Analytical Accounting of Innovation Activities in the Agricultural Industry

2020 ◽  
Vol 144 ◽  
pp. 118-124
Author(s):  
Il'ya I. Marushchak ◽  
◽  
Irina V. Pavlenko ◽  
Elena V. Zelenkina ◽  
◽  
...  
Keyword(s):  
Cash Flow ◽  
Fixed Capital ◽  
Working Capital ◽  
Agricultural Industry ◽  
Innovation Activities ◽  
Fixed Assets ◽  
Separate Object ◽  
State Programs ◽  
Technical And Economic Indicators

The authors have analyzed the legal acts regulating accountancy in the Russian Federation and concluded that they contain no definitions, classification or descriptions of innovations, which makes it problematic to put the corresponding provisions of State programs into practice. The authors suggest singling out “expenditure on innovation” as a separate object of accounting and define it as expenditure for the purpose of improving the quality of production, works and service as well as improving the organizational and management system. This new level of quality can be measured by means of the following indicators: physical properties, chemical composition, technical and economic indicators. In view of the fact that investments in innovation can be referred to as both fixed capital (intangible assets, constant assets) and working capital (elite seeds, young animals, innovative biological additives etc.), the authors suggest adding to entry 08 “Investments in fixed assets” sub-entry 9 “Creating or purchasing innovations as part of fixed capital” and sub-entry 10 “Creating or purchasing innovations as part of working capital”. In view of the fact that Cash flow statement reveals some important analytical information about investing, it would be advisable to add to “Cash flow from investing activities” line 4215 “Cash inflows from selling innovations” and line 4225 “Expenditures on purchasing, creating innovations”

scholarly journals The role of accrual estimation errors to determine accrual and earnings quality

2016 ◽  
Vol 24 (2) ◽  
pp. 98-115 ◽  
Author(s):  
Javad Izadi Zadeh Darjezi
Keyword(s):  
Standard Deviation ◽  
Cash Flow ◽  
Earnings Quality ◽  
Cash Flows ◽  
Working Capital ◽  
Bottom Line ◽  
Significant Information ◽  
Accrual Quality ◽  
Content Type

Purpose Managers, investors and security analysts all pay special attention to the bottom line of income statements and they miss significant information included in accruals about the quality of earnings. A considerable portion of the earnings-quality literature examines the possibility of using the accruals to shift reported income among fiscal periods. One of the main roles of working-capital accruals is to adjust the recognition of cash flows. This paper aims to focus on earnings quality by examining the working-capital accruals quality using the method of Dechow and Dichev (2002). Design/methodology/approach Following the Dechow and Dichev (2002) model, the result of this paper shows that accrual quality is related to the absolute magnitude of accruals negatively. Also, the standard deviation of accruals, cash flows, sales and earnings is positively related to firm size. The result demonstrates and suggests that these observable firm characteristics can be used as instruments for measuring accrual quality. According to this framework, the author expects that the larger the unsigned abnormal accrual measure, the lower the earnings quality. Therefore, firms with low accrual quality have more accruals that are unrelated to cash flow realisations and so have more noise and less persistence in their earnings. Findings After examining earnings and accrual quality, this paper finds that average UK company behaviour was quite similar to the behaviour found earlier in the USA. This paper’s findings show that greater volatility of sales, cash flow, accruals and earnings results in a lower accrual quality. Without a doubt, some of the analysis in this paper, especially that using different equations to calculate working-capital accruals, leads us to a valuable improvement of the earlier studies. Originality/value In this paper, the author follows the method of Dechow and Dichev (2002) and define accrual quality as the extent to which accruals map into cash-flow insights based on the UK data. To find the quality of working-capital accruals, the author uses the standard deviation of the residuals as accrual quality that resulted from the author’s firm-specific OLS regressions of working-capital accruals based on last, current and one-year-ahead operating cash flow. Unlike prior research, to avoid a restriction to working-capital accruals, we use different equations to cover more items of working-capital accruals.

scholarly journals ANALISIS PENGELOLAAN MODAL KERJA DAN AKTIVA TETAP TERHADAP KEMAMPULABAAN

2019 ◽  
Author(s):  
Dita Andita Oftayani ◽  
Yoyon Supriadi
Keyword(s):  
Correlation Coefficients ◽  
Fixed Capital ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Fixed Assets ◽  
Simultaneous Testing ◽  
Key Word ◽  
The Relationship ◽  
A Company

Every business has its own different goals, but in generally the success of the business is the main goals. One of the criteria to achieve the business succes is efficiency, it is shown when a company has a high profitability. The effective and efficient working capital and fixed assets management influence the level of profitability achievement in a company.The purpose of this research is to know the effect of capital to profitability, fixed capital to profitability, and the management of working capital and fixed capital to profitability in PT. Kimia Farma Tbk dan PT. Kalbe Farma Tbk. to know the effect of that three variables.And to test the significance of the effect of working capital (NWCTO) and Fixed Capital (FATO) to profitability (NPM) in both companies, the author analyzed and measured the relationship and influence between variables using regression coefficients, correlation coefficients (r) and coefficient determination (r square). Based on the results of this study concluded that partial testing shows that inPT. Kimia Farma Working Capital Management (NWCTO) has a significant influence to Fixed Capital (FATO), and Fixed Capital (FATO) has a significant impact on profitability (NPM). Simultaneous testing shows that working capital (NWCTO) and Fixed Capital (FATO) has a significant impact to profitability (NPM). Meanwhile, partial testing shows that in PT. Kalbe Farma Tbk. Working Capital Management (NWCTO) does not have a significant effect to Fixed Capital (FATO) and for Fixed Capital (FATO) does not have a significant impact on profitability (NPM). ). Simultaneous testing shows that working capital (NWCTO) and Fixed Capital (FATO) does not have a significant impact to profitability (NPM).Key word :working capital management, fixed capital, profitability.

scholarly journals Impact of working capital management on profitability: Evidence from Pakistan oil sector

2015 ◽  
Vol 1 (1) ◽  
pp. 286
Author(s):  
M.Yousaf Raza ◽  
Muhammad Bashir ◽  
Khalid Latif ◽  
Touqeer Sultan Shah ◽  
Mushtaq Ahmed
Keyword(s):  
Financial Management ◽  
Capital Budgeting ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Operating Profit ◽  
Work In Process ◽  
Fixed Assets ◽  
Oil Sector ◽  
The Impact

This study explores the impact of working capital management on the profitability of the firms in the oil sector of Pakistan. For the purpose of testing this relationship data from the annual reports of the sample companies is used from the period 2006 to 2010. Cash conversion cycles (CCC), average receivable, Average inventory, average payable, and current ratio are used as a measure of working capital management, while gross operating profit is used as a measure of profitability of the firm. There are three major issues in financial management that are capital budgeting, capital structure, and working capital management. So working capital management is one of the three major issues in financial management. A commercial firm consists of two types of assets, which are fixed assets and current assets. Current assets of a firm consist of cash, bank balance, account receivable, raw material, work in process, and finished goods. While fixed assets of the business require capital expenditure and these are used in increasing the production of the business, the Current assets are used in utilizing the fixed assets in day to day transactions.  Hence Current assets are regarded as lifeblood for any business firm, the play vital role in the daily operations of the business. Current assets and current liabilities regarded as are very important component of total assets and they need to be carefully managed for the long term success of the business. In this paper working capital management provide us profit by using average payable and gross operating profit but other variables in hypothesis shows negative relationships with each other.

scholarly journals Simulation evidence on the properties of alternative measures of working capital accruals

2017 ◽  
Vol 25 (4) ◽  
pp. 378-394
Author(s):  
Javad Izadi Zadeh Darjezi ◽  
Homagni Choudhury ◽  
Alireza Nazarian
Keyword(s):  
Cash Flow ◽  
Estimation Error ◽  
Explanatory Power ◽  
Cash Flows ◽  
Working Capital ◽  
Accrual Quality ◽  
Content Type ◽  
Explanatory Variables ◽  
Study Results ◽  
The Uk

Purpose This paper aims to investigate the specification and power of tests based on the DD and modified DD model through the UK data between years 2000 and 2013, and make comparisons with tests using working capital accruals creating a measure of accruals quality as the standard deviation of the residuals value from firm-specific regressions base on working capital accruals on last, current and one-year-ahead cash flows from operations. Design/methodology/approach This study focuses both on the DD model and modified DD model to find out which of them can more accurately capture total working capital accrual estimation error and accrual quality. According to the DD model, the past, current and future net cash from operating activities as the three years’ operating cash inflows or outflows become omitted and correlated variables. In this study, the authors continue to document residuals from the DD and MDD models to demonstrate properties that are more consistent with behaviours of accruals estimation errors. Therefore, in this study, the authors are looking to compare the results from both the MDD and DD models and find which one of them is more effective in explaining the working capital accruals in the UK. Findings The authors find that adding additional explanatory variables may add additional explanatory power of variables to the DD model and extent to which accruals map into cash flow insights based on the UK data. This study is empirically well fitting with the internal workings of cash flows. As investors fixate only on the accounting earnings, they may fail to reflect fully on information contained within cash flow components and working capital accruals of current and future earnings. Originality/value The authors compare different equation to cover more items of working capital accruals. In addition, after examining earnings and accrual quality, the findings show that the average UK company behaviour was quite similar to the behaviour that was founded earlier for both models in the USA. Furthermore, this study results show that more volatility of sales, cash flow, accruals and earnings make a lower accrual quality. The results demonstrate that both models can capture the power to predict working capital accruals. Moreover, we find that adding additional explanatory variable of employee growth rate adds additional explanatory variables to DD model.

scholarly journals TESTING BHANDARI Z-SCORE MODEL BANKRUPTCY PREDICTION USING CASH FLOW

2018 ◽  
Vol 2 (1) ◽  
pp. 121-128
Author(s):  
Barcha Handal Sakti ◽  
Ely Kartikaningdyah
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
Predictor Variable ◽  
Bankruptcy Prediction ◽  
Z Score ◽  
Discriminating Power ◽  
Significant Difference ◽  
Operating Cash Flow ◽  
Score Model

This research aimed to know whether the predictor variables on Bhandari’s z-score model having discriminating power which in each of the group has significant difference. Sample which was being used to assist was the manufacture company that consisted of healthy company and the unhealthy company enrolled in Indonesia stock exchange in the period of 2012-2014. Sample collecting method used purposive sampling and cross section was the data used in this research. This research was conducted by using Multivariat Discriminant Analysis (MDA). The result of this study showed predictor variable that gave discriminating power which stood of quality of earning (EAQ), operating cash flow divided by current liabilities (OCFCL), operating cash flow margin (OCFM), and operating cash flow return on total assets (OCFA) in distinguishing the healthy and unhealthy company significantly.

scholarly journals Modern problems of fixed capital management of the industrial enterprise

2021 ◽  
pp. 23-27
Author(s):  
Olena STANISLAVYK ◽  
Oleksandr KOVALENKO
Keyword(s):  
High Efficiency ◽  
Industrial Sector ◽  
Basic Element ◽  
Fixed Capital ◽  
Industrial Enterprise ◽  
Capital Management ◽  
Goods And Services ◽  
Industrial Enterprises ◽  
Long Run ◽  
Fixed Assets

Introduction. Production activity is impossible without the presence of fixed capital and its basic element – fixed assets, in the operation of which the depreciation fund is formed and the targeted use of depreciation deductions and quality reproduction of fixed assets of the enterprise are positioned to the fore. The importance of this issue increases due to need to enter markets with competitive goods and services, which leads to innovative and active activities of industrial enterprises, which require, above all, significant investments into the fixed assets. The purpose of the paper is to highlight the essence and modern problems of fixed capital management of industrial enterprise. Results. The paper explores the essence of fixed capital management of industrial enterprise and identifies modern key issues in this area facing managers of domestic industrial enterprises. The role of strategic and tactical planning of the process of reproduction of fixed assets in the management of fixed capital of the industrial enterprise and the reasons for its renewal are highlighted. The requirements for the formation of strategy and management system of fixed capital of the industrial enterprise are presented. The stages of formation of the effective strategy of fixed capital management under conditions of the modern market and the basic directions of activity of the industrial enterprise in this sphere are offered. The necessity of implementing the rational depreciation policy and correct revaluation of fixed assets is shown. The importance of using leasing as effective tool for investment and renewal of fixed assets of domestic enterprises of the industrial sector of economy is considered. Conclusion. For the effective management of fixed capital, it is important for industrial enterprises to perform a number of tasks, which involve the development of long-term strategy and tactics for the formation and effective use of fixed assets; determination of fixed capital renewal needs; adequate assessment of the conditions of fixed assets, maintaining the proper conditions of machinery and equipment; implementation of rational depreciation policy; finding acceptable sources of funding for the restoration of fixed capital, as well as finding more efficient ways of using the investment resources. It should allow the industrial enterprise to produce products, which are in demand, and ensure stable competitive positions and high efficiency in the long run.

scholarly journals Islamic Philanthropy : Waqf Empowerment of Madina Minimarket In Tasikmalaya - Indonesia

IKONOMIKA ◽  
2020 ◽  
Vol 5 (1) ◽  
pp. 1-16
Author(s):  
Asep - Suryanto (Universitas Siliwangi,Indonesia) ◽  
Biki Zulfikri Rahmat (Universitas Siliwangi,Indonesia) ◽  
Lina Marlina (Universitas Siliwangi,Indonesia)
Keyword(s):  
Social Enterprise ◽  
Fixed Capital ◽  
Economic Empowerment ◽  
Working Capital ◽  
The People ◽  
The City

The purpose of this study was to determine the implementation of productive waqf economic empowerment in the form of a minimarket in Purbaratu, Tasikmalaya City. Grouded research used to try to develop a concept through empirical exploration of the economic empowerment of productive endowments carried out by the City of Tasikmalaya Baznas so as to produce a conceptual description of the economic empowerment of productive waqf. The results showed that the Madina minimarket is an implementation of empowering productive waqf through business activities with the concept of the people for the people (social enterprise). Madina Minimarket is built on waqf land given by waqif to the Baznas Tasikmalaya City is used as fixed capital for minimarkets while working capital is obtained from investors. Every month, the profit earned by Madina minimarket is used to pay the minimarket employees and distributed to all mosques in Purbaratu District neighborhood in the form of shopping vouchers for mosque needs.Keywords : IslamicPhilanthropy, Empowerment, Waqf

scholarly journals The role of investments in increasing economic efficiency in agricultural infrastructure

2020 ◽  
Vol 199 (8) ◽  
pp. 58-64
Author(s):  
Ramzi Abdullaev
Keyword(s):  
Interest Rates ◽  
Economic Efficiency ◽  
Systematic Approach ◽  
Mathematical Function ◽  
Short Term ◽  
Agricultural Economy ◽  
Agricultural Industry ◽  
Fixed Assets ◽  
The Republic

Abstract. The purpose of this study is to determine the role of investments in the development of agricultural infrastructure, including in the development of new approaches to the formation and use of investments as a factor in increasing the economic efficiency of the agricultural economy. The research method is comparative and analytical analysis, calculations using the “eviews” software package and a systematic approach. To determine the possibilities of creating the volume of investment products directed to fixed capital in agriculture, it is possible to construct a mathematical function of investment in agriculture, both in theoretical and practical terms. For example, in the form of the dependence of investments in fixed assets in agriculture on the volume of products produced, depending on the rate of return in agriculture, interest rates, etc. As a result of the study, the main directions of investment attempts to increase economic efficiency in agricultural industry. It was concluded that investments in agriculture in the Republic of Azerbaijan increased by 393.9 million manats in 2010 compared to 2003, and by 727 million manats in 2018. However, this growth is not at the desired level. In short-term and closed economic conditions, the multiplicative efficiency can be higher. The scientific novelty of the study consists in clarifying the essence and role of investment as an economic category based on its definition in both a narrow and a broad sense, as well as in identifying trends and patterns in the formation and use of investments in the agricultural economy.

scholarly journals Problems of increasing the efficiency of using fixed and working capital of petrochemical enterprises

2021 ◽  
Vol 2090 (1) ◽  
pp. 012121
Author(s):  
G M Galeeva
Keyword(s):  
Asset Management ◽  
The State ◽  
Working Capital ◽  
Petrochemical Complex ◽  
Complex Evaluation

Abstract The article discusses topical issues of analysis of the state and improving the quality of management of the structure of fixed and working capital of enterprises of the petrochemical complex. Evaluation of indicators affecting the efficiency of their use made it possible to determine the directions for improving the process of forming the value of fixed and circulating assets of petrochemical enterprises. In conclusion, the authors highlight the successful practices of enterprise asset management.

scholarly journals Influence of R&D and Innovation on Development in Emerging Markets

2016 ◽  
Author(s):  
Esra Soyu ◽  
Serdar Altınok ◽  
Emine Fırat
Keyword(s):  
Emerging Markets ◽  
Knowledge Creation ◽  
Technological Development ◽  
New Era ◽  
Cultural Aspects ◽  
Innovation Activities ◽  
Production Factors ◽  
Innovation Projects ◽  
The Impact

The concept of development has been interpreted in different ways from past to present. This concept was discussed previously on economic, social and cultural aspects; but now it has transformed into concepts like human capital, education, health, innovation, technological development and poverty. A country needs producing for development, and it is necessary to increase efficiency for obtaining profits from this production. At this point the inclination to R&D and innovation is increasing. Today, it is experiencing the transition of a new era. This process can be distinguished by technological change resulted from knowledge creation, innovation and R&D. In addition to the production factors, knowledge and technology have become indispensable where the importance is increasing. R&D and innovation are seen as factors which are increasing economic growth, prosperity and quality of life and which provide competitiveness and productivity growth between countries. In this study, R&D and innovation activities are evaluated and their importance are highlighted in the issue of development for emerging markets. The increasing R&D and innovation projects provided that resources are using more effectively and efficiently by contributing to the development of emerging markets. The purpose of this study is to determine the impact of R&D and innovation on development by considering sample emerging markets economies and to make the attention of the scientific community focus on these issues.

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