The ever-changing economic environment changes the business conditions and performance and requires to reflect the changes on accounting information of legal entities. The development of International Financial Reporting Standards (IFRS) is a dynamic and complex process, which helps to provide fair and true information on legal entities. Although, it’s important to evaluate the changes of accounting standards by preparers of financial statements and the users of the information. The purpose of the research is to determine the impact of significant changes of international financial reporting standards on the financial indicators of the companies during 2017-2020 period. Research methods of comparative analysis of scientific literature and legal acts, content analysis, case analysis, grouping of information, systematization, comparative analysis and generalization were used. Main research results state that in 2017-2020 the key changes were related to three standards: IFRS 9 - Financial Instruments, IFRS 15 - Revenue from Contracts with Customers and IFRS 16 - Leases. The study of the impact of the application of the new standards on the financial indicators of 24 Lithuanian listed companies revealed that the new IFRS 16 had the greatest impact on the financial indicators of the companies. The first time, the application of IFRS 16 had a significant impact on 6 of the 24 companies analysed. There was a negative impact on liquidity and solvency ratios, working capital, return on assets and the turnover of assets.
Due to the lack of research in social business sustainability development, it is necessary to investigate this problem, seeking community wellbeing. The goal of this paper is to elucidate the importance of sustainability development in relation to its different dimensions and the relationship between consumer perception and sustainability development. A systematic scientific literature analysis was performed. The results show that although sustainability is one of the main aspirations of companies, it is still difficult to achieve for effective transformation. The framework also reflects that sustainability is a particular change that has to be implemented over time, involving not only the business itself but also the surrounding environment (other systems). Furthermore, to achieve sustainable development it is essential to define which sustainability indicators will be selected, how they will be measured, and how the results will be tracked. A sustainable social business model must not be considered in isolation from its surrounding environment. Moreover, it is relevant to identify the public opinion, i.e., potential consumers, regarding effective sustainability development in order to get a more efficient result.
The reports of the heating sector are one of the most important sources of heating data, accurate and reasonable pricing and is an essential objective of public interest. The verification of the reports on regulated activities is particularly important to regulate interpretation of the principles of companies’ operating cost and accounting separation systems. The purpose of the article is to identify the main elements of the regulatory activities report whereas have to be improved and needs more attention of auditors and regulators. There were examined 52 reports of Lithuanian heating sector companies using document (content) analysis approach. Misstatements were analysed using specific evaluation criteria to identify areas for improvement. The development of an appropriate methodology and the efficient functioning of the process should help to avoid errors or inaccuracies in determining, fair recognition, disclosure and valuation of fixed assets as an essential factor of heating prices.
Annotation. Big Data (BD) is one of the most commonly used terms in the modern world of business and information technology. The main features of BD (quantity, speed, and variety) introduce to unique processing of large information amounts, regardless of their scale, storage and computational complexity, analytical and statistical correlation. The significant emergence and potential use of BD has affected business accounting and financial auditing by replacing the long-used mechanical data collection and completion processes with automatic ones, comparing and searching for correlations between different structure and nature data.
According to analysis, the main advantages of applying the BDA in the audit process are related to faster and more efficient execution of procedures, obtaining more detailed results, grouping and comparing data according to selected criteria. In the meantime, cons of BD application are related to the additional professional supervision requirements and the proper data analysis in order for the correct results interpretation.
The paper presents the conceptual model, which shows the relationships between BDA tools and financial audit procedures. In addition, the model shows factors and risks, which have impacts on internal and external environment of clients, the applicability of specific audit procedures. It was found that the application of the model in the procedures includes testing of 5 relationships, i. e. classification, clustering, regression and time series analyses, the method of association rules and text research, visualization tool.
The Aim of the Study is to identify the application of DDA tools in financial audit procedures.
Research Methods: comparative and systematic analysis of the literature; content analysis; statistical data analysis; graphical analysis.
Keywords: Big data, Big data Analytics, Financial Audit, Financial Audit Procedures.
JEL Code: M15, M40, M42.
In 2008, a global financial crisis happened. It led to strong currency price volatility. Because of that, discussions on the need for an alternative, institution-independent currency occurred. Due to this reason the first decentralized cryptocurrency Bitcoin was created. The new and not yet explored concept of cryptocurrency changed the previously strictly defined role of money. Currently, with the growth of the cryptocurrency market, the most important regional institutions (e.g. FED, EBA) provide regulatory guidelines of a recommendatory nature. The regulations of these institutions remain significant, reflecting the dominant approach to digital money. Because of this reason, the aim of the study is to identify the factors that determine the difficulties in the legalization process of cryptocurrencies and to investigate the features of the European Union's cryptocurrency regulatory policy. Methods used: analysis of scientific literature and legal documents, systematization, comparison, interpretation and generalization of information. The results of the study show that the European Union has taken active regulatory action with the growing importance of cryptocurrencies in the world. To date, a document regulating the definition of cryptocurrencies has not yet been adopted at Union level, but the adoption of the cryptocurrency regulation proposal presented in 2020 would mean greater clarity and security for cryptocurrency issuers, intermediaries and users.
The COVID-19 pandemic crisis differs in nature from the previous financial crisis and therefore different solutions must be taken. In this context, governments are seeking to help businesses deal with the effects of the pandemic, which have had the greatest impact on corporate liquidity. The analysis of government support measures in the context of the COVID-19 pandemic has shown that EU governments use not only direct but also indirect financial support to business. However, the latter is not sufficiently analysed in scientific works. The aim of the study is to analyse the measures of indirect financial support for business applied by EU governments and to provide the classification of the measures described. In order to achieve the aim, the following methods of scientific research were used: analysis, synthesis, induction, deduction, abstraction, and analogy of scientific literature, normative documents, reports and reviews of international organisations, and support measures applied in governments’ practice.
The study developed an original structure of government indirect financial support measures for business, comprising three components of government support measures: (1) minimisation of legal norms related to corporate finance; (2) indirect financial assistance related to labour law; (3) strengthening the legal framework for corporate finance. The measures analysed are described in more detail by distinguishing them into separate groups. The structure developed is based on concrete examples of application in EU countries and could contribute to a more targeted approach to business support in the future.
In recent decades, as the newly created internal and external environment conditions have radically changed the environment of business, the process of creating and implementing business strategy became more relevant. The data, generated by strategic management accounting, makes this process more efficient. The article examines the concept of the strategic management, its importance and related instruments. The article provides results of the research carried out to determine the level of awareness and application of strategic management accounting instruments in Lithuanian companies. Empirical research has shown that the level of awareness and application of the strategic management accounting instruments in Lithuanian companies is minor. The most common strategic management accounting instruments are as follows: customer profitability analysis, benchmarking, competitive position monitoring, strategic pricing, and strategic costing. The least known and, according to the research, the least applicable strategic management accounting instruments are: attribute costing, product life cycle accounting and brand value budgeting. According to the study, the most significant reason for the difficulties in implementing strategic management accounting instruments is the lack of time required to implement the instruments.
The beginnings of accounting can be found even in the 14st century, when trade transactions began to be recorded in the books of account. To this day, accounting has evolved at certain stages, depending on goals were set for the accounting for that period. In the article after concluding the analysis of scientific sources the following are presented: the stages of accounting development, which were influenced not only by different Anglo-Saxon, Germanic and Latin accounting systems, but also by economic and political factors; the influence of accounting on the development of accounting theories is revealed. The concept of positive accounting theory, assumptions for manipulating accounting and the concept and application methods of earnings management and creative accounting are presented. Based on the research, a model of multi-paradigm approach is presented, in which the methodologies of normative and positive accounting theory can be fully applied. The proposed complexity of methodologies can help to solve not only the problems of creative accounting and earnings management, but also other problems of the 21st century. accounting issues.
Annotation. Tax planning is a topic of interest for taxpayers, practitioners, public authorities and academics. Analyzing scientific literature on tax planning shows that some authors are looking at the tax planning process, while others are looking at the factors that determine tax planning. Although there are a number of scientific literature analysing these factors, it is noted that there is a need to systematize this literature. The purpose of the article is to identify the determinants of tax planning activities in companies and households. Methods used in the article: systematic analysis of scientific literature, systematization of information, comparison, generalization. After analyzing the scientific literature, authors provide a concept of tax planning and selected determinants that encourage and inhibit the involvement of both types of taxpayers in tax planning activities. After a theoretical analysis, it was found that corporate tax planning is influenced by the company's profitability, profit begor taxes, internationalisation, the scale of foreign operations, listing, capital receptivity and growth, development, size and leverage of the company, optimism of the company CEO, experience of his military service, lobbying, reputation and financial accounting issues. Household tax planning is influenced by taxpayers' age, income, intra-household income inequality, experience, a compendium tax system, its complexity, fines, the likelihood ofecassionisation. Religiousity is a factor that hampers the involvement of both businesses and households in tax planning activities.
Keywords: tax planning, determinants, tax avoidance, households, company.
JEL Code: H26
The emergence and popularity of the cryptocurrency has caused a great deal of controversy in the scientific community over market development opportunities, further use of virtual money, and its integration into traditional accounting systems. The global financial market creates many opportunities to use electronic and virtual money for various types of transactions, and the question of how to record cryptocurrency and related transactions in accounting remains relevant. The aim of the research is to evaluate the alternatives of cryptocurrency accounting. For the research methods of scientific literature analysis, comparison, interpretation, information systematization, generalization were used. Although various authors, national and international accounting standards regulators provide their insights and recommendations on cryptocurrency accounting, a unified system has not been formed yet. Currently are analysed such alternatives of cryptocurrency accounting as financial asset, intangible asset or inventory.