Accounting Practices Research Articles

Features of forming the enterprise’s balance according to international financial reporting standards

The formation of market relations and the aggravation of the economic situation in Ukraine require new approaches to enterprise management. The basis for decision-making on all issues of the company's activity is financial information necessary for a complete and comprehensive analysis of the state of its assets, liabilities and equity. The main source of information is financial reporting. The value of the balance sheet as the main reporting form cannot be overestimated, as it allows you to have an idea of the property and financial situation of the enterprise. The purpose of the paper is to research the peculiarities of the formation of the enterprise's balance sheet according to international standards. Also, the analysis of the formation of the balance sheet according to the National Accounting Regulations and in accordance with international standards. Therefore, the balance sheet is a system of indicators that characterizes the wide value ratio of the company's funds. The balance reflects the composition, placement, use and sources of funds of enterprises, organizations and budgetary institutions. The paper examines the peculiarities of forming a company's balance sheet in accordance with international standards. Specifically, it focuses on key aspects that define the process of preparing financial statements in accordance with international accounting standards. The authors explore the impact of international standards on balance sheet formation, including aspects such as asset and liability valuation, reporting on current assets, financial instruments, and more. It is noted that the adoption of international standards requires companies not only to comply with new rules but also to review and improve their internal processes and management systems. The study also highlights the advantages and challenges associated with the implementation of international standards in the practice of corporate accounting. The final recommendations of the paper emphasize the importance for companies to study and implement international standards in order to enhance their competitiveness and financial reporting transparency.

Evolving Perspectives on Public Sector Accounting Practices

Evolving Perspectives on Public Sector Accounting Practices

PENGARUH MENTAL ACCOUNTING DAN LITERASI KEUANGAN TERHADAP FINANCIAL BEHAVIOUR DENGAN DIMEDIASI GAYA HIDUP KONSUMTIF MAHASISWA AKTIF DI DKI JAKARTA

This research explores the influence of Mental Accounting and Financial Literacy on Financial Behavior, mediated by Consumer Lifestyle, using a sample of active students in DKI Jakarta. SmartPLS 4 is utilized to analyze the research model, with SEM (Structural Equation Modeling) employed to test the hypotheses. The study involves 217 respondents from active students in DKI Jakarta. The research examines three variables: Mental Accounting and Financial Literacy as independent variables, Financial Behavior as the dependent variable, and Consumer Lifestyle as the mediating variable. The objective is to understand how students' mental accounting practices and financial literacy levels impact their financial behaviors, with consumer lifestyles influencing these relationships. Findings are expected to provide insights into the financial decision-making processes of young adults in an educational setting, contributing to more effective financial education programs and interventions. This study emphasizes the significant role of lifestyle in shaping financial behaviors, offering a comprehensive view of the factors affecting financial behavior among students, and aims to enhance financial behavior through targeted improvements in financial literacy and lifestyle awareness.

International accounting in Latin America: an overview of International Financial Reporting Standards (IFRS)

The research aimed to examine the implementation of international financial reporting standards in Latin America. To achieve this, a comprehensive literature review was conducted, including theses, scientific articles, and the International Financial Reporting Standards Foundation website. The analysis indicates that the adoption of international financial reporting standards in the 18 countries studied is driven by the goal of aligning with global accounting practices and facilitating transparent financial reporting. The results suggest that while each country has its own accounting methods, adopting these standards prompts a convergence process and influences accounting procedures.

Beyond ‘Saving Strangers’: Revisiting R2P as an Accountability Mechanism

Abstract Nearly two decades after its formal endorsement by the international community, the Responsibility to Protect is stuck in a quagmire reminiscent of the contentious politics that both preceded and precipitated it. A once ambitious effort to transform notions of responsibility and practices of accountability regarding civilian protection and atrocity prevention, R2P has stagnated to such a degree that some have dismissed it as a dead letter. This research diagnoses the primary cause of that stagnation while also proposing a way forward for resuscitating R2P’s normative aims, via a return to R2P’s origins as an accountability mechanism for the provision of human rights and security.

Principles for embedded emissions accounting to support trade-related climate policy

ABSTRACT Climate policy – though shaped by international regimes – has traditionally been heavily domestic in practice. Accordingly, public emissions accounting frameworks have been designed to support policies targeting emitting processes within the territory, and to facilitate the production of National Accounts. Now, a combination of emissions leakage, competitiveness, and both investor and consumer concerns are driving the rapid emergence of policies targeting emissions embodied in traded products. To support these product-targeted policies, governments are investing in the development of public embedded emissions accounting frameworks (EEFs). While EEFs as an information instrument have enormous potential to support the transition to a net-zero global economy, they equally have the potential to inhibit trade, slow the transition, and have a disproportionate impact on developing countries – both through their design, and through potential incompatibilities between accounting developed in different jurisdictions. This article contributes to addressing these challenges by describing the minimum viable set of principles for an emissions accounting information instrument to be compatible with both international trade law and climate change mitigation regimes. To identify these design principles, our method is a systematic review of carbon accounting and trade law literature. Noting the prominent place of principles in guidelines for carbon accounting practice, we additionally extract principles identified in leading emissions accounting guidelines. Theory-based identification and analysis of these systematically extracted principles is used to develop the synthesized set of key principles for the design of public embedded emissions accounting schemes for traded products. Public agencies developing approaches for product emissions accounting, such as to meet requirements for carbon border adjustment mechanisms, could use these principles to guide design and negotiation.

Dampak Penerapan Akuntansi Forensik Dan Audit Investigasi Serta Mengevaluasi Proses Pengungkapan Tindak Pidana Fraud Pengadaan Barang/Jasa

As a result of the forensic accounting and investigative audit processes as well as procedures for detecting criminal acts related to the procurement of goods and services, fraud occurred related to community needs as follows: Procurement of goods and services. This usually happens in Indonesia. This research uses the Partial Least Squares (PLS) analysis technique and the SmartPLS 3.2.8 software testing tool. The results show that forensic accounting practices and investigative audit results influence the detection rate of fraud in the procurement of goods and services.

MSME Accounting Revolution from Perceptions, Challenges, Solutions

This study investigates the perceptions of Micro, Small, and Medium Enterprises (MSMEs) regarding accounting practices, focusing on Citra Pertiwi Farm and SUGOfreshmilk. Using a qualitative approach with interviews, observations, and documentation, the research identifies positive perceptions of accounting's benefits while noting shortcomings in inventory recording and accounts payable management. The study concludes that the current accounting practices in these MSMEs do not fully align with accounting standards for MSMEs. The findings suggest a need for improved accounting systems in MSMEs to enhance financial management and sustainability. Highlight: MSMEs' perceptions of accounting practices. Benefits and shortcomings in MSMEs' accounting. Emphasizes need for improved accounting systems. Keyword: MSMEs, Perception, Accounting, Improvement, Financial Management

Investing in a Foreign Startup Company: Luckin Coffee Inc.

Many foreign companies, particularly from emerging markets, have been listed on the US stock markets as a form of American depositary receipt or share (ADRs or ADS) in recent years. Although those US-listed foreign stocks provide a great opportunity for domestic investors to diversify their portfolios, they could also add additional risks to investors unfamiliar with those companies’ business strategies, corporate governance, investor protection, and accounting or audit practices in their home countries. In this case, we introduce Luckin Coffee Inc., a Chinese startup coffeehouse chain that went public on the Nasdaq in 2019. This case aims to guide students in evaluating a foreign startup company’s investment by examining its business strategies, operating performance, corporate governance, and auditing practices when limited company history and financial data are available. It also allows students to research companies’ filings to identify useful information for investment decisions.

The Middle Path in Buddhism and its lessons for accounting

PurposeThe purpose of this paper is to elucidate the moral dimensions of accounting by examining the case of Gross National Happiness (GNH) in Bhutan, and to propose a new approach to accounting that is grounded in the Buddhist principle of the Middle Path. This approach aims to promote well-being and happiness, contrasting with traditional accounting practices.Design/methodology/approachThe paper outlines the core concepts of the Middle Path theory and GNH. The authors first problematise the role of traditional accounting in the well-being and happiness project. The authors explore accountability from the Middle Path perspective, which is a key aspect of Buddhist philosophy. Using the concept of Middle Path accountability and GNH in practice, the authors then examine accounting in terms of the four “immeasurable moral virtues” (tshad med bzhi) of the Middle Path. The authors conclude by highlighting the value of the Middle Path for conceptualising accountability and emancipating contemporary accounting from its ethical and theoretical constraints.FindingsThis paper compares the application of traditional accounting and accountability with the Middle Path and GNH practices. The authors find that ethical discourses in traditional accounting and accountability are not compatible with the values of the Middle Path, thereby limiting the scope of accounting and accountability. This constraint is overcome by introducing four “immeasurable moral virtues” (tshad med bzhi) of Buddhism, which promote spiritual development (wisdom) to replace the existing ethical strands of traditional accounting and accountability to support the well-being and happiness project.Research limitations/implicationsThe study is limited to the review of concepts in GNH and Buddhist philosophy. More empirical studies in different contextual settings could increase understanding of how the practice of Middle Path and GNH could drive the project of well-being and happiness through accounting.Practical implicationsThe paper seeks to contribute to the operationalisation of GNH in organisation by framing social and well-being accounting grounded in the Middle Path theory. The authors also seek to clarify the role of accounting as a social and moral practice.Social implicationsSituated within the fields of social and moral accounting, the paper seeks to elevate the potential role of accounting in the promotion of well-being and happiness of people and other sentient beings. By applying four moral virtues of love, compassion, appreciative joy and equanimity in accounting, the authors seek to enhance the role of accounting that could potentially reduce poverty, social inequity, corruption and promote harmony and cultural well-being.Originality/valueThis study undertakes a conceptual integration of the GNH and Middle Path philosophy to understand the theoretical and ethical implications of traditional accounting and accountability. This contribution to the literature expands the possibilities of accounting and accountability on social and well-being accounting by introducing the Middle Path and GNH concepts.

The Impact of International Financial Reporting Standards on Global Accounting Practices

Purpose: This study examines the impact of International Financial Reporting Standards (IFRS) on global accounting practices, focusing on financial reporting quality, economic outcomes, and the influence of regulatory and cultural contexts. Research Design and Methodology: A mixed-methods approach was employed, combining qualitative interviews with accounting professionals and quantitative analysis of financial statements from various countries. The study investigates the benefits and challenges of IFRS adoption, considering factors such as regulatory environments, cultural differences, and economic development levels. Findings and Discussion: The findings reveal that IFRS adoption enhances financial reporting quality by increasing transparency, reducing earnings management, and improving comparability of financial statements. These benefits are most pronounced in countries with strong regulatory frameworks. However, challenges include high costs and complexities of the transition process, especially for smaller firms and developing countries. Cultural and institutional factors significantly influence the effectiveness of IFRS adoption, with varying impacts across different economic contexts. Implications: The study's results underscore the need for supportive regulatory environments and adequate training for accounting professionals to facilitate effective IFRS adoption. Policymakers and regulators should consider tailored approaches to address specific challenges faced by different countries. Companies, particularly in developing regions, must plan and allocate resources carefully to manage the transition to IFRS. These insights offer practical guidance for enhancing the effectiveness of IFRS implementation worldwide

Tech-Powered Forensic Accounting Education: A New Paradigm

The digital age has revolutionized forensic accounting practice, necessitating the integration of advanced technologies into investigations. However, traditional forensic accounting education often lags in these advancements, leaving graduates ill-prepared for the complexities of modern financial crimes. This narrative review explores the evolving landscape of forensic accounting education, focusing on the integration of technology to bridge the gap between academia and industry. The review examines the utilization of data analytics tools (e.g., Excel, Tableau), artificial intelligence, machine learning, and blockchain analysis in forensic accounting instruction. It delves into pedagogical approaches such as virtual simulations and immersive learning experiences that leverage technology to enhance student engagement and practical skills development. The review also identifies key challenges and opportunities presented by emerging technologies. While the rapid evolution of technology and the scarcity of qualified educators pose challenges, blockchain technology offers opportunities for enhanced transparency, data-driven investigations, and collaborative learning. Ethical considerations, including bias mitigation, data privacy, and the role of human judgment, are also emphasized. The findings of this review contribute to the growing body of knowledge on technology integration in forensic accounting education. By highlighting best practices, challenges, and future research directions, this review aims to inform educators, institutions, and policymakers on how to adapt to the changing landscape and equip future forensic accountants with the digital competencies necessary for success in the 21st century.

Shifting responsibility onto coparticipants: Disaffiliative accounts in request sequences

Accounts—verbal explanations for conduct—are normally understood to do affiliative work by mitigating or disavowing negative inferences generated by problematic or dispreferred actions. Using conversation analysis, this paper identifies an alternative accounting practice whereby speakers use accounts to actively disaffiliate from coparticipants. In such cases, the account serves as a vehicle for criticizing or challenging a coparticipant’s behavior. I find that speakers use these accounts to shift responsibility for the focal action by treating it as caused by or responsive to the targeted coparticipant’s (putative) misbehavior. This practice indicates that accounts can be used not only to expiate the speaker but also to police others’ behavior, although such moves are vulnerable to retaliation. Data are taken from video recordings of everyday interaction in American and British English.

Optimizing Family Financial Stability Through Islamic Household Accounting Practices : A Literature Review

Optimizing Family Financial Stability Through Islamic Household Accounting Practices : A Literature Review

Impact of Indian Accounting Standards (IND AS) on Financial Statements

The adoption and implementation of accounting standards play a pivotal role in shaping the financial reporting landscape of a country, influencing how businesses communicate their financial performance and position to stakeholders. In the case of India, the transition from Generally Accepted Accounting Principles (GAAP) to Indian Accounting Standards (Ind-AS) marked a significant paradigm shift in the accounting framework. The move was aimed at aligning Indian accounting practices with global standards, fostering transparency, comparability, and international investment. Historically, India had been following its own set of accounting standards, which sometimes diverged from international norms, leading to challenges in cross-border financial analysis and investment decisions. Recognizing the need for convergence with International Financial Reporting Standards (IFRS), the Ministry of Corporate Affairs (MCA) in India mandated the adoption of Ind-AS for certain classes of companies, primarily listed entities and large unlisted companies. The adoption of Ind-AS was a phased process, with the first set of companies transitioning in the financial year 2016-17. The primary objective was to enhance the quality and reliability of financial reporting, making it more comparable and relevant on a global scale. Ind-AS aimed to bring about consistency in accounting treatments, disclosures, and presentation of financial statements, fostering a more transparent and investor-friendly environment. One of the key motivations behind the shift to Ind-AS was to facilitate easier access to global capital markets for Indian companies. By adhering to internationally recognized accounting standards, Indian businesses sought to attract foreign investment and broaden their investor base. This move was particularly crucial as India aimed to position itself as a global economic player, attracting multinational corporations and fostering cross-border investments. The implementation of Ind-AS introduced changes in various aspects of financial reporting, affecting balance sheets, income statements, and disclosure practices. Companies faced the challenge of adapting to new measurement criteria, recognition principles, and disclosure requirements. The impact of these changes extended beyond mere compliance; it influenced how companies assessed their assets, liabilities, and overall financial performance. Additionally, the adoption of Ind-AS prompted companies to reevaluate their internal control mechanisms, financial policies, and governance structures. The transition required a robust framework for training and educating financial professionals, auditors, and other stakeholders to ensure a smooth and accurate implementation of the new standards.

Restless Somnambulists: Reflections on Violence, Accountability, and Historical Practice from Sri Lanka

Restless Somnambulists: Reflections on Violence, Accountability, and Historical Practice from Sri Lanka

Speaking truth to funders: Alternative accountabilities in the voluntary and community sector during the COVID‐19 pandemic

AbstractThis paper studies grassroots organizations that provide various forms of support to vulnerable local communities in the United Kingdom in a context of increasing austerity, public sector drawbacks, a lack of funding and extensive monitoring, and evaluative requirements. We focus on the COVID‐19 pandemic, which challenged traditional funding relationships. We analyze lived experiences of trust, emotion, and suffering to understand the politics of accountability across the diverse economy. We draw on Gibson‐Graham's post‐capitalist framework, which insists on the politics of language, the subject, and collective action. In the setting we study, the language of crisis reshaped funding, vulnerable subjectivities emerged to support vulnerable communities, and fragmenting accountabilities were met with attempts to promote collective action and solidarity. We, therefore, contribute to literature in critical accounting and literature focused on the voluntary and community sector by studying a landscape of diverse accountability practices to explore the possibilities that they offer in terms of accounting for non‐capitalist organizing.

Pengaruh Budaya Organisasi dan Ketidakpastian Lingkungan terhadap Penerapan Praktik Akuntansi Manajemen pada Usaha Kecil dan Menengah

This paper aims to determine the influence of organizational culture and environmental uncertainty on the implementation of management accounting practices in SMEs in Limapuluh Kota Regency. Objective data was taken from a questionnaire with a sample of 100 companies. The statistical test tool used is SPSS version 24. Findings from data analysis show that an important factor influencing the level of implementation of management accounting practices in SMEs is organizational culture. Organizations that have good commitment and vision in achieving their goals will be more flexible in accepting reforms, including in implementing management accounting practices. Apart from that, the environmental uncertainty felt by companies also encourages companies to use various kinds of management accounting practices in order to maintain and sustain their business. Previous research has studied various contingent factors that influence the implementation of PAM in SMEs, but there is still little previous research that studies the influence of culture in implementing corporate PAM, especially in small and medium enterprises.

Does air pollution motivate organisations to adopt environmental management accounting practices? Evidence from South Africa

This paper identifies the extent of air pollution in motivating companies to implement environmental management accounting (EMA) practices in 67 mining and cement companies listed on the Johannesburg Stock Exchange (JSE), South Africa, from 2012 to 2021. Pooled ordinary least squares regression is applied to analyse the data. EMA is proxied by environmental training, environmental audits and energy efficiency, while air pollution is measured based on the air quality index (AQI). The results show that air pollution is essential for companies to adopt EMA practices. This means that when air quality declines within a company’s locality, a company proactively adopts EMA practices. This suggests that air pollution is a key basis of companies' adoption of EMA, as predicted by the legitimacy theory. The study includes three control variables: size, return on assets (ROA) and number of years listed on JSE. Two control variables, namely Size and ROA, portray a positive and significant effect on adopting EMA from air pollution. This portrays that a financially stable company tends to submit to air pollution and use EMA to counter the pollution. In contrast, as the number of years increases for companies listed on JSE, EMA will likely be adopted less to reduce air pollution.

Accounting as a social and moral practice: bridging cultures, balancing Indigenous factors, and fostering social accountability

PurposeThis study aims to investigate accounting practices within a non-Western (Indigenous) context and provide insights into alternative accounting approaches and perspectives.Design/methodology/approachThis study adopts an interpretive research approach to gain an in-depth insight into the functioning of accounting in Solomon Islands’ unique cultural and social-political context. In-depth interviews were conducted to gain insights into the perceptions and meanings held by participants concerning Western accounting practices and their limitations.FindingsThe findings provide unique insights into different interpretations of accounting and accountability through two distinct cultural lenses – Western and non-Western. The complementary and rival explanations on what accounting and accountability are doing and what accounting and accountability should be doing will help close the gap in knowledge and contribute to shaping a better world for Indigenous people.Practical implicationsImplications for practice involve fostering collaborative efforts among individuals, communities, leaders and institutions to harness cultural strengths through accounting. Additionally, continuous capacity building and education are essential to develop accounting skills, enhance financial literacy, promote professional expertise and build a pool of skilled accountants with local knowledge to support Indigenous communities.Originality/valueThis study is original and provides novel insights supporting the need for accounting to recognise the importance of Indigenous perspectives, adapt to cultural sensitivity and integrate cultural norms and values into accounting practices to make an impact and achieve greater social and moral accountability.