Operating Segments (IFRS 8)-Required Disclosure and the Specific-Characteristics of Kuwaiti Listed Companies

<p>The aim of this article is to assess and examine the operating segment required-disclosure of companies listed on the Kuwait Stock Exchange (KSE) and the influence of certain variables that determine their extent of operating segment disclosures. Similar to the previous studies, the degree of operating segment disclosure is tested based on a disclosure index of the compulsory items of the International Financial Reporting Standard (IFRS) 8 (Operating segment). A regression model is estimated using Ordinary Least Squares analysis for a sample of 150 Kuwaiti companies listed on the KSE at the end of 2013 to examine the relationship between the degree of operating segment disclosure and the specific characteristics of Kuwaiti listed companies. The results reveal that the average level of operating segment disclosure was 54%, ranging from 3% to 95%. The results revealed that Kuwaiti listed companies with a higher level of compliance with the IFRS 8-required disclosures (Operating segment) were expected to be larger, highly growth and audited by audit firm associated with a Big-4 audit firm. In contrast with the more compliant, Kuwaiti listed companies with a lesser level of compliance with the IFRS 8-required operating segment disclosure were likely to be profitable. In contrast, company age, ownership diffusion, leverage and type of industry, were found to be not influencing the compliance with the IFRS 8-required operating segment disclosure. The findings deliver valuable insights and assistance to the regulatory and enforcement official bodies and to the investors in Kuwait on evaluating the existing operating segment disclosure practice among KSE-listed companies. Since the average level of operating segment disclosure was 54%, this result recommends reviewing the monitoring system of the enforcement of required operating segment disclosure. Additionally, the results provide feedback about the drivers of operating segment disclosures practice.</p>

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Quality and quantity of FTSE-100 segmental information reporting

Accounting Research Journal ◽

10.1108/arj-05-2017-0093 ◽

2019 ◽

Vol 32 (3) ◽

pp. 326-343 ◽

Cited By ~ 1

Author(s):

Ghassan H. Mardini ◽

Sameh Ammar

Keyword(s):

Financial Reporting ◽

Boards Of Directors ◽

Stock Exchange ◽

Reporting Standard ◽

International Financial Reporting Standard ◽

Content Type ◽

Information Reporting ◽

Ifrs 8 ◽

The Uk ◽

The Impact

Purpose This study aims to explore the impact of international financial reporting standard no. 8 (IFRS 8) on segmental information reporting (SIR) after the post-implementation review (PIR) issued by international accounting standards board (IASB). This impact is examined in relation to quality and quantity as SIR dimensions represent, respectively, the level of reported items and segments. As a complement to this, the chief operating decision maker (CODM) identity is considered to understand the patterns of SIR dimensions. Design/methodology/approach The SIR of the UK financial times stock exchange 100 (FTSE-100) listed companies over the period 2013-2016 is the research’s scope. Several criteria were developed to ensure a representative research sample. A disclosure index approach was used facilitating the use of content analysis for data collection, which pertained to the dimensions of SIR published by the FTSE-100 following IFRS 8 PIR. Findings The IFRS 8 PIR has had several implications shaping the growing trend that is underpinned by the SIR dimensions published by FTSE-100 companies. First, the SIR quantity dimension positively corresponds over 2013-2016, but it still does not meet IASB’s demands. This, secondly, also applies to the quality dimension of SIR to uncover inconsistency with the existing knowledge being held regarding the introduction of IFRS 8. More specifically, the response of the FTSE-100 to mandatory and voluntary items seems to be in transition of substitution. Third, CODM’s identity was an insightful dimension in rationalising the understanding through the aforementioned dimensions. It is undertaken by boards of directors or executive committees and the case of the latter is associated with more disclose in relation to the CODM’s identity. Practical implications These findings reveal implications to: academics undertaking further research about IFRS 8 PIR to challenge or endorse this conclusion, using similar or alternative approaches; the stakeholders’ decision-making process; and policymakers to re-think the structure of mandatory and voluntary items. Originality/value This paper provides empirical evidence on the quality and quantity of SIR published by FTSE-100 companies following IFRS 8 PIR.

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Post-implementation challenges of fair value measurement (IFRS 13): some empirical evidence

African Journal of Economic and Management Studies ◽

10.1108/ajems-05-2019-0183 ◽

2020 ◽

Vol 11 (4) ◽

pp. 587-607

Author(s):

Babajide Oyewo

Keyword(s):

Financial Reporting ◽

Market Price ◽

Fair Value ◽

Economic Benefits ◽

Reporting Standard ◽

International Financial Reporting Standard ◽

Financial Reports ◽

Content Type ◽

Audit Firm ◽

Implementation Challenges

PurposeConsequent on the widespread of fair value (FV) accounting with the coming into effect of International Financial Reporting Standard (IFRS) 13, this study investigated the post-implementation challenges of FV measurement from the perspective of auditors in Nigeria.Design/methodology/approachData collection was through a structured-questionnaire administered on auditors from diverse audit firm backgrounds in terms of size, international affiliation and global presence. Statistical techniques such as cluster analysis, factor analysis and ANOVA were applied to analyse data obtained from 277 respondents.FindingsIt was observed that the severest challenge of FV measurement bothers on the paucity of information for valuation of items. The magnitude of the challenges of applying FV measurement in various industry sectors appears similar. Although audit firm attributes affect perception on the challenges, there is concurrence among auditors that manipulation of values of assets/liabilities with no market price during estimation, leveraging on non-availability of market information on assets/liabilities by managers to manipulate financial statements, inappropriateness/non-compliance of valuation methods with IFRS 13, and low level of awareness among preparers of financial reports are notable post-implementation challenges of FV measurement.Practical implicationsConsidering that the adoption of IFRS 13 impliedly places responsibilities on countries applying the standard to develop institutional structures that facilitate the valuation of items using FV measurement, it seems the establishment of such apparatus may be a sine qua non for fully realising the socio-economic benefits of applying FV accounting.Originality/valueThe study contributes to knowledge by exposing the practical challenges of FV measurement and accounting estimates typical of a developing country that has fully implemented international accounting standards. Moreover, findings from this study could be compared with the result of investigations conducted in other jurisdictions to gain a deeper and wider insight into the challenges of FV measurement with a view to proffering solutions to the post-implementation challenges of IFRS 13.

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Financial reporting by Small and Medium sized Entities in Mongolia and the International Financial Reporting Standard for Small and Medium sized Entities

10.26686/wgtn.17142971.v1 ◽

2021 ◽

Author(s):

◽

Uyanga Jadamba

Keyword(s):

Financial Reporting ◽

Ordinary Least Squares ◽

Survey Questionnaire ◽

Structured Interviews ◽

Reporting Standard ◽

International Financial Reporting Standard ◽

Reporting Practices ◽

Low Level ◽

Reporting Practice ◽

Accounting Practitioners

<p>This study examines three important aspects of financial reporting practice of Small and Medium sized Entities (SMEs) in developing economy. First, the study investigates the existing reporting practices of SMEs in Mongolia. Second, the study considers the expected impact for Mongolian SMEs of adopting the International Financial Reporting Standard for Small and Medium sized Entities (IFRS for SMEs). Third, the study examines the relationships between the economic characteristics of SMEs and both their reporting practice and the expected impact of adoption of the IFRS for SMEs. The study adopts a mixed method approach with a quantitative survey questionnaire and qualitative semi-structured interviews. The study developed a survey questionnaire and obtained 102 responses: 67 responses from employee account preparers of SMEs and 35 responses from accounting practitioners of Public Accounting Firms (PAFs) engaged with SMEs. The results of the survey were analysed using a range of non-parametric tests and Ordinary Least Squares (OLS). The qualitative semi-structured interviews were carried out with eight standard-setters, educators and information users and analysed using Nvivo. Overall, the research findings suggest that in Mongolia there is a low level of compliance with international financial reporting standards. It appears that preparers and users perceive a low level of net benefits from compliance. Surprisingly, the results indicate that the economic characteristics of SMEs do not appear to influence their reporting practice. Adoption of the IFRS for SMEs is expected to increase the level of compliance by SMEs.</p>

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Earning Management AND International Financial Reporting Standard (IFRS) Implementation Process: Empirical Study

Journal of Social Sciences (COES&RJ-JSS) ◽

10.25255/jss.2020.9.2.603.616 ◽

2020 ◽

Vol 9 (2) ◽

pp. 603

Author(s):

Omar Alhawatmeh

Keyword(s):

Empirical Study ◽

Financial Reporting ◽

Stock Exchange ◽

Implementation Process ◽

Listed Companies ◽

Earning Management ◽

Reporting Standard ◽

International Financial Reporting Standard ◽

Amman Stock Exchange ◽

Jones Model

This research came for studying the implementation IFRSs and its impact on earning management in Jordan .The data onto analysis will be the listed companies of Amman Stock Exchange (ASE) for period is from 2001-2018, and to find value earning management (EM), we used modified Jones model .the result shows the implementation IFRS have negatively effects on earning management.

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The determinants of segment disclosure: an empirical analysis on Italian listed companies

FINANCIAL REPORTING ◽

10.3280/fr2012-001005 ◽

2012 ◽

pp. 113-132 ◽

Cited By ~ 1

Author(s):

Sabrina Pisano ◽

Loris Landriani

Keyword(s):

Empirical Analysis ◽

Accounting Standards ◽

Listed Companies ◽

Fiscal Year ◽

International Accounting Standards ◽

Proprietary Costs ◽

Industry Competition ◽

Ifrs 8 ◽

Segment Disclosure ◽

Segment Disclosures

In November 2006 the International Accounting Standards Board issued IFRS 8, which replaced IAS 14-Revised and became effective for the fiscal year beginning on or after 2009. IFRS 8 changed the items of information that companies have to disclose for each segment. The aim of the research is to examine the determinants of segment disclosures provided by Italian companies in both 2008 and 2009 using the framework of the proprietary costs theory. Moreover, the research investigates whether the implementation of IFRS 8 has brought companies operating in less competitive industries to adopt some opportunistic behaviors, reducing the level of segment disclosure provided in 2009, compared to that disclosed the previous year under IAS 14-R. The results show that higher levels of industry competition are associated with higher levels of segment disclosure. Moreover, we find that firms operating in less competitive industries decreased the items of information provided for each segment under IFRS 8, compared to those released the previous year.

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The extent of segmental reporting and its value relevance: cross-country evidence

Journal of Accounting in Emerging Economies ◽

10.1108/jaee-05-2017-0061 ◽

2018 ◽

Vol 8 (2) ◽

pp. 279-299 ◽

Cited By ~ 3

Author(s):

Ghassan H. Mardini ◽

Yasean A. Tahat ◽

David M. Power

Keyword(s):

Financial Reporting ◽

Value Relevance ◽

Annual Reports ◽

Reporting Standard ◽

International Financial Reporting Standard ◽

Equity Prices ◽

Policy Makers ◽

Content Type ◽

Share Prices ◽

Ifrs 8

Purpose The purpose of this paper is to examine the extent of segmental reporting disclosure and its value relevance to a sample of Qatari and Jordanian listed companies following the implementation review of the International Financial Reporting Standard (IFRS) 8. This was the first standard to be subjected to a post-implementation review. Annual reports are initially analyzed to investigate the level of segmental information that was published by companies in these two countries. Design/methodology/approach Using the Ohlson (1995) model, the study employs regression analysis to test the hypotheses relating to the value relevance of the segmental disclosures uncovered. In addition, one-way ANOVA and Kruskal-Wallis tests are used to investigate any variation in segmental reporting among sectors. Findings The findings indicate that the amount of segmental information disclosed by the sample firms differs across sectors. Moreover, the segmental information provided (including the number of segments and the amounts of disclosure) is value relevant and can explain the variations in firms’ share prices. Practical implications The results of the current investigation have implications for policy makers, including the International Accounting Standards Board, as well as for accounting regulators in Jordan and Qatar. They suggest that the segmental disclosures supplied under IFRS 8 are value relevant for equity prices in a developing country context. Compliance with IFRS 8 should thus be monitored to ensure that all firms provide the segmental disclosures that they are meant to supply under the terms of the standard. Originality/value This paper is one of the few to provide empirical evidence on the role of segmental reporting following the post-implementation review that was conducted for IFRS 8.

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Implementation of International Financial Reporting Standard as a Tool for the Performance of Nigerian Insurance Companies

Asian Journal of Advanced Research and Reports ◽

10.9734/ajarr/2019/v4i430120 ◽

2019 ◽

pp. 1-10

Author(s):

J. C. Unachukwu

Keyword(s):

Financial Performance ◽

Organizational Performance ◽

Financial Reporting ◽

Ordinary Least Squares ◽

Regulatory Control ◽

Insurance Companies ◽

Insurance Company ◽

Statistical Tools ◽

Reporting Standard ◽

International Financial Reporting Standard

Implementation of international financial reporting standard (IFRS) in terms of quality financial reporting, information disclosure pattern, transparency, auditing, reporting standards, regulatory control and flexibility, corporate governance, and financial scandals have an influence on organizational performance. This study sought to investigate the influence of implementation of IFRS on organizational performance with specific reference to the Nigerian insurance industry. Purposive sampling method was used to select the accountants and auditors of twenty- nine (29) insurance companies listed on the Nigerian Stock Exchange (NSE) market, totaling 58 respondents. The data collection instruments for the study were structured questionnaires designed for the study. Data analysis was performed with the aid of descriptive statistical tools such as frequencies, percentages and mean, and inferential statistical tools such as Pearson Product Moment Correlation Coefficient and Ordinary Least Squares (OLS) method of estimation. The finding revealed that there is a strong relationship between financial performance and implementation of IFRS. The finding also indicated that implementation of IFRS has a significant influence on investment decision making. This connotes that the implementation of IFRS is a veritable tool to financial performance of Nigerian insurance companies. Subsequently, the study recommended that the management of insurance companies should embrace International Financial Reporting Standard (IFRS) with immediate effect so that the sector can attract both local and foreign investors. Also, National Insurance Commission (NAICOM) should sanction any insurance company fails to implement IFRS on or before the year 2020.

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Firm Size as Predictor of Compliance to International Financial Reporting Standards (IFRS) 8

IAMURE International Journal of Business and Management ◽

10.7718/iamure.ijbm.v6i1.587 ◽

2013 ◽

Vol 6 (1) ◽

Cited By ~ 1

Author(s):

WILLIAM T. SUCUAHI

Keyword(s):

Financial Reporting ◽

Firm Size ◽

Audit Quality ◽

Investment Decision ◽

The Philippines ◽

Investment Strategies ◽

Reporting Standard ◽

International Financial Reporting Standard ◽

Financial Reports ◽

Ifrs 8

Globalization and diversification are the trends of business nowadays. Companies’ diversification will lead to complexity of financial information and investment decision. The objective of this study is to determine the level of compliance with International Financial Reporting Standard (IFRS) 8 and to determine other related segment information to formulate investment strategies. The subjects of the research were the 100 diversified publicly-listed holding companies in the Philippines with 2010-2011 annual financial reports. Segment Disclosure Index (SDI) was developed to determine the level of compliance with IFRS 8. The study used firm size, company age, audit quality, profitability, leverage, growth and industry as predictors of the level of compliance. The result shows high overall level of compliance with IFRS 8 – Operating segment. Using multiple regression analysis, it was found out that only firm size predicts the level of compliance with IFRS 8. Large companies mostly comply with disclosure requirement stated in IFRS 8 compared to smaller companies. Most of the companies are engaged in real estate development and leasing business.Keywords: Business and Management, accounting, IFRS 8, disclosure, segment reporting,descriptive design, Philippines2

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Segment disclosures in the financial statements of stock companies in the Republic of Serbia and the Republic of Croatia

Ekonomski horizonti ◽

10.5937/ekonhor2101055o ◽

2021 ◽

Vol 23 (1) ◽

pp. 55-70

Author(s):

Vladimir Obradović ◽

Marko Milašinović ◽

Jasmina Bogićević

Keyword(s):

Financial Reporting ◽

Financial Statements ◽

Reporting Standard ◽

International Financial Reporting Standard ◽

Business Decisions ◽

Audit Firms ◽

Significant Difference ◽

The Republic ◽

Segment Disclosures ◽

Segment Information

Information about the segments of a company is an important basis for making business decisions. In order for decisions based on segment information to be adequate, that information should be communicated in accordance with regulations. This paper is aimed at examining the adequacy of the segment information of listed companies in the Republic of Serbia and the Republic of Croatia and determining whether the volume of disclosed financial segment information is related to the company size and character of the audit firm. The research reveals that, in general, the disclosure of segment information is not fully in line with the International Financial Reporting Standard 8 - Operating Segments and that the joint-stock companies with a higher value of their total assets disclose financial segment information in more detail. However, there is no statistically significant difference in the amount of the segment information disclosed between the companies whose financial statements are audited by large audit firms and those that are the clients of other audit firms.

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