scholarly journals Cost of Water Use for Negotiating Rates in Energy Exchanges: Evidence from the Hydroelectric Industry

Water ◽  
2020 ◽  
Vol 12 (2) ◽  
pp. 361
Author(s):  
Jair-Albeiro Osorio-Agudelo ◽  
David Naranjo-Gil ◽  
Vicente Ripoll-Feliu
Keyword(s):  
Water Use ◽  
Financial Reporting ◽  
Negative Relationship ◽  
Primary Source ◽  
Energy Generation ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Important Indicator ◽  
The World ◽  
The Cost

This paper analyzes the importance of the cost of dam water use in hydroelectric generators according to the International Financial Reporting Standard (IFRS) and Management Accounting. Not valuing the use of water from dams would imply undervaluing energy generation service, leading to a lack of reasonability in the Financial Statements of electricity generators. For this reason, it is vital to recognize that dam water has a cost that directly impacts the Statement of Financial Position as an asset and later, in energy generation and commercialization, its cost will impact the statement of profit or loss, according to the IFRS as good accounting and financial practices around the world. Said cost will also be an important indicator for rationalizing consumption, defining public policy, or determining energy tariffs. An empirical study is conducted for Colombia and Norway, two of the main countries in the world whose primary source of energy generation is water. The results evidence the need for hydroelectric generators to present the cost of their hydric reserve as intangibles inventories because of its potential capacity to generate electric power. Additionally, there is a positive and significant relationship between the cost of water and the price of energy, and a negative relationship between the price of energy and dam levels.

scholarly journals In what ways are countries which have already adopted IFRS for SMEs different

2012 ◽  
Vol 60 (2) ◽  
pp. 37-44 ◽  
Author(s):  
Hana Bohušová ◽  
Veronika Blašková
Keyword(s):  
Financial Reporting ◽  
Developing Economies ◽  
General Purpose ◽  
Current Approach ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Adoption And Implementation ◽  
The World ◽  
Level Of Economic Development ◽  
Important Position

Small and medium sized companies have an important position in the economy, mainly in the area of employment. SMEs are crucial to most developed and developing economies. SMEs are a heterogeneous group, possessing different size, sector, or location. Their activities on the international markets are limited by a great deal of obstacles in comparison to large enterprises. Different national financial reporting and tax systems can be considered as the most important obstacles (European Commission, 2003).The International Accounting Standards Board (IASB) published an International Financial Reporting Standard (IFRS) designed for use by small and medium-sized entities on July, the 9th 2009. The IFRS for SME is designed to meet the financial reporting needs of entities that (a) do not have public accountability and (b) publish general purpose financial statements for external users.The aim of the paper is to evaluate the current approach to the IFRS for SME adoption and implementation over the world, and to analyze the problems connected with harmonization of financial reporting legislation used by SMEs all over the world. In the paper are identified common characteristic of countries which have already the IFRS for SME adopted.The statistical methods were used for comparison of countries which have already the IFRS for SMEs adopted with those which have not adopted it yet. The level of economic development of the particular country and other characteristics were used for comparison.

Benefits and Challenges of International Financial Reporting Standards Adoption in Ghana: Accounts and Business Managers’ Perspective

2017 ◽  
Vol 7 (2) ◽  
pp. 178
Author(s):  
Richmell Baaba Amanamah
Keyword(s):  
Financial Reporting ◽  
Equity Capital ◽  
Financial Statement ◽  
Cost Of Equity Capital ◽  
Business Managers ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Professional Affiliation ◽  
Financial Reporting Standards ◽  
The Cost

The objective of the study was to identify benefits and challenges associated with the implementation of International Financial Reporting Standard (IFRSs) in Ghana from account and business managers’ perspective. The study used purposive sampling to collect data from 187 accounting professionals and managers in all business sectors of Ghana. Data was analysed using descriptive and inferential statistics. A Kruskal-Wallis H non-parametric tests (KW) was conducted to determine whether there are statistically significant differences of perception among five groups of the level of professional affiliation and six groups of role and position. The results revealed that the adoption of the IFRSs has among other benefits, increase the quality of accounting information, increased investors’ confidence, increase comparability of financial statement among companies both nationally and internationally, reduced the cost of equity capital, made the preparation and auditing of financial statement very transparent and easier. The findings also revealed that though the cost of implementation was very high and accounts and business managers’ faced some challenges in the implementation of the standards, the benefit derived from its implementation outweighed the challenges. Respondents perceived that IFRSs is too complicated for adoption by SMEs. They recommend that more training is needed to equip professionals in the effective implementation of IFRSs.The paper recommends that ICAG should conduct regular training for their members, other implementers as well as owners and operators of SMEs on the IFRSs especially on the emerging standards.

scholarly journals Adapting the Default Weighted Survival Analysis Modelling Approach to Model IFRS 9 LGD

Risks ◽  
2021 ◽  
Vol 9 (6) ◽  
pp. 103
Author(s):  
Morne Joubert ◽  
Tanja Verster ◽  
Helgard Raubenheimer ◽  
Willem D. Schutte
Keyword(s):  
Survival Analysis ◽  
Financial Reporting ◽  
Proportional Hazards ◽  
Proportional Hazards Model ◽  
Survival Curve ◽  
Cox Proportional Hazards ◽  
Cox Proportional Hazards Model ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Ifrs 9

Survival analysis is one of the techniques that could be used to predict loss given default (LGD) for regulatory capital (Basel) purposes. When using survival analysis to model LGD, a proposed methodology is the default weighted survival analysis (DWSA) method. This paper is aimed at adapting the DWSA method (used to model Basel LGD) to estimate the LGD for International Financial Reporting Standard (IFRS) 9 impairment requirements. The DWSA methodology allows for over recoveries, default weighting and negative cashflows. For IFRS 9, this methodology should be adapted, as the estimated LGD is a function of in the expected credit losses (ECL). Our proposed IFRS 9 LGD methodology makes use of survival analysis to estimate the LGD. The Cox proportional hazards model allows for a baseline survival curve to be adjusted to produce survival curves for different segments of the portfolio. The forward-looking LGD values are adjusted for different macro-economic scenarios and the ECL is calculated for each scenario. These ECL values are probability weighted to produce a final ECL estimate. We illustrate our proposed IFRS 9 LGD methodology and ECL estimation on a dataset from a retail portfolio of a South African bank.

scholarly journals Lobbying na Regulação Contábil: Evidências do Setor Petrolífero

2014 ◽  
Vol 25 (65) ◽  
pp. 124-144 ◽  
Author(s):  
Odilanei Morais dos Santos ◽  
Ariovaldo dos Santos
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Status Quo ◽  
International Accounting ◽  
International Accounting Standards ◽  
Discussion Paper ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
International Accounting Standards Board

Este trabalho tem como objetivo identificar os fatores determinantes à submissão de cartas comentários, como estratégia de lobbying no contexto da regulação contábil, à audiência pública do Discussion Paper Extractive Activities do International Accounting Standards Board IASB).Os resultados mostram o tamanho como fator determinante, em todas as modelagens utilizadas, indicando que grandes empresas petrolíferas possuem maior probabilidade para realizar lobbying. Essa propensão é verificada para posicionamentos essencialmente desfavoráveis às propostas apresentadas pelo IASB, o que implica em considerar que a revisão/substituição do International Financial Reporting Standard -IFRS6 será um processo complexo e sujeito a pressões por parte das empresas petrolíferas para manter o status quo.

Accounting Standards and Earnings Quality — Evidence from Registered ADRs

2018 ◽  
Vol 21 (04) ◽  
pp. 1850022
Author(s):  
Yaseen S. Alhaj-Yaseen ◽  
Kean Wu ◽  
Leslie B. Fletcher
Keyword(s):  
Financial Reporting ◽  
Earnings Quality ◽  
Accounting Standards ◽  
Securities And Exchange Commission ◽  
High Quality ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
The Us ◽  
Us Gaap

This paper examines the changes in earnings quality of registered American Depositary Receipts (ADRs) as a result of switching accounting standards. We aim to shed light on the potential impact of International Financial Reporting Standard (IFRS) adoption on US firms. A suboptimal approach to achieve this goal is through examination of US firms’ surrogates such as ADRs. Unlike previous studies, we made a distinction between registered and unregistered ADRs and affirmed that registered ADRs are the closest surrogates with which to conduct our analysis because they are exclusively required to adhere to the Securities and Exchange Commission (SEC)’s stringent disclosure requirements. When cross-listing their equity on the US exchanges, foreign issuers can file their financial reports with the SEC using IFRS, US GAAP (generally accepted accounting principles), or their domestic GAAP with reconciliation to US GAAP. An improvement in earnings quality is documented when ADRs adopt US GAAP or IFRS versus domestic GAAP. However, when the comparison is made between US GAAP and IFRS, no difference in earnings quality is documented. These results indicate that switching to high-quality accounting standards is likely to improve earnings quality. This improvement is maximized when the difference between reporting standards is high and minimized if otherwise. Our conclusion is that the adoption of IFRS in the US is unlikely to change earnings quality of local issuers. Moreover, we drew a distinction between reconciliation with and adoption of high-quality accountings standards and find that while the former can enhance earnings quality, the latter can further improve it.

scholarly journals IFRS based Zakat Reporting: Adoption Rational WesternMethod into Institutional Accountability

IKONOMIKA ◽  
2018 ◽  
Vol 3 (1) ◽  
pp. 17 ◽  
Author(s):  
Mohammad Bintang Pamuncak ◽  
Bayu Taufiq Possumah ◽  
Zairihan Abdul Hamid3
Keyword(s):  
Financial Reporting ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Financial Report ◽  
Institutional Accountability ◽  
Preliminary Study

This study aims to evaluate the characteristics of zakat institution and proposes the adoption of International Financial Reporting Standard (IFRS) since it has developed and provides various product i.e zakat for productive purpose. This is important, considering that one of the measurement of accountability and transparency of an institution is providing brief financial report towards its beneficaries. Thereby, this study found that practically zakat institution is simillar to the SMEs, and there are 11 strandard of IFRS for SMEs that could be applicable to zakat institutionto achieve accountability and transparency. However, this study is preliminary study that proposes a conceptual frameworkwhich limited to the sharia compliance of IFRS that could be applicable to zakat Institution.Keywords: IFRS for SMEs, SMEs Criteria, Zakat InstitutionJEL Classification:

scholarly journals Internal model for IFRS 9 - Expected credit losses calculation

2018 ◽  
Vol 69 (3) ◽  
pp. 269-297 ◽  
Author(s):  
Hrvoje Volarević ◽  
Mario Varović
Keyword(s):  
Financial Reporting ◽  
Internal Model ◽  
Balance Sheet ◽  
Analytic Hierarchy ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
External Data ◽  
Simple Implementation ◽  
Ifrs 9 ◽  
Credit Losses

This article explores and analyzes the implementation problem of International Financial Reporting Standard 9 (IFRS 9) which is in use from 1 January 2018. IFRS 9 is most relevant for financial institutions, but also for all business subjects with a significant share of financial assets in their Balance sheet. The main objective of this article is the implementation of new impairment model for financial instruments, which is measurable through Expected Credit Losses (ECL). The use of this model is in correlation with a credit risk of the company for which it is necessary to determine basic variables of the model: Exposure at Default (EAD), Loss Given Default (LGD) and Probability of Default (PD). Basel legislation could be used for LGD calculation while PD calculation is based on specific methodology with two different solutions. In the first option, PD is taken as an external data from reliable rating agencies. When there is no external rating, an internal model for PD calculation has to be created. In order to develop an internal model, authors of this article propose application of multi-criteria decision-making model based on Analytic Hierarchy Process (AHP) method. Input data in the model are based on information from financial statements while MS Excel is used for calculation of such multi-criteria problem. Results of internal model are mathematically related with PD values for each analyzed company. Simple implementation of this internal model is an advantage compared to other much more complicated models.

scholarly journals The expected impact of applying IFRS (17) insurance contracts on the quality of financial reports

Accounting ◽  
2021 ◽  
pp. 581-590
Author(s):  
Ahmad Dahiyat ◽  
Walid Owais
Keyword(s):  
Financial Reporting ◽  
Cash Flows ◽  
Faithful Representation ◽  
Insurance Companies ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Financial Reports ◽  
Insurance Contracts ◽  
Analytical Approaches

This study aimed to explore the expected effect of applying the International Financial Reporting Standard (IFRS) 17 Insurance Contracts on the quality of financial reports. The study followed the exploratory descriptive analytical approaches. A questionnaire was developed and distributed to a sample of 120 financial employees in all insurance companies in Jordan. It concluded that the expected impact of applying the standard on the quality of financial reports was significant, especially on the comparability of financial reports, and faithful representation. It was found that there is an expected, statistically significant and positive effect between the application of the standard, and the quality of financial reports in general, and the expected influence of applying the standard and each of comparability, faithful representation, relevance, verifiability, timely, and understandability respectively. The study recommends the application of the standard in the specified time, work to create appropriate conditions, and the need to follow objective assumptions from the company's management for the estimation of cash flows when applying the standard.

scholarly journals Xbrl technologies for financial reporting in information systems

2018 ◽  
Vol 13 ◽  
pp. 3281-3287
Author(s):  
Ahmed Zamzam ◽  
Alaa A. Qaffas
Keyword(s):  
Financial Reporting ◽  
Data Exchange ◽  
Software Industry ◽  
Exchange Process ◽  
Free Text ◽  
Financial Systems ◽  
Pilot Projects ◽  
Reporting Requirements ◽  
The World ◽  
The Cost

Without a common format, the financial community has been constantly penalized by the data exchange process. Currently, when financial data are dematerialized, they are exchanged in a multitude of formats: Excel files, free text, PDF, etc. Often not much more suitable for processing than photocopying and limited to certain platforms, these formats prove unsuitable for the exchange of information between programs, for analysis, comparison and presentation of reports to users. So far, despite a strong tendency to use XML syntax, attempts at convergence have struggled to generalize and apply to many sectors and contexts.In recent years, reporting requirements have led to a significant increase in the cost of using financial systems. The use of XBRL technology, using XML syntax, supported by many players in the world of finance, the software industry and adapted to reporting, can constitute the solution. Many governments, regulators, financial institutions are already using XBRL or have pilot projects in place.This document specifically targets XBRL. This technology, which is now recognized by the entire software industry, provides tremendous benefits for data exchange, storage, research and processing.

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