Balance Sheet Research Articles

Decomposing interconnectedness: A study of cryptocurrency spillover effects in global financial markets

This paper employs a novel R2 decomposition connectivity method to analyze the spillover effects between cryptocurrencies and other markets, distinguishing between contemporaneous and lagged components. There are evidences shows cryptocurrency markets exhibit stronger contemporaneous dependency compared to lagged periods. The lagged net spillover effects in the cryptocurrency market demonstrate higher similarity to the overall net spillover effects, especially during periods of significant decline in net spillover effects. The contemporaneous net spillover effects of Fed's balance sheet show higher correlation with the overall net spillover effects during the COVID-19 pandemic.

Influence of financialization on the business activity of non-financial enterprises in Poland

Motivation: Financialization is connected with the phenomenon of dominance of the financial sphere in relation to the real sphere. Financialization, when applied to non-financial entities, means the increase of importance of financial motives in the decision-making processes of enterprises. Changes result from transformations of the system of economic incentives and development patterns, both in the economy and among economic entities, which are focused on fast earning. Enterprises for that purpose, they use leverage and financial instruments to generate profit, limiting the operational and investment activity.Aim: The aim of this paper is to examine if the processes of financialization have affected the activities of non-financial enterprises operating in Poland based on a multifaceted analysis of the financialization of enterprises: from the point of view of investment activities (assets), sources of external financing (liabilities), income and management. Moreover, an attempt was made to answer the question if these processes apply equally to particular industries and enterprises according to their size.Results: The conducted research showed that non-financial enterprises operating in Poland do not show signs of financialization of their activities. There is a noticeable upward trend in active and passive financial instruments of the balance sheet total. However, it does not translate into an increase in financial income. Research related to factors affecting ROE as a measure of shareholder value assessment, showed that it is determined by operating performance. In addition, the research showed that there were no statistically significant differences in the financialization of operations between large companies and the SME sector. With regard to sectors, the research indicated that there were sectors that differed from the others. In terms of the degree of financialization of assets, liabilities and income, it is sector L — “Real estate activities”.

Management concept «financial sustainability»: analysis and determination criteria in the conditions of sustainable development of territorial communities

Introduction. An important element of the implementation of the concept of sustainable development in Ukraine and the process of decentralization is the modernization of the financial mechanism and the formation of financially capable territorial communities.
 Purpose. The purpose of the article is to research theoretical approaches to the definition of criteria and methods of analysis of financial stability as the main concept of management of territorial communities in conditions of sustainable development.
 Methods. To achieve this, general scientific and special research methods are used: analysis and synthesis, comparison and generalization, structural-logical, economic- mathematical and coefficient analysis.
 Results. The proposed methodology for analyzing the financial stability of territorial communities covers two components: assessment of the level of financial stability, which involves the calculation of relative and absolute indicators and comparison of assets and sources of their financing; the analysis of the financial stability reserve involves the determination of the safety zone, financial and operational leverage, and the critical scope of implementation. The algorithm for determining the financial stability of a territorial community includes the use of a balance sheet model of financial equilibrium, the definition of a three-component indicator, and the finding of optimal degrees of coverage of sources of financial support. Attention is focused on the need to choose coefficients that best characterize individual features of the activity of a specific business entity.
 Prospects. Financial stability, in addition to quantitative indicators of financial activity, has a significant impact on qualitative characteristics such as: professionalism of management personnel, quality production or provision of services, image on the market, satisfaction of employees and consumers with the quality of life, implementation of innovative ways of attracting various sources of financial resources, etc. the analysis of which requires the use of other research methods, which will be the subject of our further research.

ANALISIS LAPORAN KEUANGAN DENGAN MENGGUNAKAN METODE TREND UNTUK MENGUKUR KINERJA KEUANGAN PADA PT NETKROM SOLUSINDO PERIODE 2017 - 2021

ABSTRACT
 This study aims to determine the analysis of financial statements in measuring financial performance at PT Netkrom Solusindo for the period 2017 – 2021 using trend analysis, at PT Netkrom Solusindo. The analysis technique in this study uses observation techniques where data collection comes from ratio data which includes balance sheet statements and income statements. The method used in this study is quantitative method with descriptive statistical data analysis. Based on the results of the research obtained, it is stated that the financial performance of PT Netkrom Solusindo in 2020 still experienced an increase in the company's revenue and net profit, but there was a very significant increase in operational costs caused by immature planning so that in 2021 there was a decrease in revenue and in the company's net profit. To overcome these problems, PT Netkrom Solusindo has efforts to reduce operational costs which include setting targets that must be achieved by the sales team, punishment for sales that are not achive targets, increasing the variety of retail products, training carried out online and approaches with SIMRS clients via zoom.
 
 Keywords: financial statement, finanacial performance, trend indeks

Αποτύπωση της Οικονομικής Κατάστασης των Κρατικών Νοσοκομείων: Χ ρηματοοικονομική Ανάλυση των Δημοσιευμένων Ισολογισμών (2019-2021)

Financial statements of public hospitals are prepared by accountants and are audited by Certified Public Accountants and they are the only reliable information that reflects the real financial performance. The accounting information provided is useful to users for transparency, accountability purposes, and decision-making regarding the public management of hospitals. The purpose of this study is to investigate the preparation of audited financial statements, the benchmarking of key operational and financial figures, the analysis of financial figures with cost indicators, and the qualitative analysis of certified public accountants’ audit reports per hospital and per health region for the period from 2019 until 2021. The audited Financial Statements as published on the website of the Ministry of Health and the yearly hospital activity open data from the Business Intelligence (BI-Health) Platform were collected and processed. The analysis demonstrates key financial figures of the Balance Sheet and the Profit and Loss Statement and useful cost indicators for the period from 2014 until 2021. Overall, this study strengthens the idea that accrual accounting and the preparation of financial statements in public hospitals should be a management tool and not only a legal obligation. The financial reporting enhances performance management, effective management of public assets, and policymaking for public health.

Pengaruh Perputaran Modal Kerja Terhadap Laba

This research method uses a descriptive analysis approach with the variables used being working capital turnover and profit with the research data source being secondary data. The author uses data collection techniques, namely observation and documentation in the form of financial reports (Balance Sheet and Profit and Loss) and interviews. Based on the results of research and discussions that have been carried out, it can be concluded that working capital turnover tends to increase from November - December, increasing every period, but in the August period it decreased to minus, this shows that the company's working capital has not been effective and inadequate in increasing profit at Miby Parfum Medan. And profits decreased in September, the decrease was due to increasing expenses. The decrease was due to quite high costs incurred while net profit experienced a decline.

Penyusunan Laporan Keuangan Berdasarkan Standar Akuntansi Keuangan Entitas Mikro Kecil dan Menengah (SAK-EMKM)

SAK EMKM aims to make it easier for SMEs to gain access to funding from various financial institutions, so the presence of SAK EMKM is expected to help SMEs in Indonesia in preparing financial reports. The problem that often occurs is that SMEs are not yet able to make financial reports. This research aims to prepare financial reports for the laundry service business "IO LAUNDRY" located on Jln. Kapten Rahmad Buddin, Medan Marelan in accordance with the Financial Accounting Standards for Micro, Small and Medium Entities. The results of this research show the financial reports of the IO LAUNDRY service business in the form of profit and loss reports, capital changes reports, balance sheets. This research is expected to provide information for IO LAUNDRY business owners in implementing Financial Accounting Standards for Micro, Small and Medium Entities. Based on the results of the discussion that has been described in the previous chapters in this research and based on the data and information that has been obtained in this research, it can be concluded as follows that from the results of research for three months, namely January, February and March, then IO LAUNDRY can find out how much income/profit was earned during those three months, namely IDR 48,850,000.-. Regarding IO LAUNDRY's readiness to implement SAK-EMKM as the basis for financial reports, in this case in terms of perception indicators and supporting facilities, it can be said that Medan city MSME players are quite ready to make financial reports based on SAK-EMKM.

Impact of Firm's Value Relevance of Accounting Information on Stock Returns during Market over and under Reactions in Pakistan

Value relevance of accounting information (VRAI) is a fundamental characteristic of influencing stock returns. This study analyzes the impact of VRAI on stock returns during market under and overreaction in Pakistan. The data of 322 non-financial firms listed in PSX from 2005 to 2022 is used. To explain stock returns, we employ the annual stock returns and buying and holding returns model. The data on financial variables has been collected from annual reports published on the company's websites and PSX Data Stream. The outcomes show that the accounting information variables earnings per share and change in earnings per share are positively related to the stock returns during market over and under reaction. Earnings per share, net income and book value are significantly related to the BHAR diuuring market under and overreaction while earnings per share and book value are significantly related to the BHAR during market overreaction of non-financial firms. It is also concluded that balance sheet variables attract more investors to invest in the stock market during the underreaction of non-financial firms. Therefore, it is suggested that the non-financial firms must present adequate accounting information on their financial statements within the specified time frame.

The Efficacy of Interest Subsidies as an Investment Incentive Instrument

Purpose: Since interest subsidies have always been a crucial part of investment policy in Türkiye, the study focused on the efficacy of interest subsidies as an investment incentive.
 Methodology: First, the interest and cash-flow sensitivity of the investment expenditure are explored before touching upon the literature on the interest and credit subsidy sensitivity of the investments without omitting the influential financing parameters. Then, financing parameters in sectoral balance sheets and the financing outlook of the Turkish companies are examined to infer which type of credit subsidy should be preferred, before bringing concrete observations from the recent capital formation trend.
 Findings: First, funding conditions, economic cycles and market frictions stemming from informational asymmetry influence the efficacy of the interest subsidies. Second, interest subsidies only become effective when economic and financial volatility surge, which implies a lesser effect than quasi-tax incentives. Third, monetary and interest subsidy authorities should coordinate. Finally, the credit guarantee mechanism is more powerful than interest subsidies to achieve policy goals since credit accession is a way bigger problem for Turkish companies.
 Originality: To my knowledge, this is the first article ever written specifically examining the efficacy of interest subsidies in Türkiye, although there were many studies focusing on investment incentives in general.

Implementasi SAK ETAP Dalam Penyusunan Laporan Keuangan Pada Usaha Kecil Menengah (UKM)

Financial reports are needed by companies to evaluate business activities and performance, provide financial information, determine the value of a company and make decisions by stakeholders. The main source in preparing financial reports is Financial Accounting Standards (SAK) which are prepared by a competent and independent body. SAK is a procedure or rule that must be adhered to in preparing financial reports, so that financial reports occur. Apart from SAK, there are other financial reporting standards. One of them is the Financial Accounting Standards for Entities Without Public Accountability (SAK ETAP). The problem that often occurs is that SMEs are not yet able to make financial reports. Financial reports are very important for predicting financial flows in Small and Medium Enterprises. SME Financial Reports. This research aims to prepare financial reports for Berkah Boutique Business in accordance with the Financial Accounting Standards for Non-Accountable Entities. This research uses a quantitative descriptive method. Primary data sources are in the form of interviews, observations and transaction evidence. The results of this research show the financial reports of Berkah Boutique Business in the form of a balance sheet financial position report, profit and loss report, report on changes in capital (equity).

Financial Performance Analysis Using EVA, MVA, FVA, and REVA Methods for Telecommunication Sub-Sector Companies listed on the IDX

The purpose of this study is to suggest an approach to analyzing the efficiency of telecommunications companies listed on the Indonesia Stock Exchange (IDX) using methods for determining Economic Value Added (EVA), Market Value Added (MVA), Financial Value Added (FVA), and Refined Economic Value Added (REVA). A summary of the relevant literature is formed on the bibliographic database. Statistical data based on information from the Indonesia Stock Exchange for four companies in the telecommunications sector over 5 years. Data from reports’ balance sheets, including reports of profits and losses, is investigated. The results of the survey demonstrated that a telecommunications company had a positive EVA value, which meant that it succeeded in creating economic value. The three telecommunications companies had a positive MVA value, which meant that they provided value-added through market capitalization. In four telecommunications companies, a positive FVA indicated that management was successful in providing financial value-added for the company. One of the four telecommunications companies produced a positive REVA, which meant an increase in economic value after the company paid off all liabilities to creditors and shareholders. The use of various value-added measures to assess the performance of Indonesian businesses is a scientific novelty that contributes to the development of corporate finance theory.

The Managerial Aspect of Accounting ESG Factors in Assessing the Value of a Company

The subject of the study is ESG factors (Environment, Social, Government) and their inclusion in the value of Russian companies. The purpose of the paper is to reveal the theoretical and methodological aspects of taking into account ESG factors when assessing the value of companies. The relevance of the study is determined by the influence of the ESG rating of companies on changes in their value. The scientific novelty of the study lies in the development of a general scheme, which includes four stages: substantiation of key external and internal factors influencing ESG-assessments of the company’s value; analysis of the nature of the impact of key factors on ESG assessments; assessment of the impact of the ESG-factor on the elements of value creation (forecast period, discount factor, cash flows, post-forecast growth rates); building a financial model for assessing the value of companies taking into account ESG factors. Methods: general scientific methods (comparative analysis, generalization, formalization) and empirical (observation, comparison, modeling). The DCF (discounted cash flow) approach was proposed as the main method for assessing the value of a company, which allows not only to estimate the value of a company over a specific period of time, but also acts as a cost management tool. An analysis of scientific and theoretical points of view and methodological approaches to assessing the influence of ESG factors on the value of companies was carried out, significant factors influencing the ESG assessment of the company’s value were identified, and a financial model for assessing the value of the company taking into account ESG factors was proposed. The model for assessing the impact of ESG on cash flow generation elements was tested using the example of PJSC Polymetal. It is concluded that the ESG assessment of a company’s value is influenced by both external factors (international regulation, country specifics, industry specifics) and internal ones (specifics of the capital structure, specifics of production). The developed financial model for assessing the value of a company makes it possible to take into account ESG factors in the output forms of reporting: balance sheet, profit and loss statement, cash flow statement. The proposed model is addressed to top managers of the company for the purpose of using it in the process of assessing the degree of influence of ESG factors on the cost of equity capital, potential investors and appraisers.

PROBLEMS OF PRESENTING INFORMATION ABOUT DEFERRED TAXES

Currently, accounting standards in the area of income tax accounting continue to be vague and unspecific. In this connection, this paper investigates the key aspects of the presentation of deferred tax information in accordance with the rules of modern accounting standards and theoretical provisions. The article describes the peculiarities of deferred tax classification in the balance sheet and the profit and loss statement. An attempt is made to explain the effect of restoration of deferred tax liabilities. The conclusion is made that in scientific literature the essence of income taxes still remains undisclosed and that because of this the developers of accounting standards are deprived of an opportunity to compile them adequately. The example of the use of provisions of IAS 12 «Income Taxes» in order to conceal important economic information is given. American and international experience in terms of indicating the sources of recovery of the value of deferred tax assets is compared. It has been defined that the Russian standard in the field of accounting of income taxes is not transparent in the part of representation of the information on deferred taxes. In the conclusion the directions of improvement of accounting legislation are presented.

Developing the methodology for internal control of current assets in organizations of health resort industry

Subject. In organizations of health resort industry, current assets occupy a significant share in the balance-sheet total, which requires increased attention on the part of management and owners to the condition of these assets, their inflow, outflow, and consumption efficiency. Unified methodological approaches to continuous control over current assets optimize the amount of material resources consumed, thus reducing the cost of services provided by the sanatorium and health resort complex, and increasing the profitability of industry organizations. Objectives. The study aims to formulate an effective model of internal control over current assets for business entities of the sanatorium and health resort complex, considering the general digitalization of organization's business processes. Methods. We employ interviewing and observation, analytical, statistical, computational and graphical methods. Results. We determined that positive dynamics of the industry does not allow for building positive development forecasts due to a number of macroeconomic problems, as well as management, planning and economic, accounting and analytical, personnel and legal problems. Owners and management of the industry organizations face the challenge of searching for in-house reserves for effective business management and continuous control of inventory representing a significant share in the balance sheet currency. Conclusions. The offered methodology for internal control of current assets will ensure ongoing monitoring of business risks and financial stability of business entities in the industry.

Threats to tax security of the region in conditions of innovative economy development (the Vologda Oblast case)

Subject. The article deals with assessment of threats to tax security of the Vologda Oblast in the context of innovative economy development. During the development of the country’s technological sovereignty and innovative economy to resist the pressure of Western countries, it is critical to determine possible directions for improving the tax security of regions. Objectives. The study aims to analyze the impact of conditions for innovative economy development on tax security of the region, using the Vologda Oblast case. Methods. We employ special economic methods, including structural and dynamic analysis, analysis of tax base formation for taxes. Results. The paper presents our own definition of the concept of tax security of the region. It shows that in order to ensure the tax security of the region, the tendency to establish a regional budget based on corporate income tax is negative. We proved that innovative economy development with intangible assets on the balance sheet of enterprises will be a threat to tax security of the region, since their amortization will reduce the taxable income tax base. Using the PAO Severstal case, we demonstrate the possibility of enterprises to legitimately reduce the tax base for corporate income tax through managing the structure of net income and increasing the share of amortization. Conclusions. In conditions of innovative economy development, personal income tax should become the main tax that forms the budget of the region. The findings can be used by government authorities when planning the regional budget and establishing tax benefits.

Community Intervention Team Management of Urology patients in the Community

Introduction: Urinary catheters are a necessary and frequent intervention in the acute clinical setting but can be successfully implemented in a patient’s home with the appropriate protocols. Caredoc Community Intervention Teams (CIT) work closely with local hospitals to establish structured, streamlined referral pathways for patients requiring catheterisation to be managed in the community, thus reducing hospital admissions and visits. Caredoc CIT nurses have been equipped with the requisite skills to successfully manage urology patients, many who are post-operative, outside of the hospital setting, ensuring that this cohort can be managed safely at home with the support of family and/or carers.
 Aims, Objectives, Theory Or Methods: The purpose of the CIT urology pathway is to provide rapid acute nursing care interventions to patients in their own homes. Patients are identified by urology consultants at local hospitals or by their GPs and referred to CIT for a period of continuous care, with home visits carried out by specialist nurses during a defined timeframe. This facilitates both early hospital discharge and admission avoidance as well as reducing waiting lists for outpatient ambulatory and scheduled care. This shared care initiative aims to transition vital urinary catheter care to the community resulting in a person-centred approach that keeps discharged patients comfortable and well in their own environment.
 Highlights Or Results Or Key Findings: Patients are managed safely in their own homes by the CIT Team for the duration of their ongoing treatment. By providing a spectrum of catheter care and education, such as teaching patients on the colour of their urinary output, how and when to empty their drainage bag and how to use a fluid balance sheet to record volume emptied, patients are given the knowledge to monitor their urinary output and are enabled to recognise potential red flags for infection and any catheter-related issues that may debilitate or affect their quality of life, with a particular emphasis on the prevention of sepsis in older patients. 24-hour catheter care support is offered by way of a telephone line for patients and their carers should they need advice - prior to the instantiation of the CIT service, patients with subrapubic catheters in residential care or who sought care in the out-of-hours were referred to emergency department via ambulance transfer, as the specialism required for management of these patients was not otherwise available.
 Conclusions: The CIT Team have successfully demonstrated integrated care pathways for managing patients requiring catheterisation in the community, leading to positive patient outcomes and experiences as well as having a significant impact on urology waiting lists and emergency department attendances. 
 Implications For Applicability/Transferability, Sustainability And Limitations: Sustainability of this process is guided by an integrated, systematic approach to proactive care of people who require catheter care at home, with the aim to improve delivery methods, reduce the burden on acute hospitals and achieve better patient outcomes.

Formation of the profit management system of the enterprise: an innovative approach

The article proposes an innovative approach to the formation of the company’s profit management system, which will help achieve effective results and ensure competitiveness. It has been proven that profit management is one of the key aspects of the successful operation of any enterprise. Ensuring a stable and growing level of profit becomes a challenge in today’s business environment characterized by constant changes and competitive pressure. The article analyzes modern trends in profit management, including the role of strategic planning, cost and profitability analysis, risk management, and the implementation of innovative approaches. The main components of an innovative approach to profit management are considered, including the introduction of new technologies and processes, the creation of new products and services, the optimization of costs and the provision of effective control. Special attention is paid to the consideration of tools and methods that can be used to form a profit management system at the enterprise. It is proposed to use a balance sheet approach that takes into account not only financial indicators, but also intangible assets, customer base and other factors. In addition, profit forecasting models are considered, which allow accurate estimations and planning of future results. Specific examples of successful implementation of an innovative approach to profit management at various enterprises are considered, as well as case studies of companies that were able to achieve significant improvements in their financial indicators due to the implementation of new strategies and profit management tools. In order for the company’s management to be ready for the implementation of new strategies and tools, it is recommended to use modern information technologies for data collection and analysis. The article proposes an innovative approach to the formation of the company’s profit management system, which will ensure its stability and competitiveness in the market. The implementation of new strategies, tools and technologies will allow to achieve effective profit management, as well as to ensure the growth and development of the enterprise in the modern business environment.

Adams-Oliver Syndrome (OSA)

Introduction: Adams-Oliver's syndrome (SAO) is a rare genetic condition characterized by the association of lumb anomalies and Aplasia cutis congenita in vertex, often accompanied by underlying ossification defect and vascular lesions. The objective through this new observation is to describe the clinical, radiological, therapeutic and evolutionary elements according to what was described up to there in the literature.
 Observation: Female newborn child, stemming from a pregnancy followed with normal obstetric ultrasounds. He presents a scalp agenesis, underlying cranial bone aplasia and toes hypoplasia with syndactyly. The association of these two major criteria allowed making the diagnosis of SAO. Moreover, she presents disjointed and large sagittal suture with left parietal bone borders hypoplasia. The notion of periventricular bleeding. The rest of the balance sheet deformation, namely the abdominal ultrasound and echocardiography was without anomalies. The newborn was sent in neurosurgery for restorative treatment, which will be planned at the age of 3 months.
 Discussion and Conclusion: This observation illustrates sporadic and not complicated SAO. The absence of complete gene mapping in SAO and therefore of any genetic counseling, prenatal morphological ultrasound, is making important in evolutionary terms of subsequent pregnancies.

Window dressing in the banking sector of an emerging economy: evidence from aggregate data

PurposeThis study aims to investigate window dressing as practiced by commercial banks in Kuwait, using monthly aggregate balance sheet data covering the period January 1993 to December 2017.Design/methodology/approachThis study applies the structural time series model to decompose an observed time series into unobserved components based on monthly data covering January 1993 to December 2017 on the consolidated balance sheet of commercial banks in Kuwait.FindingsThe empirical results indicate that Kuwaiti commercial banks indulge in upward window dressing to boost size and liquidity. This kind of behaviour is indicated by a statistically significant rise in assets under the control of banks in December, followed by a statistically significant decline in January. The operation is funded by borrowing, leading to a December rise and a January fall in foreign and other liabilities, which are also under the control of commercial banks.Originality/valueThis study uses a novel methodology to detect window dressing based on the seasonal behaviour of balance sheet items. This study suggests a unified framework for the motives, targets, types and consequences of window dressing and how they are related.

Beyond the Balance Sheet: Analyzing the Relationship between Corporate Governance, Financial Performance, and Stock Prices in Pakistan's Non-Bank Financial Industry

This study explores the complex relationship among corporate governance, financial performance, and stock prices in Pakistan's non-bank financial industry from 2017 to 2021. Employing panel least squares and generalized method of moments for empirical analysis, our research highlights the substantial and positive correlation between stock prices and earnings per share, emphasizing the significance of profits per share. Corporate governance factors, such as board meetings, board size, and board independence, exhibit shaded impacts on stock prices. Board meetings transition from insignificance in static analysis to a negative, substantial association in dynamic analysis. Conversely, board size and board independence remain insignificant, suggesting a limited influence on stock price fluctuations. Institutional ownership emerges as a robust driver, displaying a positive impact in both static and dynamic analyses. In contrast, managerial ownership yields mixed impacts, with static analysis revealing a nonsignificant negative relationship and dynamic analysis unveiling a significant negative association. The study underlines the need to consider both static and dynamic perspectives when evaluating these relationships, highlighting the temporal dynamics and lagged effects in assessing the influence of managerial ownership on stock prices. Additionally, return on assets demonstrates an insignificant impact on stock prices in Pakistan's non-bank financial industry, consistent across both static and dynamic analyses.