scholarly journals The disclosure of events after the reporting period. The example of listed companies from selected European countries

2020 ◽  
Vol 109 (165) ◽  
pp. 139-156
Author(s):  
Małgorzata Szulc ◽  
Paweł Zieniuk
Keyword(s):  
Empirical Research ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Listed Companies ◽  
European Countries ◽  
Stock Exchanges ◽  
Financial Reports ◽  
Financial Reporting Standards ◽  
Warsaw Stock Exchange

Purpose: The aim of this article is to present a practical study of disclosures of events after the reporting period in the financial reports of listed companies from selected European countries. The paper presents the results of empirical research based on the source material in the form of financial statements for the year 2018 of listed companies included on the following stock exchange indices: DAX, PSI-20, OMX25, BUX, WIG20, which comprise companies listed on the stock exchanges in Germany, Portugal, Denmark, Hungary and Poland. Methodology/approach: The research sample includes 110 companies. Content analysis of full versions of individual financial statements was performed. Findings: The results show that listed companies comply with the International Financial Reporting Standards regarding the disclo-sure of events after the reporting period. The occurrence of such events in the business practice of com-panies listed on the Warsaw Stock Exchange is much more frequent than in other European countries. The results of the study also present the diversity of events disclosed by respective companies included in the sample after the reporting period. Originality/value: The research allowed us to compare the scope of financial reporting disclosures of events after the reporting period in companies listed on the Warsaw Stock Exchange and in other European companies. Comparisons of this kind have not yet been carried out in international empirical research, which makes this article all the more valuable.

scholarly journals Going concern in the financial reports of listed companies during the COVID-19 pandemic – the results of an empirical study

2021 ◽  
Vol 45 (3) ◽  
pp. 9-28
Author(s):  
Ewa Chrostowska ◽  
Katarzyna Koleśnik
Keyword(s):  
Stock Exchange ◽  
Financial Statements ◽  
Listed Companies ◽  
Research Approach ◽  
Financial Reports ◽  
Going Concern ◽  
Warsaw Stock Exchange ◽  
Sector Analysis ◽  
The Subject ◽  
The Impact

Purpose: The objective of this article is to assess how many entities have faced going concern problems and to identify what uncertainties may affect a going concern, especially during the COVID-19 pandemic. Methodology/research approach: The subject of the research was financial reports of com-panies listed on the main market of the Warsaw Stock Exchange in the following sectors: clothing and cosmetics, recreation and leisure, and transport and logistics. Thirty-three (out of 37) reports for the first half of 2020 were examined. We analysed the content of full ver-sions of the descriptive parts of financial statements, reports on the auditor’s review and management comment letters. Results: Nearly half of the surveyed entities that declared they were a going concern dis-closed going concern uncertainties. The pandemic affected the scope of disclosures present-ed in the reports. The variety of presentation styles and the selectivity of the place of the disclosure may hinder stakeholders when drawing conclusions. Research limitations/implications: Only three sectors were examined, and the sector analysis was conducted only in listed companies with complete and available reports. We analysed half-yearly reports that were reviewed by statutory auditors. The reports were analysed early in the pandemic. The article may be an inspiration for further research, including comparative research, in companies from the same and other sectors. The issue is vital, all the more so as the impact of the pandemic may change over time. Originality/Value: The article is a practical study of going concern disclosures during the pandemic. The study reveals the multifaceted nature and complexity of the issues related to continuation assessment.

scholarly journals Assessing Financial Reporting Quality of Listed Companies in Developing Countries: Evidence from Ghana

2019 ◽  
Vol 11 (9) ◽  
pp. 29
Author(s):  
Joseph Mbawuni
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Listed Companies ◽  
Sub Saharan Africa ◽  
Financial Reporting Quality ◽  
Financial Reports ◽  
Financial Reporting Standards ◽  
Sub Saharan

The adoption of International Financial Reporting Standards (IFRS) in Ghana is expected to improve the quality of financial reporting among companies in Ghana. This paper assesses the extent to which financial reports of companies listed on the Ghana Stock Exchange (GSE) meet financial reporting quality (FRQ) dimensions of IFRS. It was a descriptive study that employed two experienced professional chartered accountants who practice as independent auditors to use FRQ criteria to assess financial reports of 20 purposively selected companies listed on GSE for 2012 and 2013. Given the high inter-rater reliability (r = .96, 95% C.I., p < .0001), the findings indicate that, overall, FRQ of the listed companies meet FRQ standards by 56.48%. Generally, the financial reports were 60.95% faithfully represented, 51.01% relevant, 50.10% understandable, 40.09% comparable and 19.75% timely audited (or 80.25% untimely). Fundamental FRQ characteristics were more prevalent than enhancing FRQ. Poorly rated FRQ areas were in the use of historical cost as measurement basis, no use of graphs and tables to clarify information, no inclusion of comprehensive glossary, ratios and index, no information on adjustment in past accounting figures for future decisions, and no comparison of current and previous accounting periods and with those of other firms. The study concludes that FRQ of the listed companies is moderate but needs considerable improvement. Implications to theory, practitioners, policy makers and industry regulators are discussed. This study fills the dearth of empirical research in FRQ in IFRS-compliance companies in Sub-Saharan Africa in general and Ghana in particular.

scholarly journals Do IFRS Promote Transparency? Evidence from the Bankruptcy Prediction of Privately Held Swedish and Norwegian Companies

2021 ◽  
Vol 14 (3) ◽  
pp. 123
Author(s):  
Akarsh Kainth ◽  
Ranik Raaen Wahlstrøm
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Listed Companies ◽  
Bankruptcy Prediction ◽  
Future Research ◽  
Financial Reports ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards ◽  
Creative Accounting ◽  
Privately Held

The purpose of our paper is to investigate whether any differences between International Financial Reporting Standards (IFRS) and local Generally Accepted Accounting Principles (GAAP) impact the transparency of financial reporting of non-listed companies through bankruptcy prediction. This contributes to extant research that has focused on the effects of IFRS adoption in the context of listed companies. For our investigation, we used logistic regression, well-established accounting-based predictors, and a sample of financial statements from privately held Swedish companies using IFRS, and Norwegian companies using Norwegian GAAP. The results indicate that financial statements made under IFRS may be better suited for bankruptcy prediction than those made under Norwegian GAAP. Our findings suggest that the use of IFRS could aid in increasing the informativeness of financial reports by promoting transparency and prevent managers of firms facing insolvency from engaging in creative accounting practices. Our results should, however, be applied with caution, as they may be due to the differences in characteristics across firms that are not captured by our research design. We leave this issue open to future research.

Financial Statement Analysis Under IFRS

2018 ◽  
pp. 696-712
Author(s):  
Yasemin Zengin Karaibrahimoglu ◽  
Gökçe Tunç
Keyword(s):  
New York ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Statement Analysis ◽  
Financial Reports ◽  
York Stock Exchange ◽  
Key Points ◽  
Recent Developments

This chapter provides a clear conceptual discussion on the recent developments in the Financial Statement Analysis (FSA). It presents how IFRSs changed the outlook of the financial reporting and the analysis and explains the key points that should be considered in FSA. Using a case study on the financial reports of Turkcell, a communication and technology company listed both on the New York Stock Exchange (NYSE) and the Borsa Istanbul (BIST), the differences between IFRSs and U.S. GAAP accounting standards in the measurement of overall financial performance and position are documented. Overall findings show that IFRSs change the appearance of financial statements significantly. While IFRS reporting extenuates “the bottom line” it accentuates total assets with higher shareholder equity compared to U.S. GAAP. This chapter might be a practical guide for users, preparers, and regulators to understand the cosmetic impact of IFRSs on financial statements.

scholarly journals Accounting conservatism and uncertainty in business environments; using financial data of listed companies in the Tehran stock exchange

2020 ◽  
Vol 5 (2) ◽  
pp. 179-194
Author(s):  
Marziyeh Hejranijamil ◽  
Afsane Hejranijamil ◽  
Javad Shekarkhah
Keyword(s):  
Financial Reporting ◽  
Business Strategy ◽  
Stock Exchange ◽  
Financial Statements ◽  
Accounting Conservatism ◽  
Financial Data ◽  
Financial Reports ◽  
Content Type ◽  
Business Environments ◽  
Natural Mechanism

PurposeApplying conservatism to the preparation of financial statements has been considered not only as a natural mechanism to protect the interests of the stockholders but also as a practical way to assist managers to deal with uncertainty in business environments. This study aimed to determine if increasing uncertainty can lead to raising the level of conservatism used in preparing financial statements. The result of the study could provide a better understanding of the factors that influence the level of applying conservative methods in accounting and financial reporting.Design/methodology/approachThe model introduced by Basu (1997) was used to measure accounting conservatism. Business strategy and alertness were considered as two proxies for classifying companies according to their level of uncertainty. By adding each proxy of uncertainty to the model and using the financial data of 183 companies for five years (from 2013 to 2018), the multiple regression models were estimated through EViews. It was assumed that inert companies and those with prospector strategy face a higher level of uncertainty. Consequently, they were expected to report their financial status conservatively.FindingsFindings revealed that companies, which adopted a prospector strategy, applied more conservative methods in their financial reports. This indicated that facing wider uncertainty results in reporting more conservatively, which could not be said about inert companies.Originality/valueThe current research is the first research undertaken in a developing country such as Iran, and the study's results may benefit other developing countries.

scholarly journals DE JURE HARMONIZATION OF FINANCIAL REPORTING FOR LISTED COMPANIES: EVIDENCE FOR SELECTED CEE COUNTRIES

2021 ◽  
Vol 6 (1) ◽  
pp. 137-146
Author(s):  
Dijana Perkušić ◽  
◽  
Ivica Pervan
Keyword(s):  
Financial Reporting ◽  
Listed Companies ◽  
Influential Factors ◽  
Reporting Standards ◽  
Regulatory Requirements ◽  
Financial Reports ◽  
Financial Reporting Standards ◽  
Country Level ◽  
Eu Integration ◽  
The Eu

Globalization of business and free flow of capital resulted in strong demand for comparable financial reports worldwide. An important element of achieving de facto harmonization of financial reporting is de jure harmonization, i.e. harmonization of regulatory requirements on the country level. Although more than 100 countries have a requirement for use of IFRS (International Financial Reporting Standards) for listed companies, de facto harmonization is still an ongoing process. De facto harmonization is affected by many influential factors, among which de jure harmonization represents one of the most important factors. For the purpose of the study, the authors developed an index of de jure harmonization (IDJH) based on the EU regulatory framework and evaluated its value for 5 CEE countries (Croatia, Bosnia & Herzegovina, Montenegro, Slovenia and Serbia). Empirical findings reveal significant differences in de jure harmonization, related to the country's status in relation to EU integration processes. Keywords: de jure harmonization, financial reporting, CEE countries

scholarly journals Penerapan IFRS Dan Pengaruhnya terhadap Keterlambatan Penyampaian Laporan Keuangan: Studi Empiris Perusahana Manufaktur di Bursa Efek Indonesia Periode Tahun 2008-2010

2012 ◽  
Vol 3 (2) ◽  
pp. 993
Author(s):  
Stepvanny Margaretta ◽  
Gatot Soepriyanto
Keyword(s):  
Financial Reporting ◽  
Firm Size ◽  
Financial Statements ◽  
Influential Factors ◽  
Reporting Standards ◽  
Public Accounting ◽  
Financial Reports ◽  
Audit Opinion ◽  
Accounting Firm ◽  
Financial Reporting Standards

There are several factors that affect the company's delay in submitting the financial statements are often referred to as Audit Delay, among others IFRS (International Financial Reporting Standards), firm size, profitability, size public accounting firm, audit opinion, and complexity. One factor that is quite prominent is the application of IFRS that have not been uniform across all companies in Indonesia. It could also lead to Audit Delay. Firm size theoretically means companies bigger scale required to submit financial reports on time. As for profitability, KAP size, and complexity of the audit opinion is also decent enough to be considered as one of the influential factors on Audit Delay. The results of this study indicate that the application of IFRS, profitability, size KAP, audit opinion, and complexity does not have a significant impact on the delay for submission of financial statements. Finaly, a factor that leads to significant effect of time delay submission of financial statements is the size of the company.

scholarly journals Research on the accounting quality of public listed companies at the Budapest Stock Exchange

2018 ◽  
Vol 2018 (99 (155)) ◽  
pp. 165-186
Author(s):  
Gábor Tóth ◽  
Zsuzsanna Széles
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Evaluation Model ◽  
Evaluation Process ◽  
Financial Statements ◽  
Listed Companies ◽  
Accounting Quality ◽  
Consolidated Financial Statements ◽  
Private Companies ◽  
Accounting Principles

The operation of a financial reporting system is very expensive. In all areas where costs arise, it is important to examine whether the benefits exceed the costs or not. The objectives of financial reporting in Hungary are specified by Act C of 2000 on Accounting (HLA). In this paper, we will show these objectives and the defined accounting principles, as well. With the help of previous research, we have reviewed how accounting quality is measured. The aim of this research is to examine the difference in accounting quality between the publicly listed and private companies in Hungary and develop an evaluation process that takes due account of the complexity of the topic. To this end, we studied the separate (non-consolidated) financial statements of 63 Hungarian com- panies during the period of 1998-2016. Forty-seven percent of the statements were disclosed by public companies and fifty-three percent were disclosed by private companies. The examined financial statements were prepared in accordance with the HLA. To evaluate the data, we examined accruals, timely loss recognition, the vola- tility of earnings, cash flow and earnings management towards target. To summarize the results, we developed an evaluation model which is based on the basic accounting principles and the above-mentioned methods. We found that publicly listed companies have higher accounting quality compared to private companies.

scholarly journals The Impact of the Application of International Accounting Standard 34 (IAS 34) on the Industrial Public Shareholding Companies’ Sector in Jordan

2019 ◽  
Vol 5 (4) ◽  
pp. p404
Author(s):  
Maen Yousef Khalaf Hijazin ◽  
Dr. Saeed Mikhled Ahmad Al-naimat
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Simple Random Sample ◽  
Individual Investors ◽  
Financial Reports ◽  
Industrial Companies ◽  
Occupational Characteristics ◽  
Study Population ◽  
The Impact

This study aims at identifying the extent to which IAS 34 (Interim financial reporting) is applied in the Jordanian public shareholding companies, along with highlighting the impact of its application on individual investors at these companies. Study population consists of all Jordanian public shareholding industrial companies (45 companies) listed at Amman Stock Exchange. Due to the large number of the study population, preparers of financial statements (employees of companies), and individual investors, we have selected a simple random sample. The total number of preparers of financial statements (employees), and individual investors were (500) individuals who were selected for the sample. The results showed that all companies are committed to issue and publish interim financial reports within the period specified for that purpose. There is a statistically significant relationship between the variables relevant to the company including (the firm's nature, profitability, and age) and the compliance with issuing the reports and the information content of the financial statements. Moreover there are statistically significant differences in the extent to which IAS 34 is applied in the Jordanian public shareholding companies. These differences arise due to the personal and occupational characteristics of the preparers of financial statements (gender, age, qualification, position, and experience).

scholarly journals Environmental issues as a non-financial reporting area using the example of selected companies listed on the Warsaw Stock Exchange

2020 ◽  
Vol 64 (9) ◽  
pp. 45-56
Author(s):  
Hanna Czaja-Cieszyńska
Keyword(s):  
Financial Reporting ◽  
Raw Materials ◽  
Stock Exchange ◽  
Secondary Data ◽  
Environmental Issues ◽  
Financial Indicators ◽  
Financial Reports ◽  
Warsaw Stock Exchange ◽  
Financial Disclosures ◽  
The Impact

The purpose of this article is to assess the comparability of non-financial disclosures on the impact of economic activity on the natural environment in reports of selected companies listed on the Warsaw Stock Exchange. The ten largest listed companies listed in the WIG-20 index were selected for the study. The analysis of the reports was based on the following disclosure categories: Materials and raw materials, Fuels and energy, Water, Biodiversity, Emissions to the atmosphere, Waste and Effluents, and Others. Within these categories, 14 key environmental non-financial indicators were defined. The empirical study carried out confirmed that the non-financial reports analyzed in all of the seven categories of disclosures were not fully comparable. The research methods used were: literature studies, analysis of legal regulations, analysis of secondary data, as well as methods of induction and synthesis.

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