scholarly journals CONCEPT OF ASSESSMENT OF ACCOUNTING OBJECTS AND THE INFORMATION DISPLAY IN ACCOUNTING AND FINANCIAL STATEMENTS

2021 ◽  
pp. 42-49
Author(s):  
Sofiia Kafka ◽  
Larysa Halyuk ◽  
Olga Stepanyuk ◽  
Yuriy Chuchuk
Keyword(s):  
Financial Reporting ◽  
Balance Sheet ◽  
Financial Statements ◽  
Fair Value ◽  
Fundamental Principle ◽  
Information Display ◽  
The Real ◽  
Current Accounting ◽  
Financial Position ◽  
The Difference

Introduction. The article describes the concept of valuation of assets, liabilities and capital, as well as the presentation of the information received in the accounting and financial statements. Methods. Methods of structural and logical analysis, comparison and generalization of requirements of national and international accounting standards and current legislation are used in this article. Results. The economic content of the assessment of objects at the reporting date as an important methodological tool of accounting is in-depth. The principal difference between the fundamental principle of accounting - monetary valuation and evaluation as a procedure performed for the purpose of obtaining the real (fair) value of the property of the enterprise as of the reporting date is set out. The expediency of using historical value in current accounting and fair value is substantiated - when the information about the property of the enterprise in the financial statements is displayed. It has been proved that the assessment as one of the fundamental principles of accounting and assessment as a procedure that is carried out in order to obtain the real (fair) value of the property, liabilities and capital of the enterprise as of the reporting date should be distinguished. The expediency of using historical value in current accounting and fair value has been substantiated - when the information about the property of the enterprise in the financial statements is displayed. The assessment has been designated as the principle of accounting and as a procedure performed to establish the fair (fair) value of the property, liabilities and capital of the enterprise at the reporting date. To do this, the balance sheet proposes to reflect the results of their accounting for historical cost, and in the statement of financial position present information about the financial position, taking into account the fair value of assets, liabilities and equity as of the reporting date. Discussion. The difference between the indicators of these reports is recommended to be presented in the notes, accordingly, it will provide interested parties with reliable information about the financial position and will give reasons to recognize the extent to which the revalued methods of revaluation of assets, liabilities, capital and management effectiveness are used. Keywords: accounting, assessment, financial reporting, accounting principles, fair value, accounting procedure.

scholarly journals LABOUR MARKET REFORM: GENERAL TRENDS, EXISTING CHALLENGES, DIRECTIONS OF ADVISORY SUPPORT

2021 ◽  
pp. 50-59
Author(s):  
Yuriy Bakun ◽  
Mykhaylo Ksenofontov ◽  
Lyudmyla Dudnik
Keyword(s):  
Financial Reporting ◽  
Balance Sheet ◽  
Financial Statements ◽  
Fair Value ◽  
Fundamental Principle ◽  
The Real ◽  
Historical Cost ◽  
Current Accounting ◽  
Financial Position ◽  
The Difference

Introduction. The article describes the concept of valuation of assets, liabilities and capital, as well as the presentation of the information received in the accounting and financial statements. Methods. Methods of structural and logical analysis, comparison and generalization of requirements of national and international accounting standards and current legislation are used in this article. Results. The economic content of the assessment of objects at the reporting date as an important methodological tool of accounting is in-depth. The principal difference between the fundamental principle of accounting - monetary valuation and evaluation as a procedure performed for the purpose of obtaining the real (fair) value of the property of the enterprise as of the reporting date is set out. The expediency of using historical value in current accounting and fair value is substantiated - when the information about the property of the enterprise in the financial statements is displayed. It has been proved that the assessment as one of the fundamental principles of accounting and assessment as a procedure that is carried out in order to obtain the real (fair) value of the property, liabilities and capital of the enterprise as of the reporting date should be distinguished. The expediency of using historical value in current accounting and fair value has been substantiated - when the information about the property of the enterprise in the financial statements is displayed. The assessment has been designated as the principle of accounting and as a procedure performed to establish the fair (fair) value of the property, liabilities and capital of the enterprise at the reporting date. To do this, the balance sheet proposes to reflect the results of their accounting for historical cost, and in the statement of financial position present information about the financial position, taking into account the fair value of assets, liabilities and equity as of the reporting date. Discussion. The difference between the indicators of these reports is recommended to be presented in the notes, accordingly, it will provide interested parties with reliable information about the financial position and will give reasons to recognize the extent to which the revalued methods of revaluation of assets, liabilities, capital and management effectiveness are used. Keywords: accounting, assessment, financial reporting, accounting principles, fair value, accounting procedure.

scholarly journals ФОРМУВАННЯ ОБЛІКОВОЇ ПОЛІТИКИ ЗА ПРИНЦИПОМ БЕЗПЕРЕРВНОСТІ ДІЯЛЬНОСТІ ПІДПРИЄМСТВ

2021 ◽  
pp. 74-81
Author(s):  
Олена Сергіївна Юрченко
Keyword(s):  
Financial Reporting ◽  
Information Needs ◽  
Accounting Standards ◽  
Financial Statements ◽  
Fair Value ◽  
The Real ◽  
Real Value ◽  
The Impact ◽  
Accounting Policy

Formulation of the problem. Based on the study, the prerequisites, features and components of the formation of accounting policies in the context of business continuity are revealed. The purpose of the article is to substantiate the theoretical and methodological and organizational provisions of accounting policy formation in the context of the implementation of the concept of continuity. The object of research is the process of formation of accounting policy and its impact on the quality of corporate financial reporting information. Methods used in the study: scientific knowledge, method of generalization, comparison, logical - meaningful, methods of induction and deduction. The main hypothesis is that the formation of accounting policies aimed at determining the regulations of accounting and reporting from the standpoint of reflecting complete and reliable information about the real value of assets and liabilities will help reconcile the interests of all stakeholders. Presenting main material. The article identifies the prerequisites, directions and elements of the formation of accounting policies on the principle of continuity of enterprises. Provisions on the development of theoretical and methodological foundations for the formation of accounting policies of enterprises on the basis of risk-oriented approach are revealed. The necessity of valuation of assets and liabilities according to the criteria: fair, discounted and market value of enterprises is substantiated and the methodological support of valuation of financial instruments in accounting is revealed. Originality and practical significance are proposals for the formation of methodological and organizational support and recommendations for the measurement of assets and liabilities at fair value in order to improve the quality of financial statements. Research findings. The formation of accounting policy in the context of the principle of continuity is based on the requirements of International Accounting Standards and National Accounting Standards and depends on the needs of management, methods and techniques of accounting. In the process of developing an accounting policy, it is necessary to take into account the information needs of various stakeholders to disclose information in corporate financial statements. The introduction of theoretical and methodological provisions for the formation of elements of accounting policy on the principle of continuity will meet the information needs of different users, improve the quality of financial reporting and assess the impact of accounting policies on the real value of enterprises in the future.

scholarly journals ANALISIS TERHADAP IMPLEMENTASI STANDAR AKUNTANSI KEUANGAN UNTUK ENTITAS TANPA AKUNTABILITAS PUBLIK (SAK ETAP) PADA EMKM CV. M’ARS STUDIO

2019 ◽  
Vol 14 (3) ◽  
Author(s):  
Christian Jhon Mamengko ◽  
David Paul Elia Saerang ◽  
Lidia M. Mawikere
Keyword(s):  
Financial Reporting ◽  
Small And Medium Enterprises ◽  
Balance Sheet ◽  
Secondary Data ◽  
Financial Statements ◽  
Primary Data ◽  
Reporting Practices ◽  
Financial Position ◽  
Income Statement ◽  
Documentary Studies

One indicator that can be done to support the development of an increase in the national economy is through the Micro, Small and Medium Enterprises (EMKM). This study aims to find out about the implementation of financial reporting practices at CV. M’ars Studio, know the statement of financial position at the end of the period (balance sheet), find out the income statement during the period, knowing notes to financial statements during the period, based on EMKM SAK ETAP. The object of the research is the implementation of the EMKM Financial Accounting Standards CV. M’ars Studio. This type of research is qualitative and uses descriptive qualitative methods used in this study are primary data which is data obtained through interviews conducted by researchers on owners and administrators and through direct observation on CV. M’ars Studio besides that, secondary data obtained through evidence of library and documentary studies owned by CV. M’ars Studio. Secondary data obtained through evidence of library and documentary studies owned by CV. M’ars Studio. The results of this study indicate that there are several EMKM IFRS elements that have not been implemented by CV. M’ars Studio. Statement of financial position at the end of the period (balance sheet), which is still simple so the implementation is quite good, the income statement is almost in line with the standard so that the implementation made is good, and notes to financial statements at CV. M’ars Studio have not been implemented. There are major obstacles faced in implementing SAK EMKM, namely the lack of information to the entity regarding IFRDs that apply specifically to MSMEs.

scholarly journals IMPLEMENTASI PENYUSUNAN LAPORAN KEUANGAN BERDASARKAN SAK EMKM PADA UMKM PASTELLIA INTERMODA BUMI SERPONG DAMAI DENGAN MENGGUNAKAN APLIKASI SI APIK PERIODE 2018 – 2019

2021 ◽  
Vol 4 (2) ◽  
pp. 160
Author(s):  
Bettynia Dwi Orparani ◽  
Yumniati Agustina
Keyword(s):  
Comparative Analysis ◽  
Balance Sheet ◽  
Financial Statements ◽  
Financial Accounting ◽  
Financial Reports ◽  
Financial Position ◽  
Income Statement ◽  
Fixed Assets ◽  
The Difference ◽  
Descriptive Method

The purpose of this study is to evaluate whether the financial statements based on SAK EMKM have been applied by Pastellia Intermoda Bumi Serpong Damai SMEs, compare the financial statements of Pastellia Intermoda Bumi Serpong Damai SMEs with Si Apik's version of the financial statements, and interpret the results of a comparative analysis which is then drawn into a conclusion. . This research method is a comparative & descriptive method. Data obtained through interviews, observation. Comparative analysis of the data by analyzing the presentation of the financial statements of Pastellia Intermoda Bumi Serpong Damai SMEs with a theory that refers to the Financial Accounting Standards for Micro, Small and Medium Entities (SAK EMKM) and comparing financial statements manually with financial reports using the Si Apik application. The results of this study are that the types of financial statements produced are statement of financial position (balance sheet), income statement and cash flow statement, and do not make notes on financial statements (CALK) so that they are not in accordance with SAK EMKM. The difference between the financial statements produced by Pastellia Intermoda Bumi Serpong SMEs and the Si Apik application is in the statement of financial position and income statement related to depreciation of fixed assets

scholarly journals IMPACT OF ACCOUNTING POLICIES ON BOOK VALUE OF ENTERPRISE

2018 ◽  
Vol 2018 (04) ◽  
pp. 55-62
Author(s):  
Valentyna ORLOVA ◽  
◽  
Sofiia KAFKA
Keyword(s):  
Balance Sheet ◽  
Financial Statements ◽  
Reliable Determination ◽  
Book Value ◽  
Financial Position ◽  
Business Operations ◽  
Real Value ◽  
The Difference ◽  
Transfer Of Information ◽  
The Impact

Content and purpose of accounting are identification, measurement, registration, accumulation, synthesis, storage and transfer of information about activities of an enterprise to external and internal users for adoption of management decisions. Business operations are recorded in prices at the time of transaction; that ensures a reliable determination of financial performance of enterprise for one or another period in prices of that period. However, its financial position is also affected by other factors: investment attractiveness of enterprise, its position in the market, inflation, emergencies, etc. As a result, the price of accounting objects can change. It was found out whether it is expedient to reflect such changes in accounting records. Peculiarities of the impact of accounting policies on the value of enterprise are researched. Solutions of problematic aspects of the valuation of some items of accounting are revealed and proposed. In particular, it concerns the order of reflection of revaluations in accounting items and presentation of information about them in financial statements as a source of information about value of enterprise. There are a number of methods for assessing the value of an enterprise, the main one among them is valuation based on financial statements, namely balance sheet (so-called book value). It is determined that under current conditions of managing and doing business, accounting policies is a powerful tool for managing not only accounting but also the results of financial and economic activity and the value of enterprise. To provide users with information about real value of assets, liabilities and equity, the balance sheet items at the reporting date, if necessary, should be re-evaluated, and the results filed in the statement of financial position. The difference between the data of balance sheet and statement of financial position should be disclosed in the notes to the financial statements.

scholarly journals Business Combinations of Czech Companies: Empirical Analysis of Their Typology

2018 ◽  
Vol 66 (1) ◽  
pp. 313-323 ◽  
Author(s):  
Jiří Pospíšil ◽  
Hana Vomáčková
Keyword(s):  
Czech Republic ◽  
Ownership Structure ◽  
Balance Sheet ◽  
Financial Statements ◽  
Fair Value ◽  
Descriptive Study ◽  
Business Combinations ◽  
The Czech Republic ◽  
Financial Position ◽  
Statistical Sample

This paper is a descriptive study which analyses company transformations - a subset of M&A - which took place in the Czech Republic in 2013. Based on the statistical sample containing detail data of 115 transformations, we analysed important aspects of company transformations (M&A) such as ownership structure of the participating companies, deployment of the effective date, acquisition date, balance-sheet date, date of registration and transformation project date, utilization of available forms of company transformations, utilization of financial statements for transformation purposes and incidence of fair-value revaluation. The results of the research shows, that majority of company transformations are in fact corporate holdings reorganisations rather than business combinations as defined by IFRS 3 and it also suggests that the rules for accounting for these transactions are in fact misused for distribution of earnings (even unrealized earnings) through the corporate holdings. We have also identified cases of severe distortion of faithful representation of successor’s company financial position, most often as a result of retrospective company transformations, where the effective day of the merger was put before the date of acquisition of the majority on target’s equity.

scholarly journals INFLUENCE OF FINANCIAL STATEMENT DATA ON FORMATION OF THE COMPANY’S MARKET VALUE

2018 ◽  
Vol 2018 (5) ◽  
pp. 35-48
Author(s):  
Ganna MYSAKA ◽  
◽  
Ivan DERUN ◽  
Keyword(s):  
Financial Reporting ◽  
Investment Decision ◽  
Market Value ◽  
Financial Statements ◽  
Fair Value ◽  
Sources Of Information ◽  
Current Accounting ◽  
Financial Condition ◽  
Managerial Decisions ◽  
Us Gaap

One of the sources of information used in the process of making managerial decisions is public financial reporting of corporations. On its basis, the company’s financial condition, business reputation and investment attractiveness are assessed. Indicator of the latter is result of a comparison of the market value of the company with its estimate, which is presented in financial statements. Since, with the help of existing accounting methods, it is not possible to adequately form information on market value in financial statements, the effectiveness of investment decision depends essentially on a model used to evaluate the components when preparing the financial statements. To determine the influence of financial reporting indicators on the market value of the company, financial statements of 44 transnational corporations reporting by IFRS / IAS (19 enterprises) and by US GAAP (25 enterprises) in 2014–2016 were researched using the multi-factor regression with panel data. The authors found that, depending on the financial reporting framework (US GAAP or IFRS / IAS), the market value of the company is sensitive to various indicators presented in its reporting. The article substantiates the assumption that this is due to different degrees of application of the model of objects valuation at fair value within the specified accounting systems. The authors conclude that extended application in the current accounting of asset valuation at fair value increases the informational value of financial statements of issuers of securities for professional stock market participants.

scholarly journals EARNINGS MANAGEMENT AS A MANIPULATIVE FORM OF FINANCIAL REPORTING

2019 ◽  
Vol 34 (5) ◽  
pp. 1323-1328
Author(s):  
Marija Milojičić ◽  
Snežana Knežević ◽  
Aleksandar Grgur
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Financial Statements ◽  
Legal Framework ◽  
Business Decisions ◽  
Accounting Principles ◽  
The Republic

The financial statements, as the end product of the accounting information system, are a structural account of the financial position and financial success of an entity's business over a period. Earnings or net profit indicates an important position in the financial statements and is considered as a measure of a company’s success. Earnings management comes from the accounting skills that executives and business owners use when making business decisions. The Generally Accepted Accounting Principles set out in International Accounting Standards (hereinafter IAS) and International Financial Reporting Standards (hereinafter referred to as IFRS) generally give the owner or manager the choice between several accounting methods within the various stages of the accounting process. One of these methods is creative accounting, which is often correlated with the manipulation of financial statements. Creativity in accounting is known to be legal and to stay within the legal framework, but it is often the case that, with its creativity, it is beyond its boundaries. The way managers exercise this discretion is very important to the quality and objectivity of financial reporting.The tendency of the owners, and then the managers, to show the performance of the company better than they really are, is certainly not new. The reason that in the world from the beginning of the 2000s to the present day, both by the scientific and professional public and by the regulatory bodies in charge of financial reporting, particular attention is paid to this problem are the major political and economic scandals caused by the inaccurate presentation of financial statements. It is considered that manipulative accounting practices are applied in the preparation of financial statements when the application of accounting principles is made with the intention of achieving the desired objective, such as, for example, generating greater profit regardless of whether the procedures selected are in accordance with international and local prescribed rules.The prevalence of manipulation of financial statements depends on the situation in the environment, the quality of the normative basis of financial reporting, the quality of management and the ability of accountants to comply with professional and ethical standards. The environment implies the general economic situation, the existence or absence of appropriate legislation, including its implementation, as well as the relation to tax liabilities.The result of the original empirical research is presented in this paper. The research was conducted in the form of a case study of a domestic business entity (the Republic of Serbia), whose main activity is trade in sports and fashion products. The financial analysis was performed using the Beneish model, which was derived from the official financial statements of the companies, collected from publicly available databases (Balance Sheet and Income Statement 2016-2018) as the basic information base in order to discover the degree of possible manipulation of their own earning capacity. This model has become particularly popular since the Beneish M-scoring model revealed the manipulation of the financial results of the US company Enron, which went bankrupt in 2001.

scholarly journals ANALISIS PENGAKUAN PENDAPATAN BUNGA ATAS PEMBERIAN KREDIT MODAL KERJA PADA PT. BANK PERKREDITAN RAKYAT PRISMADANA

2015 ◽  
Vol 10 (4) ◽  
Author(s):  
Timothy Ray Korah ◽  
David Paul Elia Saerang ◽  
Heince Wokas
Keyword(s):  
Descriptive Analysis ◽  
Accounting Standards ◽  
Bank Lending ◽  
Financial Statements ◽  
Analysis Method ◽  
The Real ◽  
Financial Position ◽  
Interest Income ◽  
The Right ◽  
Cash Basis

The largest bank revenue is interest income from credit. In general, bank lending business and one of the most interest product.Therefore the recognition and measurement of the right to credit interest income must be relevant, accurate, and accounted for, so the financial statements truly on the real financial position. The research aims to determine how the accounting treatment of the recognition of interest income on PT.BPR PRISMA DANA is already in appropriate with the applicable accounting standards, The method used in this research is descriptive analysis method. The results of research conducted in PT.BPR PRISMA DANA, showed recognition of loan interest income using the accrual basis or more leads to the realization of the concept.Except for interest income on loans classified as problematic (nonperforming) is recognized when it is received (cash basis). Interest income using the effective interest annuity system is calculated based on the remaining principal.

Instructional Case: Worldwide Shipping Corporation Ltd: Early or Late Adoption of a New International Accounting Standard?

1999 ◽  
Vol 14 (2) ◽  
pp. 211-231
Author(s):  
Peter Lee ◽  
Pearl Tan
Keyword(s):  
Financial Reporting ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Financial Statements ◽  
Economic Consequences ◽  
International Accounting ◽  
Accounting Choice ◽  
Accounting Standard ◽  
The Impact ◽  
International Accounting Standard

The management of Worldwide Shipping Corporation Ltd (hereafter “Worldwide Shipping”) is confronted with a dilemma when a new international accounting standard on leases is introduced which contains a transitional provision allowing firms to defer implementation for a period of four years. Students are required to put themselves in the position of managers who have to weigh the adverse impact of early adoption of the new accounting standard against a responsibility for fair financial reporting. Worldwide Shipping is a multifaceted case that can be used as an accounting case study or a financial analysis study. The objectives of the case are threefold. First, it aims to provide students with a better understanding of the impact of off-balance sheet transactions (in this case, sale-leaseback contracts) on a firm's financial statements. Second, it requires students to examine implications of accounting choice on management compensation and debt-contracting costs, as well as the perplexing problem of recognition in financial statements vs. footnote disclosures. By putting students in the position of managers, the case increases students' awareness of the possible economic consequences arising from accounting choice. Third, it provides students with a useful exercise in the mechanics of effecting a change in accounting method using the retroactive method.

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