Current Liabilities Research Articles

THE EFFECT OF RESERVES AND LIABILITIES IN ENSURING THE LIQUIDITY OF INSURANCE AND TAKOFUL ORGANIZATIONS: THE CASE OF THE INSURANCE MARKET OF UZBEKISTAN

This article discusses the impact of insurance reserves and current liabilities on the liquidity level of insurance organizations operating in Uzbekistan. Maintaining the level of liquidity plays an important role in ensuring the solvency of insurance companies. Therefore, having a significant share of liquid assets in its operating activities, as well as being able to cover its obligations, is one of the topical issues. In this research paper, we attempted to model this relationship.

Unicorns’ growth and financial flexibility before and after the IPO

Increasing number of unicorns worldwide is attracting researchers' attention to analyze their phenomena from their growth and financial flexibility interaction perspective. Unicorns as young companies have many external and internal environment development elements affecting their financial performance while going public with an IPO. Thus in the paper, we target to analyze factors revealing unicorns' growth and the relationship between financial flexibility and unicorns’ growth before and after the IPO process. The financial data of 20 unicorns from Asia with IPOs from 2009 to 2018 was collected for the research. A literature review was performed to develop the frame and variables of growth and financial flexibility for research design. OLS regression was used for the analysis. Our main findings show the significant negative impact of EBIT on the growth of unicorns before the IPO, which becomes positive after the IPO. The impact of cash or debt on the growth of unicorns is negative after the IPO. The growth of unicorns is significantly influenced by capital expenditures and current liabilities affected by their management policies. Our research fills the existing gap in the literature by analyzing the interaction between the growth and financial flexibility of the high-growth unicorns in the context of the IPO and enriches existing literature by the combination of different theories to support the research, thus further research could focus on a more in-depth analysis of these processes.

ANALISIS PENERAPAN AKUNTANSI PADA KOPERASI KONSUMEN PEGAWAI REPUBLIK INDONESIA XYZ

This research was conducted at the XYZ Republic Of Indonesia Employee Consumer Cooperative. This study aims to determine whether the application of accounting ar cooperative is in accordance with generally accepted accounting principles. The data used are primary data an secondary data. Data collection techniques used are interviews and documentation. Several deficiencies can be found in this study, some of these deficiencies ar that cooperatives places risk fund accounts in current liabilities, and cooperatives do not explain reserve funds in the Notes To Conslidated Financial Statements. After conducting research on cooperative, it can be concluded that the application of accounting to the XYZ Republic Of Indonesia Employee Consumer Cooperative is not accordance with generally accepted accounting principles.

ANALISIS ARUS KAS UNTUK MENILAI KINERJA KEUANGAN PADA PT KERETA API INDONESIA (Persero)

The purpose of this studi to analyze the financial performance of PT Kereta Api Indonesia (Persero) in 2019- 2021 using a cash flow measurement tool. The ratios used in this study are five ratios including the ratio of operating cash flows to current liabilities, the ratio of operating cash flows to interest, the ratio of operating cash flows to capital expenditures, the ratio of operating cash flows to total debt and the ratio of operating cash flows to net income. The research method uses secondary data, namely the financial statements of PT KAI (Persero) for 2019-2021. The sampling technique uses a purposive sampling method where samples are taken with a specific purpose. The sample in this study is the financial statements that have been audited for three years. The results show that the ratio of operating cash flow to interest, the ratio of operating cash flow to capital expenditure has a fairly good performance. As for the ratio of operating cash flow to current liabilities, operating cash flow to total debt and the ratio of operating cash flow to net income, the performance was not good.Keywords : cash and cash equivalents, cash flows, financial reports, financial performance

Effect of Debt Capital on Financial Performance of Listed Pharmaceutical Companies in Nigeria

This study investigated the effect of debt capital on financial performance of listed pharmaceutical companies in Nigeria. The ex post facto research design was adopted for the study with a population of ten (10) listed pharmaceutical companies in Nigeria as listed by the Nigerian Exchange Group in 2021. Data were retrieved from the annual reports of the selected listed pharmaceutical companies for the period 2013 to 2017. Multiple regression analysis was used to analyze the data gathered with the aid of Stata12 statistical software. The study revealed a negative and insignificant relationship between debt capital and profit before tax of listed pharmaceutical companies in Nigeria. it also revealed a positive and insignificant relationship between debt capital and return on assets of listed pharmaceutical companies in Nigeria. Therefore, it was recommended that management of listed Pharmaceutical companies should not adopt aggressive total debt financing policy. This means that the managers of listed Pharmaceutical companies should concentrate on using more current liabilities to finance assets, relative to debt capital. Also, the government should regulate the financial sector through various monetary and fiscal policies in order to reduce the cost of borrowing given that many Pharmaceutical companies rely on external borrowing to finance their cash requirements. As it has shown in this study that debt capital has no significant relationship with firm’s performance.

Discounting of Deferred Taxes: Theoretical Aspects

The objective of the study is to justify the prohibition of discounting deferred taxes by harmonising their essence with the concept of fair value. The work is theoretical in nature, standard scientific methods have been used, including the collection of theoretical information, formalisation, as well as analysis, synthesis, observation, and comparison. This article summarizes the results of research in the field of deferred tax discounting over the past 60 years and attempts to reconcile the essence of it with the concepts of fair value. The issues of deferred tax discounting have long been the subject of scientific research and still remain unresolved. In the second half of the twentieth century, the key problem was the choice of an acceptable discount rate against the background of lack of understanding of the essence of deferred taxes. Subsequently, the vector of research has changed towards determining the economic value of deferred taxes without reference to the theory of deferred taxation. The author proved that under the concept of fair value, deferred tax liabilities (DTL) do not need to be discounted because the assessment takes into account the minimum economic benefits generated by the asset as of the reporting date and under prevailing market conditions. It is shown that the balance sheet reflects the theoretical relationship between deferred tax liabilities and current income tax liabilities. The conclusion is made about the modifiability of deferred tax liabilities into current liabilities in terms of static accounting ideology while observing the going concern principle. The problems of applying valuation at fair value measurement that does not take into account the current tax position of the organization; as well as the place of deferred taxes in the capital accounting equation are raised. The results of the research have theoretical significance and can be used within the framework of improvement of the accounting legislation.

Factors affecting earnings management: current tax expenses, deferred tax liabilities, and deferred tax expenses

Previous or relevant research is fundamental in a study or scientific article. Previous relevant research strengthens the theory and phenomena of the relationship or influence between variables. This article reviews the factors influencing earnings management, namely current tax, Deferred Tax Liabilities, and Deferred Tax Expenses, a literature study on tax accounting. This article aims to build a hypothesis on the influence between variables to be used in further research thesis literature review article results in e are: 1) the current tax burden affects earnings management; 2) current tax liabilities affect deferred tax; and 3) deferred tax expense affects earnings management.

LQ45 Company Profitability on the IDX for the 2021 Period Through the Effect of the Current Ratio and Receivable Turnover

Purpose: The purpose of this study was to find out and analyze the Influence of the Current ratio and Receivable turnover on Profitability. The theoretical framework: Evaluating profitability through various ratios, companies can be classified into two categories: margin ratios and return ratios. Liquidity, activity, and profitability are important issues to be continuously monitored, that’s why the study uses the Current ratio and the Receivable turnover as tools in finding the relation between the Current ratio and Receivable turnover on Profitability partially and simultaneously. Methodology: The research method used in this study is a descriptive survey and an explanatory survey. The unit of analysis in this study is the LQ45 company’s financial statements on the IDX for the 2021 period. The type of investigation is causality, and the time horizon in this study is time series. This study uses multiple regression analysis. Finding: Partially and Simultaneously, the Current ratio and Receivable turnover have a significant effect on Profitability. Receivable turnover is more dominant in influencing Profitability, it becomes the first priority in increasing Profitability. Research Policy Implications: In efforts to increase profitability, the main priority is to have increased Receivable Turnover to maintain business continuity. To increase accounts receivable turnover, these companies are expected to be able to encourage acceleration and accuracy of collection of accounts receivable, with the intention that investment is not fixated on just one sector, for example only focusing on fixed assets, so that the company's financial stability can be maintained properly. Increasing the current ratio by optimizing the elements of current assets to cover all of the company's current liabilities. Originality/value: Companies are advised to consistently improve accounts receivable turnover; so that the company's financial performance will improve.

Assessing the Impact of Liquidity Ratio Requirements on the Financial Performance of Commercial Banks in Kenya

In practice, some commercial banks in Kenya are presently facing liquidity challenges for instance the National Bank, Consolidated Bank, and Development Bank of Kenya. For instance, as of December 2017, the Development Bank of Kenya posted a negative liquidity position at 21.6% against the required legal threshold of 20%. For the National Bank of Kenya, the close of 2017 saw the total deposit liability standing at negative 5.5%, while core capital to total assets averaged negative 7.9%. As of 2018, NBK registered a drop in profit by 84% to stand at Kshs. 21.97 billion. The findings were that liquidity ratio requirements (β=0.345, p<0.05); cash reserve ratio requirement β=-0.008, p<0.05); loan deposit ratio requirement (β=-0.020, p<0.05) & capital adequacy ratio requirement (β=0.032, p<0.05) are significant predictors of financial performance of commercial banks in Kenya. The study concludes that liquidity requirements are a significant predictor of the financial performance of commercial banks in Kenya. The study recommends that finance managers of commercial banks in Kenya should strive to balance current assets and current liabilities to ensure they meet their obligations as they arise. The marketing managers of commercial banks in Kenya should invest more efforts in acquiring more customers for increased mobilisation of deposits. The loan officers and credit managers working in the commercial banks in Kenya should speed up the process of credit appraisal of customer loan application process to increase the uptake of loans which are key sources of interest income to these institutions. The shareholders of the commercial banks in Kenya should ensure that their institutions are adequately capitalised so that they are able to withstand inherent shocks occasioned by liquidity constraints likely to negatively impact financial performance. The findings are expected to shed more light on the critical role played by liquidity requirements as far as financial stability and resilience of the banking sector in Kenya are concerned

Dialogue with standard setters. Amendments to IAS 1 regarding non-current liabilities with covenants

The International Accounting Standards Board (IASB) in January 2020 is-sued "Classification of Liabilities as Current or Non-current", which amended IAS 1 Presentation of Financial Statements. The main purpose of the amend-ments regards the classification of financial liabilities and how to classify them under particular circumstances. The amendments are proposed to be effective for annual reporting periods beginning on or after 1 January 2023, with earlier application permitted. Due to feedback received and enquiries about the classification of financial liabilities with financial covenants, in December 2020 the IFRS Interpretations Committee (IFRIC) published a tentative agenda decision in response to such feedback. Subsequently, in October 2022 the International Accounting Stand-ards Board (IASB) published a document titled "Non-current Liabilities with Covenants (Amendments to IAS 1)". The purpose of this document is to clarify the conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. The amendments are ef-fective for reporting periods beginning on or after 1 January 2024. The classification of financial liabilities as current or non-current is an im-portant consideration for financial reporting purposes, as it can have a significant impact on a company's financial statements and financial ratios. Current liabili-ties are those that are expected to be settled within one year, while non-current liabilities are those that are expected to be settled beyond that time frame. The purpose of the following review is to analyse the main impacts of the amendments on the classification of the financial liabilities with covenants and the project's history and timeline.

Exploring the accounting community perspective on the "Consultation Paper on Sustainability Reporting"

The International Accounting Standards Board (IASB) in January 2020 is-sued "Classification of Liabilities as Current or Non-current", which amended IAS 1 Presentation of Financial Statements. The main purpose of the amend-ments regards the classification of financial liabilities and how to classify them under particular circumstances. The amendments are proposed to be effective for annual reporting periods beginning on or after 1 January 2023, with earlier application permitted. Due to feedback received and enquiries about the classification of financial liabilities with financial covenants, in December 2020 the IFRS Interpretations Committee (IFRIC) published a tentative agenda decision in response to such feedback. Subsequently, in October 2022 the International Accounting Stand-ards Board (IASB) published a document titled "Non-current Liabilities with Covenants (Amendments to IAS 1)". The purpose of this document is to clarify the conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. The amendments are ef-fective for reporting periods beginning on or after 1 January 2024. The classification of financial liabilities as current or non-current is an im-portant consideration for financial reporting purposes, as it can have a significant impact on a company's financial statements and financial ratios. Current liabili-ties are those that are expected to be settled within one year, while non-current liabilities are those that are expected to be settled beyond that time frame. The purpose of the following review is to analyse the main impacts of the amendments on the classification of the financial liabilities with covenants and the project's history and timeline.

Analisis Laporan Arus Kas (Studi Kasus PT. Bosua Asuransi Cabang Jambi Bulan Oktober-Desember Tahun 2018)

This study aims to determine the condition of cash flow in PT. Bosowa Insurance Jambi Branch. if you look at the analysis of the cash flow statement. Data collection is carried out with literature and documentation research techniques. Research methods. by using descriptive analysis methods using cash flow from operating activities, investments, and funding as well as ratio analysis, namely: Operating Cash Flow Ratio (AKO), Cash Coverage Ratio to Current Debt (CKHL), Capital Expenditure Ratio (PM), Total Debt Ratio (TH). The results of this study show that the company's total cash flow during October-December 2018 shows that the company is in a non-liquid condition when assessed in terms of its operational activities. With the ratio analysis that has been carried out, it can be concluded that there is a decrease in cash flow, especially in operating activities every year and the company's ability to overcome its current liabilities still cannot be resolved.This shows that Bosowa Asuransi Jambi Branch was in a bad position during October-December 2018

Analisis Perputaran Modal Kerja Pada PT. Lippo Karawaci, Tbk

This study aims to determine and analyze the amount of working capital turnover at PT. Lippo Karawaci, Tbk. This type of research is descriptive using secondary data sources. The research instrument used is a list of tables containing sales data, current assets, current liabilities, at PT. Lippo Karawaci, Tbk for 10 years, from 2012 to 2021. The population used in this research is all of the financial statements of PT. Lippo Karawaci, Tbk since being listed on the IDX from 1996 to 2021, namely for 25 years. The sample is 10 years from 2012 to 2021 using a purposive sampling technique. Data collection techniques using documentation and literature study. The data analysis technique uses a one-sample t-test. The results showed that the working capital turnover at PT. Lippo Karawaci, Tbk more than 6 times than expected or good.

The Impact of Working Capital Management on Profitability: Evidence from Non-Financial Firms Listed in NEPSE

Efficient working capital management (WCM) is expected to contribute positively to the firm's profitability. With the aim of analyzing the impact of WCM on the profitability of non-financial firms listed in NEPSE, this paper has used current ratio (CR), debt ratio (TDTA), current assets to total assets (CATA), current liabilities to total assets ratio (CLCA) and inventory conversion period (ICP), receivable conversion period (RCP), payable deferral period (PDP), and cash conversion cycle (CCC) as the measures of WCM. This paper has used annual panel data of 12 non-financial NEPSE-listed firms from 2005/06 to 2019/20. Based on the result of the Breusch and Pagan Lagrangian multiplier and Hausman tests, the study found the Random Effect model as the appropriate regression model. Using the Random Effect regression model, this paper has found the significant impact of WCM on profitability. Likewise, this paper found a significant negative impact of the current ratio (CR) and debt ratio (TDTA) and a significant positive impact of the ratio of current assets to total assets (CATA) on profitability. Further, the finding also reveals that there is an insignificant negative impact of the inventory conversion period (ICP) and receivable conversion period (RCP) and an insignificant positive impact of the payables deferral period (PDP). Thus, this paper concludes that Nepalese non-financial firm can increase their profitability by decreasing the current ratio (CR) and debt ratio (TDTA) and increasing the ratio of current assets to total assets (CATA).

Determinants of the Corporate Financing Structure in the Energy and Mining Sectors; A Comparative Analysis Based on the Example of Selected EU Countries for 2012–2020

The main aim of the paper is to examine the interdependence of corporate financing structure on selected determinants in the energy and mining sectors of the economy. In addition, a comparison of the results between these economic sectors is made. In order to increase the representativeness of the sample, countries from both the “old” European Union (Germany, France, Great Britain, Spain, Italy, and Sweden) and newly admitted countries (Poland, the Czech Republic, Hungary, Romania, Slovakia, and Bulgaria) were included in the study. The research used data from the Orbis database for 2012–2020. A one-factor linear panel model was used to verify the hypotheses. The research partly confirmed the hypotheses. A negative relationship between the financing structure and profitability in both analysed sections was clearly established. The second determinant whose influence on the financing structure in both sections was found to be unambiguous was the ratio of current liabilities to current assets. However, this influence was positive. Another determinant whose influence on the financing structure was confirmed to be unequivocal and positive in nature was the size of the company. This occurred only in the energy sector. The research revealed that other determinants, such as asset structure, interest, and noninterest tax shields, also affect the financing structure of companies, but the statistical significance of these relationships is ambiguous.

Insolvency Forecasting using model Altman Z-Score dan Springate Score Analysis

This study aims to determine the level of company bankruptcy by using the Altman Z-Score and Springate Score model analysis on coal mining companies listed on the Indonesia Stock Exchange because Coal Mining Companies have many roles in the Indonesian Economy. The data used in this study is the annual financial report found in the Indonesian Capital Market Directory. The analysis technique used is a discriminant analysis using variables from the Altman Z-Score, which totals four financial ratios, namely Working Capital to Total Assets, Retained Assets to Total Assets, Earning Before Interest and Tax to Total Assets and Total Equity to Total Liabilities. This study also uses variables from the Springate Score: four financial ratios, namely Working Capital to Total Assets, Earning Before Interest and Tax to Total Assets Earning Before Tax to Current Liabilities Sales to Total Assets. The study results show that the financial statements of coal mining companies listed on the Indonesia Stock Exchange can be used to predict and save the company from possible bankruptcy with the Altman discriminant model and the Springate Score.

Analisis Kinerja Keuangan pada Perusahaan Daerah Air Minum (PDAM) Sebelum dan Selama Pandemi Covid-19 (Studi Kasus PDAM Tirta Dharma Batanghari Periode 2017-2021)

As one of the Regional Owned Enterprises (BUMD), the main function of the regional drinking water company (PDAM) is a social function, namely providing and distributing clean water to the community. In addition, the PDAM must also gain profits so that operational activities can be sustainable and increase regional income. To measure sales of this function, an analysis of the PDAM's financial performance is carried out. The purpose of this study was to determine the health and financial performance of PDAM Tirta Batanghari from 2017 to 2021 before, during and after Covid-19. This type of research is quantitative research with documentation studies. The results of this study indicate that the PDAM's financial performance for 5 years has obtained good management costs, is liquid in fulfilling current liabilities but the profit earned has not been stable.

Pengaruh Kinerja Keuangan Dan Struktur Modal Terhadap Financial Distress Pada Perbankan Yang Terdaftar Di Bursa Efek Indonesia Periode 2017-2019

This study aims to determine the Effect of Working Capital to Total Assets, Ebit to Total Assets, EBT to Current Liabilities, Total Asset Turnover, and Capital Structure to Financial Distress in Banking on the Indonesia Stock Exchange (IDX) in 2017-2019. The object of this research is a banking company listed on the Indonesia Stock Exchange. Based on the Purposive Sampling method, the research sample was carried out on 66 banking samples listed on the Indonesia Stock Exchange (IDX) in 2017-2019. Hypothesis testing in this study was carried out using the logistic regression analysis method in the SPSS program application. The results showed that Working Capital to Total Assets had an effect on financial distress with a significant value of 0.001. The variable Ebit to Total Assets has no effect on financial distress with a significant value of 0.999. The EBT variable to Current Liabilities has an effect on financial distress with a significant value of 0.028. The variable Total Asset Turnover has an effect on financial distress with a significant value of 0.038. Capital Structure variable has no effect on financial distress with a significant value of 0.202.

Liquidity Ratio Analysis in Financing Short Term Liabilities

The objective of this research study is to know whether X Consultancy Services company can cover up their short term liabilities or not and if they can, how good they can cover up their short term liabilities. In doing the research, the writer obtains the data from X Consultancy Services. The writer analyzes the data using descriptive method. Based on data collected, the writer calculated the liquidity ratio to know whether this company can cover up their short term liabilities or not. The writer calculated the liquidity ratio using three methods which is quick ratio, current ratio, and operating cash flow ratio from 2018 until 2020 in other to know can this company cover up their short term liabilities and how good they cover their short term liabilities. Based on data analysis, we know that company current assets is grow faster than their current liabilities while their current liabilities grow faster than their cash flow from operating. This thing makes the quick ratio and current ratio increased while operating cash flow ratio is decreased. Based on data presentation and analysis, the writer can conclude that the company can cover up their short term liabilities and they are consider good at covering their short term liabilities. But their must more focus on their cash flow from operating because if we look from operating cash flow ratio, it decreasing year by year and it will be not good for the company.

The Impact of the Correlation Between Working Capital and the Value of the Company in the Environment of Iraqi Banks

Purpose: The research aims to measure the impact and correlation relationship between working capital and the value of the company in Iraqi banks. Theoretical framework: and the research shows a conceptual approach to working capital and its intended importance, policies and indicators. In addition, it reviews the value of the company and the factors affecting it, and the role of working capital on the value of the company. Design/methodology/approach: In order to achieve this, the authors selected a sample of the commercial banking sector listed on the Iraqi Stock Exchange, where four commercial banks were selected, namely (the Iraqi investment bank), (the Bank of Baghdad), (Kurdistan bank), (Ashur international investment bank) and for the years from (2016-2020) and according to their availability in the market to be the research sample. In order to measure the research variables, the authors used the model of the amount of change in working capital, to measure the variable of working capital, and the modified (Tobin's Q) model was used to measure the value of the company, in addition, the Pearson correlation coefficient was used, and the regression equation to measure the correlation and impact relationship. Findings: The results indicate the existence of a positive impact relationship with a significant significance between the working capital and the value of the company at a significant level of 0.05, as an increase in working capital and the value of the company at a significant level of 0.05 by one unit leads to an improvement of (0.602) , and the results also showed a significant impact relationship with a value of (T) of (13.251), and the regression coefficients with a value of (F) amounted to (103.224), and this contributed to the explanation of the amount of (0.240) of the permissible discrepancy between working capital and the company's value is at a significant level of( 0.05). Research, Practical & Social implications: The need to pay attention to current assets and current liabilities and invest optimally in them because they are an important element along with fixed assets and long-term liabilities in order to achieve high profitability ratios and then achieve optimal performance and try to maximize the wealth of the owners. Originality/value: The management of Iraqi banks should intensify interest in managing working capital in a good and scientific way, for the sake of the best expected performance, and it has to do with achieving better results, through paying attention to the careful analysis of the components of current assets, and the corresponding current liabilities, to achieve the required efficiency in managing capital The Worker.