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Łazarowicz, Edyta. "Discussion about the objective of financial reporting based on International Financial Reporting Standards." Zeszyty Teoretyczne Rachunkowości 2016, no. 87(143) (July 4, 2016): 89–104. http://dx.doi.org/10.5604/16414381.1207436.
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The article analyses and assesses proposals for changes concerning the objective of financial reportingbased on International Financial Reporting Standards (IFRS), presented in comments on the exposuredraft of the Conceptual Framework for Financial Reporting (2015). The majority of respondents thinkthat the objective of financial reporting should give more prominence to the importance of providinginformation about management’s stewardship. Moreover, some respondents suggest introducing thedefinition of stewardship into the Conceptual Framework and presenting implications of shifts in theobjective of financial reporting for the future standard setting and for preparing financial statements.Based on the analysis of comment letters and the review of accounting literature, the conclusion is thatthe objective of financial reporting should be changed. It is, however, disputable, if stewardship should bea separate object. There is too little research on the relation between the stewardship and decisionusefulnessobjectives. The findings of this research could show accounting standard-setters the potentialtrade-offs and conflicts between these objectives.
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Gerber, Marthinus Cornelius, Aurona Jacoba Gerber, and Alta Van der Merwe. "An analysis of fundamental concepts in the conceptual framework using ontology technologies." South African Journal of Economic and Management Sciences 17, no. 4 (August 29, 2014): 396–411. http://dx.doi.org/10.4102/sajems.v17i4.525.
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The interpretation of financial data obtained from the accounting process for reporting purposes is regulated by financial accounting standards (FAS). The history and mechanisms used for the development of ʻThe Conceptual Framework for Financial Reporting’ (the Conceptual Framework) as well as the financial accounting standards resulted in impressive volumes of material that guides modern financial reporting practices, but unfortunately, as is often the case with textual manuscripts, it contains descriptions that are vague, inconsistent or ambiguous. As part of the on-going initiatives to improve International Financial Reporting Standards (IFRS), the International Accounting Standards Board (IASB) promotes the development of principle-based IFRS, which aim to address the problems of vagueness, inconsistency and ambiguity. This paper reports on the findings of a design science research (DSR) project that, as artefact, developed a first version ontology-based formal language representing the definitions of asset, liability and equity (the fundamental elements of the statement of financial position as defined in the Conceptual Framework) through the application of knowledge representation (ontology) techniques as used within computing. We suggest that this artefact may assist with addressing vagueness, inconsistencies and ambiguities within the definitions of the Conceptual Framework. Based on our findings, we include suggestions for the further development of a formal language and approach to assist the formulation of the Conceptual Framework. The project focuses on the Conceptual Framework for Financial Reporting after the incorporation of Phase A in the convergence project between the Financial Accounting Standards Board (FASB) and IASB.
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ter Hoeven, Ralph. "Inleiding op het thema Conceptual Framwork." Maandblad Voor Accountancy en Bedrijfseconomie 90, no. 1/2 (February 4, 2016): 7–8. http://dx.doi.org/10.5117/mab.90.31242.
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Het Conceptual Framework van de International Accounting Standards Board (IASB) is een onderdeel van het niet-verplichte deel van de International Financial Reporting Standards (IFRS). Dat betekent dat bedrijven die op basis van IFRS rapporteren niet als zodanig aan de bepalingen van het CF hoeven te voldoen. In die zin heeft het Conceptual Framework dezelfde status als de implementation guidance en de basis for conclusions die de publicatie van een IFRS begeleiden. Het CF is ook geen onderdeel van het Europese goedkeuringsproces van IFRS. Desalniettemin wijden wij een themanummer aan het Conceptual Framework en in het bijzonder aan de wijzigingsvoorstellen (ED/2015/4) die op 28 mei 2015 door de IASB zijn gepubliceerd.
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Ajekwe, Clement Chiahemba. "Application of Professional Judgement in International Financial Reporting Standards." European Journal of Accounting, Auditing and Finance Research 10, no. 7 (July 15, 2022): 17–30. http://dx.doi.org/10.37745/ejaafr.2013/vo10.n7pp1730.
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This essay accesses the use of professional judgements in the preparation and implementation of international financial reporting standards by preparers of financial statements. The article samples some domains of professional judgement in financial reporting contained in the Conceptual Framework for Financial Reporting (2018) and selected IAS/IFRS to demonstrate how judgement is exercised in the preparation and presentation of principles-based standards. The sampled domains or action areas for the exercise of professional judgement are going concern, materiality, accruals accounting, accounting policies, presentation/disclosure, measurements, estimates, recognition/de-recognition, classifications and revenue recognition. From the analyses of these domains, the essay concludes that (i) the exercise of professional judgement is a sine qua non in the implementation of IFRSs; and by extension, the ability to exercise professional judgement is not only the key skill for preparers of PBS-based financial statements; it is also the hallmark of an accounting professional.
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Anuar Syahdan, Saifhul, Safriansyah Safriansyah, and Lisandri Lisandri. "SEBUAH KESENJANGAN IMPLEMENTASI INTERNATIONAL FINANCIAL REPORTING STANDARS (IFRS), ANTARA TEORI, PRAKTIK DAN RISET PADA PERGURUAN TINGGI." Jurnal Riset Akuntansi dan Keuangan 1, no. 3 (May 2, 2017): 215. http://dx.doi.org/10.17509/jrak.v1i3.6697.
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Development of accounting theory is a way of theory, practice and research. Three aspects of the accounting development is an integrated whole, which would form a logical reasoning embodied in engineering financial reporting to become a Conceptual Framework. In practical terms, the adoption of IFRS is not an option for Indonesia, but must, in the hope, foreign investment will continue to enter or even increased and we are not isolated in the international arena. Nobes ( 2010) in his book states that, the International Accounting Standards have an important role in developing countries. Adoption of IFRS is the cheapest way for these countries than setting its own standards. Since January 1 st, 2012, Indonesia has adopted IFRS, there is a gap or imbalance between academics accounting practices and understanding regarding the implementation of IFRS in Indonesia. It should be encouraged readiness for accountants, auditors, management, Tax Officials, and regulators and academics to begin adjusting to the provisions of IFRS
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Bohušová, Hana. "General aaproach to the IFRS and US GAAP convergence." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 59, no. 4 (2011): 27–36. http://dx.doi.org/10.11118/actaun201159040027.
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Two most significant organizations in the field of financial reporting regulation setters in the world – the Financial Accounting Standard Board (FASB) and the International Accounting Standards Board (IASB) have recognized that in order international capital markets to function properly, a single set of high-quality international accounting standards designed especially for listed companies around the world must exist. The effort should be especially aimed at spreading the IFRS around the world and the FASB – IASB Convergence. The most significant difference between the US GAAP and IFRSs is in the area of the general approach. The IFRSs are based on basic accounting principles with limited application guidance, US GAAPs are based especially on rules with specific application guidance. The main objective of this work is to assist in the development of an improved common conceptual framework that provides a sound foundation for developing future accounting standards.The structure of the paper is divided into three parts. The theoretical background presents the historical development of the IAS/IFRS and US GAAP convergence efforts in general. The second part of the paper is aimed at the comparative analysis of conceptual frameworks (the IAS/IFRS and US GAAP). At the end, based on the results of the comparative analysis, the basic principles for a common conceptual framework, which should be applicable, are clarified. The paper uses the standard methods of scientific work. Firstly, the method of description is used to describe the development in the area of IAS/IFRS and US GAAP convergence. Then, a comparative analysis is used to discuss the differences in the position a principles of conceptual frameworks the IAS/IFRS and US GAAP. At the end the method of synthesis, deduction and induction is used.
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Downes, Jimmy F., Tony Kang, Sohyung Kim, and Cheol Lee. "Does the Mandatory Adoption of IFRS Improve the Association between Accruals and Cash Flows? Evidence from Accounting Estimates." Accounting Horizons 33, no. 1 (September 1, 2018): 39–59. http://dx.doi.org/10.2308/acch-52262.
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SYNOPSIS We investigate the effect of mandatory International Financial Reporting Standards (IFRS) adoption in the European Union on the association between accounting estimates and future cash flows, a key concept of accounting quality within the International Accounting Standard Board conceptual framework. We find that the predictive value of accounting estimates improves after IFRS adoption. This improvement is largely driven by specific types of accounting estimates, such as accounts receivable, depreciation, and amortization expense. We also find that the improvement is concentrated in countries with larger differences between pre-IFRS domestic GAAP and IFRS. Our findings suggest that IFRS allow managers to exercise their judgment to provide information about future cash flows through the more subjective/judgmental portion of accounting accruals. JEL Classifications: M16; M49; O52. Data Availability: The data used in this study are from public sources identified in the study.
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Musa, Auwalu. "The Role of IFRS on Financial Reporting Quality and Global Convergence: A Conceptual Review." International Business and Accounting Research Journal 3, no. 1 (January 3, 2019): 67. http://dx.doi.org/10.15294/ibarj.v3i1.65.
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This study examines the role of International Financial Reporting Standards on financial reporting quality and the global convergence. The IFRS adoption is already an issue of global relevance across countries of the world due to the quest for uniformity, reliability and comparability of financial statements of companies. The adoption of IFRS in Europe is an example of accounting quality across-borders with different institutional frameworks and enforcement rules. This allows investigating whether, and to what extent accounting regulation per se can affect the quality of financial reporting and leads to convergence in financial reporting. Specifically, the study review how the change in the recognition and measurement of firms operating accrual item, the loan loss provision, affects income smoothing behaviour and timely loss recognition. The study found that the IFRS convergence reduces the scope for earnings management, is related to more timely loss recognition and leads to more value relevant accounting measures. Thus, the study reviews background and guidance on the change in financial reporting quality following extensive IFRS adoption around the world countries. The study found that a difference in accounting quality is related to country’s overall infrastructure setting. The study also highlights the importance of investor protection for financial reporting quality and the need for regulators to design mechanisms that limit managers' earnings management practice. The study found from different literatures that the adoption of IFRS leads to higher quality of accounting numbers and improve foreign direct investment across countries.
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Chata, Tariro, and Lillian Pazvakawambwa. "Evaluation of the cause-and-effect relationship of internal controls on financial reporting in the Ministry of Health and Social Services, Namibia." Journal of Corporate and Commercial Law & Practice, The 7, no. 2 (2021): 134–51. http://dx.doi.org/10.47348/jccl/v7/i2a7.
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This article evaluates the effect of the internal control environment on the quality of financial reporting in the Ministry of Health and Social Services (MOHSS) in Namibia. The Internal Control- Integrated Conceptual Framework of the Committee of Sponsoring Organizations (COSO) of the Treadway Commission was applied as the standard of measurement against the variable internal control, and the Conceptual Framework for Financial Reporting of the International Financial Reporting Standards (IFRS) was used to measure the qualitative characteristics of the financial reporting process. A mixed research method was used to evaluate the cause and effect relationship between the key variables and to measure the perceptions of the respondents on the quality of the financial report. Probability sampling techniques were used on the 269 staff members of the MOHSS, and data were analysed using both descriptive and inferential statistics, using the SPSS software programme. The validity and reliability of data were computed using Cronbach’s Alpha. The results of the study indicated that there is a positive relationship between the key variables although it is weak. Therefore, the study recommends the strengthening of governance systems to improve the safeguarding of financial resources.
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Jian, Ming, and Rony Lim. "Minority shareholders dispute tang Plaza’s value." CASE Journal 16, no. 4 (August 6, 2020): 455–74. http://dx.doi.org/10.1108/tcj-03-2019-0025.
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Theoretical basis This case covers the framework and process to determine fair value as specified in International Financial Reporting Standards (IFRS) 13. It illustrates an instance in which auditors interpret the concept of fair value to be consistent with other principles in standards such as the principle of prudence in the conceptual framework. In addition, a lot of the discussion in the case is applicable to accounting education in any regulatory jurisdictions given the convergence of US generally accepted accounting principles (GAAP) and IFRS 13. In addition, while fair value accounting may have been designed to give investors more useful information, in practise it could involve highly subjective judgement and the resulting implementation may be affected by incentives of different stakeholders. The CK Tang’s case provides an excellent opportunity to discuss incentives of varies parties in determining the fair value in financial reporting decisions. In short, this case could be a good jumping-off point to talk about management and auditors’ incentives in financial reporting in general. Research methodology Publicly available information (e.g. financial reporting standards, corporate announcements and reports, news reports) was used as the basis for this case. Case overview/synopsis The case centres on an iconic Singaporean integrated retailing and property landlord entity: Tang holdings. As part of its succession planning, the company’s founding family decided to take its listing arm, C.K. Tang Limited (CK Tang hereafter), private in May 2006. The Tang brothers, who represented the controlling family, initiated several attempts to delist the company. The minority shareholders of CK Tang were unhappy that the offer price was below the net asset value of the company. The minority shareholders also highlighted that the reported fair value of the flagship Tang Plaza complex understated its highest and best use and might not possibly comply with International Financial Reporting Standards (IFRS) 13. Complexity academic level The case can be used for class discussions with undergraduate students or master students in intermediate accounting courses.
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Rosli, Siti Nur Ayuni, and Nurul Nazlia Jamil. "Conceptual Framework Related to the Impact of Coronavirus Disease 2019 (Covid-19) on Malaysian Private Entity Reporting Standard (MPERS) adoption by Small and Medium Enterprises (SMEs) in Malaysia." Ulum Islamiyyah 33, S4 (December 17, 2021): 15–29. http://dx.doi.org/10.33102/uij.vol33nos4.413.
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Malaysian Private Entity Reporting Standard (MPERS) serves as a new reporting framework to private entities and significant milestones to the capital market. This enables the entities to assert the financial statements with full compliance with the International Financial Reporting Standard (IFRS). Thus, the focus of this paper is to discuss the conceptual framework on the impact of external pressure and environmental uncertainty on the quality of financial reporting by Small and Medium Enterprises (SMEs) in Malaysia. The effect of the Covid-19 pandemic on environmental uncertainty has an impact on the quality of financial reporting. It is expected that the Malaysia’s authority and regulator will anticipate the impact of the Covid-19 pandemic, given the outbreak has created disruption in all business chains including the SMEs in Malaysia.
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Sayumwe, Michel, and Claude Francoeur. "Who Really Benefits from Mandatory Adoption of IFRS? A Closer Look at Preparers and Users of Financial Information." Research in Applied Economics 9, no. 1 (March 30, 2017): 1. http://dx.doi.org/10.5296/rae.v9i1.10900.
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Since 1 January 2005, the European Union (EU) has mandated implementation of International Financial Reporting Standards (IFRS) for preparation of consolidated financial statements for EU-listed firms. This paper analyzes the economic impact of mandatory adoption of IFRS on firms, investors, and creditors. Relying on the positive accounting theory, we study the economic impact of the new conceptual framework of financial information from IASB (2010), especially in paragraph OB2, where investors and creditors are designated as the main users of financial information, and QC 38, which assesses whether the benefits of financial information justify the costs associated with its production and use. Our sample is composed of 2,926 European firms that adopted IFRS in 2005. Results show that firm’s cost of capital declines when comparing data before and after IFRS adoption. For creditors, our results suggest that credit rating improves after IFRS adoption. However, we do not notice any significant difference in the quality of accounting earnings for investors.We also test if these results hold in the presence of asymmetric information, financial dependence and family ownership structure. Our results confirm the above trend. We conclude that the market anticipates the content of accounting data, and that mandatory adoption of IFRS has no impact on investors.
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Brouwer, Arjan, Alidus Dannenberg, and Peter Epe. "De invloed van het nieuwe Conceptual Framework op de rapportage over prestaties binnen IFRS." Maandblad Voor Accountancy en Bedrijfseconomie 90, no. 1/2 (February 4, 2016): 41–49. http://dx.doi.org/10.5117/mab.90.31246.
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In de Exposure Draft Conceptual Framework for Financial Reporting blijft de International Accounting Standards Board (IASB) uitgaan van een balansbenadering waarbij baten en lasten worden afgeleid van de mutaties in balansposten. Financiële prestatie wordt niet afzonderlijk gede"nieerd en de IASB reduceert dit tot een presentatievraagstuk gericht op Other Comprehensive Income (OCI) en recycling. Relevante informatieverschaf"ng over prestaties vraagt echter om een prominentere plaats in het nieuwe Conceptual Framework en een meer genuanceerde aanpak voor de ontwikkeling van concepten die de basis kunnen vormen voor standaarden leidend tot relevante informatie over de prestaties van een entiteit. Inzicht in prestaties vraagt in ieder geval om afzonderlijke informatieverschaf "ng over alle relevante attributen van het resultaat en dat is niet mogelijk via slechts een tweedeling tussen resultaten die worden gepresenteerd binnen winst of verlies en resultaten die worden gepresenteerd binnen OCI.
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Mbawuni, Joseph. "Perceived Benefits and Challeges of IFRS Adoption in Ghana: Views of Members of Institute of Chartered Accountants, Ghana (ICAG)." International Journal of Financial Research 9, no. 1 (November 30, 2017): 99. http://dx.doi.org/10.5430/ijfr.v9n1p99.
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This paper provides an empirical evidence regarding the perceived benefits and challenges of International Financial Reporting Standard (IFRS) adoption in Ghana. It draws on rich body of knowledge in IFRS from both developed and developing countries to develop a conceptual framework for the perceived benefits and challenges that come with IFRS adoption. It used data from a cross-section of 762 members of the Institute of Charted Accountants, Ghana. This study found that a number of perceived benefits and challenges with the adoption of IFRS in Ghana, notable among the benefits was the ease of comparability of financial data across borders, and the top-most challenge was the continuous amendments to IFRS. There were few differences in evaluation between old and young accountants among the respondents. The theoretical and managerial implications are discussed. This study contributes to the limited empirical research regarding the perceived benefits and challenges of IFRS adoption in Sub-Saharan African in general and Ghana in particular.
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Fomina, Olena, Olena Moshkovska, Svitlana Luchyk, Yulia Manachynska, and Mikhaylo Kuzub. "Managing the agricultural enterprises’ valuation: actuarial approach." Problems and Perspectives in Management 18, no. 1 (March 24, 2020): 289–301. http://dx.doi.org/10.21511/ppm.18(1).2020.25.
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This article aims at finding ways to improve the efficiency of Ukrainian agricultural enterprises’ valuation management based on a multidimensional actuarial model. The article confirmed the hypothesis of the relationship between accounting information, published in the financial statements of agricultural enterprises, compiled according to international financial reporting standards (IFRS), and actuarial management reporting. It is the latter, in the context of financial reporting conceptual basis, which promotes foreign investor’s managerial decisions on the expediency of investing temporarily free financial resources in the development of the agro-sector. The methodology of the research is based on optimization of the algorithm for estimating the agricultural enterprise market value within the framework of a cost-effective approach based on information filling of the actuarial management reporting using the method of adjusted net assets. The results of the study showed the dependence of investment attractiveness of Ukrainian agricultural enterprises on qualitative content of the reporting information provided within the framework of international accounting. The practical value of the results confirmed the optimal algorithm for estimating the value of agribusiness based on the accounting and information of actuarial management reporting according to its spatial interpretation from 3D to 5D format. The proposed 5D model for managing the value of agribusiness will facilitate an objective assessment of the agricultural enterprise value in just one step. AcknowledgmentThe article has been prepared within the research project “Business Value Management” (state registration No. 0118U000131) implemented in the Kyiv National University of Trade and Economics.
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GET’MAN, Viktor G., and Vladislav S. KARTASHOV. "A comparative analysis of the use of fair value and alternative valuation methods in IFRS." International Accounting 22, no. 9 (September 15, 2021): 986–1000. http://dx.doi.org/10.24891/ia.24.9.986.
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Subject. This article analyzes the various types of value used in IFRS to assess assets and liabilities. Objectives. The article aims to conduct a comparative analysis of the types of value used in IFRS when assessing assets and liabilities, and identify the features of the use of fair value as a type of value, considering the use of certain levels of fair value and restrictions on their use. Methods. For the study, we used the systems analysis, comparative study method, information structuring, data grouping, deduction, and other methods of scientific research. Results. The article summarizes the advantages and disadvantages of each of the valuation methods described in the Conceptual Framework for Financial Reporting – IFRS. It systematizes the standards that use certain types of value, and analyzes the features of the use of fair value. The article also identifies factors that affect the ability to measure a higher level of fair value. Conclusions. Fair value is one of the most used valuation methods in international accounting practices. However, the use of fair value in estimating the value of reporting items is limited due to the complexity and high cost of its qualitative valuation. This makes companies use alternative valuation methods.
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Costa, Patrícia de Souza, Gilvania de Sousa Gomes, Guillermo O. Braunbeck, and Maria Eduarda Gomes Santana. "A Safari in Brazil: evidence regarding the Framework-Based Approach to Teaching." Revista Contabilidade & Finanças 29, no. 76 (April 2018): 129–47. http://dx.doi.org/10.1590/1808-057x201804760.
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ABSTRACT This study aims to present the results of using the Open Safari case for teaching in the Accounting Sciences course of a Brazilian public university, and obtain evidence regarding its effectiveness in developing the skills and competencies needed for learning and applying International Financial Reporting Standards (IFRS), by analyzing the results in light of the Bloom Taxonomy. The use of cases for teaching has been shown to be an efficient mechanism for developing and improving skills and competencies, and IFRS Education considers the method conducive to teaching based on the Conceptual Framework of the International Accounting Standards Board (IASB). The research was carried out with the participation of 159 students enrolled in the Accounting Theory (AT) discipline in 2013 and 2014. In addition, five focus groups were formed, with an average of eight students each. The results of the research suggest that in the students’ perception the Open Safari case helps in developing skills and competencies, especially those related to exercising judgment and accounting choices associated with IFRS and the critical ability to consider different possibilities, which is a typical scenario in the corporate environment. The skills indicated as being the most improved are linked to the ability to consider more than one solution for real problems, to interpreting scenarios, to consolidating various contents of the discipline and the course, to associating these with practice, and developing critical thinking and an individual responsibility for one’s own learning. The case was even shown to be efficient in accessing more sophisticated levels of the Cognitive Domain of acquisition and consolidation of knowledge of the Bloom Taxonomy. This study contributes by reinforcing the idea that the Open Safari case fulfills the aims of IFRS Education for the Framework-Based Approach to Teaching.
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Maroun, Warren, and Robert Garnett. "The Transnet pipeline case study." Emerald Emerging Markets Case Studies 4, no. 7 (November 26, 2014): 1–11. http://dx.doi.org/10.1108/eemcs-01-2014-0009.
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Subject area Financial reporting. Study level/applicability Postgraduate (honours and masters in financial reporting). Case overview Transnet is the utility company responsible for, inter alia, the operation, construction and management of South Africa's fuel pipeline infrastructure. The company is wholly owned by the South African Government and prepares its financial statements in compliance with International Financial Reporting Standards (IFRS). One of Transnet's capital projects involves the construction of an upgraded multi-fuel pipeline. The expected costs of construction ballooned from ZAR12.6 billion (approximately USD120 million) to ZAR24 billion (approximately USD240 million) over a five-year period. This has raised questions about the prudential management of the company's capital projects and the basis on which the government subsidises Transnet's capital costs. The significant increase in project costs also begs the question: how should the cost of the self-constructed pipeline be accounted for in Transnet's annual financial statements? Expected learning outcomes Describe and explain the qualitative characteristics of useful information in terms of the Conceptual Framework (2010) and summarise the framework's key principles. Evaluate these principles, drawing connections between them and the relevant academic theory (as per the prescribed readings), with specific reference to the accounting for self-constructed plant and equipment. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Subject code CSS 1: Accounting and Finance
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ISANSHYNA, Galyna. "TRENDS IN THE DEVELOPMENT OF REPORTING BY BUSINESS AND PUBLIC ADMINISTRATION ENTITIES." Economy of Ukraine 2021, no. 1 (January 24, 2021): 54–68. http://dx.doi.org/10.15407/economyukr.2021.01.054.
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The high urgency of reporting by business and public sector entities in Ukraine and the EU is confirmed by the fact that out of 34 speakers at the IFRS Forum – 2020 “Through Transparency to Sustainable Development: New Realities of the Profession” almost one in four chose it as the topic of their report. With this in mind, the main problematic aspects of reporting of domestic business entities in various sectors of the economy are researched, its development against the background of globalization, composition of the internal public sector researched. The requirements for the composition of the administration report and the management report in the context of the current legal framework are systematized. In recent years, integrated reporting has been gaining momentum in Europe, which should combine the information of disparate reports in order to be able to compare it by different subjects and periods. The composition of voluntary annual reporting of legal entities in Europe is considered and an assessment of their impact on the achievement of sustainable development goals is provided. One of the clearest trends over the last four years has been the increasing use of the term«integrated report» and the statement that reports have been prepared in accordance with the IIRC Conceptual Framework. The issue of complication of international financial reporting standards is considered and the analysis of standardization of non-financial reporting is carried out. It is determined that the reform of accounting and reporting in budgetary institutions is impossible without the introduction of the budget reporting system at the level of united territorial communities, districts and regions in parallel with decentralization and widespread use of non-financial reporting.
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Masruki, Rosnia, Khaled Hussainey, and Doaa Aly. "DEVELOPING ACCOUNTABILITY DISCLOSURE INDEX FOR MALAYSIAN STATE ISLAMIC RELIGIOUS COUNCILS (SIRCS): QUANTITY AND QUALITY." Management and Accounting Review (MAR) 17, no. 1 (April 30, 2018): 1. http://dx.doi.org/10.24191/mar.v17i1.757.
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This study aims to develop Accountability Disclosure Index (ADI) for Malaysian State Islamic Religious Councils (SIRC), concerning both quantity and quality. In this case, the quality of disclosure items was developed based on the qualitative characteristics, which rely on the International Financial Reporting Standards (IFRS) conceptual framework; namely, relevance, faithful representation, understandability, comparability and timeliness. Each characteristic is scored based on the ‘benchmark’ score, ranging from poor (1) to excellent (5). However, some of the characteristics have been modified to contextualize the SIRC study setting. Both quantity and quality of disclosure items index might contribute to a methodology for analysing and evaluating annual reports. Results show fifty-seven items of disclosure information, which were regarded by stakeholders relevant to be disclosed by SIRC. Indeed, all these disclosure items should be disclosed in SIRC annual reports, so as to meet the expectations of a wide range of stakeholders. With regards to the quality of disclosure, two different sets of qualitative characteristics for non-financial and financial statement disclosure were designed. All five qualitative characteristics were adapted to measure the quality of financial disclosure, whereas for non-financial disclosure, 'timeliness' was dropped due to the voluntarily nature of non-financial disclosure.
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Oreshkova, Hristina. "THE DEBATE ON PRUDENCE IN ACCOUNTING." CBU International Conference Proceedings 5 (September 23, 2017): 343–60. http://dx.doi.org/10.12955/cbup.v5.949.
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In support of the critical analysis targeted at substantiating the necessity of reintroducing “prudence” in the Conceptual Framework for Financial Reporting (CF), that is the primary author’s goal, the article provides further results as well as views and arguments, based on research, provoked by the International Accounting Standards Board’s decision to revise the CF (in September 2010) and remove “prudence” in favour of “neutrality” regarded as a qualitative characteristic. The author’s aim is not to discuss the role of the CF as a whole, or its objectives, but to contribute to the current debate on a complicated and highly controversial issue, raised in the Discussion Paper (DP), followed (in January 2014 and May 2015) by the Exposure Draft (ED) containing proposals for a revised CF.The thesis held by the author, both before and now, is that for a considerable number of reasons it is imperative to restore “prudence” in the CF, subjected to revision at the moment (and yet expected) as an introduction to thnternational Accounting Standards (IAS)/International Financial Reporting Standards (IFRS), with a clearly defined content of its definition in order to avoid misinterpretation or misunderstanding, which, in my view, will not impair “neutrality”, but will support it.On the basis of my long-lasting research alongside the thorough observation of the regulatory process, I would argue that as a supranational body, developing the accounting norms for many business entities operating in the EU and elsewhere, the EU accounting standards setter, who is responsible for the ambiguities or at least misconception, due to its prerogatives, has not been consistent in its policy with regard to prudence over the years. Probably one major reason is the influence of political, institutional and other factors in the global process of convergence. The development and deliberations as of December 2016 and January and February 2017 as to the revision of the CF have convincingly confirmed that once more.
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James George, Apochi, and Mustapha Lateef Olumide. "IFRS Adoption and Financial Reporting Quality in Nigeria: A Conceptual Approach." European Journal of Accounting, Auditing and Finance Research 10, no. 6 (May 15, 2022): 9–18. http://dx.doi.org/10.37745/ejaafr.2013/vol10n6pp918.
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The adoption of International Financial Reporting Standards (IFRSs) in different countries of the world have become a contemporary issue particularly with regard to the reliability of financial reports. The conceptual and empirical examination of the IFRS adoption and financial reporting quality across different sectors and countries. The study established that some studies used positive approach and some used positive paradigm. Studies used either of primary or secondary source of data, while some used mixed approach. The study found that IFRS adoption are determined by comparing the parameters concerned between pre and post IFRS regimes in given jurisdictions. The review concept and empirical evidences of IFRS adoption and financial reporting quality from many countries reveals that economic consequences of IFRS adoption significantly differ across jurisdictions though its impact has been reported to be positive in majority of studies. Also, few studies report indifferent and negative effects of IFRS adoption on financial reporting quality. The study found that it is argued that IFRS is more financial position focused. It is also observed that the impact of mandatory adoption of IFRS tends to be greater disputed than that caused by voluntary IFRS adoption. In addition, IFRS adoption are found to supersede many other domestic financial reporting standards such as Statement of Accounting Standard (SAS) in Nigeria.
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Sabauri, Levan, and Nadezhda Kvatashidze. "Prospects of Application of International Standards in Financial Reporting by Small and Medium-size Businesses in Georgia." International Journal of Business Administration 9, no. 2 (February 8, 2018): 1. http://dx.doi.org/10.5430/ijba.v9n2p1.
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Drafting financial statements according to the complete (global) International Financial Reporting Standards (IFRS) in place by small and medium-size businesses (enterprises) is a laborious and costly task, so much so that it does not comply with the cost-utility ratio guideline of the IFRS conceptual framework.The International Accounting Standards Board (IASB) developed financial reporting standards adequate with the transactions, deals and information users of the small and medium-size businesses, which resulted in simpler IFRS and ultimately cheaper financial statements and more useful information. Most of the businesses in Georgia are small or medium-size, so simplified IFRS allow them not only to supply information without much effort and excessive costs but develop further and attract investments.
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Thuy Van, Ha Thi, Vu Thi Kim Anh, and Nguyen Dang Huy. "International Financial Reporting Standards and Orientation of Vietnam: “Roadmap & International Experience”." Accounting and Finance Research 7, no. 4 (November 20, 2018): 167. http://dx.doi.org/10.5430/afr.v7n4p167.
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Currently, the Ministry of Finance is implementing Decision 480/QD-TTG dated 03/18/2013 of The Prime Minister on approving the Strategy Accounting - Audit 2020, Vision 2030 and implementing the Resolution 35/NQ-CP of the Government dated 16.05.2016 related to the support and development of enterprises by 2020. Accordingly, the development and improvement the legal framework of Financial Reporting standards in Vietnam is one of the key tasks and urgent needs to be developed to meet the requirements of the economy in the period of integration. The system of International Accounting Standards, including the International Accounting Standards (IAS) and the standards of international financial reporting (IFRS) was issued, adjusted, updated and replaced by The International Accounting Standards Board. International Accounting Standards is an important condition to ensure that companies and organizations around the world can apply uniform accounting principles in the work of preparing and presenting financial statements. Currently, many countries around the world such as USA, Japan and European countries, Asia Pacific are approaching IFRS convergence trend. In the trend of globalization of accounting, Vietnam will not be outside the process of integration with the system of International Financial Reporting Standards. This article will review the process of formation and development of IFRS, the IFRS trends and the advantages and disadvantages of applying IFRS in Vietnam.
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Savina, N., N. Pozniakovska, and O. Miklukha. "CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING: INTEGRATED POLICY." Financial and credit activity: problems of theory and practice 1, no. 36 (February 17, 2021): 76–83. http://dx.doi.org/10.18371/fcaptp.v1i36.227624.
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The project of the International Accounting Standards Board that updates and develops international accounting standards (IASB) has been lasting more than twenty years. In Ukraine, International accounting standards were adopted as the national standards for business and public sectors.
The article analyzes the Conceptual Framework for Financial Reporting for the business sector entities, compares it with the Conceptual Framework for financial reporting for the public sector entities, and the current requirements of the Ukrainian legislation in the field of accounting and financial reporting. The necessity of creating a single Conceptual Framework for financial reporting, based the needs of information users, is substantiated.
The relevant International Standards for the business sector entities became fundamental for the development of International Public Sector Accounting Standards. The similar needs of financial reports users support this approach. At the same time, part of the IPSAS, and the Conceptual Framework take into account the functional peculiarities of the entities in this sector of the economy.
Financial reporting concepts for entities in any sector of the economy determine the aim of financial reporting as that to acquire information concerning the entity. Investors, creditors, other lenders are prior users of financial information in the business sector while society as a whole uses information in the public sector. The Conceptual Framework for the public sector takes into account the peculiarity of this sector of the economy, the main purpose of which is to provide services to society, rather than generating profits and ensuring the return on capital of investors.
The common features of financial reporting standards and their Conceptual Framework, taking into account current trends and global challenges, indicate the possibility and feasibility of creating a unified (integrated) Conceptual Framework for Financial Reporting.
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Coetzee, Stephen A., and Astrid Schmulian. "The Effect of IFRS Adoption on Financial Reporting Pedagogy in South Africa." Issues in Accounting Education 28, no. 2 (December 1, 2012): 243–51. http://dx.doi.org/10.2308/iace-50386.
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ABSTRACT: South Africa has for many years been involved in and supported the work of the International Accounting Standards Board (IASB) (formerly the International Accounting Standards Committee [IASC]). Accordingly, South Africa was an early adopter of International Financial Reporting Standards (IFRS). This paper highlights two significant effects that the adoption of IFRS has had on accounting education in South Africa. First, both “English” and “Afrikaans” universities have faced, to varying degrees, the challenge of shifting from rule-based pedagogy to framework-based teaching of financial reporting. Second, the Afrikaans universities' primary source of reference for their financial reporting students, namely the financial reporting standards, is no longer available in Afrikaans and as a result introduces the risks and complexities associated with the translation from English into Afrikaans.
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Dékán Tamásné Orbán, Ildikó. "Reporting companies’ performance – in respect of the international financial reporting standards (IFRS)." Applied Studies in Agribusiness and Commerce 7, no. 4-5 (December 30, 2013): 107–12. http://dx.doi.org/10.19041/apstract/2013/4-5/15.
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The role of information became more important due to rapidly changing technical conditions, market and economic regulations in our globalizing world. Several regulations tend to provide the framework for reporting performance and income of the companies, but in different statements performance is inconsistently presented and many kind of evaluation method exist in the practice. These facts led to the demand of properly assess the financial health of an organization, and created a commonly accepted rule-system, which name was International Financial Reporting Standards (IFRS). In this paper I tend to present the statements, definitions and factors, which can have great influence in representing the performance, income of the company in the frame of the IFRS, and reveal the differences between the other accounting regulations (EU directives, Hungarian Accounting Act) in this field.
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Дмитриева, И., I. Dmitrieva, Г. Машинистова, G. Mashinistova, Ю. Харакоз, and Yu Kharakoz. "The process of Improving of IFRS and Russian Accounting Practices." Auditor 5, no. 3 (April 1, 2019): 35–40. http://dx.doi.org/10.12737/article_5c88f3464ddaf0.95746469.
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Wadesango, Newman, Edmore Tasa, Khazamula Milondzo, and Ongayi Vongai Wadesango. "A literature review on the impact of IAS/IFRS and regulations on quality of financial reporting." Risk Governance and Control: Financial Markets and Institutions 6, no. 4 (2016): 102–14. http://dx.doi.org/10.22495/rcgv6i4art13.
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The International Accounting Standards Board (IASB) in its objectives and preamble, presume that IFRS adoption and perceived compliance to regulatory framework is associated with increased financial reporting quality. Based on these assumptions, this desktop study reviewed several documents to determine whether the IFRS adoption has led to increased financial reporting quality in Zimbabwe. The researchers reviewed literature on how the IAS/IFRS and regulations affect the financial reporting quality of listed companies. The factors around IFRS adoption were identified (mandatory, voluntary and convergence) and discussed in relation to the financial reporting quality. Evidence from previous studies conducted in line with this same issue shows that there is no conclusive evidence on how IFRS and regulations affect the financial reporting quality. Issues to be addressed in further studies include the importance of financial statements prepared under IFRS framework and the importance of compliance with accounting and auditing requirements.
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FOMINA, Olena, Svitlana SEMENOVA, and Darіa BEREZOVSKA. "TRANSFORMATION OF FINANCIAL REPORTING DURING MARTIAL LAW." Herald of Kyiv National University of Trade and Economics 143, no. 3 (June 24, 2022): 103–13. http://dx.doi.org/10.31617/visnik.knute.2022(143)08.
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Introduction. Under martial law, businesses need comprehensive support to continue to operate and develop. Credentials are the basis for reporting and decision support. At the same time, the transition of enterprises to the use of international standards and the transformation of financial reporting are key to ensuring the transparency of financial reporting, attracting other partners to cooperation and investors, and supporting international organizations. The aim of the article is to determine the features of the organization and methods of transformation of financial statements of small businesses into reporting according to international standards, finding ways to improve them. Methods. During the study, the methodological basis of general and special methods of cognition: analysis, synthesis, induction, grouping, comparison, abstraction, generalization, and system approach are used. Results. Methods of transformation and conversion of financial statements during the transition of enterprises to international financial reporting standards, their advantages and disadvantages are analyzed. The organizational and methodological aspects of the transformation of financial reporting are described, taking into account the peculiarities of accounting and reporting at small businesses in Ukraine under martial law. The conceptual principles of transformation and the types of differences that arise during the transformation and affect the reflection of the information in the reporting prepared according to international standards are established. Conclusions. Transformation of financial statements into IFRS reporting is defined as the process of transition to accounting and preparation of financial statements in accordance with international standards with adjustments to current accounting policies and accounting information, regrouping of indicators prepared in accordance with national standards (including for small businesses) 1 or 25) in accordance with the requirements of IFRS for SMEs or the full package of IFRS on the date of such transition. Transformation of financial statements requires adjustments and taking into account differences that may affect the financial performance and evaluation of companies in martial law.
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Jansson, Andreas. "Global financial reporting convergence: A study of the adoption of International Financial Reporting Standards by the Swedish accountancy profession." Competition & Change 24, no. 5 (October 29, 2018): 429–49. http://dx.doi.org/10.1177/1024529418808970.
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International Financial Reporting Standards (IFRS) is a financial reporting standard for listed corporations in more than half of the world’s countries. This wide adoption combined with its influence on accounting in countries that have not formally adopted it makes IFRS a remarkable case of far-reaching convergence. This paper develops a framework that integrates institutional theory and political economy and employs a discourse analytical approach to address the issue of why the Swedish accountancy profession came to accept and adopt IFRS. The analysis covers the professional debates regarding the measurement of the value of assets and liabilities in the main professional journal over the nearly two decades in which IFRS was gradually integrated into the local accounting standards on a voluntary basis prior to its formal adoption. The analysis emphasizes the combination of a pervasive international development discourse that stresses the significance of financial markets developing into a sense of inevitability and an elite portion of the accountancy profession with a vested interest in change. IFRS can be seen as a strategic professionalization project for the elite members of the accountancy profession which, combined with financial interests, led to its endorsement of the changes and alignment with forces of financialization.
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Perwiragama, Salman Abdurrubi, and Tias Rahmi Fauziyah. "Critical Review on Financial Reporting Practices by Islamic Banks: (Comparison between AAOIFI and IFRS)." Nurani: Jurnal Kajian Syari'ah dan Masyarakat 22, no. 2 (December 28, 2022): 367–86. http://dx.doi.org/10.19109/nurani.v22i2.13584.
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This paper summarizes the findings of a comparative critical examination of the financial reporting methods of Bank Al-Barakah, BTPN Syariah, and Maybank Islamic Berhad. Due to the discrepancy between theory and practice, several past studies have found that Islamic banks need to alter the implementation of their financing facilities. This fact requires clarification. The research employs the quantitative descriptive method and theoretical with secondary data sources derived from literature research, as well as the IASB Conceptual Framework, AAOIFI Conceptual Framework, Resolution 2 of the Sharia Advisory Committee of Bank Negara Malaysia (SAC BNM), Statement of Islamic Financial Accounting Standards (PSAK Syariah), and other related references. The findings of this study indicate that AAOIFI and IFRS interpret the objectives of financial reporting differently. AAOIFI serves sharia principles as an intrinsic component of financial reporting, whereas IFRS implements neutrality of financial reporting from religion or standard components. Overall, the authors of this article maintain that Islamic banks conform to AAOIFI criteria for all of its components, including financial reporting objectives, key accounting assumptions, and SLM-based revenue estimation.
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Abdul, Ghani Faiyyaz, and Malik Abdullah. "Adoption of International Financial Reporting Standard: A Literature Review." American Journal of Economics and Business Innovation 1, no. 3 (September 29, 2022): 36–43. http://dx.doi.org/10.54536/ajebi.v1i3.586.
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International Financial Reporting Standard (IFRS) refers to a unique, uniform, simple, and easily understandable accounting standard acceptable and applied across the globe by various firms. It is emerging as a powerful device to bring uniformity to financial reporting by companies at the global level. Due to rapid industrialization and internationalization, the countries opened their avenue to foreign corporations. Therefore, it has been necessitated to have an accounting system that could bring uniformity and acceptability to financial reporting across borders. This review article has explored the present situation of the IFRS in the light of its emergence at the global level. The paper also proposes the model by merging the IFRS constructs with FDI, robust financial information reporting, transparency, and comparability construct by drawing together and developing the scale for measuring quality financial information through International Financial reporting standards based on existing literature. Against this backdrop, the present review paper seeks to highlight different dimensions and the pros and cons of using the International Financial Reporting Standard across borders. The content analysis has been adopted as the methodological framework for the literature review. The result of studies have confirmed that IFRS assimilation will improve transparency, comparability across the spectrum.
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Vaicekauskas, Darius. "First time adoption of IFRS 15 “Revenue from contracts with customers“: the case of Lithuanian listed companies." Buhalterinės apskaitos teorija ir praktika 21 (March 26, 2020): 2. http://dx.doi.org/10.15388/batp.2020.17.
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Revenue accounting is one of the most important areas of financial accounting. Revenue is one of the key absolute financial ratios that reflects the economic benefits generated by entities that result in increased shareholders‘ equity. This article investigates the first time adoption of new IFRS 15 “Revenue from contracts with customers“ which in International financial reporting standards (hereinafter – IFRS) system is mandatory to apply starting from 1 January 2018. The new IFRS 15 supersedes the previous international accounting standards regulating revenue recognition and introduces a conceptual 5-step revenue recognition model. The purpose of this article is to evaluate the impact of the first-time adoption of IFRS 15 “Revenue from contracts with customers“ on the financial statements of Lithuanian listed companies. This purpose is achieved while using the following research methods: analysis of International financial reporting standards (IFRS) and scientific literature, as well as analysis of the content of financial statements. An empirical study revealed that the first-time adoption of IFRS 15 had no material impact on the financial statements of Lithuanian listed companies. Most of the companies surveyed applied the standard using a simplified retrospective modified method and did not pay much attention to the disclosure of first-time adoption. For those affected by the standard, the effect was mostly notable in the following areas: reclassifications of commissions and brokerage fees, changes in revenue recognition principles from the revenue recognition over a time to revenue recognition at specific point in time and vice versa.
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Van Offeren, Dick, Joop Witjes, and Tim Verdoes. "Ontwikkelingen in het conceptual framework." Maandblad Voor Accountancy en Bedrijfseconomie 87, no. 9 (September 1, 2013): 355–64. http://dx.doi.org/10.5117/mab.87.21915.
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De International Accounting Standards Board (IASB) heeft recent het conceptual framework-project als kernproject aangemerkt. Het oorspronkelijke Framework for the preparation and presentation of financial statements (framework 1989) was aan een fundamentele herziening toe. Samen met de Financial Accounting Standards Board (FASB) heeft de IASB de eerste fase van het Conceptual framework for financial reporting (framework 2010) voltooid. In deze eerste fase worden twee onderwerpen besproken. Dit zijn het doel van financiële verslaggeving en de kwalitatieve kenmerken van financiële verslaggeving. Wij bespreken deze twee onderwerpen en gaan in op de verschillen tussen het framework 2010 en het framework 1989. Wij benadrukken het verschil in toepassingsgebied van de twee frameworks. Het framework 2010 is gericht op het ruimere begrip financial reporting, financiële verslaggeving en het framework 1989 was beperkt tot financial statements, jaarrekeningen.
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Madah Marzuki, Marziana, Abdul Rahim Abdul Rahman, Ainulashikin Marzuki, Nathasa Mazna Ramli, and Wan Amalina Wan Abdullah. "Issues and challenges of IFRS 9 in Malaysian Islamic financial institutions: recognition criteria perspective." Journal of Islamic Accounting and Business Research 12, no. 2 (February 10, 2021): 239–57. http://dx.doi.org/10.1108/jiabr-04-2020-0100.
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Purpose The purpose of this paper is to investigate the effects and challenges of the new amendment of International Financial Reporting Standards (IFRS) 9 in Malaysia from the perspectives of regulators, auditors, accountants and academicians in Malaysian Islamic financial institutions. For the purpose of this study, this paper focuses on the recognition criteria perspective of the standard, which provides a basic understanding of the financial reporting framework. Design/methodology/approach Using 10 series of semi-structured interviews undertaken with key individuals in regulatory bodies, audit companies, full-fledged Malaysian Islamic Banks and Malaysian higher learning institutions. Findings The findings revealed that IFRS 9 strengthens International Accounting Standards 39 in terms of relevance and reliability, recognition of financial instruments and identification of business models. Nevertheless, Islamic financial institutions face challenges in terms of a faithful representation of fair value, substance over form, identification of financial instruments before recognition criteria and the extent of the role of risk management in reducing manipulation in identifying business models. Research limitations/implications This study provides implications to regulators and standard setters in Malaysia to enhance the quality of financial reporting framework and practices in Islamic financial institutions in this country using IFRS 9. Practical implications Practically, the findings of this study can be used by the regulators to resolve the issues that arise in adopting IFRS 9 among Islamic financial institutions to further enhance financial reporting quality. Originality/value The findings of this study are very important to ensure that the adoption of IFRS among Islamic financial institutions are in line with Sharīʿah principles. To date, no studies have been done on the challenges of adopting IFRS 9 among Islamic financial institutions in Malaysia.
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Zubilevych, Svitlana, and Nataly Poznyakovska. "CONCEPTUAL FRAMEWORK OF INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS: WORLD EXPERIENCE AND UKRAINE." International Journal of New Economics and Social Sciences 6, no. 2 (December 22, 2017): 78–85. http://dx.doi.org/10.5604/01.3001.0010.7625.
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The article discusses the role of the "Conceptual framework for general purpose financial reporting of public sector entities" in connection with the reform of the accounting and reporting system in the public sector of Ukraine on the basis of harmonization with International Accounting Standards. The chronology of the development of the Conceptual Framework and its brief content are generalized. An analysis of the purpose of the Conceptual Framework for General Purpose Financial Statements was conducted. Conclusions on the need to develop a national conceptual framework are made.
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Van der Zwan, Pieter, and Nico Van der Merwe. "The Message Conveyed By IFRS-Compliant Information: A South African Perspective." International Business & Economics Research Journal (IBER) 12, no. 9 (August 30, 2013): 1041. http://dx.doi.org/10.19030/iber.v12i9.8051.
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South African companies must prepare financial statements in accordance with International Financial Reporting Standards (IFRS) or other reporting standards modelled on IFRS. Literature suggests that the complexity of IFRS, which stems from detailed rules-based principles in these standards, may harm the ability of users of financial statements to understand financial information in a meaningful way. The primary objective of this study was to evaluate whether selected users and preparers of financial statements in South Africa interpret selected IFRS-compliant information prepared in accordance with rules-based principles in the manner intended by the standard-setters. The results of the study, which are based on data gathered by administering a questionnaire that contained selected IFRS-compliant note disclosures to accounting practitioners, accountancy students, and non-accountants in business, suggest that the participants of the study did not understand such IFRS-compliant information as intended by the standard-setters. Additional disclosure, the adoption of a simplified accounting framework for Small and Medium-sized Entities (SMEs) and the use of an output-based continuing professional education (CPE) system are identified as areas that warrant further research to overcome the threats posed by rules-based principles in IFRS.
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Hameedi, Karrar Saleem, Ali Hilal Union, Hassnain Raghib Talab, and Akeel Hamza Almagtome. "IFRS adoption, cost of equity and firm value: evidence from Iraq." International Journal of Professional Business Review 7, no. 3 (October 5, 2022): e0602. http://dx.doi.org/10.26668/businessreview/2022.v7i3.602.
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Purpose: The aim of this study is to examine the effect of adoption of IFRS on the Iraqi environment by studying the relationship between the adoption of international financial reporting standards and the cost of equity and the effect of the cost of equity on the value of the company. Theoretical framework: The international financial reporting standards (IFRS) are becoming special driver for the convergence of management and financial accounting and as the leading principles for over 120 countries in the world including those that voluntarily adopted the standards. Design/methodology/approach: The population of the study comprises 17 commercial companies listed in the Iraqi Stock Exchange for the periods of 2011-2013 and 2016-2018 with the exception of Islamic companies due to the difference in the privacy of the applicable regulations Findings: The results from the data collected through questionnaire survey showed the distinctive effects of financial and management accounting standards before and after the adoption of IFRS. Therefore, there are inconsistencies in the results of the value of the companies between the samples for the periods before and after the application of international financial reporting standards. Research, Practical & Social implications: The study examined the differences in the outcomes of the years when IFRS was yet to be adopted when the standards are adopted by considering the control variables such as age of the companies, size of the companies and leverages. Originality/value: the value of the study's originality by measuring adopting IFRS for the first time in Iraqi Banking for the periods of 2011-2013 and 2016-2018 with the exception of Islamic companies due to the difference in the privacy of the applicable regulations.
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Musa, Auwalu, and Ibrahim Muhammad Tanimu. "International Financial Reporting Standards and Value Relevance of Financial Information: An Empirical Evaluation of Selected Nigerian Listed Companies." International Journal of Accounting & Finance Review 1, no. 1 (July 29, 2017): 1–11. http://dx.doi.org/10.46281/ijafr.v1i1.13.
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This study investigates the International Financial Reporting Standards (IFRS) and value relevance of financial information among Nigerian listed companies after the adoption of IFRS. 77 sample companies were randomly selected from the population. Data were collected from UUM-Data stream through the annual reports and accounts of companies, which consist of Stock price (dependent variable), Book value of equity and net income as (independent variables) for the year 2016. Ordinary Least Square Regression was the method used in analyzing the variables. The regression result revealed that there is a positive and significant relationship between book value of equity and net income on stock price. These reveal that the financial information of listed companies in Nigeria is more value relevant after the adoption of IFRS. In view of the findings, the study recommends that, Nigerian Stock Exchange should ensure that all listed companies are comply with the accounting framework issued by IFRS, in order to have full disclosure of their financial information.
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Machinistova, Galina. "Entity's operations under the changes in the Conceptual Framework for Financial Reporting." E3S Web of Conferences 210 (2020): 13033. http://dx.doi.org/10.1051/e3sconf/202021013033.
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The subject of the study is the Conceptual Framework that lays the foundation for the preparation of information presented in International Financial Reporting Standards. The significance of the research topic is explained by the increasingly active use of international financial reporting standards in accounting of various countries. The purpose of the study is to assess the impact of changes made to the Conceptual Framework for Financial Reporting in 2018 on the accuracy of the information contained in the financial statement. The article focuses on the need to study the conceptual framework for financial reporting for a relevant and understandable reflection of the objects of financial reporting. The methodological basis of the work includes general scientific methods, such as analysis and synthesis, detailing and generalization, comparison and abstraction, models and a method of system and chronological analysis, etc.
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Wang, Yan, Zhuqian He, and Shijia Yan. "How to Recognize and Measure Compound Financial Instruments?" Journal of Finance Research 4, no. 1 (May 29, 2020): 85. http://dx.doi.org/10.26549/jfr.v4i1.3582.
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Basing on the Xiaomi case, this paper discusses the most appropriate accounting treatment of compound financial instruments under the framework of International Financial Reporting Standards (IFRS) and how other comprehensive income (OCI) plays important role in it. Overall, this paper provides some references for policymaker to standardize financial instruments standard.
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Druzhilovskaya, T. U., and E. S. Druzhilovskaya. "Problems of Harmonizing Investment Property Accounting Аccording to Russian and International Standards." Accounting. Analysis. Auditing 5, no. 3 (August 10, 2018): 62–71. http://dx.doi.org/10.26794/2408-9303-2018-5-3-62-71.
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The purpose of this article is to study the problems of convergence of investment property accounting in Russian and international financial reporting standards. The relevance of the question is due to the increasing role of such objects in the activities of Russian organizations. The research methodology includes the critical analysis of regulating modern investment property accounting in Russian and international financial reporting standards. This article uses such methods as analysis and synthesis, comparison, method of analogies, method of groupings, systems approach and logical approach. The study reveals discrepancies in the conceptual apparatus connected to investment property accounting; in various Russian regulatory documents; in interpretation of the notion of investment property in Russian GAAP and IFRS along with the differences in the investment property valuation methodology in Russian and international fi reporting standards.This article investigated the regulation of all Russian and International financial reporting standards subsystems. Russian accounting standards subsystems are the regulatory documents of organizations belonging to public and private sectors. The latter includes the normative documents of financial and nonfinancial organizations. When analyzing the regulatory documents on accounting in financial organizations the documents of credit and non-credit institutions were considered separately. As international standards subsystems were considered International Public Sector Accounting Standards (IPSAS) and International Financial Reporting Standards for private sector. The authors give the critical analysis of the validity of the investment property accounting regulations in Russian and international financial reporting standards. The authors substantiate the prospects of the further convergence of the investment property accounting rules in Russian and international financial reporting standards.
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Chusov, I. A., and A. E. Larkina. "The conceptual framework of the system of international financial reporting standards." Scientific bulletin of the Southern Institute of Management, no. 2 (August 2, 2018): 50–53. http://dx.doi.org/10.31775/2305-3100-2018-2-50-53.
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Tsunogaya, Noriyuki, Andreas Hellmann, and Simone Domenico Scagnelli. "Adoption of IFRS in Japan: challenges and consequences." Pacific Accounting Review 27, no. 1 (February 2, 2015): 3–27. http://dx.doi.org/10.1108/par-11-2012-0056.
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Purpose – The purpose of this study is to provide a rigorous and holistic analysis of the main features of the Japanese accounting environment. It also raises issues related to the adoption of International Financial Reporting Standards (IFRS) in Japan. Design/methodology/approach – For the purpose of investigating the Japanese accounting system, this study applies the accounting ecology framework developed by Gernon and Wallace (1995) and provides a content analysis of relevant meetings of the Business Accounting Council of Japan. Findings – The findings of this study provide evidence that it would be problematic to require the adoption of IFRS for all listed companies in Japan. The main reason for this is that the Japanese policymakers and standard-setting bodies follow two objectives: enhancing the international comparability of financial reporting and maintaining institutional complementarity between financial reporting and other infrastructures such as accounting-related laws. Research limitations/implications – This study is relevant for accounting researchers and professionals with an interest in Japanese accounting practices. It is also useful for the International Accounting Standards Board and representatives of countries planning to adopt IFRS in the future. Originality/value – The findings of this study show that contextual issues such as social, organizational and professional environments cannot be ignored in the adoption of IFRS in Japan.
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Singhania, Monica, and P. K. Gupta. "Globalisation of accounting standards and competitive posture of Indian companies." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 59, no. 2 (2011): 279–90. http://dx.doi.org/10.11118/actaun201159020279.
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Unification of the global financial reporting system is essential to enable comparability of financial statements at the international level in post crisis competitive environment. IFRSs are increasingly gaining acceptance as global accounting standards. With European Union adopting the IFRS in 2005, as on date over 116 countries have already either converged their accounting standards with IFRS or adopted IFRS as such and many more are in the process. Countries refusing IFRS are likely to be viewed as more risky by the international investors thereby affecting the inflow of capital to such countries. In India, the Institute of Chartered Accountants of India (ICAI) the apex body dealing with accounting standards has declared the roadmap of IFRS convergence in a phased manner from April 1, 2011. Our paper highlights the status of Indian accounting standards converging to IFRS as of now. In addition, a full fledged theoretical framework is developed showcasing, the convergence timeline, the major differences in the treatment of select items under these two alternative accounting environments, exact stage at which the Indian accounting standards are today in view of the announced convergence to IFRS and the legal and regulatory issues in converging to IFRS in India. We investigate the case of 150 odd firms and show the impact of convergence on financial ratios and the related valuation concerns. Finally, we indicate the strategic implications of IFRS adoption to Indian companies.
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Jaatinen, Iida. "IAS/IFRS: A Starting Point for the CCCTB?" Intertax 40, Issue 4 (April 1, 2012): 260–69. http://dx.doi.org/10.54648/taxi2012030.
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The European Commission has proposed a Common Consolidated Corporate Tax Base (CCCTB) to be applied in the European Union (EU) in order to harmonize and provide a single set of rules to calculate the corporate tax base. In the CCCTB framework, only a single set of tax rules is applied, and the harmonization would only concern the calculation of tax base. International Accounting Standards and International Financial Reporting Standards (IAS/IFRS) are developed by the International Accounting Standards Board (IASB) in order to create high-quality, harmonized, and globally accepted accounting standards. Since 2005, in the EU publicly traded companies have had to prepare their consolidated financial statements in accordance with IAS/IFRS as enforced in the EU. Originally, IFRS were considered a possible starting point for creating the CCCTB, but they were not used in defining the common tax base and no formal linkage between IFRS and the CCCTB was created. The aim of this article is to discuss the reasons why IAS/IFRS were only applied as a starting point of the CCCTB, not as a financial accounting system for the CCCTB. In addition, some similarities between the systems are reviewed, and it is considered how IAS/IFRS could serve as a source of information for the CCCTB application.
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Harris, Peter, and Liz Washington Arnold. "US GAAP Conversion To IFRS: A Case Study Of The Balance Sheet." Journal of Business Case Studies (JBCS) 9, no. 2 (February 21, 2013): 133–40. http://dx.doi.org/10.19030/jbcs.v9i2.7699.
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International Reporting Standards (IFRS) has become the required framework for most of the world financial market economies. In the United States, US Generally Accepted Accounting Principles (GAAP) is still required. However, plans are presently in place by the SEC to abandon US GAAP and to adhere to IFRS requirements by as early as the period ending December 31, 2014. This case study requires the student to transform a US GAAP presented Balance Sheet to IFRS and is most suitable for an Intermediary Accounting 11 and a Financial Analysis class at the graduate level.
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Shkurti, Rezarta, and Brunilda Duraj. "THE ACCOUNTING STANDARDS AND FINANCIAL REPORTING IN ALBANIA." CBU International Conference Proceedings 4 (September 20, 2016): 092–97. http://dx.doi.org/10.12955/cbup.v4.748.
Full textAbstract:
Albania implemented its first set of 14 National Accounting Standards (NAS), which were prepared in compliance with the International Financial Reporting Standards, in 2009. The 15th standard, specifically the Accounting Standard for financial reporting by micro-entities, was added to this set in 2011 and a 16th standard, relating to the reporting for non-profit enterprises, was added in 2015. In 2014, the National Accounting Council of Albania (NACA) performed a major revision of this existing framework of NAS. The focus of this paper is to analyze the current status, as well as the development of accounting and financial reporting in Albania for the Small and Medium Enterprises (SMEs). An international standard of financial reporting for SMEs was issued by the International Accounting Standards Board but was not fully endorsed by the European Community, nor by the NACA, who instead chose to revise their current NAS. In this study, we provide a general overview of the accounting regime and platforms currently applied in Albania, by focusing on the changes over the recent years. We also depict the main differences between the IFRS for SMEs and the NAS in Albania in treatment of several elements of the financial statements.
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Agyei-Mensah, Ben Kwame. "Adoption of International Financial Reporting Standards (IFRS) in Ghana and the Quality of Financial Statement Disclosures." International Journal of Accounting and Financial Reporting 3, no. 2 (January 16, 2014): 269. http://dx.doi.org/10.5296/ijafr.v3i2.4489.
Full textAbstract:
According to the IASB's IFRS framework, qualitative characteristics are the attributes that make the information provided in financial statements useful to others. This study was conducted to investigate the quality of financial reports before and after adopting IFRSs in Ghana, and also the influence of firm-specific characteristics which include firm size, profitability, debt equity ratio, liquidity and audit firm size on the quality of financial information disclosed by firms listed on the Ghana Stock Exchange.The research was conducted through detailed analysis of the pre-official adoption period, (2006) and post adoption period, (2008) financial statements of the listed firms. Descriptive analysis was performed to provide the background statistics of the variables examined. This was followed by regression analysis which forms the main data analysis. The results of the quality of financial information disclosure mean of 76.80% (pre adoption) and 87.09% (post adoption) for the two years indicate that the quality of financial reports has improved significantly after adopting IFRSs. The study thus confirms that the implementation of IFRSs generally reinforce accounting disclosure quality. It also indicates listed firms' overwhelming compliance with the IASB's IFRS Framework.The results of the multiple regression analysis show that company size, represented by net assets and Auditor type were found to be associated at a statistically significant level with the quality of financial information disclosed. With the improvement in the quality of the financial reports after adopting IFRS users are assured of useful information for financial decision-making.Keywords: Quality of financial reports' disclosure, Firm-specific characteristics, International Financial Reporting Standards, Mandatory disclosure, Ghana. JEL Classifications: M40, M41, M48