽  
European Countries ◽  
Stock Exchanges ◽  
Financial Reports ◽  
Financial Reporting Standards ◽  
Warsaw Stock Exchange

Purpose: The aim of this article is to present a practical study of disclosures of events after the reporting period in the financial reports of listed companies from selected European countries. The paper presents the results of empirical research based on the source material in the form of financial statements for the year 2018 of listed companies included on the following stock exchange indices: DAX, PSI-20, OMX25, BUX, WIG20, which comprise companies listed on the stock exchanges in Germany, Portugal, Denmark, Hungary and Poland. Methodology/approach: The research sample includes 110 companies. Content analysis of full versions of individual financial statements was performed. Findings: The results show that listed companies comply with the International Financial Reporting Standards regarding the disclo-sure of events after the reporting period. The occurrence of such events in the business practice of com-panies listed on the Warsaw Stock Exchange is much more frequent than in other European countries. The results of the study also present the diversity of events disclosed by respective companies included in the sample after the reporting period. Originality/value: The research allowed us to compare the scope of financial reporting disclosures of events after the reporting period in companies listed on the Warsaw Stock Exchange and in other European companies. Comparisons of this kind have not yet been carried out in international empirical research, which makes this article all the more valuable.

scholarly journals DE JURE HARMONIZATION OF FINANCIAL REPORTING FOR LISTED COMPANIES: EVIDENCE FOR SELECTED CEE COUNTRIES

2021 ◽  
Vol 6 (1) ◽  
pp. 137-146
Author(s):  
Dijana Perkušić ◽  
◽  
Ivica Pervan
Keyword(s):  
Financial Reporting ◽  
Listed Companies ◽  
Influential Factors ◽  
Reporting Standards ◽  
Regulatory Requirements ◽  
Financial Reports ◽  
Financial Reporting Standards ◽  
Country Level ◽  
Eu Integration ◽  
The Eu

Globalization of business and free flow of capital resulted in strong demand for comparable financial reports worldwide. An important element of achieving de facto harmonization of financial reporting is de jure harmonization, i.e. harmonization of regulatory requirements on the country level. Although more than 100 countries have a requirement for use of IFRS (International Financial Reporting Standards) for listed companies, de facto harmonization is still an ongoing process. De facto harmonization is affected by many influential factors, among which de jure harmonization represents one of the most important factors. For the purpose of the study, the authors developed an index of de jure harmonization (IDJH) based on the EU regulatory framework and evaluated its value for 5 CEE countries (Croatia, Bosnia & Herzegovina, Montenegro, Slovenia and Serbia). Empirical findings reveal significant differences in de jure harmonization, related to the country's status in relation to EU integration processes. Keywords: de jure harmonization, financial reporting, CEE countries

scholarly journals Penerapan IFRS Dan Pengaruhnya terhadap Keterlambatan Penyampaian Laporan Keuangan: Studi Empiris Perusahana Manufaktur di Bursa Efek Indonesia Periode Tahun 2008-2010

2012 ◽  
Vol 3 (2) ◽  
pp. 993
Author(s):  
Stepvanny Margaretta ◽  
Gatot Soepriyanto
Keyword(s):  
Financial Reporting ◽  
Firm Size ◽  
Financial Statements ◽  
Influential Factors ◽  
Reporting Standards ◽  
Public Accounting ◽  
Financial Reports ◽  
Audit Opinion ◽  
Accounting Firm ◽  
Financial Reporting Standards

There are several factors that affect the company's delay in submitting the financial statements are often referred to as Audit Delay, among others IFRS (International Financial Reporting Standards), firm size, profitability, size public accounting firm, audit opinion, and complexity. One factor that is quite prominent is the application of IFRS that have not been uniform across all companies in Indonesia. It could also lead to Audit Delay. Firm size theoretically means companies bigger scale required to submit financial reports on time. As for profitability, KAP size, and complexity of the audit opinion is also decent enough to be considered as one of the influential factors on Audit Delay. The results of this study indicate that the application of IFRS, profitability, size KAP, audit opinion, and complexity does not have a significant impact on the delay for submission of financial statements. Finaly, a factor that leads to significant effect of time delay submission of financial statements is the size of the company.

scholarly journals An analytical study on impact of international financial reporting standards on financial statements and ratios of Indian companies

YMER Digital ◽  
2022 ◽  
Vol 21 (01) ◽  
pp. 261-266
Author(s):  
Dr. Nabha Kamble ◽  
Keyword(s):  
Financial Reporting ◽  
Emerging Economies ◽  
Analytical Study ◽  
Financial Statements ◽  
Investment Climate ◽  
Accounting Standard ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards ◽  
The World ◽  
International Accounting Standard

India is one of the emerging economies in the world. For economic development, foreign direct investment (FDI) is needed, to facilitate the investment climate. There is a need to integrate its financial reporting with rest of the economies of the globe so that investors from outside will appreciate the financial results and financial positions of the companies. This will provide uniformity and comparability of financial statements with the financial statements prepared in other countries. At present, Indian companies are preparing their financial statements as per Generally Accepted Accounting Principles in India (Indian GAAP). These Principles are based on IFRS issued by International Accounting Standard Board (IASB). However, these principles were modified substantially as per Indian laws and practices.

scholarly journals The comparability of IFRS statements of cash flows in Poland. The influence of national regulations

2019 ◽  
Vol 2019 (101 (157)) ◽  
pp. 149-166
Author(s):  
Edyta Łazarowicz
Keyword(s):  
Literature Review ◽  
Research Methods ◽  
Financial Reporting ◽  
Financial Statements ◽  
Listed Companies ◽  
Cash Flows ◽  
Future Research ◽  
National Accounting ◽  
Accounting Rules ◽  
Statement Of Cash Flows

This paper analyses the comparability of the structure and content of IFRS consolidated statements of cash flows within Polish listed companies and the influence of national accounting rules on these statements. Two research methods have been used: a literature review and an analysis of the content of financial statements. It has been found that there are small differences in the structure and content of IFRS consolidated statements of cash flows in Poland. The results indicate that the options in IAS 7 and the lack of an obligatory format of the IFRS statement of cash flows do not significantly reduce the comparability of these statements in Polish practice. Moreover, it has been observed that Polish listed companies follow national regulations only in some aspects for which IAS 7 provides options or has no regulations at all. The findings of this study may be relevant for standard setters, in particular, the current IASB Primary Financial Statements project, for users of financial reporting, and for academics for future research.

scholarly journals Adoption of International Financial Reporting Standards (IFRS) in Ghana and the Quality of Financial Statement Disclosures

2014 ◽  
Vol 3 (2) ◽  
pp. 269 ◽  
Author(s):  
Ben Kwame Agyei-Mensah
Keyword(s):  
Regression Analysis ◽  
Financial Reporting ◽  
Firm Size ◽  
Financial Statements ◽  
Financial Information ◽  
Reporting Standards ◽  
Financial Reports ◽  
Listed Firms ◽  
Financial Reporting Standards

According to the IASB's IFRS framework, qualitative characteristics are the attributes that make the information provided in financial statements useful to others. This study was conducted to investigate the quality of financial reports before and after adopting IFRSs in Ghana, and also the influence of firm-specific characteristics which include firm size, profitability, debt equity ratio, liquidity and audit firm size on the quality of financial information disclosed by firms listed on the Ghana Stock Exchange.The research was conducted through detailed analysis of the pre-official adoption period, (2006) and post adoption period, (2008) financial statements of the listed firms.  Descriptive analysis was performed to provide the background statistics of the variables examined.  This was followed by regression analysis which forms the main data analysis.  The results of the quality of financial information disclosure mean of 76.80% (pre adoption) and 87.09% (post adoption) for the two years indicate that the quality of financial reports has improved significantly after adopting IFRSs. The study thus confirms that the implementation of IFRSs generally reinforce accounting disclosure quality.  It also indicates listed firms' overwhelming compliance with the IASB's IFRS Framework.The results of the multiple regression analysis show that company size, represented by net assets and Auditor type were found to be associated at a statistically significant level with the quality of financial information disclosed.  With the improvement in the quality of the financial reports after adopting IFRS users are assured of useful information for financial decision-making.Keywords: Quality of financial reports' disclosure, Firm-specific characteristics, International Financial Reporting Standards, Mandatory disclosure, Ghana. JEL Classifications: M40, M41, M48

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 Analysis of Possibilities of Detectnig the Manipulation of Financial Statements in Terms of the IFRS and Czech Accounting Standards

2015 ◽  
Vol 63 (6) ◽  
pp. 1859-1866 ◽  
Author(s):  
Zita Drábková
Keyword(s):  
Financial Reporting ◽  
Balance Sheet ◽  
Accounting Standards ◽  
Financial Statements ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Creative Accounting ◽  
Risk Detection ◽  
Accounting Unit ◽  
Comparison Of The Results

The main objective of financial statements is to give information. The diversity of interests and objectives of individual groups of users and creators of financial statements presents the risk of manipulation of financial statements in the context of true and fair view as defined in the national accounting legislation. The paper is concerned with the different possibilities of detecting the manipulation of financial statements in terms of the Czech Accounting Standards and IFRS. The paper analyzes the selected risk detection models of the manipulation of financial statements using creative accounting methods, off-balance sheet financing methods and accounting frauds in specific case studies of selected accounting unit in terms of Czech accounting standards. Based on the analysis and comparison of the results thereof, the paper presents and evaluates the alternatives of users of financial statements to evaluate the risk of manipulation of financial statements beyond the scope of a fair and true view. The evaluation further includes a comparison of uses of these models with respect to the International Financial Reporting Standards.

scholarly journals First time adoption of IFRS 15 “Revenue from contracts with customers“: the case of Lithuanian listed companies

2020 ◽  
Vol 21 ◽  
pp. 2
Author(s):  
Darius Vaicekauskas
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Listed Companies ◽  
Economic Benefits ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Revenue Recognition ◽  
Financial Reporting Standards ◽  
The Impact ◽  
First Time

 Revenue accounting is one of the most important areas of financial accounting. Revenue is one of the key absolute financial ratios that reflects the economic benefits generated by entities that result in increased shareholders‘ equity. This article investigates the first time adoption of new IFRS 15 “Revenue from contracts with customers“ which in International financial reporting standards (hereinafter – IFRS) system is mandatory to apply starting from 1 January 2018. The new IFRS 15 supersedes the previous international accounting standards regulating revenue recognition and introduces a conceptual 5-step revenue recognition model. The purpose of this article is to evaluate the impact of the first-time adoption of IFRS 15 “Revenue from contracts with customers“ on the financial statements of Lithuanian listed companies. This purpose is achieved while using the following research methods: analysis of International financial reporting standards (IFRS) and scientific literature, as well as analysis of the content of financial statements. An empirical study revealed that the first-time adoption of IFRS 15 had no material impact on the financial statements of Lithuanian listed companies. Most of the companies surveyed applied the standard using a simplified retrospective modified method and did not pay much attention to the disclosure of first-time adoption. For those affected by the standard, the effect was mostly notable in the following areas: reclassifications of commissions and brokerage fees, changes in revenue recognition principles from the revenue recognition over a time to revenue recognition at specific point in time and vice versa.

scholarly journals Assessing Financial Reporting Quality of Listed Companies in Developing Countries: Evidence from Ghana

2019 ◽  
Vol 11 (9) ◽  
pp. 29
Author(s):  
Joseph Mbawuni
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Listed Companies ◽  
Sub Saharan Africa ◽  
Financial Reporting Quality ◽  
Financial Reports ◽  
Financial Reporting Standards ◽  
Sub Saharan

The adoption of International Financial Reporting Standards (IFRS) in Ghana is expected to improve the quality of financial reporting among companies in Ghana. This paper assesses the extent to which financial reports of companies listed on the Ghana Stock Exchange (GSE) meet financial reporting quality (FRQ) dimensions of IFRS. It was a descriptive study that employed two experienced professional chartered accountants who practice as independent auditors to use FRQ criteria to assess financial reports of 20 purposively selected companies listed on GSE for 2012 and 2013. Given the high inter-rater reliability (r = .96, 95% C.I., p < .0001), the findings indicate that, overall, FRQ of the listed companies meet FRQ standards by 56.48%. Generally, the financial reports were 60.95% faithfully represented, 51.01% relevant, 50.10% understandable, 40.09% comparable and 19.75% timely audited (or 80.25% untimely). Fundamental FRQ characteristics were more prevalent than enhancing FRQ. Poorly rated FRQ areas were in the use of historical cost as measurement basis, no use of graphs and tables to clarify information, no inclusion of comprehensive glossary, ratios and index, no information on adjustment in past accounting figures for future decisions, and no comparison of current and previous accounting periods and with those of other firms. The study concludes that FRQ of the listed companies is moderate but needs considerable improvement. Implications to theory, practitioners, policy makers and industry regulators are discussed. This study fills the dearth of empirical research in FRQ in IFRS-compliance companies in Sub-Saharan Africa in general and Ghana in particular.

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