scholarly journals Problematic aspects in accounting for financial performance in construction

2020 ◽  
pp. 225-237
Author(s):  
Zenovii-Mykhailo Zadorozhnyi ◽  
Iryna Ometsinska
Keyword(s):  
Building Materials ◽  
Accounting Standards ◽  
Machine Building ◽  
Information Support ◽  
Operating Income ◽  
Contract Price ◽  
Construction Companies ◽  
Modern Development ◽  
Net Profit ◽  
Retained Earnings

Introduction. The modern development of the world globalization economy is accompanied by natural disasters, and instability of the political system and financial systems. In 2020, this development was significantly affected by the global pandemic COVID-19. These reasons significantly affected the financial results of enterprises. The effects of the economic crisis, especially the pandemic, have been felt by such a fund- building sector of the economy as construction. The development of this field provides additional jobs to companies in other industries. First of all, they include the building materials industry, furniture industry, chemical and machine-building industries. Many problematic issues have accumulated in accounting for the financial results of construction companies which require urgent solutions. They are related to the recognition of costs and revenues in accordance with the requirements of international and national accounting standards, the characteristics of their components, non-compliance with regulatory documents on pricing and accounting of enterprises in the industry, the definition of costs and revenues related to emergencies. The purpose of the study is to substantiate the need to improve the regulatory and legal support of accounting for financial results in construction in view of the changes that have occurred in the social and economic spheres of our state. Methods. The methodological basis of the study was the use of a systematic approach in the process of disclosing problematic aspects of accounting for financial results. The research methods of theoretical generalization, analysis, structural and functional approach were used to identify problem areas of accounting for financial results, while modeling, induction and deduction, and grouping helped to improve the accounting of costs and revenues from emergencies and clarification of sub-accounts and analytical accounts for accounting of financial results. Additionally, with abstract and logical, and comparison methods we substantiated the components of the contract price in construction and improved information support on the amount of net profit from each activity in management accounting. Finally, the results of the study are presented using tabular method. Results. The article analyzes the components of income of construction companies that affect the size of the financial result from the main activity. An improved structure of the contract price for construction projects is proposed, which is consistent with the costs in accordance with the requirements of accounting standards. This characteristic of the current state of accounting for costs and revenues in case of emergency is provided as part of determining the financial results of these events. It is proposed to reflect them as part of other operating expenses and other operating income in the event of loss on damage to current assets due to emergency. Where the construction company has suffered a loss of long-term assets as a result of such events, it is recommended that such losses be summarised in account 97 for “other expenses” and 74 for “other income”. It is also proposed to retrain 97 “other costs and investment activities” and 74 “other income- generating investment activities”, respectively. It is reasonable to change the names of sub-accounts to account 79 “financial results”. It is recommended to charge income tax on each type of activity in order to more accurately determine the net profit. The proposals of scientists to improve the accounting of retained earnings (uncovered losses) are analyzed. Suggestions are made to improve this area accounting for financial results. Prospects for further research. Prospects for further research are the formation of components of income and expenses from all activities of construction companies as elements in the extraction of financial results. This is especially true of income and expenses of the main activities of the construction industry.

scholarly journals Reputation Management in the AEC-industry after Work-related Crime

2018 ◽  
Vol 49 (2) ◽  
pp. 176-184 ◽  
Author(s):  
Atle Engebø ◽  
Marie Hammer Iversen ◽  
Leif Daniel Houck ◽  
Ola Lædre ◽  
Jardar Lohne
Keyword(s):  
Ad Hoc ◽  
Project Managers ◽  
Reputation Management ◽  
Public Image ◽  
Construction Companies ◽  
Work Related ◽  
Net Profit ◽  
Scheduled Time ◽  
Creative Construction

Construction companies can be difficult to manage because of complex supply chains, autonomous project managers aiming to maximize net profit, heavy emphasis on price, etc. Another particularity, namely the construction companies' vulnerability for work-related crime, does not receive sufficient attention in the project management literature. In order to study how two major Norwegian contractors managed to safeguard their reputation in the aftermath of the discovery of tax crime and money laundering within their projects, this paper investigates the following research questions: 1) What are the main challenges regarding work-related crime? and 2) How do contractors manage their professional reputation and public image in the aftermath of exposed work-related crime?This is an exploratory study starting with a literature review, followed by a case study consisting of a document study and 12 semi-structured in-depth interviews with representatives on the strategic level. Work-related crime could have a devastating effect on a contractor's reputation. Reputation is perceived to be a vital catalyst for contractors that want to continue in business and conduct projects for reputable clients. Therefore, the most important measure will be to deliver projects according to the agreed price and quality, within the scheduled time, while not compromising either the contract, all the legal jurisdictions aspects or ethical standards. In these particular cases, the contractors perceived their reputation as remaining untarnished due to their successful ad-hoc reputation management. However, the contractors have to do more than just distancing themselves. They must actively prevent criminal actors from entering their projects. This paper is a revised version of the paper (study) published earlier in the proceedings of the Creative Construction Conference 2018 (Engebø et al., 2018).

scholarly journals Creation of database for strength calculation of constructions

2018 ◽  
Vol 183 ◽  
pp. 01024
Author(s):  
Anatoly Bragov ◽  
Sergey Isaev ◽  
Sergey Kapustin ◽  
Alexander Konstantinov ◽  
Andrey Lomunov
Keyword(s):  
Building Materials ◽  
Physical And Mechanical Properties ◽  
Structural Materials ◽  
Experimental Information ◽  
Database Management System ◽  
Automated System ◽  
Information Support ◽  
Mathematical Methods ◽  
Soil Media ◽  
Server Application

The problems of creation of an automated system for obtaining, processing and storing experimental information on the physical and mechanical properties of structural materials, building materials and various soil media used to provide information support for automated computing systems for analysis of strength and design of structures are discussed. The developed database is focused on studying the effects of the behavior of structural materials under highly parametric influences of force, temperature and other physical fields, as well as on equipping and experimental substantiation of mathematical models describing these effects. In the proposed variant, the database is implemented as a client-server application executed on the Microsoft.Net Framework using a powerful database management system MS SQL Server. The content of the created bank is made up of sections of primary information, material properties and material models. In order to automate the processing of data at all stages of information conversion, a special “Desktop” subsystem is included in the bank, which allows aggregating data obtained from several different experiments, correcting the selected data, processing and converting it. Processing and transformation of data in the subsystem “Desktop” can be carried out either in manual mode or on the basis of special algorithms using appropriate mathematical methods.

scholarly journals Analysis of interrelation of financial results and financial condition of the company

2019 ◽  
Vol 265 ◽  
pp. 07019
Author(s):  
Lyudmila Adamaуtis ◽  
Nadezhda Zonova ◽  
Elena Petrova ◽  
Nadezhda Palesheva ◽  
Natalia Gritsuk
Keyword(s):  
Mutual Influence ◽  
Empirical Studies ◽  
Analytical Models ◽  
Construction Companies ◽  
Financial Condition ◽  
Rational Distribution ◽  
Net Profit ◽  
Fundamental Categories ◽  
Methodological Aspects ◽  
Sustainable Economic Growth

The article deals with the fundamental categories of company analysis in a market economy such as its financial results and financial condition. Special attention is given to the study and justification of the mutual influence and dependencies between them with the help of formalized analytical models, non-formalized logical and empirical studies and conclusions. In particular, the authors of the article justify the mechanism of the influence of profit and profitability on bankruptcy risks. They underline the importance of obtaining the required amount of profit and the correctness of its use. Moreover, the authors propose criteria for evaluating the rational distribution and use of the company's net profit. The influence of the profit capitalization factor is confirmed by the example of a model of sustainable economic growth. The authors emphasize the importance of the issues under consideration in the development of management decisions, including the formation of dividend policy. The article also presents the authors' approach to some methodological aspects of analyzing the use of profits. The research is based on the financial statements of Russian construction companies. However, these models can be applied to commercial companies in other fields of activity.

Machine-building materials of the new generation: a textbook for university students

2017 ◽  
Author(s):  
Волков ◽  
Georgiy Volkov
Keyword(s):  
University Students ◽  
Building Materials ◽  
Machine Building ◽  
World Level ◽  
New Generation ◽  
Theoretical Foundations

The theoretical foundations and technological principles of crea-ting constructional and functio-nal materials with аbove-world-level properties are presented in a textbook. Examples how an unique properties of these mate-rials are implementing in engi-neering products with above-world level properties are given. For developers of new equip-ment and students of engineer- ing science.

scholarly journals Assessment of the Use of Locally Available Materials for Building Construction in Ado-Ekiti Nigeria

2018 ◽  
Vol 2 (2) ◽  
pp. 36-41
Author(s):  
Kehinde Alade ◽  
Adedeji Oyebade ◽  
Nnamaka Nzewi
Keyword(s):  
Affordable Housing ◽  
Building Materials ◽  
Palm Kernel ◽  
Building Construction ◽  
Environmental Benefits ◽  
State Governments ◽  
Relative Index ◽  
The Public ◽  
Construction Companies ◽  
Helpful Factors

The potentials and benefits of local building materials (LBM) remain untapped and seem to progress at a slow rate in the Nigerian building industry. This research examined the availability and level of usage of LBM in Ado-Ekiti, South-Western Nigeria. Further, it considered hindering and helpful factors for the use of LBM in the study area. Based on the extensive review of literatures, ten (10) LBM were identified and examined in the study area. One hundred and fifty (150) professionals closely involved with building construction in Construction companies that are fully operational in Ado-Ekiti were investigated for this study. The Relative index analysis of the frequency in the use of LBM available for building construction in Ado Ekiti revealed that the following LBM are available and in the following order, in the study area: Stone(1) with RII 0.95 , timber(2) RII 0.93, laterite(3) RII 0.92, clay and mud(4) RII 0.91, bamboo(5) RII 0.90, leaves and barks of trees(6) RII 0.88, Palm kernel shells (7) RII 0.85, wild coconut trees(8) RII 0.79, animal wastes (9) RII 0.76 and dung(10) RII 0.74. However, the level of usage of these materials is still very low. Considering the economic, socio-cultural and environmental benefits of LBM, this study recommended more awareness campaign and sensitization of the public on LBM in order to promote its social acceptability. In addition, it recommended that Federal and State governments should facilitate more research in the use of the available local materials for building construction. Availing funds specifically for research and development of LBM will also promote its use.Keywords: Affordable Housing, Building Materials, Construction, Local knowledge, Nigeria.

scholarly journals Outright Cash Purchase of Capital Assets and Enterprise Profitability in Nigeria: A Reflection on the Construction Industry

2015 ◽  
Vol 1 (2) ◽  
pp. 81
Author(s):  
Loveday A. Nwanyanwu
Keyword(s):  
Construction Industry ◽  
Positive Relationship ◽  
Descriptive Statistics ◽  
Construction Sector ◽  
Construction Companies ◽  
Moment Coefficient ◽  
Capital Assets ◽  
Cash Payment ◽  
Net Profit ◽  
Profit Performance

This paper examines the influence of capital assets acquired outrightly by cash on enterprise profitability from the perspective of construction companies. Data were obtained by means of questionnaire. Analyses were performed using descriptive statistics and Pearson’s product moment coefficient of correlation. Results of descriptive statistics indicate 61.11% preference for acquisition of capital assets by outright cash purchase. Correlation analysis reveals a statistically significant moderate positive relationship between capital assets acquired out rightly through cash payment and net profit. Own capital assets acquired by outright cash purchase improves net profit performance of construction companies. Companies in the construction sector should aim at investing in capital assets through outright cash purchase instead of hiring or leasing.

scholarly journals ANALYSIS OF SUSTAINABLE GROWTH RATES OF COMPANIES INCLUDED IN THE MIXED HOLDING POWER UTILITY OF REPUBLIC OF SRPSKA

2021 ◽  
pp. 65-76
Author(s):  
Goran Radivojac ◽  
Aleksandra Krčmar
Keyword(s):  
Growth Rates ◽  
Stock Exchange ◽  
Financial Statements ◽  
Sustainable Growth ◽  
Power Utility ◽  
Operating Income ◽  
Holding Power ◽  
Net Profit ◽  
The Republic ◽  
Banja Luka

This paper analyzes selected data on the performance of companies that are part of the power utility Elektroprivreda Republike Srpske with the aim of determining their sustainable growth rates. The energy sector was chosen because of its importance both for the Republic of Srpska capital market (measured by the participation in the total market capitalization of the Banja Luka Stock Exchange and the basic Stock Exchange index) and the entire Republic of Srpska economy (measured by the participation in gross domestic product). The analysis considered data from published financial statements for 2019, with an emphasis on the following: operating assets, liabilities, capital, operating income and net profit. The dividend policy was also considered, but it was concluded in the paper that none of the observed companies paid dividends from profit for 2019 by the end of this analysis. The research results show that the rate of sustainable growth exceeds 1% in only one case, while in several other cases there are negative rates of sustainable growth caused by the loss in the observed period. Such facts could raise concerns, but also indicate possible directions for future actions in order to improve the performance of the considered companies.

scholarly journals Profitability Ratio Analysis and its Effect’s to Firm Value in the Food and Beverage Industry in Indonesian Stock Exchange

2017 ◽  
Vol 9 (4) ◽  
pp. 12-17
Author(s):  
Sitti Murniati
Keyword(s):  
Firm Value ◽  
Stock Exchange ◽  
Operating Income ◽  
Book Value ◽  
Contribution Margin ◽  
Beverage Industry ◽  
Food And Beverage Industry ◽  
Net Profit ◽  
Food And Beverage ◽  
Earning Power

This study aims to analysis the profitability ratio consisting of net profit margin, basic earning power and contribution margin and its effect on firm value in Food and Beverage industry. The data in this study, obtained from the capital market information center with the object of research in Food and Beverage industry listed on the Indonesian Stock Exchange. This study uses secondary data sourced from the financial statements in Food and Beverage industry, published by the Indonesian Stock Exchange in 2012 until 2015. The data analysis method used is multiple regression analysis. After analysis of all data, the result of research is as follows: 1) net profit margin has a positive and significant effect to price book value which means that management experience success in operational matter and will result in increasing investor trust to invest in Food and Beverage industry, 2 ) basic earning power has a positive and insignificant effect to price book value which means that the working capital in the issuer is only the operating capital or operating assets, as well as the profit that is accounted for only from the operating income of the company is net operating income, and 3) contribution margin has a negative and significant effect to price book value which means that the issuer has not been able to generate profits from the sales of its product caused by the selling price of down so that the contribution margin amount cannot be used to cover all fixed costs so that there is loss in the period.

scholarly journals PENGARUH VARIABEL KEUANGAN DAN NON KEUANGAN TERHADAP RETURN SAHAM SETELAH IPO DENGAN BESARAN PERUSAHAAN SEBAGAI VARIABEL MODERASI

2019 ◽  
Vol 1 (1) ◽  
pp. 29
Author(s):  
Wibowo Wibowo ◽  
Stefano Rendy
Keyword(s):  
Sampling Method ◽  
Stock Exchange ◽  
Industrial Sector ◽  
Income Smoothing ◽  
Profit Margin ◽  
Operating Income ◽  
Model Classification ◽  
Public Company ◽  
Net Profit ◽  
Independent Variable

<p>This Research target is to know factors of any kind of influencing income smoothing and its bearing to share performance (return and risk) public company in Indonesia. Data of this research are obtained from 30 company listed in Jakarta Stock Exchange which have been selected using (purposive) judment sampling method. Samples<br /> are classified to be smoother and non smoother using Eckel's model (1981). Eckel model classification in this research use three object of variable of income : operation income, income before tax, and income after tax. Test of one-sample kolmogrov smirnov, mann whitney, t-Test, and multivariate logistics are used for data analysing.<br /> The result of this research indicate that pursuant to coefficient variation of operating income and income before tax independent variable: company size, net profit margin (NPM), industrial sector, and winner/losser stocks not influenced income smoothing. Base on coefficient of variation of income after tax indicates that company<br /> size, net profit margin (NPM), and industrial sector not influenced income smoothing while winner/losser stocks influence income smoothing. And it also indicated no return diffferent between smoother and non smoother, than no risk different between them.</p>

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