Conventional Accounting Systems Research Articles

Community Service Training on Material Flow Cost Accounting (MFCA) for Micro, Small, and Medium Enterprise (MSME) Entrepreneurs

In the last two decades, concern for environmental issues has become a regulatory concern at the international and national levels. Many methods have been developed to reduce negative impacts on business activities, including Material Flow Cost Accounting (MFCA) technology that shows an increasing trend among companies and Micro, Small, and Medium Enterprises (MSMEs) in developing countries. The benefit of MFCA technology is its superiority in identifying material losses (harmful products) during production. At the same time, this is known at the end of the process in the conventional accounting system. Then by implementing MFCA technology, business people can take initiatives to reduce material losses and achieves resource efficiency. In addition to efforts to reduce material losses, MFCA technology will encourage business-enhancing practices by reducing costs, reducing carbon emissions, and increasing operational efficiency. This Community Service Program aims to provide training on sustainable business principles by applying MFCA technology for MSME Entrepreneurs at Bina Amanah School of Entrepreneur Cordova in South Tangerang, Banten Province. Using the action research method increases participants' knowledge after the MFCA training.

Cultural Application of Accounting and Economic Systems: An Islamic Perspective

The spirit of Islamic economics has recently developed in Indonesia, which is the context of this study evaluating the culture of using conventional accounting and economic systems. The objective of this study is to determine how the Islamic economy applies mainstream accounting and financial systems culturally. Our study explored the applicability of standard accounting and economic systems from an Islamic perspective. Initially, we gathered data on accounting information systems and Islamic Sharia from journals, conferences, books, and other relevant sources. Then, we used a comprehensive evaluation and interpretation coding system to acquire pertinent information to answer the project's concerns. We scoured Google Books, Taylor & Francis, Sage Publications, Elsevier, and other domestic scientific publications for information on the assessment and interpretation coding factors. The Islamic Sharia economic system is a system or mechanism that is regulated according to Islamic Sharia law, for example, in regulating business activities, classifying data, summarizing data, preparing reports, and analyzing finances and businesses using principles and rules that are derived from the Qur'an, hadith, and the understanding of scholars in order to realize a just and equitable society.

Developing a ranking methodology for Sharīʿah indices: the case of Borsa Istanbul

PurposeThis paper aims to develop a ranking methodology for the companies included in the Islamic indices in Turkey. Thus, this paper simplifies the decision-making process for investors with Islamic sensitivities to stock market investment when constructing their investment portfolio.Design/methodology/approachThis paper uses a case study of 20 companies listed on Borsa Istanbul, drawing data from their 2017, 2018 and 2019 financial reports. These companies are scored and ranked according to their compatibility with the screening criteria used by Ziraat Katilim index in Turkey. In addition, this paper uses the quantitative screening process to calculate the ranking scores of these companies.FindingsThe findings show that some companies are highly compatible with the screening criteria, with ranking scores close to 100 points. However, some companies satisfied the criteria on the margin. This may not be a desirable result for some investors.Research limitations/implicationsOnly 20 companies are included in the analysis. Since the conventional accounting system is used in Turkey, it was difficult to get exact information about the companies’ Sharīʿah compatibility from the financial results.Practical implicationsThe findings assist investors to determine which company is ethically more responsible than others within the Islamic framework. There are also implications for the companies in question, index providers and Sharīʿah scholars.Social implicationsThe findings aim to simplify the decision-making process of investors who have Islamic sensitivities to stock exchange market investment when they constitute their portfolio.Originality/valueTo the best of the authors’ knowledge, it is one of the first attempts to develop a ranking methodology for Sharīʿah-screened stocks in Turkey even though Sharīʿah screening has been on the agenda since the late 1990s. This paper also compares 11 indices based on their screening criteria.

Use of management information systems from the perspective of farmers

Purpose: The purpose is to evaluate the impact of the use of Management Information Systems (MIS) in the management of small companies in the field of rural activity.
 Methodology: In this study, questionnaires were applied to rural producers using the conventional accounting system, obtaining 37 responses. In addition, 7 interviews were conducted with rural producers who started to use MIS to control their activities.
 Results: Using the analysis of differences between respondents who use MIS or not, it was possible to identify which points are linked to its implementation, in addition to assessing the benefits obtained from the system used. The results indicate that the use of MIS reflected positively in management, especially with regard to cost and culture control, forecasting needs, increased profit and assistance in decision making.
 Contributions of the Study: The findings of the study clarify the practical implications of using MIS in rural properties, such as receptivity to the use of the system and, mainly, which advantages with use are most indicated by respondents from properties that already use it. In this sense, we claim accounting entrepreneurs to instigate the use of management tools by rural producers who do not yet use it, but consider the use of MIS as beneficial.

Identifying ‘True’ Water Loss Information through the MFCA Model for Improved Cost-Saving Decisions in a Water Utility: A Case Study of the Doorndraai Water Treatment Scheme in South Africa

We identified the deficiency in the conventional accounting system in capturing water-loss-related information and its effect on cost-saving decisions in a water utility in South Africa. We employed the material flow cost accounting (MFCA) model in the case of the Doorndraai Water Treatment Scheme to highlight inefficient phases of the water purification processes for the manager to identify opportunities for corrective action. Findings reveal that the inability of the conventional accounting system in accurately capturing water loss information limits the scheme manager’s ability to recognize cost-saving opportunities. Consequently, we found that the implementation of the material flow cost accounting (MFCA) model identified the pumping process as a major contributor to the water scheme’s daily operating loss because of the pumping machine’s low capacitor. Besides, this pumping machine has been in operation for about five years, an indication that the water scheme had been operating at a loss daily for a number of years. Thus, we suggested that the water scheme should invest in procuring a more suitable pumping device to reduce the huge electricity cost incurred daily by the Doorndraai Water Treatment Scheme. Besides this, the paper extended the implementation of the MFCA by providing an example of how the managerial accounting system can support environmental and economic sustainability in water purification processes. Thus, we reiterate that one way of effectively managing water resources is to appropriately capture the volume of water loss and water-purification-related costs to improve its efficiency.

Influences of Behavioral Intention to Engage in Environmental Accounting Practices for Corporate Sustainability: Managerial Perspectives from a Developing Country

Environmental degradation is a serious global issue that has received increasing attention from scholars, policymakers, regulators, environmental activists, and the public as a whole. In the meantime, corporations have been criticized as major contributors to environmental pollution. Environmental accounting (EA) is a corporate practice that seeks to account for the cost of environmental impacts of business operations. However, it is questionable whether the true cost of environmental impacts of business operations is accounted for in the conventional accounting systems. In order to shed more light on this issue, this study examines key drivers of managerial intention to engage in EA practices in Sri Lanka. We employ the theory of planned behavior to conceptualize the antecedents of managers’ intention to engage in EA practices. The results of the partial least square structural equation model (PLS-SEM) evaluation revealed that managers’ intention is significantly influenced by the attitudes towards EA practices, subjective norms, and perceived behavioral control. Our results also indicate that a larger proportion of the variance of perceived behavioral control is explained by the perceived cost and complexity, perceived regulatory pressure, and organizational environmental orientation. The findings of this study provide important theoretical and practical implications for scholars, managers, and policymakers.

THE IMPACT OF FORENSIC ACCOUNTING ON FRAUD DETECTION IN THE UAE BANKING SECTOR: AN EMPIRICAL STUDY

Uncovering the financial fraud is the major attention on forensic accounting. Financial frauds have been growing strongly across the worldwide stage including UAE banking sector over the past decade. Consequently, the cumulative activities of financial frauds need the high engagement of forensic accounting to carry out the effective investigation as well as the performance of the individuals related with the criminal activities. The forensic accounting is anticipated to facilitate for reducing or preventing susceptibility of conventional accounting and audit systems contributing to financial frauds. In this research, the major focus is on determining the impact of forensic accounting practices in detecting and preventing the suspected frauds from the banking sector operation in the UAE. The major findings of this research show that there is a significant impact of forensic accounting on the detection of fraud within Banking Industry in UAE. Article visualizations:

FORENSIC ACCOUNTING ON FRAUD DETECTIONIN THE UAE BANKING SECTOR

Detecting the financial fraud is the foremost emphasis on forensic accounting. Financial frauds have been increasing rapidly across the international levels including UAE banking sector over the past years. Accordingly, the increasing activities of financial frauds require the high engagement of forensic accounting to run the effective investigation along with the performance of the individuals related to the criminal activities. The forensic accounting is estimated to facilitate for reducing or preventing susceptibility of conventional accounting and audit systems contributing to financial frauds. In this study, the main emphasis is on determining the influence of forensic accounting practices on detecting and preventing the suspected frauds from the banking sector operation in the UAE. The main results of this study demonstrate that there is a noteworthy influence of forensic accounting on the detection of fraud within Banking Industry in UAE. Article visualizations:

Comparative analyses of different biogenic CO2 emission accounting systems in life cycle assessment

The biomass-derived CO2 emission is usually treated as neutral to climate change. However, due to the stay of biomass-derived CO2 in the atmosphere, many researchers believe that biomass-derived CO2 also has climate change benefit. Therefore, many methods to account the global warming potential of biomass-derived CO2 (GWPbio) were proposed. Based on those new methods, we developed an accounting system for climate change impact of biomass utilization in this study, and compared it with the conventional accounting system which follows the carbon neutral assumption. A case study of caragana-to-pellet bioenergy production system was simulated to test the performance of the GWPbio accounting system. The CENTURY model was used to simulate carbon dynamics of caragana plantation in the Loess Plateau in China, and life cycle assessment (LCA) model was developed to estimate the life cycle emissions of the caragana-to-pellet system. Attributed to short rotation of caragana plantation and fast biomass accumulation after harvest, the GWPbio values around 0.044 were obtained. When the GWPbio was applied to LCA, significant high life cycle CO2 emission was found in comparison to the conventional method. However, the GWPbio accounting system has lower positive climate change impact than the conventional accounting system in assessing the overall impact of biomass utilization. This indicated that the application of GWPbio accounting system would encourage the utilization of biomass and allow a fair comparison with fossil fuels. In the sensitivity analysis, we found the accounting system was sensitive to biomass accumulation and all the corresponding factor affecting biomass accumulation.

THE INFLUENCE OF CRITICAL FACTORS ON THE BEHAVIOR INTENTION TO COMPUTERIZED ACCOUNTING SYSTEMS (CAS) IN CEMENT MANUFACTURES IN LIBYA

Due to the rapid  change  in technology, businesses  prefer  to track  monetary  transactions using computerized system and the advancements in information technology have eventually led to the introduction  of Computerized  Accounting  Systems (CAS) to  help  produce  relevant,  trusted,  and representative  financial reports for both management and external users for decision-making without errors.  The shifting from conventional accounting system in Libyan organizations to Computerized Accounting Systems (CAS) resulted in some company’s staff’s resistance on the adoption of the new technologies. Therefore, this study aims to examine the Influence of Critical  Factors  on the Behavior Intention to Computerized Accounting Systems (CAS) In Cement Manufactures  In Libya which are, Performance   Expectancy,  Effort  Expectancy,  Facilitating  Conditions,  Self-efficacy  and  Task- technology fit (TTF) to accountant  Behavioral  Intentions (ABI) of using (CAS) in Libyans cements organizations. This study utilized quantitative  research  method and survey questionnaires  distributed 240  forms to  employee  of in  accounting  and  finance  department  in  four  biggest  Libyan  cement manufacturers, Al- Murgab,  Lubda,  Souk Al khamis  and  Zalitan.  The 189 returned forms were analyzed using PLS software.  The result  of analysis  hypothesis revealed  that there  is a significant effect among  all  variables  to  Behavioral  Intentions,  but,  only, Effort  Expectancy  does  not  have impacts  on  the  Behavior  Intention  to  Computerized  Accounting  Systems  (CAS)  In  Cement Manufactures In Libya.

Innovative Measurement for Corporate Sustainability

Innovative Measurement for Corporate Sustainability

The Implementation of Environmental Management Accounting and Environmental Reporting Practices: A Social Issue Life Cycle Perspective

While the pressure of legitimacy was found to greatly influence companies’ environmental reporting (ER) practices, being environmentally responsible however is not necessarily reflected through positive and descriptive environmental information. Unless companies begin to truly commit to upholding environmentally responsible, that is, to be accountable towards their business environmental impacts, the issue of incompleteness and incredibility of ER will remain topical. For companies to effectively measure and report their environmental performance, the implementation of Environmental Management Accounting (EMA) is essential as conventional accounting systems disregard the generation of environmental information. Using social issue life cycle theory as an interpretive lens, this paper aims to propose a theoretical framework to investigate the relationship between the extent of EMA implementation and ER practices.

Sistem Informasi Penjualan Pemasangan Kacafilm “HS Auto Film"

The growing market share in many business areas especially in service area is causing the use of conventional accounting system being ineffective. One of the companies which still using the conventional one is a window film set-up service company called HS Auto Film. The process of processing sales data is less accurate and slower in the contrary of the developing sales data. Computer-based window film set-up Sales Information System is built in order to make the processing data more accurate and faster. The information system is built using Visual Basic programming language along with .NET framework technology and SQL Server database that embedded in the application itself. The making and development process of the Sales Information System is using waterfall method. Waterfall method consists of user requirement, analysis, design, implementation, and testing. Entity Relationship Diagram , Data Flow Diagram and Flowchart are a lso used in the Information System design. The output of this application design is a desktop application that can help user to control the set-up of window film , manage payment bill, and manage document in accounting in faster and more accurate way. The information system can be developed later using web-based system so that the development and maintenance can be done easier.

BRMS를 이용한 회계 프로그래밍

국제회계기준(IFRS)에서 기업은 전통적인 회계처리시스템으로는 스스로의 회계 규칙을 효율적으로 관리하고 처리의 적절성을 증명하는데 어려움을 안고 있다. BRMS(Business Rule Management System)는 회계 원칙과 상황에 따라 이러한 회계처리 규칙들을 관리하고 처리하고 모니터할 수 있는 방법을 제공한다. 본 논문에서는 회계원칙과 자율적인 회계규칙을 처리할 수 있는 BRMS 기반의 회계프로그래밍 프레임워크를 제안한다. In International Financial Reporting Standards(IFRS), companies have difficulties in managing efficiently own accounting rules and demonstrating the adequacy of accounting processes with the conventional accounting system. BRMS(Business Rule Management System) provides methods for managing, processing, and monitoring these accounting rules according to accounting principles and situation. This paper proposed the BRMS-based financial programming framework for managing and processing the accounting principles and the own accounting rules.

The Analyze on Accounting Information System of Third-party Logistics Enterprise

In the face of the fast developing of Information and technology and the appearance of the new management theory, the author analyze the abuse of the conventional accounting system, and use the advance ideas on modern information and technology (REA model and events drive) and the cooperation theory to redesign the frame of Accounting Information System of Third party logistics enterprise, and point out the virtue of the new system.

Reforming Care

This essay argues that concerns regarding the impact of work/family balance on gender inequality should be extended to broader analysis of all care work. Paid or unpaid care devoted to all dependents (including the sick and elderly as well as children) has distinctive characteristics that contribute to disempowerment and underpayment. Expenditures of money as well as time increase economic vulnerability. Public policies should provide greater support for caregiving outside the market, improve the supply and quality of purchased care services, and challenge conventional accounting systems that mismeasure economic welfare.

THE REQUIREMENTS OF ESTABLISHING THE QUALITY COSTS SYSTEM IN TEXTILE INDUSTRY A CASE STUDY IN MOSUL TEXTILE FACTORY

The current research is primarily concerned with quality costs measurement and analysis in textile industry; as a case study in spinning and weaving Factory in Mosul – Iraq. The research represents an attempt to identify, measure, classify and collect the quality costs elements in textile, primarily through discovering where they are generated and who is responsible for them. One of the major difficulties in obtaining data related to quality costs is the kind of accounting system adopted. The costs of quality are spread throughout the various departments of the factory and conventional accounting system do not pick-up and highlight such costs. In regard to the findings, it is concluded to be supportive to hypothesis of the research. The end of this research conclusion was stated and recommendations were also initiated. .

Environmental management accounting as a reflexive modernization strategy in cleaner production

Understanding the material purchase value of wastes and emissions and related processing costs is the essential contribution of an Environmental Management Accounting methodology proposed by a United Nations expert working group organised through the Division for Sustainable Development (UNDSD). Tracing costs and benefits according to this UNDSD methodology, considered as a “reflexive” modernization strategy in this article, sheds new light on cleaner production initiatives for corporate sustainability. Information on the first category of costs, waste and emission treatment, is generally the most accurate. Information on the second category, prevention and environmental management costs, is more difficult to determine because this category overlaps with, or is confused with, the first category of costs. Data for the two novel and innovative cost categories of the material purchase value of waste and emissions and related processing costs are even harder to obtain. Frequently, the costs are either hidden in overhead accounts or are not recorded because they are not required in conventional accounting systems. The outcome is that companies, even though they may profess otherwise, have very little knowledge about their full environmental costs, cost saving opportunities, or how best to achieve cleaner production initiatives to promote corporate sustainability. A more systematic application of the UNDSD EMA methodology would provide a better record of costs and act as a catalyst in promoting cleaner production processes. This application inevitably requires “reflexive institutions” including “reflexive corporations”, that is, corporations with the capacity to examine the side effects of their operations as modernization rebounds upon them.

Activity‐based cost management in financial services industry

The rapid advancement of enormously expanding information technologies and vigorous global competition have caused the irrelevance of conventional management accounting systems (MAS) in providing useful information to assist management’s decision making, planning and control in both service and manufacturing organizations. The shortcomings of traditional MAS, in terms of validity, accuracy, completeness, consistency, understanding and relevance, increase the need for modern MAS, like activity‐based costing (ABC). In growing inadequacies of traditional MAS, ABC can be used as a tool for planning, control and decision making in service management. ABC traces costs to activities rather than products, which provides a more accurate and correct picture of the cost consumption. Furthermore, ABC uses a larger number of cost drivers instead of one or two volume‐based cost drivers in a traditional cost management. However, activity based management (ABM) helps management to make decisions and formulate plans to provide new services, improve existing services and measure performances in order to achieve overall competitive strategies advantages of organizations. Thus, this study attempts to demonstrate the shortcomings of traditional MAS, and the usefulness of ABC and ABM in making decisions on product profitability and performance measurement in services with a particular reference to the financial industry.

Challenges facing accountants in the knowledge economy

Summary: This paper examines some areas where the conventional accounting system has failed to respond to the new requirements of the knowledge-based economy. In particular, it has failed to deliver corporate strategies to complement the technological resources that may comprise the organization’s chief source of competitive advantage. Some alternative practices used by some innovative firms are considered in this article.