scholarly journals DETECTING OF BOND DEFAULTS INDICATIONS USING FINANCIAL STATEMENT AND SHENANIGANS INDICATORS

2021 ◽  
Vol 5 (02) ◽  
pp. 69
Author(s):  
Arya Wedha Rieantiari ◽  
Ancella Anitawati Hermawan
Keyword(s):  
Financial Statements ◽  
Financial Statement ◽  
Annual Reports ◽  
Financial Indicators ◽  
Financial Report ◽  
Creative Accounting ◽  
Big 4 ◽  
Report Data ◽  
Investment Grade

<em>This study aims to detect indications of bond defaults by conducting a thorough analysis of PT Trikomsel Oke, Tbk (TRIO)'s financial statements. TRIO's financial statements show that the company's revenue and profits increased during 2009-2014. However, the Indonesia rating agency (PEFINDO) declared default on the two bonds issued by TRIO in November 2015, even though the signal TRIO gave to its financial statements was an unqualified opinion from one of the big 4 Public Accountants for six consecutive years and PEFINDO's investment grade. This study uses a case study method.. Financial report data are analyzed by financial ratios and financial indicators of shenanigans. Evidence shows that there are indications of creative accounting and shenanigans before bonds were declared defaulted in 2015. With these results, this study suggests investors and creditors be more vigilant in analyzing published annual reports</em>

Auditors’ quality, footnotes, and earnings persistence

2019 ◽  
Vol 46 (2) ◽  
pp. 267-282
Author(s):  
Mohammad A. Karim ◽  
Sayan Sarkar
Keyword(s):  
Financial Statements ◽  
Financial Statement ◽  
Annual Reports ◽  
Earnings Persistence ◽  
Content Type ◽  
Big 4 ◽  
Auditor Quality ◽  
One Year ◽  
The Relationship

Purpose The purpose of this paper is to investigate the role of auditors in financial statement readability. Using a simple proxy for financial statement obfuscation (number of footnotes), the authors examine the relationship between auditor quality, financial statement readability and earnings persistence. Design/methodology/approach The authors use regression analysis to test two hypotheses. In the first hypothesis, the authors investigate whether firms audited by Big 4 auditors have a lower number of footnotes than firms audited by non-Big 4 auditors. In the second hypothesis, the authors show that the firms with more footnotes have less earning persistence in comparison to the firms with less footnotes. Findings The authors find that firms audited by Big 4 auditors have fewer footnotes than firms audited by non-Big 4 auditors, and a larger number of footnotes reduces earnings persistence one-year and two-years ahead of the financial statement, although a larger number of footnotes does not reduce earning persistence when firms use Big 4 auditors. Overall, firms that use non-Big 4 auditors tend to obfuscate annual reports by using more footnotes and, in turn, reduce earnings persistence. Originality/value This is the first paper that has used number of footnotes in 10Ks as a proxy for financial statement readability. This paper shows how auditors’ reputation plays a key role in the readability of the financial statement. Prior studies related to readability have ignored the importance of auditors’ quality with respect to the readability of financial statements.

A Mathematical Model of Foreign Trade Enterprise Consolidated Financial Statement

2013 ◽  
Vol 380-384 ◽  
pp. 4804-4808
Author(s):  
Xiu Fang Zhu
Keyword(s):  
Foreign Trade ◽  
Data Model ◽  
Financial Statements ◽  
Financial Statement ◽  
Enterprise Group ◽  
Consolidated Financial Statements ◽  
Financial Report ◽  
Average Value ◽  
Report Data ◽  
Substantial Control

Consolidated financial statements can reflect the comprehensive financial position and operating results of foreign trade enterprise group, reasonably determines the merger range of consolidated financial statements which is the key foundation work of preparing consolidated statements. In view of the problem that there is no specific provision of substantial control concrete measurement method of current new accounting standards, the paper takes nine enterprises of Shanghai with unclear merge reasons as sample enterprises. With their financial report from 2009 to 2011 as data sources, panel data model is applied to analyze the influence of merge scope change on sample enterprise book performance. The results show that the consolidated range changes may improve enterprise book report data, and the average value of book achievement influence is about 5.43%.

scholarly journals ANALISIS KINERJA KEUANGAN PADA PERUSAHAAN PT MUSTIKA RATU TBK. BERDASARKAN ANALISIS RASIO LIKUIDITAS, SOLVABILITAS, DAN RENTABILITAS

2019 ◽  
Vol 3 (01) ◽  
Author(s):  
Asih Nurati ◽  
Burhanudin Burhanudin ◽  
Ratna Damayanti
Keyword(s):  
Cash Flow ◽  
Quantitative Research ◽  
Stock Exchange ◽  
Balance Sheet ◽  
Financial Statements ◽  
Financial Data ◽  
Annual Reports ◽  
Financial Report ◽  
Report Data ◽  
Profitability Ratios

This study is intended to determine the financial performance of PT Mustika Ratu Tbk. by analyzing financial data through financial ratios of liquidity, solvency and profitability. The data analyzed are company financial statements which include Balance Sheet, Profit / Loss, Cash Flow PT Mustika Ratu Tbk. 2015 to 2017. This research is a quantitative research, processed data, namely financial report data of PT Mustika Ratu Tbk. taken through data on the Indonesia Stock Exchange. Financial data taken is annual reports from 2015 to 2017. Analysis of this data uses liquidity ratios, solvency ratios, profitability ratios.

IFRS, U.S. GAAP, and XBRL Financial Statements: An Introduction and Case Study

2012 ◽  
Vol 7 (1) ◽  
pp. 75-79 ◽  
Author(s):  
Kamile Asli Basoglu ◽  
Christopher T. Edmonds ◽  
Clinton E. White
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Financial Statement ◽  
Annual Reports ◽  
Income Statement ◽  
Interactive Data

ABSTRACT Given (a) the mandate to fully comply with “Interactive Data to Improve Financial Reporting,” (Rule 33-2009; SEC 2009b) which requires all SEC registered companies to include financial statements in XBRL format as exhibits with their quarterly or annual reports on a phased-in schedule, and (b) initiations to converge U.S. GAAP and IFRS, it is crucial for students to understand the methodological differences between XBRL financial reporting for these two standards. Therefore, the goal of this case is to expose students to the IFRS and U.S. GAAP XBRL taxonomies. We use the case of a hypothetical company to first illustrate some of the differences between IFRS and U.S. GAAP reporting at the financial statement level, then map its Income Statement line items into respective XBRL taxonomies, and finally create an XBRL instance document. The case provides two exercises to explain the steps in creating an XBRL instance document for different taxonomies, i.e., accessing and then mapping line items into the IFRS and U.S. GAAP taxonomies (Exercise 1) and creating the actual XBRL instance document for U.S. GAAP and IFRS (Exercise 2).

scholarly journals Pelatihan Pembuatan Laporan Keuangan Bagi UMKM Sebagai Informasi Untuk Pengambilan Keputusan

2018 ◽  
Vol 2 (1) ◽  
pp. 63-82
Author(s):  
Sila Ninin Wisnantiasri ◽  
Irma Paramita Sofia ◽  
Fitriyah Nurhidayah ◽  
Karsam Sunaryo
Keyword(s):  
Financial Reporting ◽  
Business Performance ◽  
Financial Analysis ◽  
Financial Statements ◽  
Financial Statement ◽  
Educational Game ◽  
Financial Report ◽  
Study Approach ◽  
Income Statement ◽  
The Impact

The purpose of this dedication for Pisangan Village Community through financial statement training for small business in collaboration with partners of Citra Kencana Community is to improve the understanding of partners in making financial report especially income statement. The problem facing partners is not mastering how to create a correct financial statement. The financial statements can be used by partners as a benchmark of business performance and business financial analysis tools. Therefore, the methods used in this activity are: (1) convey material about basic concepts of accounting, (2) convey material about components of income statement, (3) provide business simulation and recording financial statements through educational game business accounting (4) the practice of preparing the business income statement and analysis by the entrepreneur, (5) advising / consulting the profit-loss statement. Besides, regression test is done through event study approach to know the impact of training for knowledge of financial report objectives and understanding of financial reporting from the community after getting the training. The result of this activity is increasing both knowledge and understanding of society in making financial report. This is shown by the direction of a positive and significant relationship between training with community knowledge and understanding. Keywords: Financial statement, Small entrepreneurship, Business analysis

Theoretical Analysis of Creative Accounting

2021 ◽  
pp. 58-74
Author(s):  
Christianna Chimonaki
Keyword(s):  
Theoretical Analysis ◽  
Financial Statement ◽  
Accounting Fraud ◽  
Financial Statement Fraud ◽  
Financial Report ◽  
Creative Accounting ◽  
Accounting Scandals ◽  
The Relationship

This chapter begins with the definitions of creative accounting, fraud and financial statement fraud and explains the relationship between them. Next, it presents the classical theories on the determinants of financial statement fraud. Section 1.4 presents the profile of accounting scandals. Section 1.5 presents the components of financial report fraud as well as the parties involved in in creative accounting. Section 1.6 presents the reasons and motivations for creative accounting. Specifically, the authors analyse manipulation practices, the methods and the opportunities for creative accounting and address why financial frauds occur. Finally, they offer conclusions in Section 1.7.

scholarly journals Assessment of Enhancing Transparency of Financial Statements

2016 ◽  
Vol 6 (2) ◽  
pp. 175
Author(s):  
Viswa Nadham N.
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Opportunity To Learn ◽  
Financial Statements ◽  
Financial Statement ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
The Public ◽  
Qualitative And Quantitative

The study explored both the advantages of transparency and challenges facing finance departments of local government authorities in the course of preparing and presenting financial information. The study employed an explanatory case study,cross-sectional survey  and applied a triangulation of methods to collect both qualitative and quantitative data. The participants were all selected based on the opportunity to learn and the typicality of Dodoma municipality. A total of 80 respondents were involved. Data analysis was done through SPSS. Figures, tables, pattern matching, comparison and strong explanation building all aided in simplifying the analyses of findings.Key findings of the study unveiled that participation of the public in finance affairs of local governments heightened transparency in the preparation and presentation of financial statements. Furthermore, the finding reveal that International Finnancial Report Standards (IFRS) was rarely applicable during  the preparation of financial statement. It was also found out that tansparency in financial matters reduced fraudulent behaviours in the allocation and expenditure of local government funds.Key words: Financial statements, IFRS, IAS, Financial transperancy.

scholarly journals Development Based on Cloud Accounting as Accountant Reconciliation Media on Collage

2020 ◽  
Vol 1 (2) ◽  
pp. 185-196
Author(s):  
Alexander Williams ◽  
Ellen Dolan
Keyword(s):  
Financial Statements ◽  
Financial Statement ◽  
Accounting System ◽  
Financial Reports ◽  
Financial Report ◽  
Data Matching ◽  
Academic Activities ◽  
Excellent Service ◽  
Long Time ◽  
Reconciliation Process

 In the process of academic activities, has staff that are structured in an organizational structure to provide excellent service. With the aim of succeeding all activities that are running, and having their respective functional duties, one of them is the head of finance. The head of finance is obliged to report all income and expenses that are needed by collages. Where the financial statements are reported monthly to top management such as the Director of Perguruan Tinggi Raharja The financial report can be said to be accurate if it has passed the final process of reconciliation. Reconciliation is an adjustment of the balance between bank balances and transaction data that we have. There are 8 (eight) financial statement processes until finally Reconciliation is carried out. However, the flow of the reconciliation process can be said to be still semi-conventional and lack the use of existing technology. In this study, 3 (three) problems were identified regarding the reconciliation process which had an impact on the accuracy of financial statements. Where in the reconciliation process accountants enter payment data input and data matching manually so that it requires a long time in the balance balance amount. With financial reports that are faster and more accurate, of course the work can be assessed as effective and efficient according to the time specified. The use of cloud accounting in the reconciliation process is expected to better assist accountants in real terms. So that in the process of reconciliation the accountant gets a financial report that is accurate and effective and efficient in time. This research is of course motivated by accountants in reconciliation activities that are still manually at College. Problems like this, with the use of cloud accounting in financial reports, are a new breakthrough for Perguruan Tinggi Raharja. By conducting 5 (five) literature reviews on reconciliation and cloud accounting to help the performance of accountants in obtaining financial reports. The final result of this study is the implementation of a cloud accounting system at collages in reconciliation activities by accountants.

scholarly journals IMPLEMENTASI SAK SYARIAH DALAM LAPORAN KEUANGAN KOPERASI PENGKREDITAN RAKYAT SYARIAH (KPRS)

2020 ◽  
Vol 11 (2) ◽  
pp. 123-132
Author(s):  
Nimatul Ula ◽  
Nawirah Nawirah
Keyword(s):  
Qualitative Research ◽  
Balance Sheet ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Accounting ◽  
Financial Statement ◽  
Online Data ◽  
Financial Reports ◽  
Financial Report ◽  
Financial Position

The purpose of this study is to determine the suitability of the presentation of the An-Nahl Pandaan KPRS financial statements to Syaria FAS. This research uses descriptive qualitative research in which the purpose is to describe and illustrate the application of Sharia Financial Accounting Standards in terms of the financial statements prepared by KPRS An-Nahl Pandaan. The techniques used in data collection are through observation, interviews, documentation, and online data search techniques. The results of the analysis and discussion of this study indicate that most of the financial statement presentations in KPRS An-Nahl are in accordance with Sharia FAS even though only the entity only reports the financial position (Balance Sheet). From the An-Nahl KPRS financial report that looks very prominent the discrepancy is that An-Nahl KPRS does not make the six other financial report components listed in the Sharia FAS because the KPRS An-Nahl management itself does not yet understand how to prepare financial reports in accordance with applicable standards.

scholarly journals THE VALUE OF RESTATEMENT TO FRAUD PREDICTION

2019 ◽  
Vol 20 (6) ◽  
pp. 1210-1237
Author(s):  
Shi Qiu ◽  
Hong-Qu He ◽  
Yuan-sheng Luo
Keyword(s):  
Balance Sheet ◽  
Financial Statements ◽  
Primary Objective ◽  
Financial Statement ◽  
Financial Statement Fraud ◽  
Financial Reports ◽  
Financial Report ◽  
Financial Restatements ◽  
Fraud Prediction ◽  
Different Characteristics

A financial report restatement reflects errors in the previous financial statement, and thus it increases investors’ doubt about the credibility of the financial statement. The primary objective of this paper is to examine whether restatement announcements imply increased fraud risks in Chinese firms in the context that up to one quarter of listed companies have restated their financial reports in China, and explore the implications of the content, severity and reasons for restatements with respect to fraud. In this paper, firms with financial restatements prove to be more likely to be labeled as fraudulent by regulators in China. Second, the following results also are revealed: (1) financial statements, except balance sheet restatements, provide insights into the revelation of fraudulent behaviors, (2) the severity of restatements is positively correlated with future fraud disclosures, and (3) restatements due to negligence are positively correlated with future fraud occurrences. These results imply that restatement announcements and their different characteristics provide important information for detecting financial statement fraud.

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