Pengungkapan Kuantitatif dan Kualitatif Segmen Operasi Berdasarkan PSAK 5 Revisi 2009 (Penyesuaian 2015) di Indonesia

Reporting of operating segments has become an important concern, therefore there is a PSAK 5 regulation which is continuously updated based on IFRS 8 to improve operating segment reporting. This study aims to examine the application of operating segment disclosure and its determinants in public companies in Indonesia.This research method is quantitative method. The operating segment in the financial statements of the LQ 45 Index’s Company in 2016 is analyzed by scoring to the items required by PSAK 5 Revised 2009 (Amandement 2015). The results showed that the majority cozmpany's compliance level of quantitative information is medium level of compliance,. Quantitative disclosure shows the most reported items are profit loss and total assets, meanwhile the least reported item is other non current assets and main customer information . Meanwhile, the most reported item of qualitative disclosure is the main products and services which generate revenues for the operating segments. This study shows that companies disclose more quantitative information than qualitative. In addition, the good corporate governance mechanism that determines the extent of disclosure of operating segments is institutional ownership and the board of directors. This research has implications for operating segment regulators to do better and contribute to the agency theory and signaling theory.

Role of Country-Level Characteristics in Segment Reporting: EU Evidence

Based on a country-level-characteristics framework, we empirically tested the impact of IFRS 8 adoption, the country’s legal system and level of legal enforcement, investor protection, conservatism, and closeness between national GAAP and IFRS on both the quantity and quality of segment reporting. Using a sample of companies from 15 EU countries covering four years (two years preadoption and two years postadoption of IFRS 8), we found that the adoption of IFRS 8 is associated with a decrease in the quantity and an increase in the quality of segment reporting. Moreover, we report that a common-law system, the country-level legal enforcement, and investor protection have a significant and positive impact on the quantity and quality of segment reporting. Meanwhile, country-level conservatism and closeness between national GAAP and IFRS are negatively related to the quantity and quality of segment reporting. In addition to firm-level characteristics, this study extends the prior limited literature by documenting the importance of country-level characteristics as factors that enhance segment reporting practices in Europe. We also discuss the research contributions and implications for research, professional practice, and policymakers.

International Accounting Standards (IAS). Transition of Existing to New Accounting Standards in a Rapid Changing Environment. The Impact of Adoption of New Accounting Standards in the Developed Economies in European Union. Conclusions, Expectations and Perspectives

Adopting a set of accounting standards on a global level derives from the growing globalization of international economies. However, the transition from old to new ones is challenging in a rapidly changing economic environment. This article presents an assessment of IFRS 8 (Operating Segments) adoption, after replacing IAS 14 (Segment Reporting), and examines the impact occurred in the developed economies within the EU, with relevant considerations referring to the current COVID-19 global pandemic situation.This study analyzes the effect of this controversial standard on segment reporting and attempts to identify the determinants of changes in disclosure practices. Based on a four country sample, the current research identifies specific significant financial information changes, although segmentation remains relatively stable. Furthermore, the study includes relevant considerations on reporting, as reflected from current COVID-19 pandemic.The present research includes a historical reference to the development of the accounting standards under examination. Conclusions, expectations, and future perspectives are also presented in the paper.

Does International Financial Reporting Standard 8 improve the firms' information environment?

PurposeThis article analyzes the effect of International Financial Reporting Standard (IFRS) 8 on the informational content of segment data. It aims to assess the change in quality of the financial analysts' and the shareholders' information environment due to the new segment reporting standard to verify the International Accounting Standards Board’s (IASB) expectations and the conclusions of its post-implementation review.Design/methodology/approachBased on a sample of 250 companies listed on Euronext Paris in France, a country with poor legal protection for shareholders, over a nine-year period, the authors test whether the new standard makes the financial analysts' forecasts more accurate and reduces the implied cost of equity capital.FindingsThe findings show that IFRS 8 partially improves the informational content of segment data, partially supporting the outcome of IASB. The management approach may have forced some firms to change their segmentation to provide a more economic view of the business. The poor legal protection for shareholders in France may explain this result.Research limitations/implicationsDue to proprietary and agency costs, firms may withhold segment information whatever the standard used.Practical implicationsThis study contributes to the ongoing debate about IFRS 8 and may interest financial statement users and the international standard-setter for such a criticized standard.Originality/valueThe results contribute to the segment reporting literature by addressing the partial improvement of information environment under the managerial approach in a country with lower investor protection.

Documenting the Results of Audit of the Information Disclosed in the Notes to the Financial Reporting Compiled by International Standards

Financial reporting releases the information requiring disclosure in accordance with national or international accounting and reporting standards. This information is usually released in the notes to the financial reporting, intended for a broader range of users. The notes are the most informative document, by which a user of the reporting can assess the company’s solvency, financial viability or business activity, can be informed about the terms of transactions with related parties, can make assumptions and receive data on management accounting, which are laid as the basis for the management strategy building. The released information is subject to obligatory disclosure, as its content is to be analyzed by national and international regulators and auditors in a way similar to the principal forms of financial reporting. An auditor assesses the received audit evidence in view of its sufficiency and reliability. Results of audit procedures can be summarized and documented. Because the International Standards on Auditing do not provide examples of documenting, the working document “The auditor’s testing of disclosure of the information attached to the financial reporting compiled by IFRS” has been formed, to support the process of documenting audit procedures with respect to the information given in the notes to the financial reporting. Using this working document, an auditor is able to obtain detailed information about a company and indicators of its financial reports, about its items and transactions that, not being subject to recognition in the reporting, are important for the management, about the accounting foundations and the opinions of management on which a company relied in compiling the reports. Depending on the operation specifics of a company, the working document can be supplemented by the following sections: IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations”, IFRS 8 “Operational Segments”, IAS 19 “Employee Benefits”, IAS 37 “Provisions, Contingent Liabilities and Contingent Assets”, IAS 40 “Investment Property” etc. The test, which is a unified working document, can be used by any audit firm. The auditor’s opinion on the information disclosure in the notes to the financial reporting is vitally important bearing in mind that not all the users of financial reports have deep knowledge of the International Accounting and Reporting Standards, but all of them need unbiased and complete data about the company status and performance.

SOLUTIONS TO IMPROVE THE QUALITY OF SEGMENT REPORTS FOR PUBLIC CORPORATION ON THE STOCK EXCHANGE IN HO CHI MINH CITY

Một trong những yếu tố then chốt, nhạy cảm tác động mạnh mẽ đến hành vi của tất cả các đối tượng tham gia trên thị trường chứng khoán đó chính là thông tin tài chính, đặc biệt là thông tin kế toán được trình bày trên báo cáo tài chính (BCTC) của các công ty niêm yết. Trong đó, thông tin trên báo cáo bộ phận (BCBP) được xem là nguồn thông tin quan trọng đối với cả nhà đầu tư cũng như chính các nhà quản trị doanh nghiệp. Nếu như BCBP cung cấp những thông tin hữu ích cho các nhà đầu tư trong việc phân tích, đánh giá các dữ liệu tài chính thì báo cáo này cũng là tài liệu quan trọng giúp doanh nghiệp đánh giá đúng về những lợi ích kinh tế và rủi ro trong tương lai. Chính vì thế, nâng cao chất lượng báo cáo bộ phận luôn là vấn đề được nhiều nhà nghiên cứu quan tâm và khai thác dưới nhiều góc độ khác nhau, kể cả những ý kiến trái chiều trong đánh giá về chất lượng thông tin trên BCBP. Trong khi đó, lộ trình áp dụng IFRS vào Việt Nam đã được Bộ Tài chính ban hành bao gồm hai giai đoạn từ 2022 đến 2025 và giai đoạn 2 từ sau 2025 nhằm hướng tới áp dụng chuẩn mực Báo cáo tài chính quốc tế (IFRS) vào Việt Nam. Với mục tiêu cung cấp những bằng chứng thực nghiệm về thực trạng chất lượng BCBP, những nhân tố tác động đến chất lượng thông tin được cung cấp qua BCBP của các doanh nghiệp niêm yết trên Sở giao dịch chứng khoán Thành phố Hồ Chí Minh, nhóm nghiên cứu đi sâu phân tích và đề xuất một số kiến nghị nhằm nâng cao chất lượng thông tin trình bày trên BCBP, qua đó cung cấp tài liệu tham khảo hỗ trợ cho quá trình chuyển đổi để vận dụng Chuẩn mực báo cáo bộ phận (IFRS 8) vào Việt Nam.

Information Value of the Segment Reporting in the Polish Energy Sector

Conventional energy sources dominate in the Polish energy sector, which is a huge risk to meeting environmental protection requirements. Polish energy companies are facing challenges related to meeting the requirements of the European Union and the National Energy Policy. The paper attempts to answer the question whether the ongoing discussion on the future of the energy sector, dealing with such issues as development of renewable energy sources is reflected in the annual financial reports of companies listed on the Warsaw Stock Exchange and covered by the WIG_ENERGY index. This study contributes to the extant literature on financial disclosures in several ways. First, the examination of compliance of segment reporting of selected companies listed on the Polish stock exchange with International Reporting Standards (IFRS) was carried out (particularly IFRS 8 – Operating Segments). Second, the information value of disclosures for investors in the energy industry was assessed. The empirical part was preceded by a description of segment reporting principles in accordance with IFRS 8 and the summary of challenges facing the energy sector in Poland.

Applying ERP and MES to Implement the IFRS 8 Operating Segments: A Steel Group’s Activity-Based Standard Costing Production Decision Model

The purpose of this paper is to create a smart operating roadmap, which shows the entire process of a strategic business plan, including functions, methods, and tools, to link IFRS 8 (International Financial Reporting Standards No.8) to ABSC (Activity-Based Standard Costing), and to integrate ERP (Enterprise Resource Planning), MES (Manufacturing Execution System) under an Industry 4.0 environment. The IFRS is a global accounting framework that provides high-quality global accounting standards and governance principles for companies. Using the ABSC production decision model can support the Chief Operating Decision Maker (CODM) in planning Product–Business Unit (Product-BU) organization, which complies with the definition of the IFRS8 operating segments. The case study of the steel group uses the organizational design of the ERP system to achieve the systematization of reportable segments financial statements. In this process, the mathematical programing methods and ABSC can be used to obtain the optimal solutions for sales, costs, and profits. An international steel group case is used to demonstrate how to apply the methodology proposed in this paper for operating planning and control. The sensitivity analysis on the carbon emission reduction goal of environmental sustainability is also presented for the steel group case.