Disclosure Of Financial Information Research Articles

ФІНАНСОВА І НЕФІНАНСОВА ЗВІТНІСТЬ ГАЛУЗІ ТУРИЗМУ УКРАЇНИ – НА ШЛЯХУ ДО ЄС

The aim of the research was the theoretical justification and improvement of the disclosure of financial and non-financial information of the subjects of tourism activity on the way to the harmonization of the legislation of Ukraine with the legislation of the EU. Tourist activities in Ukraine are carried out by: tourist operators and agents, as well as other business entities that are legal entities or may be persons – entrepreneurs. The determination of the type of business entity depending on the organizational and legal form and certain criteria according to the Law of Ukraine "On accounting and financial reporting in Ukraine" is the basis of the choice of simplified or full financial reporting and the right to a simplified system of taxation and accounting. Sole proprietorships who are on the simplified or general taxation system, employed in tourism, submit only tax reporting to the relevant authorities. Travel agents and operators registered as legal entities, which are micro or small undertakings, independently determine the feasibility of drawing up financial statements and decide which set to submit: simplified or full financial statements. The authors made a comparison of financial statements according to NR(S)A and EU Directives. The EU directive significantly simplifies financial reporting for micro undertakings. Ukrainian legislation requires more detailed information about the assets, liabilities and capital of a small business. However, the EU Directive recommends much more detailed data on the income and expenses of such enterprises in the profit and loss statement and separately in the notes. Large undertakings in the tourism industry publish financial statements according to International Financial Reporting Standards on their web page or website. In addition, large undertakings disclose financial and non-financial information about the business in the management statement. This is the first non-financial report that has become mandatory for Ukrainian large and medium-sized undertakings. The article discusses the disclosure of non-financial information in statements in accordance with the new EU Corporate Sustainability Reporting Directive, and the determination of the stages of introducing sustainable development reporting during 2024–2028. We believe that the presentation of data on social responsibility and sustainable development by tourism campaigns will have a positive effect on their investment attractiveness.

Mandatory Financial Information Disclosure and Credit Ratings

Mandatory Financial Information Disclosure and Credit Ratings

PRESENTING FINANCIAL INFORMATION IN DIGITAL FORMATS AS A BASE FOR ANALYSIS AND AUDIT OF BUSINESS ACTIVITIES OF ENTERPRISES

he digitalization era of public relations is increasingly affecting the means of presenting information about the economic activities of an enterprise, in particular financial, in the context of a global pandemic, which was caused by the global COVID-19. Increasingly, in our environment, there is a transition from paper to electronic information carriers. The financial information generated by business entities both in Ukraine and in the world as a whole is no exception.The purpose of the study is to systematize the existing digital formats for presenting financial information as a basis for analyzing and auditing the business activities of enterprises in Ukraine.The basis of the study is the methodological recommendations on the use of Taxonomy UA XBRL IFRS, instructions for the revision of the Ukrainian IFRS taxonomy, specialized software products, legislative framework of Ukraine. The following methods were used: graphical (to visualize the results of the study), and grouping (to systematize the advantages and disadvantages of software that uses tax services to conduct e-audits)./Digital formats for the presentation of financial information were analyzed. They are the basis for the analysis and audit of the enterprise's activities. The structure and characteristics of the legal framework for the disclosure of financial information in electronic XBRL format in Ukraine were given. Comparative analysis of financial information in digital format XBRL and SAF-T UA were carried out.It has been determined that XBRL can be used as a basis for analyzing financial information in electronic format using special software, for example, to assess the financial condition, calculate indicators of financial stability, liquidity, solvency, business activity, enterprise profitability, etc. It has been proved that the electronic format of financial information SAF-T UA is used when conducting an electronic audit (e-audit) of taxpayers, and can also be used to calculate the tax burden (tax return, tax efficiency ratio) used by the State Tax Service of Ukraine for the purpose of control completeness of calculation and payment of relevant taxes and fees to the state budget.

Методичне забезпечення оцінки якості нефінансової звітності підприємств

Introduction. Currently, the task of harmonizing domestic legislation in the field of accounting and reporting with the directive requirements of the EU has arisen, in particular in terms of conceptual and terminological differences, the mechanism for collecting and processing data from non-financial reports of enterprises and the lack of a proper system for ensuring their quality. Problem Statement. The existence of a wide variety of approaches to the preparation of non-financial reporting by enterprises ,on the one hand , and the lack of regulation in domestic legislation of approaches to disclosure of information on sustainable development by business entities lead to a decrease in the quality of reporting data (comparability, transparency, reliability), on the other hand. The purpose is to scientifically substantiate the methodological tools for assessing the quality of non-financial reporting of enterprises. Methods: bibliographic analysis, graphical method as well as analysis and synthesis methods were used. Results. In the context of the development of the concept of quality of non-financial reporting and its reflection in regulatory documents of various levels, it has been identified that, despite the global level of its distribution, there is currently no clear understanding of the definition of quality of non-financial reporting as the basis for building a system for its assessment. The authors have developed the conceptual and categorical apparatus in the studied area by formulating a definition of the concept of “quality of non-financial reporting”. Conclusions. The paper proposes a draft Methodology for entities’ non-financial reporting quality assessment with regard to disclosure of information to justify the provision of state support to overcome the consequences of the pandemic of particularly dangerous infectious diseases (draft Methodology) is an attempt to solve it. The document is based on internationally recognised standards for corporate sustainability disclosures: IFRS S1 “General Requirements for Disclosure of Sustainability-related Financial Information”; IFRS S2 “Climate-related Disclosures”; European Sustainability Reporting Standards (ESRS 1 “General Principles”). The draft Methodology proposed in this paper includes three sections: General provisions; Procedure for assessing the quality of non-financial reporting; Organisation of the quality assessment of non-financial reporting at the enterprise.

ANALYSIS OF THE FACTORS AFFECTING THE APPLICATION OF CONSERVATISM IN ACCOUNTING

The application of accounting conservatism in the presentation and disclosure of financial information is important and necessary because of the flexibility of management in presenting financial statements with overstated tendencies that can mislead the use of financial statements. The purpose of this study was to analyze the effect of capital intensity, debt covenant, and managerial ownership, both tested one by one and tested together on accounting conservatism in manufacturing companies listed on the Indonesian Stock Exchange (IDX). The research population is manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2018-2020 period. Sample selection using purposive sampling method with predetermined criteria. Based on these criteria, a sample of 88 companies was obtained during the three-year observation period. The data used is secondary data. This study uses multiple linear regression analysis and hypothesis testing using the t-test, F test, and coefficient of determination test. The results showed that the factors that positively affect accounting conservatism are capital intensity and managerial ownership. While the debt covenant factor does not affect conservatism

Роль нефинансовой отчетности в принятии экономических решений

An important aspect of making an economic decision is the disclosure of both financial and non-financial information. Non-financial reporting is the main tool for obtaining the necessary information for stakeholders. Th e purpose of this work is to study the role of non-financial reporting in economic decision-making. The main stakeholders of the information presented in non-financial reporting have been identified. Th e analysis of the impact of non-financial reporting on economic decision-making by both internal and external users is carried out.

Private Loan Disclosure Covenants and Public Management Guidance

Prior research provides little evidence about whether the information demands of private lenders affect the information environment of borrowers’ public shareholders. Using a covenant in loan contracts, lenders can require borrowers to periodically provide projected financial statements. We examine borrowers’ voluntary disclosure of prospective financial information (“management guidance”) to the public after being subject to the disclosure covenant. We find that the disclosure covenant is associated with more frequent management guidance. This relation is attributable to borrowers increasing nontraditional earnings guidance and non-earnings financial guidance. In falsification tests, we find that a covenant requiring borrowers to provide monthly historical financial information is not associated with management guidance and that the prospective financial information disclosure covenant is not associated with voluntary disclosure of nonfinancial information. Our results suggest that a firm’s contractual obligation to provide projected financial information to private lenders increases the quantity and breadth of its voluntary guidance to public shareholders.

Go beyond financial and performance information to reach donors: Designing‐effective online disclosure in the perception of European Community foundations

AbstractBuilding perceptions of trustworthiness that encourage donors to give is critical for nonprofit organizations that depend on charitable giving. Several studies focused on the disclosure of financial and performance information to foster public trust and help donors to make giving decisions. Drawing from stewardship theory, this study explores how additional content dimensions of a more relational nature—including appreciation for the support received and willingness to dialog with donors—might be combined with financial and performance dimensions to design effective online disclosure in the view of nonprofits. By focusing on the viewpoint of European community foundations and using the configurational approach of qualitative comparative analysis, we found that information about fundraising campaigns is deemed must‐have content to discharge online. However, this information alone is not considered to be enough; to retain current donors or attract new ones, it must be combined properly with disclosures demonstrating gratitude to and engagement with donors alongside organizational finances and performance.

Comparative analysis of regulatory regulation of financial and non-financial corporate reporting on environmental activities of companies

The article presents a set of issues related to the formation of data on the environmental activities of enterprises, taking into account the current Russian and international regulations. A review and comparison of the practice of using environmental information to assess the performance of companies and investment attractiveness showed the need to improve methodological approaches to disclosure of financial and non-financial information in corporate reporting, as well as the development of uniform rules and regulations for reporting containing indicators of environmental and environmental activities of economic entities. A comparative analysis of the provisions of Russian and foreign standards is given and directions for improving the regulatory framework governing the procedure for the formation of environmental financial and non-financial corporate reporting are identified.

Enterprise digital transformation, financial information disclosure and innovation efficiency

This paper takes the data of 2114 listed enterprises in Shanghai and Shenzhen A-share markets from 2010 to 2022 as samples for empirical analysis. The results show that digital transformation of enterprises can effectively promote the growth of innovation efficiency of enterprises, and financial information disclosure plays an important intermediary role in the middle. In addition, when the industry competition is high and the marketization level of the region where the enterprise is located is low, the positive effect of digital transformation on the innovation efficiency of the enterprise is more and more significant.

IMPACT OF THE AUDIT ON THE TRANSPARENCY AND DISCLOSURE OF FINANCIAL INFORMATION

This research work focuses on auditing and its impact on companies. The general objective is to exhaustively analyze the “impact of auditing on the transparency and disclosure of financial information in companies” by conducting interviews with an auditor to know her opinion on the importance of the audit and the positive impact that companies have when applying it. To achieve this objective, a qualitative approach was used. The mandatory tax audit is a legal requirement and not an option, its value is established by the SET and must be requested. According to the suppliers, the accounting is rated with a “5”. The audited companies provide additional details, such as purchase forms by items or areas and by type of products, which increases the reliability of financial information.Auditors monitor the implementation of policies and procedures, identify errors and poor practices, and offer recommendations for improvements. Although auditing is not the only source for investment decisions, more than 85% of investors consider it. Interpersonal relationships improve significantly with the auditors’ opinion, increasing the transparency of the company. It is suggested that the audit should be carried out without being mandatory to have a greater impact. The audited companies must know the technical control standards to comply with them rigorously, and the results The final results of the audits must be objective, comply with the technical processes and the law. In conclusion, this research work provides valuable information on the implementation of the audit in companies.

INTERNATIONAL REGULATIONS FOR SUSTAINABLE DEVELOPMENT ACCOUNTING REPORTS

The International Standards Board for Sustainable Development (ISSB) published in 2023 the ”General Requirements for Disclosure of Sustainability-related Financial Information” and the International S2 IFRS Standards for "Climate-Related" Financial Reporting, whereby the accounting community felt the need for additional informative comments. The article analyzes the prerequisites for the introduction of sustainable development standards and the possibilities of their application. The priorities of the information related to the sustainable development of the organizations in the published integrated financial reports were partially clarified.

Derivative Risk Information Disclosure Effect on Financial Reporting Quality Evidence from Selected Listed Deposit Money Banks in Nigeria

This study investigates the impact of financial derivative risk information disclosure on the quality of financial reporting in a sample of Nigerian deposit money banks. Data from the annual financial reports of twelve Nigerian listed commercial banks were collected over a ten-year period, from 2012 to 2021. While derivative assets served as the proxy for the independent variable, Jones Discretionary Accrual was employed to measure reporting quality and cash flow to asset ratio was employed as control variable. The hypothesis was tested using Pooled Ordinary Least Square regression analysis technique whose result indicate that disclosure of financial derivative risk information leads to an increase in discretionary accrual value, thereby undermining the quality of financial reports. As a result of this finding, the study concludes that disclosing financial derivative risk information has a negative impact on the quality of financial reports issued by Nigerian deposit money banks. It therefore recommends that policymakers work with regulatory bodies and standard-setting organizations to establish standardized disclosure practices for derivative instruments among Nigerian deposit money banks.

Environmental Awareness of Enterprises through Their Disclosure Magnitude: UK and US Evidence

In the absence of a validly mandatory public policy and a meaningful conceptual framework, corporate environmental disclosure practices have been diverse (Matthews, 1993). In other words, the lack of a single generally accepted standard in which environmental reports can be developed, akin to that of financial reporting principles, is one of the reasons for this undoubted dissimilarity in environmental reporting practices. However, there are imperative requirements relating to environmental information disclosure in many developed countries, for example, environmental related information is required in the Business Review in accordance with s.417 of the Act (Great Britain. Companies Act 2006) in the UK and the US Securities and Exchange Commission (SEC) has developed rules governing disclosure of environmental liabilities, in relation to Items 101, 103, 303 and 503(c) in SEC Regulation S-K (SEC, 2008). The former is rather vague as it is not underpinned by a robust speculative structure, whereas the latter has only focussed on the disclosure of financial information that is environmentally related despite the non-financial nature of predominant environmental information. In response to these, the International Accounting Standards Board (IASB) and The International Sustainability Standards Board (ISSB) has very recently issued the foundational standards, which are IFRS S1 and IFRS S2, to steer corporate sustainability-related disclosures worldwide. The former inaugurally provide general conceptual foundations and the latter has primarily pointed on climate risks and opportunities. The other dimensions are forsaken to line up sometimes in the future. Keywords: Environmental Information Disclosure, Environmental Reporting, Disclosure Quantity, UK, US

Quality of financial disclosures related to environmental, social, and governance matters, and firm characteristics and firm value: A comparative study across four ASEAN countries

This research aims to understand how a company’s characteristics influence its disclosure of sustainability-related financial information and how such disclosure affects the company’s value. The study uses three company characteristics as variables: size, profitability, and leverage. The two dependent variables are the quality of sustainability reporting and company value. The research uses a quantitative explanatory method. The study uses sustainability disclosure data, based on the IFRS S1 framework, from 162 companies listed on the sustainability-based stock indexes in Indonesia, Malaysia, Singapore, and Thailand in 2021. The data obtained were analyzed using descriptive statistical analysis and path analysis. The study results show that only company size influences the quality of sustainability item disclosure, while profitability and leverage have no effect. The quality of sustainability item disclosure has a positive effect on company value. This study shows that sustainability disclosure in financial reports can increase a company’s value in the eyes of investors, but significant efforts are still needed to improve the quality of such disclosure. The findings indicate that the size of a firm has a significant impact on the expenses associated with publishing sustainability information. However, the company's performance does not have a similar relationship.

The importance of independent audit and ethics in prevention of risk in businesses

Purpose- Regarding risks that express the possibility of loss of financial, physical, human and intellectual resources of businesses, not only due to their effects on the existence of the relevant businesses; At the same time, due to its devastating effects extending to international economies, it has become necessary to make institutional and legal regulations at national and international levels. Since the focus of the regulations is on "independent auditing and ethical rules", examining this issue constitutes the purpose of the study. Methodology- The method of the study is to consider the audit institutions and concepts developed for the prevention of risk in the historical development process, to reveal the importance of independent auditing and ethical principles in terms of stakeholders and the social environment, and to evaluate the subject in a whole, based on the literature. Findings- In preventing risks; It has been determined that audit activities are carried out under three headings: public audit, internal audit and independent audit. In independent auditing, which provides assurance regarding the reliability of financial data and statements, ethical principles are a prerequisite for ensuring the public interest. When we look at the historical roots of the concept of independent auditing and ethical principles; The emergence of financial reporting and auditing scandals behind the sudden bankruptcies of international companies such as Enron, World Com, Xerox, Lucent in the USA and Parmalat in the EU has shaken the trust in capital markets, company management, financial reports, independent audit companies and auditors. The need to re-establish public confidence in the markets and to introduce regulations regarding the transparency, honesty and financial information disclosure responsibility of public companies necessitated institutional structuring and regulations. In this context, the Treadway commission, established in 1985 in the USA, prepared the Sarbanes-Oxley Act (SOX) in 2002, and based on this law, the Public Company Accounting Oversight Board (PCAOB) was established to monitor the accounting sector in order to protect the interests of public company investors. International Supreme Audit Institutions have published the Code of Ethics Standard (ISSAI 30). In parallel, the Public Oversight Institution (KGK) and Capital Markets Board (SPK) in Turkey published the "Corporate Governance Principles". Conclusion- In order to prevent risks, independent auditing based on ethical principles, on the one hand, ensures the protection of stakeholders and public interest; On the other hand, it will contribute to the successful continuation of the activities of the related enterprises. The trust and transparency to be provided in the investment environment will be the guarantee of the development of national and international economies in general and the increase of social welfare and the dynamic of development. Keywords: : Risk, audit, ethics JEL Codes: M12, G10

Analysis of Accounting Information Systems on Receipts, Expenses & Cash Transparency At Banjar Serasan Village Office

The purpose of this study was to understand the implementation of the Accounting Information System on Cash Receipts, Disbursements, and Transparency in the Banjar Serasan Village Office. This study uses a qualitative approach to gain a comprehensive understanding. The research data consists of primary data obtained through interviews with informants involved in the financial management process, as well as secondary data obtained through observation and documentation studies. Data collection techniques used include interviews, observation, and documentation studies. The analytical method used in this study adopts a postpositivism philosophy, which focuses on objective understanding and objective data analysis. The data collected was analyzed thematically, identified emerging patterns and themes, and given an in-depth interpretation. The results showed that the accounting information system implemented in the Banjar Serasan Village Office made a significant contribution to the mechanism of cash receipts and disbursements. However, research also finds that transparency to the public is limited due to local regulations that prohibit public disclosure of financial information. Informants in this study revealed that these limitations are the result of policies that have been set and must be followed.

Pengaruh Kepemilikan Manajerial, Arus Kas Operasi, dan Kompleksitas Operasi Perusahaan Terhadap Ketepatan Waktu Penyampaian Laporan Keuangan

This study aims to examine the influence of the managerial ownership, operating cash flow, and the complexity of the company’s operations on the disclosure of financial information on the official website of the local government. The population in this study are property & real estate sector companies listed on the Indonesia Stock Exchange (IDX) in 2019- 2021. The sampling technique in this study used purposive sampling and obtained 60 samples of companies with a research period of 3 (three) years in order to obtain a total of 180 research observations. The data analysis model used by this study is logical regression analysis using SPSS Version 26 software. The results showed that the managerial ownership, operating cash flow, and the complexity of the company’s operations simultaneously had a significant impact on the timeliness of financial statement reporting. Meanwhile, partially the managerial ownership, operating cash flow, and the complexity of the company’s operations has no a significant effect on the official website on the timeliness of financial statement reporting

Method of calculating the integral indicator of transparency of Ukrainian banks

The research is devoted to the problem of financial and non-financial information disclosure by banking groups of Ukraine. Detinization of the economy is one of the highest priorities of state policy, banks, as the largest group of financial intermediaries, act as one of the tools to reduce the level of shadow transactions. However, the problem of the presence of mechanisms for identifying violations, anti-corruption measures, which in turn should have a positive effect on the level of bank transparency, is still not sufficiently covered. In this paper authors analyze the Management Report. It is a report, which contains financial and non-financial information, reveals the state and prospects of development, and characterizes the key risks accompanying the activity. Since at this stage the normative acts do not define a unified form, the problem of information disclosure is quite urgent. Taking into account the above-mentioned research problems, the authors analyzed the key structural divisions of the Report of the largest state-owned banks with private and foreign capital during 2021-2022. Using the expert method, the points of the Report that more fully disclose information, those that directly relate to the problem of shadowing, were determined economy and fight against corruption, and those that do not exist at all. As the next stage, the authors chose the Fishburne method for ranking indicators in order of their importance, which became the basis for deriving an integral indicator of transparency for each bank. The results show that there is a general tendency to increase the level of openness of financial and non-financial information of banks. In terms of forms of ownership, banks with foreign capital and state-owned banks are more transparent, which in turn helps to reduce the level of shadow transactions.

Accounting Mechanism to Measure the Environmental Impact of Industries in the Aburrá Valley and its Application of the General Disclosure Requirements Related to Financial Information on Sustainability (IFRS S1) and Climate-Related Disclosures (IFRS S2)

Objective: In the research work carried out, an accounting mechanism is proposed to measure the environmental impact generated by the industries that perform their economy in the Aburra Valley, and to determine what are the effects on the application of IFRS S1 General disclosure requirements related to sustainability financial information and IFRS S2 Climate-related disclosures (ISSB), in the disclosures of the financial statements, in which it seeks to incorporate sustainability information, for the analysis and interpretation of the users of the information, starting from the need to bridge the gap between accounting and the environment as an influence of the fact that environmental responsibility concerns any professional area. Theoretical framework: The research is based on the measurement of environmental impact and sustainability disclosures in financial statements. Method: The method is qualitative, surveys were made to companies located in the Aburrá valley, one industrial company was selected for each of the six municipalities evaluated. Results and Conclusions: Through the survey instrument and analysis of IFRS S1 and S2, it was possible to identify in the industries evaluated that there are no control mechanisms, opening the way to recreate indicators that allow the valuation of the economic activities of the industry and propose the creation of accounting accounts in the assets among the resources used in environmental management. Repercussions of the research: Medium and small organizations do not take into account in their financial statements recorded the economic impact associated with business activity, the implementation of indicators and information reporting in the disclosures will help users of the information to determine the administrative and economic efforts of senior management to contribute to the environment. Originality/value: This paper proposes indicators and analysis of environmental reporting in financial information in organizations.