scholarly journals Bankruptcu Risk Assessment Measures of Polish SMEs

2020 ◽  
Vol 17 ◽  
Keyword(s):  
Financial Statements ◽  
Financial Information ◽  
Small Enterprises ◽  
Financial Indicators ◽  
Economic Decisions ◽  
Financial Difficulties ◽  
Great Ease ◽  
Assessment Measures ◽  
Business Entities

The accuracy of economic decisions depends on the quality of financial information, mainly derived from financial statements prepared by business entities and other units. Thus, there is a need to create so-called information systems for early warning. Good information could protect many entities from the risk of bankruptcy. This is particularly true for micro, small and medium-sized business entities. For such entities there is a need to create simple indicators informing about the impending financial crisis, most often associated with the loss of the ability to settle current liabilities. The aim of the article is to present a group of financial indicators on the basis of which managers can easily and most importantly very quickly assess the possibility of financial difficulties arising, which will result in the bankruptcy of an individual. Most importantly, the indicators presented can be used by managers of small enterprises with great ease. The indicators presented are primarily addressed to a group of small and medium-sized enterprises thanks to which managers can protect an enterprise against bankruptcy.

scholarly journals Threat to Business Activity in Times of the Pandemic

2021 ◽  
Vol 18 ◽  
pp. 88-94
Author(s):  
Halina Chłodnicka
Keyword(s):  
Economic Activity ◽  
Balance Sheet ◽  
Financial Statements ◽  
Financial Information ◽  
Business Activity ◽  
Economic Decisions

The accuracy of economic decisions depends on the quality of financial information, coming mainlyfrom financial statements prepared by economic and other entities. In times of the pandemic, the threats tocontinuing economic activity appear to be greater. Hence, there is a need to develop hedging instruments. Goodinformation could protect many entities from the risk of bankruptcy. Such entities need transparent, easy tocalculate indicators informing them about the impending crisis. When analysing exposures in financialstatements, one can see that their volume is constantly increasing and recipients complain about the decreasingreadability. The aim of the article is to create such information which would allow the entrepreneur to reactquickly and dynamically to the weakening of his activity to create simple indicators to assess the situation, toseparate items on the balance sheet, which would pose a risk of bankruptcy

scholarly journals The Improving Model of the Quality of Financial Statements and Successful Implementation of Local Financial Information Systems

2020 ◽  
Vol 1 (2) ◽  
pp. 128-144
Author(s):  
Irfan Irfan ◽  
◽  
Eka Nurmala Sari ◽  
Muhyarsyah Muhyarsyah ◽  
Siti Irafah ◽  
...  
Keyword(s):  
Information System ◽  
Internal Audit ◽  
Financial Statements ◽  
Financial Information ◽  
Successful Implementation ◽  
City Governments ◽  
Financial Reports ◽  
Financial Report

his study aims to (1) examine and analyze the influence of Human Resource (SDM) competence and the role of internal audit on the successful implementation of the Local Financial Information System (SKID) partially and simultaneously, (2) examine and analyze the competence of SDM and the role of internal audit on the quality of financial report partially and simultaneously,(3) examine and analyze the influence of SDM competence and the role of internal audit on the quality of financial reports on the successful implementation of the SKID. The object of this study is all provincials and district / city governments throughout North Sumatera. The sample of this study was 34 (thirty four). The data was collected by questionnaire, documentation, and interview methods. The analysis method used was path analysis using SPSS Program. The results of this study indicate that (1) SDM competence and the role of internal audit have no partial effect on the successful implementation of SKID (2) SDM competence, the role of internal audit doesn’t simultaneously affect the successful implementation of SKID (3) SDM competence and the role of internal audit have a significant effect partially to the quality of financial reports (4) the successful implementation of SKID has no effect on the quality of financial reports (5) SDM competence, the role of internal audit, the successful implementation of SKID simultaneously affects the quality of financial reports (6) SDM competence and the role of internal audit have no effect on quality financial reports through the successful implementation of the local financial information system.

scholarly journals Relevance of financial reporting quality - Theory and practice in Vietnamese enterprises

2017 ◽  
Vol 1 (Q2) ◽  
pp. 119-128
Author(s):  
Thuan Quoc Pham
Keyword(s):  
Conceptual Framework ◽  
Financial Reporting ◽  
Accounting Standards ◽  
Reporting Quality ◽  
Professional Associations ◽  
Financial Statements ◽  
Theory And Practice ◽  
Financial Information ◽  
Financial Reporting Quality

Financial reporting quality is one the most interesting topics which draw a great deal of attention to researchers and scientists in the field of accounting (Céline Michailesco, 2010). In the review of research on financial information from 1980 to 2016, Pham (2016) found that characteristics of useful financial information are relatively diverse with as many as 15 attributes being identified. In addition, he also found that all research in any period has employed the characteristics published by professional associations such as American Institute of Accountants, Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB as theoretical basis. Research on the quality of financial information is diverse yet have many things in common, above all is the Relevance characteristic which considered to be the basic qualitative component of the quality of financial information in financial statements. Conceptual Framework officially issued by FASB & IASB in 2010 (FASB & IASB 2010) has further confirmed Relevance is the basic quality component of financial information. Compared with previous announcements, there has been a considerable change in the criteria and attributes used to evaluate the appropriateness of Relevance characteristic of financial information in financial statements. This study aims at confirming the importance of the Relevance component in evaluating the quality of financial information, clarifyingg the characteristics of Relevance measurement before and after Conceptual Framework 2010 and constructing relevant scales as well as measuring the qualitative characteristic of Relevance among enterprises in Vietnam.

scholarly journals The convergence of the Central American countries to International Accounting Standards

2016 ◽  
Vol 50 (2) ◽  
pp. 265-283 ◽  
Author(s):  
Carlos Araya-Leandro ◽  
María Del Carmen Caba-Pérez ◽  
Antonio M. López-Hernandez
Keyword(s):  
Financial Management ◽  
Financial Statements ◽  
Financial Information ◽  
Central American ◽  
International Accounting Standards ◽  
Public Authorities ◽  
Decision Making Processes ◽  
Set Up ◽  
New Strategies

Abstract: In the last few decades, Central American countries are making a significant effort in order to modernize their governments' legislation both on financial management and systems of financial information. In this sense, these countries aim to enhance the quality of public financial information in order to improve decision-making processes, decrease the level of corruption, and keep citizens informed. In this context, the purpose of this paper is twofold. Firstly, to assess the degree of similarity of the financial information that is being developed by Central American governments with regard to the recommendations set up by Ipsas, and secondly, to analyse the efforts and the strategies that those countries are carrying out in the process of implementing those standards. To determine the differences in the information containing the annual financial statements issued by national public authorities and the recommendations set up by Ipsas we conducted a deductive content analysis. In view of the results we can say that the quality of annual financial statements presented by the countries in Central America, in comparison to the recommendations by the Ipsas concerning Ifac information, is not enough. Hence, in order to operate significant changes, it is still necessary to create new strategies for the implementation of the Ipsas.

scholarly journals The Factors Affect the Quality of Financial Statements Audit in Vietnam Businesses

2015 ◽  
Vol 12 (1) ◽  
pp. 172 ◽  
Author(s):  
Do Huu Hai ◽  
Ngo Sy Trung
Keyword(s):  
Structural Equation ◽  
Audit Quality ◽  
Financial Statements ◽  
Financial Information ◽  
Equation Modeling ◽  
Factors Affecting ◽  
Study Results ◽  
Occupational Qualification

<p>The development of a market economy, especially the financial markets is asking for transparency and truthfulness of the financial information with high quality. The information in the financial statements will impact directly and indirectly to the rights and decisions of investors. Independent auditors play a role of evaluating truthfulness and reasonable financial information in enterprises, however there are still risks. This study focuses on analyzing the factors affecting the quality of financial statements audit in enterprises. The analytical methods used in this study are: factor analysis method to explore and test the Cronbach's alpha coefficient for the construction and testing of measuring scales. Moreover, linear structural modeling method (Structural Equation Modeling SEM) is used to test the reliability and value of discrimination, convergence, unitary of the concept and scale of research. The study results showed that occupational qualification is an important factor affecting the audit quality in the establishment of the business financial statements and legal environment factors, factors belonging to business, factor of independence, factors of quality control system of audit firm.</p>

scholarly journals Adoption of International Financial Reporting Standards (IFRS) in Ghana and the Quality of Financial Statement Disclosures

2014 ◽  
Vol 3 (2) ◽  
pp. 269 ◽  
Author(s):  
Ben Kwame Agyei-Mensah
Keyword(s):  
Regression Analysis ◽  
Financial Reporting ◽  
Firm Size ◽  
Financial Statements ◽  
Financial Information ◽  
Reporting Standards ◽  
Financial Reports ◽  
Listed Firms ◽  
Financial Reporting Standards

According to the IASB's IFRS framework, qualitative characteristics are the attributes that make the information provided in financial statements useful to others. This study was conducted to investigate the quality of financial reports before and after adopting IFRSs in Ghana, and also the influence of firm-specific characteristics which include firm size, profitability, debt equity ratio, liquidity and audit firm size on the quality of financial information disclosed by firms listed on the Ghana Stock Exchange.The research was conducted through detailed analysis of the pre-official adoption period, (2006) and post adoption period, (2008) financial statements of the listed firms.  Descriptive analysis was performed to provide the background statistics of the variables examined.  This was followed by regression analysis which forms the main data analysis.  The results of the quality of financial information disclosure mean of 76.80% (pre adoption) and 87.09% (post adoption) for the two years indicate that the quality of financial reports has improved significantly after adopting IFRSs. The study thus confirms that the implementation of IFRSs generally reinforce accounting disclosure quality.  It also indicates listed firms' overwhelming compliance with the IASB's IFRS Framework.The results of the multiple regression analysis show that company size, represented by net assets and Auditor type were found to be associated at a statistically significant level with the quality of financial information disclosed.  With the improvement in the quality of the financial reports after adopting IFRS users are assured of useful information for financial decision-making.Keywords: Quality of financial reports' disclosure, Firm-specific characteristics, International Financial Reporting Standards, Mandatory disclosure, Ghana. JEL Classifications: M40, M41, M48

scholarly journals Analisis Sistem Pengendalian Internal Terhadap Kualitas Laporan Keuangan Pemerintah Daerah Kabupaten Bengkalis Dalam Persfektif Islam

2020 ◽  
Vol 4 (1) ◽  
pp. 110-123
Author(s):  
Sri Rahmany ◽  
Fatimah Fatimah
Keyword(s):  
Control System ◽  
Qualitative Analysis ◽  
Internal Control ◽  
Financial Statements ◽  
Financial Information ◽  
Regional Government ◽  
Regional Autonomy ◽  
Islamic Perspective ◽  
Internal Control System

Regional Autonomy requires the Regional Government to be able to provide the best service to the community. One form of the service is to provide transparent financial information. The purpose of this research was to determine the internal control system on the quality of Bengkalis Regency's financial statements reviewed according to the Islamic perspective. This research uses qualitative analysis with descriptive methods. The results showed that the internal control system can minimize the occurrence of fraud/errors both in recording and presenting financial statements as evidenced by the monitoring of accounting records so that the resulting financial statements can be as desired and accountable.

scholarly journals Accounting processes and their impact on the profitability of companies

2021 ◽  
pp. 1-10
Author(s):  
Vanessa Mariuxi Quezada-Pacheco ◽  
María Magdalena Soto-Aguilar ◽  
Milca Naara Orellana-Ulloa
Keyword(s):  
Financial Statements ◽  
Financial Information ◽  
Correct Execution ◽  
The Subject ◽  
Descriptive Approach ◽  
The Impact

The objective of the following study is to analyze the importance of accounting processes and the impact that financial statements have on the profitability of companies through a qualitative and descriptive approach, in which it is described how important it is for companies the carrying out an efficient accounting process that leads to the correct execution of the financial statements, so that it allows the managers to make better decisions, through the different criteria of authors on the subject of study it was possible to have as the Accounting processes are of great importance for every company, since by means of the efficiency that is had, the quality of the information that will be presented in the financial statements will be given, which leaves us as a conclusion that both the accounting processes and the financial statements allow to detail the financial information that is obtained by transactional operations in this way to know in a real way the company situation.

scholarly journals Audit of the Continuity of Enterprise Activity

2020 ◽  
pp. 103-111
Author(s):  
Oksana Knyshek ◽  
◽  
Olena Konovalova ◽  
Valentyna Synelnyk ◽  
◽  
...  
Keyword(s):  
Financial Statements ◽  
Professional Judgment ◽  
Going Concern ◽  
Financial Condition ◽  
Economic Decisions ◽  
Analytical Procedures ◽  
Definition Of ◽  
Relationship Of ◽  
Enterprise Activity

In the conditions of the economic crisis, there is more and more growth in the need for reliable information about the prospects for the enterprise development for making economic decisions. The audit of the continuity of enterprise activity allows to improve the quality of information contained in the financial statements, as well as to provide all stakeholders with information resource, which contains an independent professional judgment of the auditor on the activities of the entity on a continuous basis. The purpose of the article is to reveal the essence of the going concern principle in accounting and audit and to substantiate practical tools for conducting an audit of the continuity of enterprise activity. The theoretical provisions on the definition of going concern principle and going concern assumption were disclosed. Analytical procedures used in the audit of the continuity of enterprise activity were characterized. The analytical procedures given in the study can be used at all stages of the audit of financial statements. The methods of carrying out express-diagnostics under the hour of finding out the factors of influence on the continuity of the enterprise activity was presented. The content of the test questionnaire for assessing the continuity of the enterprise activity was proposed. Criteria for assessing indicators depending on their actual level were substantiated to determine the possibility of continuous operation of an enterprise. Using the rating of indicators of the financial condition, the auditor will be able to determine the class of the enterprise and, accordingly, the risk of bankruptcy and the relationship of interested users with this enterprise. The influence of the assessing result of adhere to the going concern principle on the auditor's opinion was revealed.

scholarly journals USE OF INDICATORS OF THE REPRODUCTION OF FIXED ASSETS IN ASSESSING THE EFFECTIVENESS OF THEIR USE

2021 ◽  
Vol 31 (2) ◽  
pp. 221-226
Author(s):  
G.V. Slesarenko
Keyword(s):  
Financial Statements ◽  
Technical Condition ◽  
Financial Indicators ◽  
Book Value ◽  
A Value ◽  
Fixed Assets ◽  
Udmurt Republic ◽  
Theoretical Mechanism ◽  
Efficiency Indicators

Depreciation of fixed assets is a measure that is used to estimate the technical condition of equipment in enterprises, while amortization is a mechanism for transferring the value of fixed assets to the value of the product produced in order to further reproduce it. Very often, both concepts are replaced, while depreciation is not reflected in the credentials, does not have a value expression and does not affect the financial statements, and depreciation is a indicator that reduces the initial value of fixed assets, a book value is formed, which is used to calculate equipment efficiency indicators at both the enterprise and industry levels. Amortization is also used to estimate the efficiency of using investments, the payback period of fixed assets, therefore it is one of the key financial indicators. A more precise meaning is needed to justify the conclusions and proposals on calculated asset utilization rates. The article presents historical aspects of depreciation as an economic category, statistics on the level of depreciation of fixed assets of the Udmurt Republic. It is also proposed to supplement the theoretical mechanism for assessing the effectiveness of fixed assets with new indicators, since the assessment of the reproduction of fixed assets directly depends on the quality of the information used.

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