scholarly journals Liquidity Issues in the Banking Sector from an Accounting Perspective

2018 ◽  
Vol 11 (5) ◽  
pp. 80
Author(s):  
Rosa Vinciguerra ◽  
Nadia Cipullo
Keyword(s):  
Financial Markets ◽  
Strong Influence ◽  
Banking Sector ◽  
Theoretical Study ◽  
Financial Institution ◽  
Accounting Standards ◽  
Financial Statements ◽  
Ifrs 7 ◽  
Ifrs 9 ◽  
Recent Financial Crisis

The recent financial crisis highlighted the inability of financial markets of being always able to cope with the liquidity needs of banks. This gave rise to a great attention to the issues related to the liquidity in the banking sector.Stakeholders interested in assessing the liquidity profile of a financial institution can rely on data provided through its financial statements. This demonstrates the strong influence that the accounting discipline can have on it. Accounting standards can play an important role in depicting the liquidity profile (and the associated risk) of an entity, as they contribute to produce information useful to predict timing, uncertainties and amounts of its future cash flows.The objective of this theoretical study has been to investigate the contents of the IASB Conceptual Framework and of some of its standards, i.e. IAS 7, IFRS 7, IFRS 9. In particular, the aim of the analysis has been to verify if the financial information requested by the regulation is adequately useful and relevant in order to assess the liquidity profile of a financial institution. In our opinion, the IASB discipline still presents some deficiencies on this aspect, in particular for entities operating in the banking sector.

ADMINISTRATIVE, LEGAL AND SUPERVISORY DETERMINANTS OF GLOBALIZATION OF FINANCIAL MARKETS AND THE BANKING SYSTEM IN POLAND

2015 ◽  
Vol 2 (2) ◽  
pp. 0-0 ◽  
Author(s):  
Sylwia Gwoździewicz ◽  
Dariusz Prokopowicz
Keyword(s):  
Financial Markets ◽  
Banking Sector ◽  
Banking System ◽  
Financial System ◽  
Developed Countries ◽  
Central Banking ◽  
The European Union ◽  
Legal Norms ◽  
Recent Financial Crisis ◽  
Polish Economy

Since the early 90s of the last century, the growing importance of globalization processes in Poland, executing in the field of socio-economic and cultural unification of the community has been observed. Due to the ongoing process of the transformation of the Polish economy, this process was also determined successively increasing integration of financial markets and the development of ICT. Currently operating in Poland, the financial system and the banking sector is one of the most globalized sectors of the economy. This process has been intensified Polish accession to the European Union in 2004. High scale of financial markets globalization in Poland was visualized during the recent financial crisis 2008 years. The process of globalization of financial markets and the banking system in Poland is determined mainly by factors such as administrative and supervisory functions of central banking and supervisory bodies in the financial system and to adapt legal norms to the standards of Western developed countries.

THE IMPORTANCE OF ECONOMIC GLOBALIZATION IN THE CONTEXT OF THE DEVELOPMENT OF THE FINANCIAL SYSTEM IN POLAND

2016 ◽  
Vol 4 (2) ◽  
pp. 7-17
Author(s):  
Dariusz Prokopowicz
Keyword(s):  
Financial Markets ◽  
Banking Sector ◽  
Banking System ◽  
Financial System ◽  
Developed Countries ◽  
Central Banking ◽  
The European Union ◽  
Global Integration ◽  
Wide Range ◽  
Recent Financial Crisis

At the beginning of the 90s of the last century in connection with the ongoing process of the transformation and marketization of the economy observed in Poland growing importance of globalization processes executing within the scope of this multifaceted socio-economic and cultural unification of standards of existence of citizens. With adjusting to the time urynkawianiem and systemic transformation of the Polish economy were related to the processes of global integration of financial markets and the development of ICT. Operating in Poland for more than a quarter of the market financial system and the banking sector is among the most globalized and computerized sectors of the economy. This process was intensified Polish accession to the European Union in 2004. Zglobalizowania a wide range of financial markets in Poland was shown during the recent financial crisis 2008 years. Currently, it is assumed that the process of globalization of financial markets and the banking system in Poland is, first of all such determinants as administrative and supervisory functions of central banking and supervisory bodies in the financial system and adjusting norms of law to the standards of Western developed countries including the regulations, recommendations and EU recommendations.

Die Abbildung des Kreditrisikos im Jahresabschluss der Kreditinstitute nach HGB und IFRS

2019 ◽  
Author(s):  
Christian Kakuk
Keyword(s):  
Credit Risk ◽  
Accounting Standards ◽  
Financial Statements ◽  
International Accounting ◽  
International Accounting Standards ◽  
Commercial Law ◽  
Alternative Procedures ◽  
Ifrs 9 ◽  
Commercial Accounting ◽  
Credit Institutions

The presentation of credit risk in the annual financial statements of credit institutions in accordance with the HGB and IFRS is by no means a new topic, but certainly a highly topical one. Based on a fundamental overview of banking risks in general and credit risk in particular, this book presents both commercial law and international accounting standards with regard to credit risk accounting. In the field of commercial accounting, it examines further alternative procedures, such as dynamic provisioning, on the basis of a well-founded overview of current regulations. Its examination of international accounting focuses on the new impairment model of the IFRS 9. The book provides a sound overview of the various concepts for depicting credit risk in the annual financial statements of credit institutions and is therefore of particular interest to economists and accounting experts.

scholarly journals Faktor-Faktor Yang Mempengaruhi Kualitas Penyajian Laporan Keuangan Syariah Baitul Maal Wa Tamwil Di Kabupaten Wonogiri

2019 ◽  
Vol 3 (2) ◽  
pp. 128
Author(s):  
Risky Yuniar Rahmadieni
Keyword(s):  
Corporate Governance ◽  
Financial Institution ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Statement ◽  
Regional Office ◽  
Financial Reports ◽  
Convenience Sampling ◽  
Work Ethos

Baitul Mal Wattamwil is a sharia financial institution that develops  business activities and prepares financial reports with sharia principles. Shariah accounting standards, shariah audit, shariah supervision, Islamic corporate governance and Islamic work ethics are instrumental factors in the preparation of quality financial statements. The purpose of this study was to determine the extent to which the Statement of Islamic Accounting Standards, Shariah Audit, Shariah Supervision, Islamic Corporate Governance and Islamic Work Ethos affect the Quality of Shariah Financial Statement Presentation in the Baitul Wat Mal of Wonogiri Regency Regional Office. This study uses a quantitative approach. Samples were taken by convenience sampling method. Based on the results of this study, effects of statement of Islamic accounting standards and Islamic work ethos on the quality presentation of Islamic financial statements. On the other hand, Islamic auditing, shariah supervision, Islamic corporate governance can not affect the quality presentation of sharia financial statements.Keywords: Islamic Accounting Standards, Shariah Audit and Shariah Financial ReportBaitul Mal Wattamwil merupakan lembaga keuangan syariah yang mengembangkan kegiatan usahanya dan penyusunan laporan keuangan dengan prinsip-prinsip syariah. Standar akuntansi syariah, audit syariah, pengawasan syariah, Islamic corporate governance dan etos kerja Islam adalah faktor instrumen yang berfungsi membantu dalam menyusun laporan keuangan yang berkualitas. Tujuan dari penelitian ini adalah untuk mengetahui seberapa besar pengaruh pernyataan standar akuntansi syariah, audit syariah, pengawasan syariah, Islamic corporate governance dan etos kerja Islam terhadap kualitas penyajian laporan keuangan syariah di Baitul Mal Wat Tamwil Kabupaten Wonogiri. Penelitian ini menggunakan pendekatan kuantitatif. Sampel diambil dengan metode convenience sampling. Dari hasil penelitian ini, ditunjukkan bahwa menurut uji parsial, terdapat pengaruh pernyataan standar akuntansi syariah dan etos kerja Islam terhadap kualitas penyajian laporan keuangan syariah. Di sisi lain, audit syariah, pengawasan syariah, Islamic corporate governance terdapat tidak berpengaruh terhadap kualitas penyajian laporan keuangan syariah. Kata Kunci: Standar Akuntansi Syariah, Audit Syariah, dan Laporan Keuangan Syariah

The Reporting Entity in Private-Public Accounting Harmonisation. Is Control Enough for the Local Government Consolidated Financial Statements?

2017 ◽  
pp. 5-29 ◽  
Author(s):  
Cristian Carini ◽  
Laura Rocca ◽  
Claudio Teodori ◽  
Monica Veneziani
Keyword(s):  
Public Sector ◽  
Local Government ◽  
Accounting Standards ◽  
Financial Statements ◽  
Consolidated Financial Statements ◽  
The Public ◽  
Financial Accountability ◽  
Public Sector Accounting ◽  
Definition Of ◽  
Reporting Entity

The European Commission initiated a discussion on the expediency of using the International Public Sector Accounting Standards (IPSAS), based on the IAS/IFRS, as a common base for harmonizing the public sector accounting systems of the member states. However, literature suggests that accounting is not neutral with respect to the economic, social and political dimensions. In the perspective of evolution of the accounting regulation outlined, balanced between accountability, with the need to represent phenomena for reporting pur-poses, and decisionmaking issues, which concentrates on the quantitative importance of the values, the paper aims to analyse the effects of the application of different criteria for the definition of the reporting entity of the local government consolidated financial statements (CFS). The Italian PCA 4/4, the test of control and the financial accountability approaches are examined. The evidence that emerged from the case studies examined identifies several criticalities in the Italian PCA 4/4 and support the thesis that the financial accountability approach is more effective in providing a complete representation of the public resources entrusted to and managed by the group, whereas the control approach better approximates quantification of the group results in terms of central government surveillance. The analysis highlights the importance of the post implementation review period and the opportunity to contextualize the adoption of the consolidated financial statement in the broader spectrum of the accounting harmonization process, participating in the process of definition of the European Public Sector Accounting Standards (EPSAS).

Effects of Financial Innovations on Profitability for Deposit Taking Microfinancing Institutions in Kenya

2018 ◽  
Vol 9 (6) ◽  
pp. 529-536
Author(s):  
Martin Khoya Odipo ◽  
Keyword(s):  
Financial Institutions ◽  
Positive Relationship ◽  
Financial Institution ◽  
Secondary Data ◽  
Financial Statements ◽  
Descriptive Statistics ◽  
Primary Data ◽  
Microfinance Institutions ◽  
Financial Innovations ◽  
Strong Positive Relationship

Recent studies have documented that innovations improve profitability of firms. This article documents that deposit taking micro financial institutions that have adopted financial innovations have increased their profitability. The study covered five years between 2009-2013. Both primary and secondary data were used in the study. Primary data was obtained through administration of drop and pick questionnaires to selected employees of the institutions. Secondary data was obtained from financial statements and management reports of these deposit taking microfinance institutions. Data was analyzed using descriptive statistics, return on asset and multi-liner regression model to determine the effect of each financial innovation applied on profitability on the micro-financial institution. The results showed that most deposit taking microfinance institutions adopted these financial innovations in their current operations. There was strong positive relationship between individual innovations and profitability. In line with profitability ROA also showed improvement each year after the adoption of these financial innovations.

Comparison of the perception of overt and covert options in IPSAS financial statements by intergovernmental organizations

Tékhne ◽  
2018 ◽  
Vol 16 (1) ◽  
pp. 28-39
Author(s):  
Berit Adam
Keyword(s):  
Public Sector ◽  
European Commission ◽  
Accounting Standards ◽  
Financial Statements ◽  
Criminal Court ◽  
Intergovernmental Organizations ◽  
Accounting System ◽  
Accrual Accounting ◽  
Public Sector Accounting ◽  
Primary Reference

AbstractSince 2012, the European Commission has embarked on the ambitious project to harmonize public sector accounting rules on all levels of government within Europe, mainly to improve the quality as well as the comparability of financial data. Although International Public Sector Accounting Standards were deemed not to be suitable for a simple take-over because of various reasons, they nevertheless shall function as a primary reference point for developing European Public Sector Accounting Standards. A total of 21 out of 28 central governments have already reformed their accounting standards to accrual accounting, and some of them have also relied on IPSAS in this exercise. Apart from governments, various international and supranational governmental organizations have also since the end of the 2000’s been reforming their accounting system to accrual accounting, and have in the same way relied on existing IPSAS. This paper explores accounting practices found in ten intergovernmental organizations (Commonwealth Secretariat, Council of Europe, European Commission, IAEA, INTERPOL, ITER, NAPMA, OECD, International Criminal Court, WFP) whose statements are prepared in compliance with IPSAS. It analyzes how overt and covert options contained in IPSAS with relevance to the activities of intergovernmental organizations are exercised and evaluates in which areas of accounting material differences in accounting practices can be found, which may hinder the comparability of financial statements prepared on the basis of IPSAS.

Volatility Transmission in Indian Banking Sector

2019 ◽  
Vol 118 (7) ◽  
pp. 161-165
Author(s):  
Cyano Prem ◽  
Dr M. Babu ◽  
C. Hariharan ◽  
R. Muneeswaran
Keyword(s):  
Financial Markets ◽  
Banking Sector ◽  
Bad News ◽  
Private Bank ◽  
Volatility Transmission ◽  
The People ◽  
New Information ◽  
High Volatility ◽  
The Government ◽  
Awareness Programme

Any new information about the economy is transmitted fast and it may influence the financial markets, positively or negatively. The present study used GARCH (1, 1) and EGARCH models, to investigate the volatility of Indian banking sectors indices, namely, Nifty PSU Index and Nifty Private Bank Index of NSE India Ltd. The result of the study confirmed that the high volatility was found in both the bank indices. At the same time, negative information about Indian economics did affect the PSU and Private Bank Sector indices during the study period. Finally, the study concluded that bad news travels fast and it increased volatility more than good. Hence the Government should give more information and awareness programme to the people before the implementation of any economic policy.

The essence of equity capital and its structuring for accounting needs

2017 ◽  
pp. 117-126
Author(s):  
Iryna Nazarova
Keyword(s):  
Accounting Standards ◽  
Financial Statements ◽  
Capital Allocation ◽  
Equity Capital ◽  
National Standards ◽  
Equity Structure ◽  
Key Factor ◽  
Business Property ◽  
Informational Value

The paper considers various interpretations of the essence of equity capital. The concept of equity capital is viewed from the perspective of property as a venture capital, i. e. business property, which does not guarantee profits and dividends, and for which there is no clear schedule of returning funds to investors and shareholders. The most common equity capital components in national and foreign practice are examined and compared. It is pointed out that the equity components mainly used in Ukraine are defined by the National Accounting Standards. Alternatively, the structure of equity capital components in foreign practice relies on the Conceptual Framework of Financial Statements, but it is further detailed by national standards of each country and depends on its policy and accounting characteristics. The structure of equity capital in foreign practice may be influenced by shareholders’ decisions on the establishment of funds (additional capital), allocation of profits, transactions with treasury shares. It is made clear that in most countries equity capital components include joint stock capital, surplus reserves, and retained profit. The article reviews the classification of equity capital, viewed as the key factor, and determines its influence on accounting principles and policies. It is concluded that in regulatory documents, there are no clear lines between types of equity capital. The paper also discusses various views of scholars on equity capital arrangement. It is found that in research works, equity capital is classified based on various characteristics, but the majority of researchers consider sources of equity capital to be the main criterion. In addition, there is no consensus among academics as to what types of equity capital can be singled out by the criterion described. Taking into consideration some proposals of scholars and foreign practice related to ac- counting of equity capital, the author develops a generalized structure of equity capital which is based on the sources of capital formation and includes: invested capital, particularly registered capital (statutory and mandatory share capital), corrective capital (unpaid and withdrawn capital), additional capital (capital received from investors for stock that exceeds the par value of the stock, i.e. additional equity capital); acquired capital (assets received for free, capital formed from revaluation of assets, other capital) and reinvested capital (retained profits (uncovered losses) and surplus reserves). The above equity structure can be used to prepare financial statements in order to increase its informational value. Proposals are given on how to improve methods for accounting of equity capital, in particular accounting of additional capital invested by founders in the account entitled “Non-registered investments of owners”.

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