scholarly journals Unpacking the IFRS Implications of COVID-19 for Travel and Leisure Companies Listed on the JSE

2021 ◽  
Vol 13 (14) ◽  
pp. 7942
Author(s):  
Diana da Silva ◽  
Danie Schutte ◽  
Jhalukpreya Surujlal
Keyword(s):  
Design Methodology ◽  
Financial Statements ◽  
Information Design ◽  
Financial Information ◽  
Financial Statement ◽  
Foreseeable Future ◽  
Financial Decisions ◽  
Going Concern ◽  
Utmost Care ◽  
The Impact

Purpose: The main purpose of this article is to study the IFRS implications of COVID-19 for selected travel and leisure companies listed on the JSE. The article investigates how these selected companies disclose financial information regarding the going concern, or in other words; the sustainability of the company, revenue of the company, how the companies made estimations, and more, to account for the impact of the coronavirus pandemic on their financial information. Design/methodology/approach: content analysis was used to analyse the financial statements of ten travel and leisure companies listed on the JSE. This analysis indicated what additional disclosures these companies have in the light of COVID-19. Findings: even though there is no specific IFRS standard providing guidance on the impact of COVID-19, the findings reveal that the companies took utmost care in disclosing information and the impact of COVID-19 in the financial statements. Companies cautiously considered the impact of the coronavirus on their financial results and provided the users of these financial statements with transparent financial information, regarding going concern and sustainability of the company, revenue, estimations, and more. Originality/value: a new economic crisis, different from any other economic crises, emerged as a result of COVID-19 and the IFRS implications such as, the effect on sustainability and going concern, impact on revenue of companies, financial estimations during the coronavirus pandemic, the effect of COVID-19 on the financial subsequent events and other financial statement disclosures is still unclear. This study is deemed of vital importance as the users of financial statements require all the necessary information about how COVID-19 has affected these companies, and whether or not these companies will be sustainable in the foreseeable future, as to enable the financial statement users to make informed financial decisions.

eToys Inc.: A Case Examining Pro Forma Financial Reports, Analysts' Forecasts, and Going Concern Disclosures

2003 ◽  
Vol 18 (2) ◽  
pp. 191-209 ◽  
Author(s):  
Iris C. Stuart ◽  
Vijay Karan
Keyword(s):  
Financial Statements ◽  
Financial Information ◽  
Press Releases ◽  
Financial Reports ◽  
The Public ◽  
Going Concern ◽  
Pro Forma Earnings ◽  
Financial Disclosures ◽  
The Impact ◽  
Pro Forma

This case is designed to provide you with the opportunity to examine several reporting issues, in the period between an IPO and bankruptcy filing, for a “dotcom” company that failed. You will consider the information provided to outside users of financial statements in several company reporting mechanisms including the financial disclosures made by the company in its 10-Q and 10-K filings to the SEC, the pro forma earnings reported in press releases, and the information available to the public to evaluate a going concern assumption. Further, you will also examine the impact of analysts' forecasts on management's release of financial information to the public.

scholarly journals Impact of financial statements for financial decision-making

2020 ◽  
Vol 5 (2) ◽  
Author(s):  
Saddeq Abdulshakour
Keyword(s):  
Decision Making ◽  
Relative Weight ◽  
Financial Statements ◽  
Decision Makers ◽  
Financial Statement ◽  
Financial Decisions ◽  
Financial Decision Making ◽  
Vision 2030 ◽  
Study Population ◽  
Financial Decision

The study aimed to know the effects of analysis of financial statements on financial decisions, and the degree of benefit from them, and to identify what financial statements, what is its importance for the institutions within the framework of the Kingdom's Vision 2030 of ideas and trends, and to identify the contribution of financial statement analysis to financial decision-making. The study was based on the descriptive and analytical approach, and the study population consisted of all financial decision makers. The study was based on a simple random method (70) of financial decision makers. The study was based on the questionnaire and consisted of the following axes (financial statements in companies, financial decision-making, the effects of analysis of financial statements on financial decision-making). The study came out with a number of results, the most important of which are: There is approval by the respondents to all paragraphs of the first axis "financial statements in companies", with a relative weight of 82.8%. There is an agreement by the respondents on all paragraphs of the second axis "making financial decisions in companies", with a relative weight of 81.3%. There is strong approval by the respondents on all paragraphs of the third axis "the effects of analysis of financial statements on financial decision-making", with a relative weight of 86.4%. The financial statements are a key tool to know the financial position of the company, so they must be accurate and reliable before being published by management. The lack of credibility in the financial statements leads to mistrust in the company by investors, and does not give them the possibility to diagnose and make sound decisions. In light of the previous results, the study recommended the following: • Organizing several forums, conferences and forums to clarify the mechanism of preparing the financial statements and how to analyze them, and the need to raise awareness of financial decision makers about the importance of financial statements in the financial decision-making process.

scholarly journals The impact of Key Audit Matters (KAMs) on financial information quality: Evidence from Lebanon

2021 ◽  
Vol 19 (2) ◽  
pp. 135
Author(s):  
Joelle Matta ◽  
Khalil Feghali
Keyword(s):  
Value Creation ◽  
Information Quality ◽  
Investment Decision ◽  
Financial Statements ◽  
Financial Information ◽  
Audit Report ◽  
External Auditors ◽  
Expectations Gap ◽  
Expectation Gap ◽  
The Impact

<p>The purpose of this study is to discover the impact of Key Audit Matters (KAMs) on financial information quality and their value for Lebanese auditors. The value creation of KAMs is determined by its financial information quality, its ability to help during investment decision and its effect on the audit expectation gap. The research is conducted through a survey that was filled by external auditors who audit Lebanese banks exclusively, and are involved in the new audit report. The main results show that reporting by using Key Audit Matters adds value to the audit report from the perspective of Lebanese external auditors, and can reduce information asymmetry, increase trust in accounting and reduce the expectation gap. Moreover, the results marked that KAM improves the auditee's understanding in the audited entity, builds confidence in the audited financial statements, and helps to reduce the audit expectations gap.</p>

scholarly journals Analysis of Financial Statement of NRC Agro with Special Reference to Goods and Service Tax

2019 ◽  
pp. 45-65
Author(s):  
Nalla Bala Kalyan ◽  
Toopalli Sirisha
Keyword(s):  
Service Provider ◽  
Central Government ◽  
Financial Analysis ◽  
Financial Statements ◽  
Financial Statement ◽  
Accounting Data ◽  
Goods And Services ◽  
The Past ◽  
Provision Of Services ◽  
The Impact

The analysis of financial statements is an important aid to financial analysis. They provide information on how the firm has performed in the past and what is its current financial position. Financial analysis is the process of identifying the financial strengths and weakness of the firm from the available accounting data and financial statements. The analysis is done by establishing relationship between the different items of financial statements. The target of this paper is to examine the major features of GST. GST also known as the Goods and Services Tax is defined as the giant indirect tax structure premeditated to maintain and enhances the economic enlargement of a country. Service tax was a tax levied by Central Government of India on services provided or agreed to be provided excluding services covered under negative list and considering the Place of Provision of Services Rules, 2012 and collected as per Point of Taxation Rules, 2011 from the person liable to pay service tax. Person liable to pay service tax is governed by Service Tax Rules, 1994 he may be service provider or service receiver or any other person made so liable. It is an indirect tax wherein the service provider collects the tax on services from service receiver and pays the same to government of India. This paper has also focused on the impact of GST (Goods and Services Tax) will be on Indian Tax Scenario.

scholarly journals Pelatihan Pembuatan Laporan Keuangan Bagi UMKM Sebagai Informasi Untuk Pengambilan Keputusan

2018 ◽  
Vol 2 (1) ◽  
pp. 63-82
Author(s):  
Sila Ninin Wisnantiasri ◽  
Irma Paramita Sofia ◽  
Fitriyah Nurhidayah ◽  
Karsam Sunaryo
Keyword(s):  
Financial Reporting ◽  
Business Performance ◽  
Financial Analysis ◽  
Financial Statements ◽  
Financial Statement ◽  
Educational Game ◽  
Financial Report ◽  
Study Approach ◽  
Income Statement ◽  
The Impact

The purpose of this dedication for Pisangan Village Community through financial statement training for small business in collaboration with partners of Citra Kencana Community is to improve the understanding of partners in making financial report especially income statement. The problem facing partners is not mastering how to create a correct financial statement. The financial statements can be used by partners as a benchmark of business performance and business financial analysis tools. Therefore, the methods used in this activity are: (1) convey material about basic concepts of accounting, (2) convey material about components of income statement, (3) provide business simulation and recording financial statements through educational game business accounting (4) the practice of preparing the business income statement and analysis by the entrepreneur, (5) advising / consulting the profit-loss statement. Besides, regression test is done through event study approach to know the impact of training for knowledge of financial report objectives and understanding of financial reporting from the community after getting the training. The result of this activity is increasing both knowledge and understanding of society in making financial report. This is shown by the direction of a positive and significant relationship between training with community knowledge and understanding. Keywords: Financial statement, Small entrepreneurship, Business analysis

Evolution and Diversification of the Going Concern Uncertainties Disclosed in the Auditor’s Report

2021 ◽  
Vol 19 (163) ◽  
pp. 516-527
Author(s):  
Camelia-Daniela HATEGAN ◽  
◽  
Carmen-Mihaela IMBRESCU ◽  
Keyword(s):  
Financial Statements ◽  
Point Of View ◽  
Stock Exchanges ◽  
Going Concern ◽  
Reduced Frequency ◽  
Legal Perspective ◽  
Accounting Principle ◽  
Threat Reporting ◽  
Stock Indexes ◽  
The Impact

The going concern of an entity's activity is a fundamental accounting principle. The practical application of this principle has accounting, legal and financial implications. From an accounting point of view, the management of the entities shall be responsible for drawing up the financial statements in accordance with this principle. From a legal perspective, entities that go into liquidation are no longer obliged to respect the going concern principle. When auditing financial statements, auditors shall be responsible for assessing the adequacy of compliance with the principle of going concern and for including the appropriate references in their report. The objective of the paper is to analyse the reasons for including in the auditors' report the paragraph on going concern uncertainties, in the light of their evolution over time, their frequency and diversification. The sample included 120 companies listed on European stock exchanges, included in the main stock indexes for the period 2010-2020. The data was gathered from reports published by auditors that were included in the Audit Analytics database. The results showed that there was an average trend of 20 reported situations per year, but with a significant increase over the last two years analysed mainly due to the situations arising from the impact of the Covid-19 pandemic. The most common reasons were liquidity risk, substantial liabilities and the refinancing of activities. In recent years there has been a diversification of reasons, but with a reduced frequency, such as the working capital, the decrease in stockholder equity and competitor threat. Reporting on going concern issues is of particular importance so that increasing transparency in the publication of this information can contribute to a higher degree of investor confidence in the entities' financial statements.

Market Reactions to XBRL-Formatted Financial Information: Empirical Evidence from China

2014 ◽  
Vol 10 (3) ◽  
pp. 1-17 ◽  
Author(s):  
Emma Y. Peng ◽  
John Shon ◽  
Christine Tan
Keyword(s):  
Financial Statements ◽  
Financial Information ◽  
Financial Statement ◽  
Decision Making Process ◽  
Average Volume ◽  
Market Reactions ◽  
Event Window ◽  
Business Reporting ◽  
Before And After ◽  
Efficient Processing

XBRL (eXtensible Business Reporting Language) facilitates the efficient processing/interpreting of corporate financial information by investors. This paper examines market reactions to financial statement filings in China in the period before and after the XBRL mandate in China to assess the extent to which XBRL may impact the processing of financial information. It finds that absolute price reactions of financial statement filings are larger (smaller) in the post-XBRL (pre-XBRL) period. This result holds for the cumulative 3-day window surrounding filings, as well as for each individual day during the event window. This paper also finds similar results for the average volume of trading around these event windows. Consistent with its expectations, its findings suggest XBRL financial statements play a significant role in investors' decision making process.

Qualitative Financial Statement Disclosures: Legal and Ethical Considerations

2004 ◽  
Vol 14 (3) ◽  
pp. 433-451 ◽  
Author(s):  
William E. Shafer
Keyword(s):  
Empirical Test ◽  
Financial Statements ◽  
Financial Statement ◽  
Corporate Management ◽  
Ethical Considerations ◽  
Corporate Executives ◽  
Illegal Acts ◽  
The Impact ◽  
A Company

Abstract:There is a long-running debate among legal scholars regarding the propriety and enforceability of SEC attempts to mandate disclosures of antisocial or illegal corporate activities that do not materially impact a company’s financial statements. This debate was recently revived by the issuance of SEC Staff Accounting Bulletin 99, Materiality in Financial Statements (SEC 1999), which suggests that quantitatively immaterial information relating to unlawful transactions or regulatory non-compliance should be considered for disclosure. This issue has important implications for the accounting profession, although it has generally been ignored in the accounting literature. This paper reviews legal and ethical considerations raised by the issue of qualitative disclosures, and also presents the results of a preliminary empirical test of the impact of such disclosures on financial statement users’ judgments. The results of this study indicate that investors consider the nondisclosure of immaterial illegal acts to be unethical, and reject suggestions that such information lacks moral intensity. The results also suggest that immaterial illegal acts have a significant effect on investors’ perceptions of the quality of corporate management and the likelihood of investment in a company. This effect was more pronounced when the illegal act was combined with self-dealing on the part of corporate executives.

scholarly journals Audit Evidence Supporting Going Concern of a Company

2018 ◽  
Vol 82 (3) ◽  
pp. 78-82
Author(s):  
S. V. Selishchev
Keyword(s):  
Economic Performance ◽  
Financial Statements ◽  
International Standards ◽  
Foreseeable Future ◽  
Going Concern ◽  
Management Personnel ◽  
Reliable Assessment ◽  
Audit Evidence ◽  
Effective Assessment ◽  
A Company

The information base providing the audit evidence of going concern of a company is studied. The requirements on the quantity and quality of the audit evidence to be obtained by the audit of financial statements are determined. Particular attention is paid to the procedural provision for the assessment of the risk of company termination in the foreseeable future. In view of the current auditing practice, auditors demand the extension and adaptation of the going concern when preparing financial statements by management personnel, provisions and recommendations of the respective standard for solving problems related with the methodology for testing the validity of the abovementioned assumptions. The article’s objective is to study, systematize and implement provisions of International Standards on Auditing (ISA) and general theoretical organization and methodical approaches to obtaining audit evidence of the going concern of a company. According to ISA, the auditor’s purpose is to develop and fulfill the audit procedures in a manner allowing him to obtain the audit evidence that is sufficient and appropriate for formulating justified conclusions laying the ground for the auditor’s opinion. A literature review shows that the modern theoretical and methodological framework of audit does not offer methodological tools for the effective assessment of the economic performance of a company for purposes of defining the termination risks. A study of the issue of testing the validity of the application of the going concern when preparing financial statements shows that the auditors are required to be competent in indicative economic parameters and items of financial statements, reflecting, first and foremost, the economic capabilities and economic performance of a company.   The study of the application of the procedural provision recommended by ISA for identification and assessment of indicative performance parameters of a company is used to develop a combination of audit procedures and methods for evaluating the results of their implementation, which allows for the reliable assessment of the risk of the company’s termination in the foreseeable future.

scholarly journals THE IMPACT OF FINANCIAL STATEMENT ANALYSIS ON THE PROFITABILITY ASSESSMENT (APPLIED STUDY OF KIRKUK COMPANY FOR PRODUCING CONSTRUCTIONAL MATERIALS)

2018 ◽  
Author(s):  
Amanj Mohamed Ahmed
Keyword(s):  
Secondary Data ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Statement Analysis ◽  
Balance Sheets ◽  
The Past ◽  
Applied Study ◽  
Research Goal ◽  
The Impact ◽  
Profitability Assessment

The present study entitled “financial statement analysis and assessing the profitability of the Kirkuk’s Company for producing constructional materials”. The main goal of the accounting department in the firms is to prepare the reliable financial statements in order to make their valid balance sheets, income statements and cash flow statement. This paper determines the confirming effects of the financial statement analysis to assess the profitability of the Kirkuk Company. The data in this study is based on the secondary data and it collected from the past and present performance of Kirkuk’s Company for producing constructional materials. To achieve the research goal, four categories of the financial ratios were utilized for testing the study’s hypothesis. This group of ratios was applied to assess the financial situation of the company in the years between “2005 to 2011” by using different techniques of financial statement analysis. The results clearly show that, there are insignificant relationships between profitability with asset regulated and assets utilization. At the same times, there is a weak relationship between profitability and liquidity.

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