An analytical study on impact of international financial reporting standards on financial statements and ratios of Indian companies

India is one of the emerging economies in the world. For economic development, foreign direct investment (FDI) is needed, to facilitate the investment climate. There is a need to integrate its financial reporting with rest of the economies of the globe so that investors from outside will appreciate the financial results and financial positions of the companies. This will provide uniformity and comparability of financial statements with the financial statements prepared in other countries. At present, Indian companies are preparing their financial statements as per Generally Accepted Accounting Principles in India (Indian GAAP). These Principles are based on IFRS issued by International Accounting Standard Board (IASB). However, these principles were modified substantially as per Indian laws and practices.

Akuntansi Aset Biologis – Studi Kasus PT. Bibit Indonesia

Latar belakang: Setiap negara memiliki sistem akuntansi berbeda yang disesuaikan dengan kebutuhan negara tersebut. Untuk meningkatkan komparabilitas dan kualitas laporan keuangan secara global, International Accounting Standard Board (IASB) mengembangkan dan mengeluarkan International Financial Reporting Standard (IFRS) dengan tujuan untuk mengurangi peraturan pelaporan yang berbeda antar negara, mengurangi biaya pelaporan keuangan perusahaan multinasional dan mengurangi biaya analisis laporan keuangan. Tujuan penelitian: Untuk mengatahui menganalisis perlakuan akuntansi aset biologis perusahaan, menganalisis klasifikasi aset biologis, nilai pasar aktif dan metode penilian aset biologis berdasarkan PSAK 69. Metode penelitian: Metode penelitian ini mengunakan metode kualitatif. Objek penelitian dilakukan pada PT. Bibit Indonesia. Hasil penelitian: Hasil penelitian menjukkan perusahaan sudah melakukan perlakuan akuntansi aset biologis sesuai dengan PSAK 69. Namun, masih terdapat beberapa perbedaan dimana perusahaan tidak melalukan pengukuran kembali nilai aset biologis pada setiap akhir periode pelaporan. Pengukuran kembali nilai wajar aset biologis diproyeksikan untuk laporan keuangan tiga bulan ke depan. Kesimpulan: Klasifikasi aset biologis perusahaan terbagi atas ayam pembibit induk nenek dan telur tetas. Masih belum terdapat pasar aktif atas aset biologis perusahaan. Jika ingin mengukur nilai pasar sebagai salah satu aspek pengukuran nilai wajar aset biologis, perusahaan mengambil dari nilai penjualan Parent Stock Daily On Chick (PS DOC), penjualan dari final stock broiler dan penjualan culled/infertile egg. Penilaian aset biologis perusahaan menggunakan metode hybrid, yaitu untuk ayam yang masih dalam masa pertumbuhan nilai ayam diukur berdasarkan biaya. Metode perusahaan dalam menilai aset biologis telah mengikuti langkah-langkah yang dijelaskan PSAK 69. Selisih menggunakan metode proyeksi nilai wajar dengan aktual nilai wajar menyebabkan selisih yang cukup besar.

The Enactment and Critique of International Accounting Standard Two

Harmonising the International Accounting Standards/International Financial Reporting Standards (IAS/IFRS) globally has been the objective of national boards that seek to eliminate existing differences. The harmonisation project has been substantially efficient in realising the IFRS in emerging economies. However, concerning the international accounting standard two, the existence of different inventory valuation methods in literature is one of the dilemmas confronting the application of IAS 2 in many nations globally. This study through a comprehensive literature review discusses and present a critique on the international accounting standard two to afford insight that will be beneficial to both scholar and standard setters. The findings reveal a formidable contribution of the current asset inventory on companies and compliance levels in South Africa. Furthermore, these findings supplement prevailing body knowledge on IAS two and the value relevance of accounting inventories. Highlighting key critiques on the IAS 2 prescriptions and application internationally and also revealing the standards own crucial flaws and strengths and on companies. Received: 6 May 2021 / Accepted: 23 August 2021 / Published: 5 November 2021

Intangible Assets Accounting in Vietnam: Perspectives of a Professional Accounting Group

This study focused on presenting the views of members of a professional accounting group about intangible assets accounting in Vietnam. This group consisted of 44 random interviewees who were auditors, lecturers, and banking staff, among others. Based on the results of this survey, the characteristics of the professional accounting group, including occupation, educational level, and work experience, etc., were collected. The accounting regulations for intangible assets in Vietnam in accordance with the guidelines of Vietnamese Accounting Standard (VAS) No. 04 (Intangible assets and other circulars) were then analyzed. Especially, these interviewees indicated three main obstacles of intangible assets accounting through this survey. First, the skills and knowledge of accounting staff are the most current weaknesses of intangible assets accounting. Following that, the slow integration of Vietnamese accounting regulations with the international accounting system for intangible assets is a difficult point. Lastly, the limited knowledge of managers and internal governance are weak points. Hence, to improve intangible assets accounting in Vietnam, the Ministry of Finance (MOF) should organize additional training courses or workshops to train accountants and managers based on the contents of International Accounting Standard (IAS) No. 38 for intangible assets and IAS 36 for the impairment of assets. In addition, small specialized discussions among accountants, lecturers, auditors, and others in one city should be encouraged to open accounting seminars/workshops. These gatherings would be a good way to share their accounting experience with each other and improve their knowledge of accounting.

Accounting Quality and its Challenges in 21st Century

This paper describes current research to drive future research challenges in accounting quality. The definition of accounting quality is mainly varying depending on the objective that the study pointed. Previous research revealed that many proxies describe the accounting quality but most of them from the financial perspective. Furthermore, this paper tries to expose this research issue in the behavioural approach and drive future research in the mixed method. It concludes that the behavioural issues can be a research model, triggering future research challenges in accounting quality. The authors support these triggers from the perspectives of political hegemony, bureaucracy ratcheting, cognitive distortion, and international accounting standard. Finally, we infer and simultaneously predict that accounting quality would broaden its concepts and lasting impression in the 21st century.

IFRS 4 Disclosure and Firm Performance of Insurance Companies in Nigeria

IFRS 4 is an International Accounting Standard Board providing guideline for the accounting of insurance contract. This paper therefore, examined the compliance of IFRS 4 and performance of quoted Insurance Companies in Nigeria. The study further investigate the extent of compliance with disclosure requirements of IFRS 4 and determined the relationship between ROA, liquidity, ROE, leverage and firm size with compliance of IFRS4 disclosure. Quantitative grading system was used to investigate the extent of compliance. Multiple regression analysis was further used to find out the relationship between ROA, liquidity, ROE, leverage and firm size with compliance of IFRS 4 disclosures. The study found that the sampled companies complied at 90% which suggest a strong compliance. ROA, ROE, and Liquidity have a positive significant relationship with compliance with a p-values of 0.0324<0.05, 0.01<0.05, and 0.0247<0.05 respectively. The study also found that leverage is negative but has a significant relationship with compliance. Therefore, the study recommends that, the Inspectorate unit which is the monitoring and enforcement mechanisms need to be improved upon. Although, the level of compliance is good, but mandatory disclosures are meant to be fully complied with 100%.

The Current Situation of International Accounting Convergence and the Strategic Choice of International Convergence of Accounting Standards for Chinese Enterprises

With the deepening of world economic integration, IFRS has become more and more widely used worldwide. Under the new situation that the current international financial regulatory framework is being rebuilt, the international accounting landscape is undergoing major adjustments, and the international accounting standard setting agencies are actively promoting the reform of governance structure, my country needs to review the situation, follow the trend, and choose an international accounting standard that meets the needs of national conditions.

Transformational Leadership Model & Marketing Supporting the Rall of Auditor According to Job Ethics and International Accounting Standard

The research includes (an exploratory study of economic units in Iraq after the year 2003). The aims of our study can be clarified through the following questions: First: Does the exercise of the supervisory role in the economic unit require an important and essential role for the auditor based on the transformational leadership and self-marketing component. Second: Exercising the supervisory role in the economic unit requires adopting the arts of self-marketing for the accounts auditor to convey the content of his ideas and his method of work. Third: Does the application of international standards require the auditor’s involvement in a transformative leadership role, in order to reduce tensions and differences of opinion regarding the application of the mentioned standards. Fourth: Do workers in the various departments of the economic unit and mainly in the accounting departments need to be directed and led towards the new reality of applying international standards, or not.

Convergence of IFRS and Ind AS – A Descriptive and Exploratory Insight

IFRS are designed to bring consistency to accounting language, practices and statements, and to help businesses and investors make educated financial analyses and decisions. The Ind AS are named and numbered in the same way as the corresponding International Financial Reporting Standards (IFRS). National Advisory Committee on Accounting Standards (NACAS) recommends these standards to the Ministry of Corporate Affairs (MCA). Indian viewpoints do not receive adequate attention at International Accounting Standard Board (IASB). Those are not debated adequately at the IASB before rejection. The present paper will discuss the reasons behind convergence of IFRs, rather than adoption. It also shows the Carve Outs of Ind AS from IFRS by providing valid reasons.