scholarly journals Modifications of the basic approach of insurance contracts measurement

2020 ◽  
pp. 64-69
Author(s):  
М. Б. Арчакова-Ужахова
Keyword(s):  
Interest Rates ◽  
Financial Statements ◽  
Economic Environment ◽  
Basic Approach ◽  
Insurance Contracts ◽  
The Impact

Статья посвящена проблемам унификации учета и представления в финансовой отчетности информации о страховых договорах в соответствии с требованиями нового стандарта МСФО (IFRS) 17. Автор статьи исследовал специфику применения модифицированных подходов к учету договоров страхования, провел критический анализ требований, лежащих в их основе, оценил преимущества, последствия внедрения и влияние применения подхода, основанного на распределении премий, и подхода, применяемого к договорам с переменным страховым вознаграждением, на транспарентность финансовой отчетности компании-страховщика. The article deals with issues related to the problems of accounting and presentation in financial statements information relating to insurance contracts. Further, many insurers’ financial statements lack regular updates of the value of insurance obligations to reflect the effect of changes in the economic environment, such as changes in interest rates and risks. The author of the research has investigated the specific features of the modified approaches, critically analyzed the requirements, strengths and weaknesses of the variable-fee and premium allocating approaches, measured the impact of new rules at the transparency of financial statements.

scholarly journals 5.8. New model of insurance contract measurement as the factor for the improvement of the quality of financial statements

2020 ◽  
Author(s):  
М.Б. Арчакова-Ужахова
Keyword(s):  
Interest Rates ◽  
Critical Analysis ◽  
Financial Statements ◽  
Insurance Contract ◽  
Economic Environment ◽  
New Model ◽  
Insurance Contracts ◽  
Ifrs 4 ◽  
The Impact

Статья посвящена проблемам реформирования учета страховых договоров в соответствии с требованиями международных стандартов финансовой отчетности (МСФО). Прежний подход к учету предполагал отсутствие единой последовательной учетной политики в отношении страховых договоров, разрешал применять учетные практики тех стран, в которых находится эмитент страхового договора, что влекло за собой ряд проблем. Автор статьи исследовал специфику и провел критический анализ требований нового стандарта МСФО (IFRS) 17, оценил преимущества нового подхода, а также последствия внедрения и влияние стандарта на транспарентность финансовой отчетности компании-страховщика. The article deals with issues related to the problems of reformation of insurance contracts’ accounting. The existing Standard, IFRS 4, allows insurers to account differently for insurance contracts they issue, even if those contracts are similar. Further, many insurers’ financial statements lack regular updates of the value of insurance obligations to reflect the effect of changes in the economic environment, such as changes in interest rates and risks. The author of the research has made critical analysis of requirements of the new standard, measured the impact of new rules at the transparency of financial statements.

scholarly journals Foreign banks management in the context of a pandemic: problems and solutions

E-Management ◽  
2020 ◽  
Vol 3 (3) ◽  
pp. 4-12
Author(s):  
Sh. U. Niyazbekova
Keyword(s):  
Interest Rates ◽  
Financial Statements ◽  
Capital Requirements ◽  
The Philippines ◽  
Foreign Banks ◽  
World Health ◽  
Physical Interaction ◽  
Management Actions ◽  
General Decline ◽  
The Impact

The article discusses the problems encountered by enterprises in the financial sector in the context of the COVID-19 pandemic. The paper gives examples of management actions of the largest banks in Italy, Brazil, South Korea, China, Portugal, Singapore, the USA, the Philippines and Russia. World Health Organization has advised the population to use contactless payments and reduce the turnover of banknotes to a minimum. The coronavirus has increased the desire of customers to use digital services, making it an urgent need. In fact, the pandemic has led to the fact that Bank customers, who are increasingly afraid to spend time in public places, should be able to conduct banking operations without physical interaction with Bank offices. By implementing fully digital remote customer service, banks must ensure that both routine and unique (one-time, specific) banking processes will be performed without loss or disruption. Under these circumstances, financial institutions will be required to disclose information about the impact of the coronavirus pandemic on their operations in financial statements based on the relevant disclosure standards (Generally Accepted Accounting Principles, GAAP and United States Securities and Exchange Commission, SEC). Disclosure of financial statements may include risk factors such as Fund depreciation, reduced liquidity, and other aspects.The downward trend in interest rates as required by governments and national banking regulators may affect the profitability of banks. Along with a General decline in business activity, this will lead to a decrease in Bank profits. Analysts’ concerns have already resulted in a sharp drop in the share prices of many firms, which creates another problem because some deferred tax assets, such as net operating losses (NOL), are not fully accounted for in the Bank’s regulatory capital requirements. National governments impose industry-specific tax requirements on capital market enterprises, but the challenges they will face when filing and paying direct and indirect taxes are likely to be similar to those faced by other industries.

THE IMPACT OF MACROECONOMIC FACTORS ON FINANCIAL PERFORMANCE OF SELECTED AIRLINES OPERATING INTO KENYA

2017 ◽  
Vol 2 (5) ◽  
pp. 1
Author(s):  
Jane W. Kiboi ◽  
Dr. Paul Katuse
Keyword(s):  
Interest Rates ◽  
Significant Relationship ◽  
Financial Statements ◽  
Aviation Industry ◽  
Gdp Growth ◽  
Net Income ◽  
Macroeconomic Factors ◽  
Inflation Rates ◽  
The Impact ◽  
The Relationship

Purpose: The growth of economy is argued to have a positive impact on financial performance of various key sectors. Economic growth is measured using indicators such as the GDP growth rate, inflation rate, interest rates, exchange rates, money supply among others. This study focused on investigating the impact of global and origin countries GDP growth, Inflation rates and interest rates on net income of selected airlines that operate into Kenya.Methodology: Data on macroeconomic factors was collected from World Bank website for the period of between 2005 and 2014. Data on airlines net income was collected from the published financial statements for the period 2005 to 2014. The published financial statements were audited and as such their use increased the reliability and validity of the findings and conclusions. Audited statements of comprehensive income, statements of financial position, of the selected airlines were collected from their respective websites. Statistical methods correlation and regression analysis were used to test the relationship between the macroeconomic indicators and net income of airlines.Results: The results revealed a negative significant relationship between origin inflation and net income of airlines. The results further revealed a negative and significant relationship between origin interest rates and net income of the airlines. The relationship between origin GDP growth and net income of the airlines was insignificant at 5% significant level.Unique contribution to theory, practice and policy: This study recommends that investors in aviation industry should heavily invest when the macroeconomic fundamentals such as interest rates and inflation rates of origin countries are strong to be able to reap high profitability from airlines.  Again, investors should invest more when the global economy is performing well so as to reap maximum profits from airlines destined to Kenya. That the key indicators and determinants for investment decision making in the aviation industry are the Global GDP, Global inflation, Country of Origin interest rates and inflation rates.

Commercial lender judgments and fair-value recognition: an investigation into the impact of future accounting standards

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rick C. Warne
Keyword(s):  
Interest Rates ◽  
Financial Reporting ◽  
Financial Statements ◽  
Fair Value ◽  
Net Income ◽  
Behavioral Experiments ◽  
Content Type ◽  
Accounting Principles ◽  
Commercial Lenders ◽  
The Impact

PurposeThis paper examines the impact that fair-value recognition of non-financial assets has on the judgments of commercial lenders.Design/methodology/approachCommercial lenders, who were attending a national banking conference, participated in a controlled experiment.FindingsThe experimental results show that commercial lenders incorporate fair values into their judgments but only when this information is recognized (vs disclosed) on the financial statements. Additionally, lenders assigned the highest loan interest rates when recognized fair values increased net income, and they assign the lowest loan amounts when recognized fair values decreased net income.Research limitations/implicationsTypical limitations regarding behavioral experiments are acknowledged in the paper. For example, the commercial lenders in this study could not request additional information. In addition, because of the difficulty in obtaining these participants, the sample size is relatively small.Practical implicationsUS Generally Accepted Accounting Principles (GAAP) does not allow the fair-market valuation for most non-current assets while International Financial Reporting Standards (IFRS) require such valuations. The article adds to our understanding about how a significant user group of financial statements, commercial lenders, view GAAP and IFRS accounting.Social implicationsThis article provides insights regarding how commercial lenders' decisions may change based on accounting principles related to asset valuation. Obtaining credit through loans has significant implications for society.Originality/valueThis article is unique because it examines commercial lenders' judgments using different asset valuations on the financial statements.

scholarly journals New approaches to the operative leasing accounting

2010 ◽  
Vol 56 (No. 7) ◽  
pp. 341-348
Author(s):  
P. Svoboda
Keyword(s):  
Interest Rates ◽  
Accounting Standards ◽  
Financial Statements ◽  
International Accounting Standards ◽  
Residual Value ◽  
Financial Situation ◽  
Financial Leasing ◽  
Advantages And Disadvantages ◽  
The Impact ◽  
Current Standards

: In 2009, the IASB and FASB started a public discussion and commenced work on a project referring to the recording of leasing in financial statements of companies using the International Accounting Standards for reporting. Contrary to most national regulations, the current solution of the IAS and US GAAP require a completely different recording of operative and financial leasing in financial statements, and consider the transfer of risks and leasing rewards as the main criteria for their division. Such an approach, however, has been repeatedly criticized by many users of financial statements, because transactions that are very similar or even identical economically are caught up in a completely different manner depending on whether the recording entity evaluates the leasing subjectively. It may even lead to the manipulation of recording according to the requirements and intents of the recording entity. This contribution analyzes the advantages and disadvantages of some discussed procedures, in particular of those which could replace the current standards in the future (recording based on the use of the concept of right to use), and various effects on the report on the financial situation and profit or loss development when using the current methods or the newly suggested methods during the existence of leasing. The impact is demonstrated on a specific example of business premises leased by an entity conducting business in agriculture. We also focus on different approaches of the IASB and FASB to some related issues, for example concerning the update of the applied incremental interest rates, the conditioned parts of rent and the guarantees for the residual value.

ANALISIS RASIO UNTUK MENGUKUR KINERJA KEUANGAN PERUSAHAAN (STUDI KASUS PADA PT MEKAR KARYA PRATAMA)

2019 ◽  
Vol 9 (1B) ◽  
pp. 15
Author(s):  
Rizki Ahmad Fauzi
Keyword(s):  
Financial Performance ◽  
Financial Statements ◽  
Corporate Activity ◽  
Significant Change ◽  
Overall Ratio ◽  
The Impact ◽  
Solvency Ratio

Based on the results of the analysis of the ratio of the financial statements can be seen from liquidity ratio in 2010 can already be said to be liquid and in 2011 occurred very significant increase in this ratio that makes the company's liquidity to be too high. Judging from the solvency ratio, in 2010 the company could not be said solvable because the value of this ratio is still quite high. However, in 2011 this ratio decreased significantly which shows that the company can already be said to be solvable. From the ratio of the activity, in 2010 and 2011 the ratio of corporate activity can already be said to be good. Despite the decrease from 2010 to 2011 on some of these ratios, but the overall ratio of activity of the company is good enough. Judging from the ratio of profitability, in 2010 and 2011 the profitability of the company can not be said to be good because it is still very low and no significant change from the year 2010 to the year 2011 for this ratio.The overall financial performance of PT Mekar Karya Pratama from year 2010 to year 2011 can be said to be good, although there are some things that must be considered and they should be repaired as liquidity is too high which causes the idle funds and the impact on the profitability is low. Keyword:Rasio Analysis

DAMPAK KEBIJAKAN FISKAL TERHADAP KINERJA SEKTOR PERTANIAN DI SULAWESI TENGGARA

2017 ◽  
Vol 1 (1) ◽  
Author(s):  
La Ode Jabuddin ◽  
Ayub M Padangaran ◽  
Azhar Bafadal Bafadal
Keyword(s):  
Fiscal Policy ◽  
Interest Rates ◽  
Agricultural Sector ◽  
Simultaneous Equations ◽  
Poor People ◽  
Land Area ◽  
Factors Affecting ◽  
Historical Simulation ◽  
The Impact ◽  
Direct Expenditure

This study aims to: (1) Knowing the dynamics of fiscal policy and the performance of the agricultural sector, (2) Analyze the factors that influence fiscal policy and the performance                   of the agricultural sector, and (3) Analyzing the impact of fiscal policy on the performance of the agricultural sector. The data used in this study were pooled 2005-2013 data in the aggregate. Econometric model the impact of fiscal policy on the performance of the agricultural sector is built in the form of simultaneous equations, consisting of 7 equations with 25 total variables in the model, 7 endogenous variables, 12 exogenous variables, and 6 variables lag. The model is estimated by 2SLS method SYSLIN procedures and historical simulation with SIMNLIN procedure.The results showed that: (1) The development of fiscal policy in Southeast Sulawesi from year to year tends to increase, (2) The performance of the agricultural sector from the aspect of GDP has decreased, from the aspect of labor is still consistent, in terms of investment to grow positively, and assign roles which means to decrease the number of poor people, (3) factors affecting fiscal policy is local revenues, equalization funds, other revenues, as well as the lag fiscal policy, (4) the factors that affect the performance of the agricultural sector from the aspect GDP is labor, direct expenditure and GDP lag; from the aspect of labor is the total labor force, investment, land area, direct expenditure, as well as the lag of labor; from the aspect of investment is influenced by GDP per capita, land area, interest rates and investment lag; as well as from the aspect of poor people, are affected by population, investments, direct expenditure and poverty lag, (5). Fiscal policy impact on the agricultural sector GDP increase, a decrease in the number of poor, declining agricultural laborers, and a decrease in the amount of investment in the agricultural sector.Keywords: Fiscal policy, the performance of the agricultural sector, the simultaneous equations

Particularities of the independent auditor's report on reliability of accounting (financial) statements for 2019: COVID-19 as qualitatively essential information (Part 2)

2020 ◽  
Vol 23 (7) ◽  
pp. 777-799
Author(s):  
O.I. Shvyreva ◽  
Z.I. Kruglyak ◽  
A.V. Petukh
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Economic Situation ◽  
Risk Disclosure ◽  
Essential Information ◽  
Logical Method ◽  
Annual Reporting ◽  
The Face ◽  
Key Aspects ◽  
The Impact

Subject. This article discusses the issues related to the practice of financial reporting in the face of uncertainties caused by the coronavirus contagion, as well as the specifics of the audit strategy and formation of an audit opinion on this reporting. Objectives. The article aims to identify the quality characteristics of financial reporting prepared in the context of the COVID-19 pandemic and justify the key aspects of assurance engagement completion in an extremely uncertain epidemiological and economic situation. Methods. For the study, we used an abstract-logical method, content analysis techniques, systematization, and classification. Results. Analyzing the impact of the extremely uncertain epidemiological and economic situation on financial statements, the article clarifies aspects of disclosure of events after the reporting date and threats to business continuity in the annual reporting of economic entities. The article identifies possible alternative procedures and algorithms to obtain proper evidence when it is insufficient in the face of the inability to meet certain audit standards requirements in a remote audit environment. The article defines the impact of COVID-19 risk disclosure on the structure of the audit report and opinion. Relevance. The results of the study can be used in the practical activities of economic entities that prepare financial statements in the face of significant uncertainty, as well as auditors and audit organizations.

IFRS IMPLEMENTATION AS ONE OF THE FACTORS FOR IMPROVING THE INVESTMENT CLIMATE IN UKRAINE

2017 ◽  
Author(s):  
Kateryna Sova ◽  
◽  
Natalia Yatsenko ◽  
Denys Zagirniak ◽  
◽  
...  
Keyword(s):  
Financial Reporting ◽  
Direct Investment ◽  
Financial Statements ◽  
International Standards ◽  
Investment Climate ◽  
The European Union ◽  
Economic Activities ◽  
Financial Reporting Standards ◽  
Almost All ◽  
The Impact

The article is devoted to the study of the impact of the introduction of International Financial Reporting Standards (IFRS) on changes in the investment climate in Ukraine. The relevance of the topic is that improving the practice of applying IFRS as a tool for exchanging financial information is one of the key conditions for improving the investment climate in Ukraine. The authors have created the generalized scheme that illustrates the chronological list of enterprises that are required by law to prepare financial statements in accordance with IFRS. It was noted that in 2018, in accordance with Part 2 of Article 12 of the law on accounting and financial reporting in Ukraine and resolution of the Cabinet of Ministers of Ukraine No. 547 from 11.07.2018, the criteria of enterprises that are required to prepare financial statements in accordance with IFRS were updated. This step significantly increased the level of application of international standards due to the adoption of such a decision at the legislative level. The dynamics of the number of IFRS enterprises in Ukraine was analyzed. The analysis showed that over the past three years, the number of almost all enterprises that must apply international standards has been growing. The advantages of using IFRS for different users of financial statements were determined. It was determined that the priority users of IFRS financial statements are investors. At the same time, it was noted that the main advantage for other users of financial statements prepared in accordance with international standards is the improvement of the investment climate. The dynamics of the Investment Attractiveness Index of Ukraine based on the Likert scale in the period from 2016 to 2020 was analyzed. The direct investment receipts to Ukraine from the European Union countries were studied. The dynamics of direct investment in the Ukrainian economy was analyzed for two types of economic activities that should form financial statements in accordance with IFRS, namely, the extractive industry and quarrying, as well as financial and insurance activities.

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