Challenges to the Users of Financial Reports Constructed Using Multiple Measurement Bases: A Review of the IASB’s Conceptual Framework for Financial Reporting

2017 ◽  
Vol 7 (2) ◽  
pp. 172
Author(s):  
Mohammed Riaz Azam
Keyword(s):  
Financial Performance ◽  
Conceptual Framework ◽  
Financial Reporting ◽  
Financial Reports ◽  
Multiple Measurement ◽  
Financial Report ◽  
Eclectic Approach ◽  
High Degree ◽  
Measurement Base ◽  
Measurement Bases

The IASB’s conceptual framework for financial reporting identifies multiple measurement bases and concludes that an entity may employ more than one measurement base in constructing the financial reports. The framework further clarify situations as to how the preparers will proceed in constructing the entity’s financial report where the preparers are satisfied that a piece of information is relevant to the users of financial reports, but is subject to a high degree of measurement uncertainty. The purpose of this paper is to critically evaluate the choice of multiple measurement bases in the conceptual framework and highlight the challenges posed to a user of financial reports who seeks to obtain insights into an entity’s financial performance and position through reading reports constructed using an eclectic approach to measurement.

scholarly journals Workshop Pembuatan Laporan Keuangan Dasar Organisasi Nirlaba untuk Santri Lembaga Kesejahteraan Sosial Anak (LKSA) Nurul Iman

2021 ◽  
Vol 2 (2) ◽  
pp. 108-116
Author(s):  
Dede Mustomi ◽  
Asep Dony Suhendra ◽  
Khoirul Ulum ◽  
Maria Lapriska Dian Ela Revita
Keyword(s):  
Community Service ◽  
Financial Reporting ◽  
Positive Impact ◽  
Main Theme ◽  
Study Program ◽  
Financial Reports ◽  
Non Profit ◽  
Financial Report ◽  
Non Profit Organizations ◽  
Welfare Institution

ABSTRACT Financial reports for an organization are very fundamental. This is a form of transparency for the finances of an organization, especially for non-profit organizations such as the Child Social Welfare Institution (LKSA Nurul Iman) which is a community service partner this time. We from the Business Administration Study Program, Faculty of Economics and Business, Bina Sarana Informatika University held a community service with the main theme being a Workshop on Making Basic Financial Reports for Non-Profit Organizations for Students of the Child Welfare Institution (LKSA Nurul Iman). The main problem why we raised this theme is because LKSA Nurul Iman touches more on programs that are religious in nature, even though the challenges ahead are more difficult and global so that teenagers who are currently studying must be given general knowledge, one of which is understanding financial reporting. Departing from these problems, we provide a solution in the form of a financial report preparation workshop, where we will describe the steps for making financial reports that are easily understood by their age. The method we use in community service this time is in the form of a workshop by providing examples of how to make basic financial reports and immediately put them into practice so that participants can absorb the material provided. The implementation of community service this time is still online using the Zoom application. The use of the Zoom application is due to the pandemic that has not ended and is still PPKM level 2. The output achieved in this community service is in the form of a Press Release which will be published in online media. Hopefully this activity will have a positive impact where the skills gained can be used in the future for the benefit of the Foundation and become provisions when they apply for jobs or establish an organization.

The relationship between sustainability practices and financial performance of construction companies

2013 ◽  
Vol 2 (1) ◽  
pp. 6-27 ◽  
Author(s):  
Renard Y.J. Siew ◽  
Maria C.A. Balatbat ◽  
David G. Carmichael
Keyword(s):  
Financial Performance ◽  
Financial Reporting ◽  
Health And Safety ◽  
Financial Ratios ◽  
Financial Reports ◽  
Content Type ◽  
Construction Companies ◽  
Wide Range ◽  
Sustainability Practices ◽  
The Impact

PurposeOver recent years, a number of companies have committed to sharing information relating to their environmental, social and governance (ESG) activities, in response to a higher demand for transparency from stakeholders. This paper aims to explore the impact of such reporting on the financial performance of construction companies.Design/methodology/approachThis paper first examines the state of non‐financial reporting of publicly‐listed construction companies on climate change, environmental management, environmental efficiency, health and safety, human capital, conduct, stakeholder engagement, governance and other matters deemed to be of concern to institutional investors. It then presents the results of an empirical study on the impact of issuing non‐financial reports and the extent of companies’ sustainability practices (represented by ESG scores) on the financial performance of the companies. Financial performance is measured via a range of financial ratios.FindingsThe paper finds that a majority of the publicly‐listed construction companies studied have low levels of reporting, while construction companies issuing non‐financial reports largely outperform those which do not in a number of selected financial ratios, although the correlation between financial performance and ESG scores is not strong.Originality/valueThe originality of this research lies in its use of “hard data”, and it is supported by a wide range of financial ratios; this is distinguished from the existing, largely qualitative literature.

scholarly journals The Effect of Financial Performance and Financial Distress Indicators to the Stock Price of Bank Rakyat Indonesia

2018 ◽  
Vol 2 (1) ◽  
pp. 1-15
Author(s):  
Diin Fitri Ande ◽  
Harsono Yoewono
Keyword(s):  
Financial Performance ◽  
Financial Distress ◽  
Stock Price ◽  
Time Lag ◽  
Bankruptcy Prediction ◽  
Third Party ◽  
Financial Reports ◽  
Financial Report ◽  
Equity Ratio ◽  
The Common

The bank’s financial report is the only lead for the public c to review, evaluate, and assess the soundness of a bank. By tinkering the available figures within the monthly financial reports, we have measured 52 variables comprised of the common indicators to calculate the effects of financial performance of the bank, its financial distress, to its stock price in the market. The common indicators used are the ratios of liquidity, rentability, and solvability. The bankruptcy prediction and financial distress indicators were considered to part ofthe solvability ratios. The data observed and collected was between January 2002 to 18 July 2017. The time lag and IPO as of 10 November 2003 reduced the eligibility of monthly financial reports, leaving the data usable for the period of November 2003 to April 2017. As 10 variables were excluded by the system, only 4 of42 variables were found to be significantly affecting the stock price variable. The 4 independent variables are market capitalization, the ratio of placement in BI to the third-party fund, debt to equity ratio, and debtto asset ratio.

scholarly journals The Effect of Fiscal Decentralization on the Accountability of City / District Government Financial Reporting in Indonesia and the Regional Government's Financial Performance as a Moderation Variable

2020 ◽  
Vol 5 (7) ◽  
pp. 370-376
Author(s):  
Wahida Nurmuthmainnah ◽  
Syarifuddin . ◽  
Mediaty .
Keyword(s):  
Local Government ◽  
Financial Performance ◽  
Financial Reporting ◽  
Local Governments ◽  
Central Government ◽  
Fiscal Decentralization ◽  
Financial Statements ◽  
Series Data ◽  
Financial Reports ◽  
Regional Governments

This study aims to provide an overview of the effects of fiscal decentralization in proxies with regional independence and regional dependence on the central government regarding accountability of regional financial reporting and financial performance of Local Governments as moderating variables. The type of data used in this study is secondary data, panel data in the form of time series data from 2015 to 2017 and cross section data from 509 districts / cities in Indonesia. The sample selection in this study was purposive sampling by creating a cluster of western, central and eastern regions, so that 135 samples were obtained. The results showed that: (1) Regional independence had a positive effect on the accountability of local government financial reports. (2) Regional Dependence has a negative effect on the Accountability of Regional Government Financial Statements. (3) The financial performance of regional governments can moderate the influence of regional independence on the accountability of local government financial reports. (4) The financial performance of regional governments can moderate the effect of regional dependence on the accountability of local government financial statements.

The IASB and ASBJ Conceptual Frameworks: Same Objective, Different Financial Performance Concepts

2014 ◽  
Vol 29 (1) ◽  
pp. 199-216 ◽  
Author(s):  
Carien van Mourik ◽  
Yuko Katsuo
Keyword(s):  
Financial Performance ◽  
Conceptual Framework ◽  
Financial Reporting ◽  
Accounting Standards ◽  
General Purpose ◽  
International Accounting Standards ◽  
Conceptual Frameworks ◽  
Accounting Standard ◽  
Decision Usefulness

SYNOPSISThis paper illustrates that, despite their general agreement on the decision-usefulness objective of general purpose financial reporting, the Accounting Standard Board of Japan (ASBJ) and the International Accounting Standards Board (IASB)'s conceptual frameworks are based on two different concepts of financial performance. By identifying and contrasting the two financial performance concepts and their impact on the rest of the frameworks and by explaining the thinking that underpins the ASBJ's chosen financial performance concept, it contributes to a debate about the role of financial performance concepts in fulfilling the decision-usefulness objective. Such a debate is pertinent to the revision of the IASB's Conceptual Framework, which is scheduled for completion in 2015.

scholarly journals The Determinants of Forward-looking Disclosures in Interim Reports for Non-financial Firms: Evidence from a Developing Country

2012 ◽  
Vol 2 (2) ◽  
pp. 125 ◽  
Author(s):  
David Mathuva
Keyword(s):  
Developing Country ◽  
Financial Reporting ◽  
Capital Investment ◽  
Financial Risk ◽  
Financial Reports ◽  
Listed Firms ◽  
Financial Firms ◽  
Reporting Incentives ◽  
High Degree ◽  
Forward Looking

This paper examines the determinants of the forward-looking disclosures (FLD) in the interim financial reports (IFRs) of non-financial firms listed on the Nairobi Securities Exchange (NSE). Data were collected from a total of 91 firm-year observations for the mid interim periods between 2009 and 2011. A FLD score was developed for each firm in the sample based on the firm’s disclosure of forward-looking statements in its IFR. The results indicate that firms with higher debt, better performance, higher capital investment and with more concentration of foreign investment tend to have more FLDs in their IFRs. Conversely, cross listed firms are associated with lower FLDs, implying that cross listed firms provide lower forward-looking information compared to non-cross listed firms. Results show a high degree of FLD for better performing firms and firms with higher financial risk. This study contributes to literature by providing evidence to which financial reporting incentives contribute to FLDs in a developing country where enforcement is weak. As a conclusion, the paper recommends firms to provide comprehensive FLDs in future to effectively mitigate informational asymmetries between the management and owners of the firms, especially firms with more concentrated foreign ownership. 

scholarly journals Accounting Ethics in Financial Reporting in The Context of The Metaphor of ‘Lawang Sewu’ (thousands of doors, thousands of information, thousands of interests)

2021 ◽  
Vol 11 (2) ◽  
pp. 187
Author(s):  
Debi Setyawati ◽  
Erina Sudaryati
Keyword(s):  
Conceptual Framework ◽  
Old Age ◽  
Financial Reporting ◽  
Analytical Method ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Accounting ◽  
Accounting Ethics ◽  
Financial Reports

This study aims to improve the readability and understanding of financial statements through a conceptual framework of financial reporting and its derivatives. This study employed an analytical method as a conceptual framework, where financial accounting standards, financial reporting, and the results are described by the term "Lawang Sewu" as a reflection. The results show that the term 'Lawang Sewu' has similarities with accounting ethics in financial reporting, where "lawang" (Javanese) means door refers to "door of information" and "sewu" (Javanese) means a thousand or many refers to having many information and interest in accounting reporting performance. Accounting ethics in financial reporting also describes the strength of the 'Lawang Sewu' building which is not damaged despite its old age. Financial statements reflect the company's past, present and future values. Based on the conceptual framework of accounting, financial statements must meet two qualitative criteria: primary qualitative (relevant and in accordance with actual conditions) and secondary qualitative (comparable, testable, timely and understandable). Thus, financial reports are expected to be transparent so that users can use them appropriately.

scholarly journals MODERATING ROLE OF SHARIAH COMMITTEE QUALITY ON THE RELATIONSHIP BETWEEN AUDIT COMMITTEE AND MALAYSIAN TAKAFUL PERFORMANCE

2020 ◽  
Vol 2 (01) ◽  
pp. 19
Author(s):  
Monther Eldaia ◽  
Saddam Ali Shatnawi ◽  
Mustafa Mohamad Hanefah ◽  
Ainulashikin Binti Marzuki
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Financial Reporting ◽  
Audit Committee ◽  
Management Practices ◽  
Governance Structure ◽  
General Context ◽  
Financial Reports ◽  
Control Body ◽  
The Relationship

The moderating effect of Shariah Committee Quality (SCQ) on the relationship between Audit Committee (AC) characteristics and Malaysian Takaful performance remains a challenge that is yet to be resolved. Malaysia plays a leader role in Muslim countries in Islamic Finance especially in Takaful industry and Shariah committee roles and duties. AC characteristics have a significant effect on corporate financial performance. The fundamental AC role is to supervise the corporate’s financial reporting practice, review of financial reports, auditing practice, internal accounting controls, and risk management practices. AC characteristics plays a crucial role in the overall Malaysian Takaful companies which is supposed to enhance financial performance. Hence, SCQ as part of the internal governance structure and control body of the institution, thereby, ensure Shariah compliance in all transactions and activities, and enhancing the credibility of institutions in the eyes of its shareholders and customers. SCQ can potentially moderate the relationship between AC and Malaysian Takaful performance. As an important mechanism of Corporate Governance (CG), In addition, agency theory and stewardship theory were used to develop the hypotheses.  Several results of the previous literature were found fraternized, and inconsistent regarding the SCQ effect on firm performance or its effect on AC characteristics in general context, while the literature on Malaysia context remain scarce. It is expected that this SCQ moderation may considerably improve corporate performance by determining the strength or weakness of the relationship between AC characteristics and firm performance. Therefore, this paper conceptualized that ‘SCQ’ moderates the relationship between AC Chairman Specialization, Shariah Background, AC Independence and Meeting frequency, and Malaysian Takaful performance.

scholarly journals PENINGKATAN PELUANG BISNIS STRATEGIS PADA PEMASANGAN SPM DAN JALUR PIPA BAWAH LAUT PROYEK SUPPLY AVTUR KE BANDARA SOEKARNO HATTA DARI REFINERY UNIT-VI BALONGAN

2020 ◽  
Vol 2 (2) ◽  
pp. 51-60
Author(s):  
Edy Soesanto Edy
Keyword(s):  
Financial Performance ◽  
Financial Reporting ◽  
Internal Control ◽  
Positive Impact ◽  
Development Program ◽  
Gross Margin ◽  
Financial Reports ◽  
Net Margin ◽  
Subsea Pipelines ◽  
Very High

Increasing business opportunities from an economic aspect that includes the financial performance of the Refinery Unit VI is very important to manage. Good financial performance will support the company's business continuity, and also have a positive impact on stakeholders. Refinery Unit VI's commitment to improving financial performance is very high, and strives to achieve predetermined key performance indicators (KPI). Refinery Unit VI measures the achievement of KPI regularly every quarter as part of the evaluation. Targets related to current economic performance are the achievement of KPIs on Refinery Gross Margin and Net Margin. The person in charge for recording and reporting financial performance is under the Financial Function. Refinery Unit VI uses Internal Control over Financial Reporting (ICoFR) to control financial reports, where each function that has the authorization uploads it on the ICoFR web system. In 2017, Refinery Unit VI succeeded in 100% compliance with the IcoFR. The realization of the Refinery Unit VI financial performance from 2015 was always above the target despite fluctuations in product prices. This is a good thing, supported by the achievement of the increasing Gross Refinery Margin and Net Margin from 2015–2017. Refinery Unit VI has continuously succeeded in improving financial performance and achieving the highest Gross Refinery Margin among all Refinery Units owned by PT Pertamina (Persero). The installation of SPM and subsea pipelines is the target of increasing the Refinery Unit VI development program.

scholarly journals Peningkatan Kapasitas Pelaporan Keuangan Bumdesa Gesang Sejahtera Desa Gesang Kecamatan Tempeh Kabupaten Lumajang

2017 ◽  
Vol 1 (1) ◽  
Author(s):  
Moh. Hudi Setyobakti
Keyword(s):  
Financial Reporting ◽  
Financial Management ◽  
Financial Statement ◽  
Financial Reports ◽  
Transportation Services ◽  
Financial Report ◽  
Management Capability ◽  
Village Government ◽  
Financial Administration ◽  
The Village

Business Unit of Village Unit or Bumdesa is mandate of Law no. 6 Year 2014 on the Village. The establishment of BUMDesa is an effort to accommodate all activities in the field of economy and / or public services managed by the village and / or inter-village cooperation. The regulation on BUMDesa is regulated through Village Regulations. Bumdesa Gesang Sejahtera was established in 2017, with a legal umbrella of village law. The effort developed by Bumdesa is based on the potential of agriculture and other sectors that have become embryos before. Businesses managed by Bumdesa include; (1) agriculture with organic rice production and fertilizer business, organic agricultural medicine, (2) waste transportation services, (3) HIPPA water service. The problem faced by Bumdesa Gesang Sejahtera as a partner is not yet optimal financial management Bumdesa, which consists of planning, implementation, administration and financial accountability. The pressing issue is financial administration, where Bumdesa has not been able to present financial reports and report to the Village Government. Devotion is done, is training and mentoring activities on (1) standardization of financial format, (2) process of preparation of financial statement, (3) OJT prepare financial report. The output of this devotion is the management capability for the operational operators in the process of administration and financial reporting Bumdesa covers the aspects of cognitive, psychomotor and affective.

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