scholarly journals IFRS 9 Single Impairment Model: Semantics and Circularity? A Study in the Airline Industry

2021 ◽  
Vol 16 (12) ◽  
pp. 41
Author(s):  
Francesco Bellandi
Keyword(s):  
Financial Reporting ◽  
Airline Industry ◽  
Financial Statements ◽  
International Accounting Standards ◽  
Single Model ◽  
Financial Reporting Standards ◽  
Strong Indicator ◽  
Ias 39 ◽  
Ifrs 9 ◽  
Credit Losses

This paper studies a sample of airlines reporting under International Financial Reporting Standards (IFRS) about three specific challenges in implementing International Accounting Standards Board (IASB) (2019), IFRS 9 requirements for impairment versus IASB, 2014, IAS 39: 1) expected versus incurred credit losses; 2) impairment scoping and elective simplifications; and 3) definition and use of default. First, there appears to be a strong indicator that the way airline companies have drawn the line between what future conditions should or should not be considered in estimating expected versus incurred credit losses has maintained the fundamental tenet in IFRS of representing the condition existing as of the end of the reporting period. Second, evidence of companies quests for IASB (2019), IFRS 9 impairment simplifications attests to the criticism that the alleged single model of impairment is in effect a complex collection of different techniques. Finally, the degree of specific application that IASB (2019), IFRS 9 requires for the definition and use of default, as well as the customization of what triggers a significant change in the risk of default since initial recognition, does not appear to have been fully received, and sufficiently disclosed in the financial statements.

scholarly journals ANALISIS PENERAPAN PSAK 50 DAN PSAK 55 ATAS CADANGAN KERUGIAN PENURUNAN NILAI

2014 ◽  
Vol 8 (3) ◽  
Author(s):  
Yusni Husain ◽  
Jullie J. Sondakh ◽  
Heince Wokas
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Accounting ◽  
Financial Assets ◽  
International Accounting Standards ◽  
Financial Instruments ◽  
Financial Accounting Standards Board ◽  
Financial Reporting Standards ◽  
Ias 39

The application of the new accounting standards that are influential in the banking convergence with International Financial Reporting Standards and International Accounting Standards discussed in (IAS) 39 on recognition and measurement of financial instruments. Financial Accounting Standards Board issued Statement of Financial Accounting Standards (SFAS) 50 and 55 of the Presentation, Recognition and Measurement of Financial Instruments will be effective on January 1, 2012. Allowance for Impairment (Impairment Loss) is derived from the value of the amount to be recorded at recoverable value of the asset. This research was conducted at PT. Bank Mandiri Unit 1 Datulolong Lasut Manado (Persero) Tbk . The purpose of this study was to determine the extent of the application of SFAS 50 and SFAS 55 to the recognition, measurement and presentation of the allowance for impairment losses PT. Bank Mandiri Unit 1 Datulolong Lasut Manado (Persero) Tbk. The results suggest the application of SFAS 50 and SFAS 55 top Allowance for Impairment Losses by PT Bank Mandiri Tbk. compliance with applicable standards.The process of recognition of Allowance for Impairment Losses at amortized value using the effective interest rate. Measuring the level of collective impairment for financial assets is calculated based on the loss historical collectively. Presentation of receivables in the financial statements is the value after deducting the allowance for impairment losses.

How Does Local Adoption of IFRS for Those Countries That Modified IFRS by Design, Impair Comparability with Countries That Have Not Adapted IFRS?

2017 ◽  
Vol 16 (3) ◽  
pp. 59-90 ◽  
Author(s):  
Elizabeth Felski
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Statement ◽  
International Accounting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Study Results ◽  
Reporting Environment ◽  
Proper Translation

ABSTRACT Global adoption of International Financial Reporting Standards (IFRS) is thought to increase financial statement reliability and comparability. Although IFRS is required or allowed in over 130 nations, some countries modify IFRS as issued by the International Accounting Standards Board (IASB). This study is designed to closely examine each country that modifies IFRS in an effort to determine whether these modifications impair financial statement comparability. First is that countries lack the resources to implement the newest version of IFRS or ensure proper translation of the standards. Second is that countries make specific changes to allow IFRS to better meet the needs of their financial reporting environment. I categorize the first set of countries as default countries and the second set as design countries. The study results in several interesting and useful contributions. First, I develop a new typology for future IFRS research that includes not only the locally adopted category, but also the default and design categories. Second, the details of how countries modify IFRS make it clear that differences can exist in financial statements prepared in different countries both using IFRS. The users must be careful to understand how comparability may be impacted by these modifications.

scholarly journals ‘Europa moet IFRS goedkeuren, nú!’

2004 ◽  
Vol 78 (10) ◽  
pp. 418-419
Author(s):  
Ruud Vergoossen
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
International Financial Reporting Standards ◽  
International Accounting ◽  
International Accounting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Hedge Accounting ◽  
Ias 39 ◽  
International Accounting Standards Board

Europe has to endorse the International Financial Reporting Standards’, verzucht Sir David Tweedie, voorzitter van de International Accounting Standards Board (IASB), tijdens een interview dat ik afgelopen zomer met hem had1. Het wil maar niet boteren tussen de IASB en de Europese Commissie. Langer dan een jaar wordt er al gesteggeld over de goedkeuring van IAS 39 over de verwerking en waardering van financiële instrumenten. Het ziet er momenteel (augustus 2004) niet naar uit dat de Europese Commissie IAS 39 volledig zal gaan voorschrijven, omdat zij meent dat de IASB onvoldoende in haar richting is opgeschoven. In plaats daarvan overweegt de Europese Commissie IAS 39 weliswaar goed te keuren, maar een aantal bepalingen in deze standaard tijdelijk buiten werking te stellen. Het betreft bepalingen op het gebied van hedge accounting en de waardering van financiële verplichtingen tegen reële waarde.

Unfinished Accounting Issues: Incorporating Fair Value and Prudence in Accounting Theory

2006 ◽  
Vol 1 (2) ◽  
pp. 271-290
Author(s):  
A. Asher
Keyword(s):  
Financial Reporting ◽  
Value Creation ◽  
Accounting Standards ◽  
Financial Statements ◽  
Fair Value ◽  
International Accounting Standards ◽  
Financial Reporting Standards ◽  
Considerable Debate ◽  
Accounting Theory ◽  
Single Set

ABSTRACTThe International Accounting Standards Board (IASB) is introducing new International Financial Reporting Standards (IFRS) which aim to make financial statements more useful. The process has generated considerable debate. This paper is a contribution to the debate, in the particular context of insurance accounting, and attempts to provide a coherent framework for accounting theory which makes a clear distinction between retrospective statements required for administrative accountability, fair value for current market transactions and to measure value creation, and a prospective prudence required to protect policyholders, depositors and other creditors. It is argued that the IASB's founding purpose to provide a single set of accounts is therefore incoherent; different purposes require different numbers. This also implies that fair value accounts should attempt to value intangible assets. In this context, actuarial analyses of surplus would greatly assist in measuring whether model assumptions are appropriate.

scholarly journals Adoption of IFRS for SMEs in Albania

2021 ◽  
Vol 12 (2) ◽  
pp. 158
Author(s):  
Albana Gjoni ◽  
Shpresa Cela ◽  
Drini Salko ◽  
Migena Qerimi
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Reporting Quality ◽  
Financial Statements ◽  
Financial Reporting Quality ◽  
International Accounting Standards ◽  
Reporting Standard ◽  
Financial Reports ◽  
Financial Reporting Standards ◽  
National Economic

Small Medium-Sized Enterprises (SMEs) is one of the most important engines of economic growth in Albania. They make a significant contribution to local and global trade and also to the national economic development. SMEs have the largest proportion of total Albanian employment, almost 78% of the total number of employed people. They generally face difficulties in financing and investing decisions, globalization, and other matters, mainly because of their inappropriate formal financial reports. These enterprises must prepare adequate financial statements and proper accounts to deal with third parties’ needs and ensure stakeholder’s confidence. This requires financial statements to be prepared by international financial reporting standards (IFRS), national accounting standards, and local government laws. Therefore, the International Accounting Standards Board (IASB) provided a new standard to ensure the required financial reporting quality for SMEs. The main focus of this study is to examine the attitudes of financial statement’s information’ users in Albania towards the adoption of this financial reporting standard for SMEs as progress on the general financial reporting process in Albania, and also to estimate their capabilities and interests on this matter.

scholarly journals An Investigation of the Level of Compliance with Financial Reporting Standards (FRS 101) by Malaysian SMEs

2019 ◽  
Vol 6 (1) ◽  
pp. 26-33 ◽  
Author(s):  
Azhar Abdul Rahman ◽  
Mohd Diah Hamdan
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Annual Reports ◽  
International Accounting Standards ◽  
Reporting Standards ◽  
Listed Firms ◽  
Financial Reporting Standards ◽  
Disclosure Requirements ◽  
Regulatory Bodies ◽  
Practical Implications

Purpose This study aims to investigate the association between five firm-specific characteristics and the level of mandatory compliance with Financial Reporting Standards (FRS 101), which is equivalent to International Accounting Standards (IAS) 1 by Malaysian SMEs. Design/Methodology/Approach A disclosure index is used to measure the extent of compliance with FRS 101. Each of the 105 sampled firms' annual reports were examined against the index for the financial year ending December 31, 2013. Findings The results reveal an overall compliance of 96 per cent. Regression results report that only firm size and profitability have a positive and negative significant association, respectively, with FRS 101 disclosure requirements. Practical Implications This study should be particularly relevant to regulatory bodies in Malaysia for strategizing and encouraging compliance with FRS 101 by non-listed firms. Originality/Value Additionally, the study contributes to financial reporting literature relating to a developing country, Malaysia. Since SMEs in Malaysia contribute significantly to the economic development in the country, it is interesting to examine how they present their financial statements to interested parties and the degree of their compliance with Financial Reporting Standards as required by the relevant authorities

scholarly journals The Use of Accounting Policy Options under IFRS in Europe: Do Country, Industry, and Topic Factors Matter?

2021 ◽  
Vol 15 (3) ◽  
pp. 289-308
Author(s):  
Karsten Eisenschmidt ◽  
Joanna Krasodomska
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Statements ◽  
The Body ◽  
International Accounting Standards ◽  
Financial Reporting Standards ◽  
Global Standards ◽  
Potential Factors ◽  
The Impact ◽  
Accounting Policy

Since the formation of the International Accounting Standards Board (IASB), the use of In-ternational Financial Reporting Standards (IFRS) has spread and they have become global standards for financial reporting. However, they are not used unanimously all over the world. This paper focuses on differences in countries’ approaches to IFRS. Our study aims to investi-gate the use of accounting policy choice for selected options in Europe with a particular focus on countries, industry and topic-specific firm factors. We analyze financial statements of 416 companies of the STOXX Europe 600 operating in 17 European countries. We use content analysis to identify the companies’ decisions to choose a particular option allowed under IFRS and run a logistic regression to identify potential factors that influence them. Our findings suggest that the factors under investigation do not always have a significant influence on the accounting option choice. However, the country variables seem to have a stronger influence than industry or topic variables. The study contributes to the body of literature mainly because it investigates a uniform European setting with the use of the 2017 data and it covers coun-tries not included in previous studies. Its results also provide a basis for discussion on the fi-nancial statements quality and the impact of IFRS across countries.

scholarly journals Hedge Accounting: International Financial Reporting Standards e Normas do Banco Central do Brasil

2020 ◽  
Author(s):  
Sérgio de Iudícibus ◽  
Ana Paula Correia Lacanna ◽  
José Everardo Alves Pereira ◽  
Ilse Maria Beuren
Keyword(s):  
Financial Reporting ◽  
Reporting Standards ◽  
Accounting Standard ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards ◽  
Hedge Accounting ◽  
Accounting Principles ◽  
Ias 39 ◽  
Ifrs 9 ◽  
International Accounting Standard

Em 2008 foi anunciada a revisão do International Accounting Standard (IAS 39), segmentada em três etapas principais, a classificação e mensuração dos instrumentos financeiros, a introdução de uma nova metodologia para o cálculo de perda incorrida (impairment) e hedge accounting. Esse projeto resultou na publicação, em julho de 2014, na nova norma dos Instrumentos Financeiros, a IFRS 9. O objetivo deste estudo é analisar os principais impactos trazidos pela IFRS 9, frente aos normativos contábeis do Plano Contábil das Instituições do Sistema Financeiro Nacional (COSIF), no que tange à contabilização de hedge accounting. Realizou-se a análise dos normativos locais e internacionais, e de modo complementar um estudo de caso, por meio da análise das demonstrações contábeis brasileiras no Generally Accepted Accounting Principles do Banco Société Générale do Brasil, com data-base de 30 de junho de 2017. Os resultados da pesquisa mostram que, com as alterações trazidas pelo IFRS 9, maior detalhamento das informações sobre o hedge accounting passou a ser exigido, o que impacta consideravelmente o conteúdo e o formato atual das notas explicativas. Este estudo tem como principal contribuição a demonstração de que os requerimentos locais das divulgações dos instrumentos financeiros precisam de adequações.

scholarly journals Prospects of Application of International Standards in Financial Reporting by Small and Medium-size Businesses in Georgia

2018 ◽  
Vol 9 (2) ◽  
pp. 1
Author(s):  
Levan Sabauri ◽  
Nadezhda Kvatashidze
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Cost Utility ◽  
International Standards ◽  
Medium Size ◽  
International Accounting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
The Cost ◽  
Supply Information

Drafting financial statements according to the complete (global) International Financial Reporting Standards (IFRS) in place by small and medium-size businesses (enterprises) is a laborious and costly task, so much so that it does not comply with the cost-utility ratio guideline of the IFRS conceptual framework.The International Accounting Standards Board (IASB) developed financial reporting standards adequate with the transactions, deals and information users of the small and medium-size businesses, which resulted in simpler IFRS and ultimately cheaper financial statements and more useful information. Most of the businesses in Georgia are small or medium-size, so simplified IFRS allow them not only to supply information without much effort and excessive costs but develop further and attract investments.

IFRS 9: Estimation of expected credit losses and their recognition in financial reporting

2019 ◽  
Vol 22 (4) ◽  
pp. 364-378
Author(s):  
T.B. Kuvaldina ◽  
◽  
E.V. Lobachev ◽  
Keyword(s):  
Financial Reporting ◽  
Ifrs 9 ◽  
Credit Losses
Sign in / Sign up

Export Citation Format

Share Document