scholarly journals The current state of accounting of financial expenses

2018 ◽  
pp. 156-163
Author(s):  
Volodymyr Priadko
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Bank Loans ◽  
Accounting Standard ◽  
National Accounting ◽  
Current State ◽  
Financial Investments

The article examines legal acts which regulate the process of collecting information on financial expenses in accounting and financial reporting. It is pointed out that loans bearing interest include: bank loans, issued bills, issued bonds, etc. The economic substance of financial expenses as an item of accounting is highlighted. The types of financial expenses are presented and the procedure for their recognition by different economic entities is disclosed in accordance with the requirements of national accounting standards. The system of accounting which is used by corporate issuers when the transactions are displayed, due to the accrual of various types of interest on borrowings, is disclosed. The essence and types of both qualifying and non-qualifying assets are considered in accordance with the requirements of Ukrainian Accounting standard 31. Capitalized and non-capitalized expenses are characterized. The procedure of capitalization of financial expenses is presented and the algorithm of distribution of such expenses is described. It is proved that the costs recognized in the part of the depreciation of the premium, accrued on financial investments, recorded at amortized cost, should be reflected in other activities in subaccount 975, which is proposed to be called «Costs of changes in the value of financial investments».

scholarly journals THE ACCOUNTING STANDARDS AND FINANCIAL REPORTING IN ALBANIA

2016 ◽  
Vol 4 ◽  
pp. 092-097
Author(s):  
Rezarta Shkurti ◽  
Brunilda Duraj
Keyword(s):  
Financial Reporting ◽  
Small And Medium Enterprises ◽  
Accounting Standards ◽  
Current Status ◽  
International Accounting Standards ◽  
Accounting Standard ◽  
Non Profit ◽  
National Accounting ◽  
Financial Reporting Standards ◽  
Medium Enterprises

Albania implemented its first set of 14 National Accounting Standards (NAS), which were prepared in compliance with the International Financial Reporting Standards, in 2009. The 15th standard, specifically the Accounting Standard for financial reporting by micro-entities, was added to this set in 2011 and a 16th standard, relating to the reporting for non-profit enterprises, was added in 2015. In 2014, the National Accounting Council of Albania (NACA) performed a major revision of this existing framework of NAS. The focus of this paper is to analyze the current status, as well as the development of accounting and financial reporting in Albania for the Small and Medium Enterprises (SMEs). An international standard of financial reporting for SMEs was issued by the International Accounting Standards Board but was not fully endorsed by the European Community, nor by the NACA, who instead chose to revise their current NAS. In this study, we provide a general overview of the accounting regime and platforms currently applied in Albania, by focusing on the changes over the recent years. We also depict the main differences between the IFRS for SMEs and the NAS in Albania in treatment of several elements of the financial statements.

scholarly journals A practical model to implementing IFRS in the national accounting system: The case of Azerbaijan

2021 ◽  
Vol 8 (4) ◽  
pp. 585-598
Author(s):  
Akif Valiyev ◽  
Arif Huseynov ◽  
Nushaba Gadimli ◽  
Ilham Huseynov ◽  
Abasov Elmar
Keyword(s):  
Financial Reporting ◽  
Methodological Approach ◽  
Accounting Standards ◽  
Accounting System ◽  
National Accounting ◽  
Financial Reporting Standards ◽  
Accounting Practice ◽  
Consolidation Model ◽  
Practical Model ◽  
Questionnaire Method

The purpose of this article is to develop a methodological approach to substantiating the effective consolidation model of national accounting standards (NAS) with International Financial Reporting Standards (IFRS) for Azerbaijan. Using the questionnaire method, the advantages, and obstructions of IFRS implementation in Azerbaijan have been assessed, depending on the practicing models of consolidation of NAS and IFRS. Using fuzzy sets made it possible to determine the levels of development of advantages and obstructions associated with the introduction of IFRS into national accounting practice in Azerbaijan. We determined the most effective model of consolidation of NAS and IFRS for the enterprises of Azerbaijan. The effectiveness of implementing models for the consolidation of NAS and IFRS has been assessed to provide a balance between advantages and destructive factors in the implementation of IFRS.

Impairment reversals: unbiased reporting or earnings management

2018 ◽  
Vol 26 (2) ◽  
pp. 245-271 ◽  
Author(s):  
Tongyu Cao ◽  
Hasnah Shaari ◽  
Ray Donnelly
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Accounting ◽  
Financial Accounting Standards Board ◽  
Reporting Standard ◽  
Accounting Standard ◽  
Content Type ◽  
Study Support ◽  
A Company

Purpose This paper aims to provide evidence that will inform the convergence debate regarding accounting standards. The authors assess the ability of impairment reversals allowed under International Accounting Standard 36 but disallowed by the Financial Accounting Standards Board to provide useful information about a company. Design/methodology/approach The authors use a sample of 182 Malaysian firms that reversed impairment charges and a matched sample of firms which chose not to reverse their impairments. Further analysis examines if reversing an impairment charge is associated with motivations for and evidence of earnings management. Findings The authors find no evidence that the reversal of an impairment charge marks a company out as managing contemporaneous earnings. However, they document evidence that firms with high levels of abnormal accruals and weak corporate governance avoid earnings decline by reversing previously recognized impairments. In addition, companies that have engaged in big baths as evidenced by high accumulated impairment balances and prior changes in top management, use impairment reversals to avoid earnings declines. Research limitations/implications The results of this study support both the informative and opportunistic hypotheses of impairment reversal reporting using Financial Reporting Standard 136. Practical implications The results also demonstrate how companies that use impairment reversals opportunistically can be identified. Originality/value The results support IASB’s approach to the reversal of impairments. They also provide novel evidence as to how companies exploit a cookie-jar reserve created by a prior big bath opportunistically.

scholarly journals Information on Expenses in Reporting by Segments of Organizations with Seasonal Activities

Auditor ◽  
2018 ◽  
Vol 4 (5) ◽  
pp. 32-38 ◽  
Author(s):  
П. Баранов ◽  
P. Baranov ◽  
Инна Федорова ◽  
Inna Fedorova
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Current State ◽  
State Of Research

In the process of the survey, the requirements of Russian accounting standards and international financial reporting standards were reviewed, the current state of research in segmentation reporting by organizations with seasonal activities, as well as the disclosure of expenditure information was studied. Th e necessity of disclosure in the reporting of indicators for the seasonal and inter-seasonal periods of the organization’s activity is justified.

scholarly journals ONE FINANCIAL REPORTING GLOBAL LANGUAGE: THE ULTIMATE GOAL?

2017 ◽  
Vol 5 (1) ◽  
Author(s):  
Amelia Limijaya
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
International Accounting Standards ◽  
Political Aspect ◽  
Accounting Standard ◽  
The Us ◽  
Global Language ◽  
Accounting Standard Setting

This article aims to analyse the extent to which international accounting standards is applied and whether it is the ultimate goal. Up until the end of 2016, approximately there are 84% of the 149 jurisdictions analysed which require IFRS for all or most domestic publicly accountable entities. This may indicate that we are not that much further from having a single set of globally-accepted accounting standards. However, there is more to financial reporting than just accounting standards alone, such as the political aspect of accounting standard-setting, translation issues surrounding IFRS adoption, the US position and the complexity of financial reporting. Improving financial reporting quality needs more than just having global accounting standards, rather, it is also essential to consider the preparers’ incentives and other institutions surrounding the firm. Stakeholders need to broaden the perspective when viewing financial reporting, so that it will not be focused merely on accounting standards alone.

scholarly journals Financial Accounting Standards for Micro, Small & Medium Entities (SAK EMKM) Implementation and Factors That Affect It

2018 ◽  
Vol 15 (2) ◽  
pp. 50
Author(s):  
Nur Diana Adhikara
Keyword(s):  
Financial Reporting ◽  
Small And Medium Enterprises ◽  
Fundamental Problem ◽  
Accounting Standards ◽  
Financial Statements ◽  
Educational Background ◽  
Financial Accounting ◽  
Accounting Standard ◽  
Level Of Understanding ◽  
Medium Enterprises

The low understanding of accounting and financial accounting standards is a fundamental problem for Micro, Small & Medium Enterprises (MSMEs) in Indonesia. This makes it difficult to prepare and manage financial statements. The presence of the Financial Accounting Standards for Non-Publicly-Accountable Entities (SAK-ETAP) on January 1, 2011, is expected to accommodate small and medium enterprises in making easy, transparent and accountable financial statements. But In fact, many MSMEs that have not been able to apply SAK ETAP properly because it is considered to be too complex and not by the financial reporting needs of MSMEs. On January 1, 2018, SAK EMKM was enacted as a standard that could help about 57.9 million MSME entrepreneurs in Indonesia in properly preparing their financial statements without having to get caught up in the complexity of it. SAK EMKM is a much simpler financial accounting standard than SAK ETAP. This study aims to provide empirical evidence on the perception of MSME business actors regarding the importance of financial bookkeeping and reporting for their business and the factors that affect the level of understanding of MSME’s related to SAK EMKM. The sample of research was MSMEs business actors in Malang Raya with purposive sampling method with the total of 225 respondents. The results showed that company size, educational background, and level of education affect the MSME business entrepreneurs' perception of the importance of financial bookkeeping and reporting. While the level of understanding of MSME business entrepreneurs of SAK EMKM is affected by the level of information on SAK EMKM, educational background and education level of the MSME business actors.

Sharia accounting standard for sukuk (Islamic bond) accounting in Indonesia

2018 ◽  
Vol 9 (3) ◽  
pp. 434-447 ◽  
Author(s):  
Dodik Siswantoro
Keyword(s):  
Interest Rate ◽  
Financial Reporting ◽  
Accounting Standards ◽  
Islamic Banks ◽  
Accounting Standard ◽  
Content Type ◽  
Financial Reporting Standards ◽  
Islamic Bank ◽  
Before And After ◽  
Suitable Standard

PurposeThis paper aims to analyze the need of Islamic banks for specific Statement of Financial Accounting Standards (SFAS) No. 110 for sukuk accounting in Indonesia. In fact, some Islamic banks have already prepared International Financial Reporting Standards (IFRS), and accordingly, a suitable standard is needed for this case. Design/methodology/approachThe research methodology involved interview with a senior accounting manager of an Islamic bank focusing on relevant topics in sukuk to sharpen the analysis. Equally important, research reviewed and compared financial statements on sukuk accounting among Islamic banks, before and after adoption of sukuk accounting standard. FindingsIFRS require market valuation based on interest rate. As interest rate is unlawful in Islamic teaching, IFRS may not accordingly be suitable. Therefore, SFAS No. 110 was issued by the Indonesian Institute of Accountants (Ikatan Akuntan Indonesia). Considering the fact that this standard did not explicitly adopt the IFRS paradigm, there have been consequent conflicts in Islamic bank management because of preference of global recognition to IFRS. Adopting IFRS would be more compatible with other countries’ general accounting standards. In addition, significant differences are found in sukuk accounting treatments by Islamic banks before and after the standard adoption. Research limitations/implicationsThis research only focuses on such question of why specific accounting standard for sukuk accounting is needed by Islamic banks in Indonesia, while only few Indonesian Islamic banks were initially aware of the issue. Originality/valueThis paper may be the first paper discussing the response to and need for sukuk accounting in Indonesian Islamic banks.

scholarly journals Divergence within IFRS adoption: the case of depreciation practices of listed banks in Bangladesh

2020 ◽  
Vol 10 (2) ◽  
pp. 169
Author(s):  
Mezbah Uddin Ahmed
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Statements ◽  
National Standard ◽  
Accounting Standard ◽  
Pressure Groups ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Implementation Guidelines ◽  
Qualitative Characteristics

Comparability is one of the qualitative characteristics of financial statements that are prepared in compliance with the International Financial Reporting Standards (IFRS). The objective of this research is to identify whether this qualitative characteristic can be negated even when entities apply IFRS. In achieving the research objective, the depreciation policies adopted by the listed banks in Bangladesh are identified and compared with each other. This research finds that despite increasing effort by accounting standard setters and pressure groups to achieve IFRS-compliance and harmonization in accounting practices, non-compliance and divergence still exists. This research also finds that the divergence in depreciation practices can be of enough significance to negate comparability. The findings of this research expected to assist the international and national standard setters as well as the regulators in understanding the practical issues in implementing accounting standards and developing clearer IFRS implementation guidelines.

THE ESSENCE AND CLASSIFICATION OF INVENTORIES: ACCOUNTING AND MANAGEMENT ASPECTS

2017 ◽  
Author(s):  
Valentyna Glukhova ◽  
◽  
Natalia Yatsenko ◽  
Keyword(s):  
Accounting Standards ◽  
National Standard ◽  
Important Condition ◽  
Accounting Standard ◽  
Equipment And Supplies ◽  
International Standard ◽  
National Accounting ◽  
Physical Resources ◽  
Rational Organization

The analyses of legislation, which determines the essence of “stocks” and “inventories” categories is made. The analysis of the interpretation of "inventory" as an economic category in accordance with IAS 2 "Inventory" and the National Standard showed that the interpretation of "inventory" category is the same in both standarts: the international standard and the national accounting standard. It is established that there is a contradiction in the interpretation of "stocks" and "inventories" categories in accounting standards and account-plan book keeping. According to accounting standards, the categories "stocks" and “inventories" are the same, while according to the account-plan book keeping, the category "stocks" is broader than the category "inventories". The analysis of scientific sources of “inventories" category has shown that this category is complex and interpreted differently by scientists. In terms of this analysis, it is possible to conclude that some scientists think that nondurable producer goods and in-process inventory should not be included in the category of inventories. There are scientists who are convinced that "stocks" and “inventories" categories are the same. The term "inventory equipment and supplies" is used in some scientific sources. Some scientists consider “inventories" and “physical resources” categories to be the same. An important condition for a rational organization of inventory accounting is their classification. Existing economic classifications do not fully correspond to the specifics of production of a particular enterprise. The classification of inventories for accounting and management needs is proposed. The classification takes into account their economic and managerial aspects.

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