scholarly journals The Effect of the Change in the Balance Sheet Law in 2014-2018 on Management of Companies in Poland

2019 ◽  
Vol 10 (4) ◽  
pp. 14
Author(s):  
Jolanta Chluska
Keyword(s):  
Decision Making ◽  
Financial Reporting ◽  
Balance Sheet ◽  
Accounting System ◽  
Accounting Systems ◽  
Economic Decisions ◽  
Accounting Principles ◽  
Decision Making Processes ◽  
Business Entities ◽  
Internal Accounting

Polish business entities operate based on accounting principles in accordance with the Accounting Act and the accounting policy established by the directors of the entities. Changes in the balance sheet law have a significant effect on the internal accounting principles applied in companies. In the last three years, Polish accounting regulations have been adapted to the solutions used in the European Union.The aim of the paper is to analyse information aspects of accounting, including financial reporting in Poland in the decision-making processes of internal recipients, taking into account the changes in legal regulations.The research method was the analysis of the literature and legal acts, and a practical example.Changes in legislation influence the accounting policies defined by the managers of business entities. Companies can simplify their accounting principles including those concerning reporting. However, the simplifications should not adversely affect the economic decisions of the entity's manager and the recipients of the financial statements.The lack of accurate financial data from the accounting system may adversely affect the decision-making of the unit's manager in management processes. As it results from the analysis of the literature of the subject and the accounting systems of small enterprises, financial information from accounting is necessary for effective business management. Therefore, managers apply simplifications in accounting quite carefully.

scholarly journals The Importance of The Improvement And Convergence of Ias/Ifrs to the National Accounting System of Uzbekistan

2019 ◽  
Vol 8 (2S4) ◽  
pp. 731-733
Keyword(s):  
Financial Markets ◽  
Economic Integration ◽  
Financial Reporting ◽  
Financial Statements ◽  
Stock Exchanges ◽  
Accounting System ◽  
Accounting Systems ◽  
Foreign Investors ◽  
Accounting Principles ◽  
Reduced Costs

The relevance of research: • Economic integration • Comparability and uniformity of financial statements • Attraction of prospective overseas investors. •The requirements of global financial markets and stock exchanges. • Reduced costs of studying local standards. Research Objectives: • Work to improve our accounting systems to accelerate the development of our country with the help of capital of foreign investors. • Development of our domestic accounting principles based on transnational financial reporting principles and identification of problems associated with this.

scholarly journals Financial information in the management of the local gov-ernment unit

2018 ◽  
Vol 189 (4) ◽  
pp. 171-180
Author(s):  
Monika Wakuła
Keyword(s):  
Decision Making ◽  
Local Government ◽  
Relevant Information ◽  
Financial Information ◽  
Accounting System ◽  
Management Process ◽  
Current Accounting ◽  
Decision Making Processes ◽  
Last Stage ◽  
Business Entities

Changes occurring in the conditions under which local government units function require the adaptation of the type, scope and frequency of information provided that is used in decision-making processes. In business entities, relevant information used in management is provided by the accounting department and in particular its last stage of reporting. The current accounting system of territorial self-government units is simplified and directed towards the implementation of budgetary tasks and the maintenance of budgetary disci-pline. Accordingly, the information contained in those companies' reports is incomplete and insufficient for management purposes. Therefore, it would be necessary to transform this system in order to improve the use of information generated in the management process.

scholarly journals Cognitive pathways in small businesses decision-making processes

2020 ◽  
Vol 17 (1) ◽  
pp. 350-359
Author(s):  
Carmela Rizza
Keyword(s):  
Decision Making ◽  
Small Businesses ◽  
Crucial Role ◽  
Small Firms ◽  
Balance Sheet ◽  
Managerial Accounting ◽  
Accounting Systems ◽  
Making Sense ◽  
Decision Making Processes ◽  
Limited Diffusion

Research on small firms decision-making processes has stimulated accounting scholars to investigate how peculiarities of these firms could affect the way how they are managed, focusing on the limited diffusion of managerial accounting practices in these contexts. Controversial results on how managerial accounting practices work in small firms, claim for further research that mostly focus on how managerial accounting systems work in the decision-making processes of small firms. In this view, adopting a sociological perspective managerial accounting practices are interpreted as tools for making sense of past decisions and to discover future alternatives through cognitive pathways. Thus, the attention is on learning processes activated through balance sheet analysis in a small firm that was implementing this tool. The main contribution of this paper concerns the crucial role that balance sheet analyses play in supporting the organizational actors to monitor the state of the company and the decision-making processes. The discussion of balance sheet analyses results enabled the owner and his staff to appraise the current situation and pinpoint weaknesses, allowing them to analyse past events with a new lens and activating new knowledge pathways. Case evidence supports theoretical contributions to the decision-making processes of small businesses helping to better understand how managerial accounting practices work to discover future alternatives through cognitive pathways. The paper provides also a practical contribution concerning the crucial role that balance sheet analyses play in small firms.

scholarly journals EARNINGS MANAGEMENT AS A MANIPULATIVE FORM OF FINANCIAL REPORTING

2019 ◽  
Vol 34 (5) ◽  
pp. 1323-1328
Author(s):  
Marija Milojičić ◽  
Snežana Knežević ◽  
Aleksandar Grgur
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Financial Statements ◽  
Legal Framework ◽  
Business Decisions ◽  
Accounting Principles ◽  
The Republic

The financial statements, as the end product of the accounting information system, are a structural account of the financial position and financial success of an entity's business over a period. Earnings or net profit indicates an important position in the financial statements and is considered as a measure of a company’s success. Earnings management comes from the accounting skills that executives and business owners use when making business decisions. The Generally Accepted Accounting Principles set out in International Accounting Standards (hereinafter IAS) and International Financial Reporting Standards (hereinafter referred to as IFRS) generally give the owner or manager the choice between several accounting methods within the various stages of the accounting process. One of these methods is creative accounting, which is often correlated with the manipulation of financial statements. Creativity in accounting is known to be legal and to stay within the legal framework, but it is often the case that, with its creativity, it is beyond its boundaries. The way managers exercise this discretion is very important to the quality and objectivity of financial reporting.The tendency of the owners, and then the managers, to show the performance of the company better than they really are, is certainly not new. The reason that in the world from the beginning of the 2000s to the present day, both by the scientific and professional public and by the regulatory bodies in charge of financial reporting, particular attention is paid to this problem are the major political and economic scandals caused by the inaccurate presentation of financial statements. It is considered that manipulative accounting practices are applied in the preparation of financial statements when the application of accounting principles is made with the intention of achieving the desired objective, such as, for example, generating greater profit regardless of whether the procedures selected are in accordance with international and local prescribed rules.The prevalence of manipulation of financial statements depends on the situation in the environment, the quality of the normative basis of financial reporting, the quality of management and the ability of accountants to comply with professional and ethical standards. The environment implies the general economic situation, the existence or absence of appropriate legislation, including its implementation, as well as the relation to tax liabilities.The result of the original empirical research is presented in this paper. The research was conducted in the form of a case study of a domestic business entity (the Republic of Serbia), whose main activity is trade in sports and fashion products. The financial analysis was performed using the Beneish model, which was derived from the official financial statements of the companies, collected from publicly available databases (Balance Sheet and Income Statement 2016-2018) as the basic information base in order to discover the degree of possible manipulation of their own earning capacity. This model has become particularly popular since the Beneish M-scoring model revealed the manipulation of the financial results of the US company Enron, which went bankrupt in 2001.

The Difficulties of Teaching IFRS in Russia

2012 ◽  
Vol 28 (2) ◽  
pp. 309-319 ◽  
Author(s):  
Anna Vysotskaya ◽  
Maria Prokofieva
Keyword(s):  
Financial Reporting ◽  
Foreign Investment ◽  
Accounting Education ◽  
Accounting System ◽  
Open Market ◽  
Private Business ◽  
Financial Reporting Standards ◽  
Existing Problems ◽  
Russian Economy ◽  
Business Entities

ABSTRACT: In recent years Russia has undergone radical changes in all spheres of life, prompted by the transition from a centrally planned economy to an open market-based economy. Dramatic changes such as privatization, the development of private business entities, and foreign investment in the Russian economy have brought changes in the accounting field, including those arising from a decision to adopt the International Financial Reporting Standards (IFRS). While Russia has not yet implemented IFRS in full for all types of businesses, it has made considerable steps over the years to introduce IFRS into its accounting system. From 2012, Russia is adopting IFRS fully for publicly listed companies. This paper provides an overview of the changes in accounting education that have ensued from the decision to adopt IFRS, including the educational reforms that have taken place. The paper reviews these changes from a historical perspective and investigates existing problems caused by the transition.

The Limitations of Financial Reporting on Innovation and Its Value-Relevance for the Investor's Decision-Making Process

2019 ◽  
pp. 390-418
Author(s):  
Francisco Leote ◽  
Ana Damião
Keyword(s):  
Decision Making ◽  
Financial Reporting ◽  
Value Relevance ◽  
Financial Statements ◽  
Individual Characteristics ◽  
Decision Making Process ◽  
Accounting Systems ◽  
Financial Factors ◽  
The Individual ◽  
Industry Sectors

This chapter aims to present some limitations of financial reporting on innovation with an impact on the investor's decision-making process. In order to do so, the authors show how accounting recognizes and measures innovation factors: the intangibles. Based on the literature, the authors discuss how the value relevance of financial reporting on innovation is conditioned by non-financial factors. The impacts of the adoption of IFRSs, the effect of the industry sectors and the effect of the individual characteristics of the different countries on the value relevance of the intangible assets are analyzed. The literature suggests a decrease in the value relevance of financial statements due to the manner in which intangibles are recognized and measured in accounting. However, financial reporting on innovation is value relevant to the investor's decision-making and is conditioned by non-financial factors. Value relevance differs among different industry sectors, between different countries and is conditioned by the accounting systems used in the preparation of the financial information.

SYSTEMIC CONDITIONS OF EFFICIENCY AND DURABILITY OF ROAD TRANSPORT ENTERPRISES

2018 ◽  
Vol 73 ◽  
pp. 69-78
Author(s):  
Andrzej Letkiewicz ◽  
Michał Suchanek
Keyword(s):  
Decision Making ◽  
Road Transport ◽  
Management Systems ◽  
Accounting Systems ◽  
Record Keeping ◽  
Input And Output ◽  
Decision Making System ◽  
Decision Making Processes ◽  
Formal Strategy ◽  
Basic Input

The basic condition for the proper configuration of inputs and outputs in a transport company is the ability to optimise, build, and implement a strategy based on carefully selected components of the information and decision-making system, capable of taking into account the different optimisation criteria for each level and of gathering and generating information useful in the process of developing a strategy. Within this system, IT tools that increase the efficiency of the technical dimension of decision-making processes are useful. For Polish road transport companies, economically speaking, the basic input and output record-keeping systems are accounting systems, used by nearly 89% of the surveyed entities. In the operational context, 58% of the entities declare using resource management systems. Nearly 18% of the companies possess a formal strategy.

scholarly journals A környezeti hasznok rendszere (System of the environmental benefits)

2013 ◽  
pp. 30-43
Author(s):  
Hajnalka Ván
Keyword(s):  
Decision Making ◽  
Environmental Protection ◽  
Environmental Benefits ◽  
Environmental Action ◽  
Accounting System ◽  
New Model ◽  
Environmental Decision Making ◽  
Decision Making Processes ◽  
The Cost ◽  
Value Concept

A tanulmány a vállalati működés során megjelenő környezetvédelmi intézkedések vállalaton belüli hasznainak rendszerezésével foglalkozik. A hagyományos vállalati számviteli rendszerben a környezetvédelem alapvetően a költségoldalon jelenik meg. Azonban a környezetvédelmi tevékenység vállalaton belül megjelenő hasznainak is fontos szerepe van környezetvédelmi intézkedésekkel, beruházásokkal kapcsolatos döntések meghozatalában. Ennek ellenére a környezeti hasznok a szakirodalomban elnagyoltan, valamint nem a teljes vállalatra vonatkozóan jelennek meg. Ezért a tanulmány célja, hogy a környezeti hasznok számviteli rendszerben való kimutatására egyfajta megoldást keressen. Az elemzés eredménye egy olyan új modell felállítása, amely képes a tulajdonosi érték koncepciójához szorosan kapcsolódva a vállalaton belüli környezeti hasznokat átfogóan kimutatni. Az újonnan felállított modell a hazai és a nemzetközi gyakorlatban is újdonságértékkel bír, és nagy előnye a vállalati gyakorlatban való alkalmazhatóság. --------- The main focus of this paper is the systematization of the environmental benefits within the company. The environmental benefits related to the company’s environmental action. Environmental protection appears in the accounting system mostly on the cost side. However, environmental benefits incurring within the company play an important role in the company’s environmental decision making processes. Despite these facts, environmental benefits are not analyzed in detail by the accounting literature and do not cover the whole activity of the company. Consequently, these paper aims to gain a possible demonstration of environmental benefits in the accounting system. The main outcome of this paper is a new model, able to comprehensively present the environmental benefits of the whole company. The theory on which the model is based is the shareholders’ value concept. The model has significant novelty both in the Hungarian and international practice. Another advantage of the model is that it can be integrated into the company’s accounting system.

scholarly journals Twenty years of XBRL: what we know and where we are going

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Francesca Bartolacci ◽  
Andrea Caputo ◽  
Andrea Fradeani ◽  
Michela Soverchia
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Financial Reporting ◽  
Financial Statement ◽  
Financial Disclosure ◽  
Content Type ◽  
Business Reporting ◽  
Decision Making Processes ◽  
Governance Choices ◽  
The Impact

Purpose This paper aims to extend the knowledge of eXtensible Business Reporting Language (XBRL) to synthesize what 20 years of accounting and business literature on XBRL suggests about the effective improvement from its implementation in financial reporting. Design/methodology/approach A systematic literature review and bibliometric analysis of 142 articles resulted in the identification of 5 primary research streams: adoption issues; financial reporting; decision-making processes, market efficiency and corporate governance; audit and assurance issues; and non-financial reporting. Findings The results reveal a scarcity of studies devoted to explicating the consequences of XBRL implementation on financial reporting outside the SEC’s XBRL mandate and listed companies’ contexts. Also, some papers’ results question the usefulness of the language on the decision-making process. The overall lack of literature concerning the impact of XBRL on financial statement preparers, especially with reference to SMEs, is evident. Moreover, the consequences on corporate governance choices and the relevant internal decision-making processes are rarely debated. Research limitations/implications The findings are useful for users of companies’ financial disclosure policies, particularly for regulators who manage XBRL implementation in countries where XBRL has not yet been adopted as well as for others working in specific areas of financial disclosure, such as non-financial reporting and public sector financial reporting. Originality/value This study differs from previous literature on XBRL as it focuses on a wider period of analysis and offers a unique methodology – combination of bibliometric and systematic review – as well as a business perspective for deepening XBRL.

Economic Decision-Making in Private Corporations Versus Public Sector

2020 ◽  
Vol 11 (1) ◽  
pp. 73-98
Author(s):  
Brian J. Galli
Keyword(s):  
Decision Making ◽  
Public Sector ◽  
Literature Review ◽  
Private Firms ◽  
Public And Private ◽  
Economic Decision ◽  
The Public ◽  
Economic Decisions ◽  
Economic Decision Making ◽  
Decision Making Processes

This research takes a comparative analysis approach to study the process of economic decision-making within the private sector and the public sector. There are four main research objectives that guided this article. First, it aims to identify the different kinds of decision-making methods. Second, this article analyzes the economic decision-making processes that stakeholders have to make in public and private firms. Third, this r seeks to illustrate that establish effective decision-making and financial performance relate. Lastly, the article will offer effective economic decision-making procedures in private and public organizations, so as to make recommendations and to guide these businesses. To do so, there is a literature review in this research to find the best economic decision-making processes. Data collection tools were created in reference to the literature review that directed the structuring of the variables, and the study based the quantitative analysis on the adopted descriptive methodology. The sample was comprised of 100 respondents from China, and since 95% responded, that was a total of 95 responses. Based on the formulated study hypothesis and the research objectives, the collected data was examined for descriptive and inferential statistical analysis. In general, the findings showed that cost-benefit analysis was the favored economic evaluation method, and the respondents specified that they their internal and external economic decisions directly influence the company's operations. When focusing on how organizational performance is affected by effective economic decisions, the findings established that there was a key component for a better economic analysis outcome in the public and private firms: accounting information. Additionally, evaluating the number of processes in public and private firms led to findings that revealed the following: every decision in the public sector requires many approvals. These approvals greatly hinder economic decisions and decision-making. Social, cultural, and environmental aspects influence the decision process significantly, so they must be addressed immediately.

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