scholarly journals Determinants of stakeholder dialogue in large public interest entities operating in Poland

2021 ◽  
Vol 45 (3) ◽  
pp. 171-188
Author(s):  
Joanna Krasodomska ◽  
Ewelina Zarzycka ◽  
Dorota Dobija
Keyword(s):  
Financial Reporting ◽  
Public Interest ◽  
Research Approach ◽  
Stakeholder Dialogue ◽  
Reporting Standard ◽  
Dialogue Process ◽  
Potential Factors ◽  
One Year ◽  
Corporate Social ◽  
Infor Mation

Objective: The aim of the research presented in this article is to identify factors that influ-ence the involvement of large public interest entities that operate in Poland in conducting dialogue with stakeholders and thus foster the development of dialogue-based accounting. Methodology/research approach: The literature review identified potential factors that increase the chances of developing dialogic accounting. A sample of 159 large public interest entities was used to verify the hypotheses. Data were collected through content analysis of statements (reports) on non-financial information published for 2020, as well as infor-mation posted on their websites and corporate social media accounts. The logit regression method was used to verify the hypotheses. Results: Our findings suggest that the non-financial reporting standard used and the com-pany’s orientation towards employees may influence the dialogue process with stakehold-ers, increasing chances for the development of dialogic accounting. Limitations: The research sample is limited to one country, and the data were collected for one year only. Originality/value: The Article broadens accounting knowledge, in particular on the deter-minants that influence public interest entities’ involvement in stakeholder dialogue.

scholarly journals Transiting to International Financial Reporting Standards for Small and Medium Sized Enterprises in Ethiopia: Benefits and Costs

2020 ◽  
pp. 72-87
Author(s):  
Dagnachew Abera Hunde ◽  
Kefiyalew Belachew Bayu
Keyword(s):  
Financial Reporting ◽  
Transition Period ◽  
Accounting Information ◽  
Sampling Technique ◽  
Structured Interview ◽  
Systematic Sampling ◽  
Research Approach ◽  
Reporting Standard ◽  
Building Program ◽  
Benefits And Costs

In every nation in the world small and medium enterprises (SME) have a crucial role in the Socio-economic development. Thus Over a decade’s they are increasingly attracting different stakeholder’s attention. It is in this regard the International Accounting standard Board (IASB) issued IFRS for SMEs in July 09, 2009. This study examined the Benefits and Costs of transiting to International financial reporting standard for Small and Medium sized Enterprises (IFRS for SMEs) in Ethiopia. So as to achieve this objective the researcher used mixed research approach. Semi-structured interview and questionnaires were used as an important tool for gathering the necessary data from tour operators as target group. From 320 SMEs given population size, 32 SMEs firms selected using systematic sampling technique and 93 is the sample size of respondents chosen from 32 SME firms based on Judgmental sampling technique. It was found in this study the benefit of transition towards IFRS for SME is expected to decreases the information asymmetry between insiders and outsiders users of accounting information. Moreover its long run effect helps to achieve of the theoretical concept of the primary & secondary qualitative characteristics of accounting information (Relevance & Reliability Vs Comparability & understandability). Above all, the aggregate effects may increase the number of cross boarder investments, increasing the alternative of sources of financing and reducing cost of debt. Furthermore, the finding shows transition towards IFRS for SME is costly to firms primarily because of the superior exertion of efforts, understanding and information systems needed and during post transition period additional effort needed to manage the risk of potential material misstatements appearing in the IFRS for SMEs-generated financial statements. Lack of knowledge (understanding) requires them to be engaged in a capacity building program with the coordination of Auditing and Accounting Board of Ethiopian & academicians.

scholarly journals A critical analysis of the meaning of the term ‘value’ in Section 30(6)(e) of the Companies Act

2018 ◽  
Vol 21 (1) ◽  
Author(s):  
Mareli Dippenaar
Keyword(s):  
South African ◽  
Financial Reporting ◽  
Intrinsic Value ◽  
Historical Analysis ◽  
Fair Value ◽  
Research Approach ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Intended Meaning ◽  
African Context

Background: Sections 30(4) and 30(5) of the Companies Act 71 of 2008 (the Act) require, inter alia, disclosure of the remuneration received by each director in a company’s annual financial statements. Section 30(6) defines the term ‘remuneration’, which includes, inter alia, in Section 30(6)(e) the ‘value’ of any option or right granted to a director, as contemplated in Section 42, which deals with options for the allotment or subscription of securities or shares of a company. It is uncertain what the intended meaning of the term ‘value’ is in this context and it is interpreted differently by different companies in practice. Aim: The objective of this study was to understand the meaning of the term ‘value’ in Section 30(6)(e) of the Act (including the date of measurement thereof), as intended by the legislature. Setting: This article examined existing literature in a South African corporate and legislative environment. Method: A non-empirical study of existing literature was conducted by performing a historical analysis within a South African context. A doctrinal research approach was followed. Results: Possible interpretations of the term ‘value’ include the grant date fair value of the rights, the fair value at reporting date, the fair value on vesting date, the expense calculated in terms of the International Financial Reporting Standard on share-based payments, the gain on exercise of the rights and the intrinsic value on reporting date. It is submitted that the most likely meaning is the grant date fair value. Conclusion: It was found that the meaning of the term ‘value’, for purposes of Section 30(6)(e) of the Act, is unclear and interpreted differently by different companies. It is, therefore, recommended that the wording of Section 30(6)(e) is amended to reflect the meaning intended by the legislature.

scholarly journals Social responsibility reporting standards

2021 ◽  
pp. 27-43
Author(s):  
Ana Rep ◽  
Nikolina Dečman
Keyword(s):  
Social Responsibility ◽  
Financial Reporting ◽  
Public Interest ◽  
Sustainability Reporting ◽  
Financial Information ◽  
Csr Reporting ◽  
Voluntary Standards ◽  
Sustain Ability ◽  
Corporate Social

It is well known that today, in addition to already established financial reporting, multi-national companies are paying more and more attention to non-financial reporting on social, eco-nomic, environmental and governmental issues. Corporate Social Responsibility (CSR) reporting is still predominantly voluntary, and it is not standardized. However, there are various international organizations which have been developing frameworks and voluntary standards for non-financial reporting. Those organizations have been putting a sizable amount of effort, time, and knowledge in order to offer some specific solutions to interested organizations preparing CSR reports. Pro-posed standards, guidelines, and frameworks serve as tools for simplifying CSR reporting. In that sense, the most important providers of sustainability reporting guidance, such as GRI, OECD, United Nations Global Compact, International Organization for Standardization, certainly stand out. A significant contribution to promoting the importance of sustainability reporting was also made by the Non-Financial Reporting Directive (2014/95/EU) which obliged large public interest companies with over 500 employees to disclose certain non-financial information. According to the analysis of the content and scope of the most important frameworks and standards of sustain-ability reporting, it can be confirmed that they have certainly contributed to improving the quality of non-financial reporting.

Analyzing the accuracy of bank reliability assessment based on official reporting

2020 ◽  
Vol 26 (2) ◽  
pp. 327-348
Author(s):  
O.I. Razumova
Keyword(s):  
Financial Reporting ◽  
Financial Stability ◽  
Systems Approach ◽  
Reliability Assessment ◽  
Financial Statements ◽  
Rating Agencies ◽  
Short Term Forecasting ◽  
One Year ◽  
Key Indicators ◽  
Correct Forecast

Subject. The article considers ratings of banks' reliability. Objectives. The aim is to evaluate the accuracy of existing methodology for bank reliability assessment based on official reporting, to identify patterns between indicators and factors that can affect the financial sustainability of a bank. Methods. The study draws on the comparative analysis of key indicators of bank's financial statements one year prior to the introduction of provisional administration, and evaluates the results of existing methods for analyzing the financial standing of banks. Results. The findings show that those methods that use only official reporting to assess the reliability of banks are not sufficient for short-term forecasting of financial stability. Ratings of the majority of agencies that rest on official reporting have a high percentage of erroneous results, therefore, rating agencies are not able to predict the regulator's decisions regarding a credit institution. Conclusions. Currently, there are no universal methods to determine reliability, which would provide a correct forecast of deteriorated financial position of the bank. It is important to use a systems approach, where financial reporting is not a key component.

Corporate Social Responsibility Rhetoric in Times of Crises. A Rhetorical Analysis of CSR Reports Prior to and After Major Corporate Crises

MedienJournal ◽  
2018 ◽  
Vol 42 (1) ◽  
pp. 33-50
Author(s):  
Maria Gruber
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Rhetorical Analysis ◽  
General Motors ◽  
Csr Reporting ◽  
Corporate Social Responsibility Reporting ◽  
One Year ◽  
Corporate Social ◽  
Corporate Crises ◽  
Corporate Crisis

Corporate Social Responsibility reporting has grown increasingly in importance for companies in terms of portraying themselves as good corporate citizens. However, when confronted with a major corporate crisis that evoked an extensive loss in stakeholders’ trust, it remained unclear, how to further deal with the need for CSR communication without presenting oneself as exceedingly hypocritical. In the course of this study, the questions of how and to what extent crises cause change in a corporation’s CSR rhetoric were addressed. Therefore, the utilization of the rhetorical dimensions of logos, ethos, pathos, cosmos and autopoiesis as well as the amount of negative disclosure in the CSR reports of the world’s leading automobile companies (Toyota, General Motors, Volkswagen) were analyzed, one year before and one year after they had maneuvered themselves into a corporate crisis. The rhetorical analysis revealed that the distinctive context of each case (including the corporations’ responsibility for the crisis) dictated the rhetorical adjustments of the CSR reporting after the crisis. Moreover, it could be shown, that when reporting on the crisis cause itself, corporations tend to apply the dimension of ethos more frequently to counter the audience’s potential perception of their hypocrisy.

Federal public finance accounting standard “Employee Payments”

2020 ◽  
pp. 5-10
Author(s):  
Olga Shinkareva
Keyword(s):  
Public Finance ◽  
Public Sector ◽  
Financial Reporting ◽  
Financial Statements ◽  
Employee Benefits ◽  
Reporting Standard ◽  
Accounting Standard ◽  
Disclosure Of Information

The article is devoted to the analysis of the Federal Accounting Standard of Public Finance “Payments to Personnel”, which will be applied in the conduct of accounting and reporting from January 1, 2021, including medical state and municipal institutions. The article considers the main provisions of this standard — peculiarities of recognition and evaluation of objects of personnel benefits accounting, termination of their recognition, as well as disclosure of information on objects of personnel benefits accounting in accounting financial statements. This standard is compared with the International Public Sector Financial Reporting Standard 39 “Employee Benefits”

Corporate Social Responsibility and Financial Reporting Quality:Evidence from Restatements

2020 ◽  
Author(s):  
Yi-Hung Lin ◽  
Hua-Wei (Solomon) Huang ◽  
Mark E. Riley ◽  
Chih-Chen Lee
Keyword(s):  
Financial Reporting ◽  
Negative Relationship ◽  
Reporting Quality ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Reporting Quality ◽  
Csr Reporting ◽  
Corporate Social ◽  
Reporting Environment ◽  
The Relationship

We find a negative relationship between aggregate CSR scores and the probability that firms restated financial statements over the period 1991-2012. We then break that period into three sub-periods in order to determine whether the relationship holds for all three sub-periods. During the sub-periods of 1991-2001 and 2002-2005, the negative CSR score - restatement probability relationship holds. The negative relationship disappears in the 2006-2012 sub-period. Additional analyses indicate CSR scores are significantly higher in the 2006-2012 sub-period, suggesting the disappearance of the relationship between aggregate CSR scores and financial statement quality may relate to changes in CSR assessments and the CSR reporting environment. Our findings update the literature linking CSR scores and financial reporting quality and identify the need for further research as to the reasons the link between these constructs disappeared.

scholarly journals Adapting the Default Weighted Survival Analysis Modelling Approach to Model IFRS 9 LGD

Risks ◽  
2021 ◽  
Vol 9 (6) ◽  
pp. 103
Author(s):  
Morne Joubert ◽  
Tanja Verster ◽  
Helgard Raubenheimer ◽  
Willem D. Schutte
Keyword(s):  
Survival Analysis ◽  
Financial Reporting ◽  
Proportional Hazards ◽  
Proportional Hazards Model ◽  
Survival Curve ◽  
Cox Proportional Hazards ◽  
Cox Proportional Hazards Model ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Ifrs 9

Survival analysis is one of the techniques that could be used to predict loss given default (LGD) for regulatory capital (Basel) purposes. When using survival analysis to model LGD, a proposed methodology is the default weighted survival analysis (DWSA) method. This paper is aimed at adapting the DWSA method (used to model Basel LGD) to estimate the LGD for International Financial Reporting Standard (IFRS) 9 impairment requirements. The DWSA methodology allows for over recoveries, default weighting and negative cashflows. For IFRS 9, this methodology should be adapted, as the estimated LGD is a function of in the expected credit losses (ECL). Our proposed IFRS 9 LGD methodology makes use of survival analysis to estimate the LGD. The Cox proportional hazards model allows for a baseline survival curve to be adjusted to produce survival curves for different segments of the portfolio. The forward-looking LGD values are adjusted for different macro-economic scenarios and the ECL is calculated for each scenario. These ECL values are probability weighted to produce a final ECL estimate. We illustrate our proposed IFRS 9 LGD methodology and ECL estimation on a dataset from a retail portfolio of a South African bank.

Corporate social responsibility and earnings management in the EU: a panel data analysis approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Panagiotis E. Dimitropoulos
Keyword(s):  
Corporate Social Responsibility ◽  
Panel Data ◽  
Social Responsibility ◽  
Earnings Management ◽  
Financial Reporting ◽  
Negative Association ◽  
Content Type ◽  
Corporate Social ◽  
The Eu

Purpose Over the past decades, corporate social responsibility (CSR) has been considered as a significant corporate strategy and also has been documented as a main information dissemination mechanism of corporations to shareholders, creditors and other external stakeholders. This fact makes the CSR activities and CSR performance interconnected with the quality of firms’ financial reporting. The purpose of this paper is to study the impact of CSR performance on the earnings management (EM) behaviour using a sample from 24 European Union (EU) countries summing up to 121,154 firm-year observations over the period 2003–2018. Design/methodology/approach The study uses a multi-country data set with various dimensions of CSR performance including indexes regarding workforce, community relations, product responsibility and human rights protection. The empirical analysis is conducted with panel data regressions. Findings Evidence supports the negative association between CSR and EM indicating that high CSR performing firms are associated with less income smoothing and discretionary accruals, thus with higher financial reporting quality. Practical implications Regulatory agencies in the EU could use the findings of the study for the improvement of the accounting framework via enhancing the use and publications of social and environmental responsibility information and reports. Social implications Also, the current paper could be of interest not only to academic researchers but also to potential and existing investors in European corporations. The negative association between CSR performance and EM could be used by investors in assessing the risk of firms and the quality and reliability of their financial information. Originality/value This is the first study within the EU, which considers the multi-facet characteristics of CSR on the quality of accounting earnings and offers useful policy implications for regulators and investors.

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