Disclosure In Financial Reports Research Articles

Impact of Corporate Governance in the Application of the Financial Standard for Sustainability Accounting FNO 101

The study aims to investigate the impact of corporate governance in the application of the financial standard for sustainability accounting FNO 101 . To achieve this aim , the study follows the descriptive analytical approach using the statistical package for social sciences (SPSS) in analyzing data and testing hypotheses . A questionnaire was determined and distributed for 30 practitioners of which 28 were valid for analysis . The most important conclusions were that governance mechanisms contribute to improving financial performance , which improves the quality of financial reporting to enhance confidence in financial statements through the application of governance indicators according to (GRI) standards . In addition, the application of the financial standard for sustainability accounting FNO 101 contributes to improving the financial performance of commercial banks listed on the Iraq Stock Exchange . One of the most important recommendations was the need for the economic entity to adhere to the application of governance rules and the application of the financial standard for sustainability accounting FNO 101 and to deepen and develop concepts , by holding specialized training courses for their employees , and to increase the level of disclosure and transparency in financial reports , and to make them available to all stakeholders to give shareholders and investors security for their money invested in this entity work to disseminate the concept and culture of governance and the financial standard for sustainability accounting FNO 101 in a wider way to all relevant parties, and to issue bulletins and instructions that reflect their concepts and applications .

Decarbonization and the obstacles to carbon credit accounting disclosure in financial statement reports: the case of UAE

PurposeThis study investigated the visibility of carbon emissions allowances accounting in the financial reports of 32 clean development mechanism (CDM) projects in the UAE to uncover the obstacles to setting consistent standards for carbon emission accounting. As carbon emissions are monetized as credits, consistent accounting standards can aid decision-makers in the development of carbon emission mitigation strategies.Design/methodology/approachThis study used a grounded theoretical framework for exploring the terms used in the policy documents of international accounting bodies regarding accounting standards and guidelines for carbon emission credits. Raw qualitative data were gathered, and an inductive approach was used by analyzing documents from various sources using the qualitative data text analysis software QDA Miner 6.FindingsThe findings showed that the financial statement reports of the corporations did not include disclosure of the carbon credit account. This omission was due to the lack of global standardization of carbon credit accounts and emission allowance recognition. This may hinder the production of a comprehensive report containing accurate and valuable financial information relevant to all stakeholders.Originality/valueThe study is among the first to use a grounded theoretical framework to investigate whether corporations are applying common standards and guidelines for carbon emissions accounting.

Analysis of Regional Financial Report Disclosure Factors: A Literature Review

This research looks at various factors influencing regional government financial report disclosure in Indonesia. The method used is a literature review using the SINTA database with a publication period of ten years. The results show that good audit opinions, a high level of independence, and effective regional revenue management positively impact the disclosure of regional government financial reports. Other factors, such as political pressure, population size, and regional wealth, also play an important role in shaping transparency. Increasing openness of financial information at the regional level strengthens accountability and builds public trust in local government. Based on these findings, it is known that it is important for local governments to pay attention to factors such as audit opinion, level of independence, and revenue management to increase financial report disclosure. In addition, understanding political pressures, population size, and regional wealth is also needed to form effective transparency policies. Increasing the transparency of financial information at the regional level is expected to strengthen government accountability and build public trust, support good governance, and increase the efficiency of regional financial management

Incumbents’ re-election incentives and financial report disclosure in Indonesian local government

<p>This study investigates the relationship between incumbents' re-election incentives and financial reporting disclosure in the Indonesian local government. This study uses a sample of 351 local governments at the city or district level throughout 2015-2017 when they ran a local election. Content analysis is used to assign scores to the extent of disclosure. The incumbent mayor or regent who runs a second election is signaled by 1 and 0 otherwise as the proxy for the incumbent's re-election incentives. Cross-sectional multiple regressions will be conducted to examine the hypothesis that there is a significant relationship between an incumbent's re-election incentives and disclosure of financial statements in the local government. Our findings show that incumbent re-election incentives do not have a relationship with the disclosure of financial reports. The incumbent incentive to be re-elected does not necessarily drive an incumbent to disclose its financial statements. Regarding the control variables, significant negative relationships exist between dependencies and the size of the local government towards disclosure level. However, the complexity of the population was positively related to the disclosure level of financial reports. On the contrary, political competition, debt ratio, and type of local government were not related to the disclosure level of the local government's financial reports.</p>

Analysing the influence of accounting conventions on the financial performance of commercial banks in Kenya

The collapse of some commercial banks in Kenya in the recent past has raised the question of the credibility of financial information as a tool for investors to make informed decisions. The study sought to analyse the disclosure practices of accounting conventions on the financial performance of commercial banks in Kenya. The following specific objectives guided the study: to establish the influence of the disclosure, consistency, prudence and materiality of financial reports on the performance of commercial banks in Kenya. A cross-sectional survey was adopted. The target population was 42 respondents who formed the sample size by the census method. The data was collected through questionnaires, secondary data and annual reports and analysed quantitatively and qualitatively. Quantitative data was analysed using descriptive statistics and inferential statistics. The finding shows a moderate positive relationship between disclosure and the performance of commercial banks. The relationship is significant (r = 0.322, p>0.01). The result shows a moderate positive relationship between consistency and performance of commercial banks. The relationship is significant (r = 0.369, p>0.01). The results also show a moderate positive relationship between prudence and the performance of commercial banks at a significance of (r=0.500, p>0.01). On establishing the relationship between materiality and performance of commercial banks, it was found there is a moderate positive relationship with a significance of (r = 0.317, p>0.01). Respondents indicated that the consistency of financial reports has little effect on the net profit of commercial banks. Respondents indicated that prudence of financial reports leads to better organisational performance. The materiality of financial reports affects organisation performance. Prudence in financial reporting affected the decision-making among the investors in the banking industry. The study recommends that commercial banks' management ensure transparency, honesty, consistency and reliability during financial reporting.

Penerapan Green Accounting untuk Pengelolaan Limbah pada Peternakan Sinatria Farm Yogyakarta Periode 2023

The research aims to determine the application and suitability of the disclosure and presentation of Green Accounting financial reports on the Sinatria Farm Yogyakarta farm with PSAK No.1. The type of field research research with the method used is qualitative, namely research that does not use numbers or statistical calculations, but provides descriptive results for the research. The research location was at Sinatria Farm, which is located in Sleman Regency, Yogyakarta Special Region, with two resource persons, namely employees who were directly related to the variables studied. Data collection uses primary data from observations and interviews with respondents based on research problems, as well as secondary data in the form of general data and livestock financial records. The data analysis method uses 3 stages of qualitative data analysis according to Miles and Huberman, namely data reduction, data presentation, and drawing conclusions. The results of the research state that the implementation of Green Accounting carried out by Sinatria Farm Yogyakarta has been carried out well in its waste management, the disclosure and presentation of Green Accounting financial reports at Sinatria Farm Yogyakarta is not in accordance with PSAK No.1, but still uses financial reporting notes according to the needs of the farm using language that is easy for the livestock to understand. In this regard, steps that must be taken are to look for other innovations related to contributions to the environment, and start determining environmental costs in Green Accounting, which records financial reporting in accordance with PSAK No.1.

Influence factors on financial statements disclosure of Indonesian local governments

This study aims to examine the factors that affect the level of disclosure of local government financial reports. This paper uses such independent variables as budget expenditure of the local government, government size, and capital expenditure. The financial records of Indonesian local governments that have undergone audit by the supreme agency are analyzed in this study. For the 2020 timeframe, 485 local/city governments in Indonesia served as the research samples, and purposive sampling was employed as the sampling method. SPSS is utilized to support multiple linear regression, which is the data analysis method used in this study. The test findings revealed that budget expenditure (β = 0.274; p < 0.05), government size (β = 0.216; p < 0.05), and capital expenditure (β = 0.178; p < 0.05) have a significant effect on the level of local government financial statements disclosure. It is envisaged that the findings of this study would enable local governments, particularly districts or cities, to better maximize the disclosure of local government financial statements in compliance with government regulation. Local governments will be able to open up information that is easily accessible with the aid of ever-improving technology.

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 Effect of Profitability, Liquidity and Company Size on Disclosure of Financial Statements on The Jakarta Islamic Index

This research was conducted to find out how the influence of profitability, liquidity, and company size on the disclosure of financial statements in manufacturing companies listed on the Jakarta Islamic Index (JII) for the 2016-2021 period. This study uses a quantitative approach with secondary data sources. Samples were selected using purposive sampling that met the criteria selected in determining the sample were 10 companies, according to the characteristics of the study. The data used is annual financial report data from 2016-2021. The method used is descriptive analysis, classical assumption test, multiple linear regression test and hypothesis testing using the E-Views Version 12 computer program. The results of this study indicate that partially (individually) the profitability variable has a positive and significant effect on the disclosure of financial statements. Liquidity has a negative and significant effect on the disclosure of financial statements for manufacturing companies listed. Company size has a negative and significant effect on financial statement disclosure for manufacturing companies listed. Simultaneously (together) profitability, liquidity, and company size have a significant effect on the disclosure of financial reports for manufacturing companies listed. It can be concluded that only the profitability variable has a positive and significant effect on financial statement disclosure in manufacturing companies.

Economic policy uncertainty, audit quality, and earnings manipulation

ABSTRACT This study examines how audit quality is related to the risk of earnings management when economic policy uncertainty increases. After analyzing 10,524 firm-year samples in Korea from 2012 to 2019, we find that when economic policy uncertainty is high, audit quality, measured by audit fees, audit hours, revised disclosure of financial reports, and discretionary accruals, increases. This implies that auditors increase audit quality at a time of economic policy uncertainty, which results in the improvement in financial information quality. Also, we find that during periods of high economic policy uncertainty, companies with high risk of earnings manipulation disclose higher quality financial information, but pay less audit fees. This suggests that auditors who audit firms with high risk of earnings manipulation adjust to increased audit risk by putting more effort into improving financial information quality, but such increased audit efforts are not reflected in audit fees. The results of the study imply that auditors’ efforts to control audit risks contribute to improving financial information quality in the presence of earnings manipulation risk where information asymmetry increases due to economic policy uncertainty.

The Impact of Adopting International Financial Reporting Standards on the Quality of Financial Reports Using the Accrual Model

Objective: The research aims to define international financial reporting standards, in addition to showing their importance during historical development, for the purpose of adopting international financial reporting standards. Theoretical framework: It is clarifying the international financial reporting standards. In addition to showing its importance during the historical development, for the purpose of adopting international financial reporting standards. As well as the theoretical framework for the quality of financial reports. The adoption of international financial reporting standards was also affected, then the impact of international financial reporting standards on the quality of financial reports was measured. Method: The search relied on the deductive and inductive approaches, as the deductive approach was employed by studying the literature related to the subject of the research. As for the scientific aspect, the inductive, descriptive, and analytical approaches were adopted, as well as the statistical approach. Results and Conclusion: Results of the practical application of the research showed that the adoption of international financial reporting standards instead of the unified accounting system for banks has affected the quality of the financial reports of some banks listed in the Iraq Stock Exchange. It is concluded from this that there is a lack of proper application of international financial reporting standards because of the unclear understanding of them and how to apply them. Iraqi commercial banks need to adhere to the effective and proper application of international financial reporting standards to avoid many issues and fundamental errors related to the presentation of financial reports. Implications of the research: The adoption of International Financial Reporting Standards (IFRS) increases the possibility of comparing financial information, in addition to increasing the level of transparency and the quality of disclosure in financial reports. This means the application of standards reduces information asymmetry, therefore is reflected in the users of that information in decision-making. Originality/value: The value of research comes from the importance of international financial reporting standards and their ability to provide quality and comparable financial reports between different companies and economic units, also the role of it for improving the quality of financial reports.

Effects of IPSAS Adoption in Public Institutions in Romania on the Quality of Financial Reporting

This paper examines the practical improvement on the quality of financial reporting in the Romanian public institutions after implementing IPSAS. To test our hypothesis, we used a questionnaire addressed to the accounting professionals from the local public administration, in which 164 respondents participated. In this revision, we use a linear regression analysis method to examine the relationship between the implementation of IPSAS and the quality of financial reporting in the Romanian public institutions. The introduction of IPSAS, as demonstrated by empirical studies, is significantly positively related to the quality of financial reporting in the Romanian public institutions. The findings of this research recommend that regulators take appropriate measures to ensure compliance by those responsible for the preparation of financial statements of public sector entities. Efforts should also be made to improve the quality of disclosure of relevant financial reports to help users make beneficial economic decisions.

Determinants and Practices of Voluntary Graphic Disclosure in Local Government Financial Reports in Central Java Province 2017-2020

Determinants and Practices of Voluntary Graphic Disclosure in Local Government Financial Reports in Central Java Province 2017-2020

Internet Financial Report And Determinants of The Quality of Financial Statements of Non-Profit Organizations

The purpose of this research was to assess the elements that influence the quality of non-profit financial statements and the moderation of voluntary disclosures on the Internet Financial Report. " Human Resource Competence, Implementation of Financial Accounting Standards for Non-Profit Organizations, Internal Control Systems, and Accounting Information Technology Use on the Quality of Financial Reports of Non-Profit Organizations with Voluntary Disclosure of Internet Financial Reports as Moderating Variables,". The population in this research is all non-profit organizations in the form of NGOs or NGOs in Indonesia. The research sample is focused on NGOs and NGOs registered with the Ministry of Foreign Affairs until 2021, as well as partners from donor agencies USAID and AUSAID. The primary data sampling technique was convenience sampling, where respondents who were willing to fill out the questionnaire were sampled. Distribution of online questionnaires and surveys through private domains obtained 90 respondents from the financial staff of non-profit organizations that were willing to participate in this research. The data was processed using a multiple linear regression analysis. The results of this research indicate that the influence of human resource competence, the implementation of financial accounting systems for non-profit organizations, the implementation of internal control systems, and the utilization of accounting information technology affect the quality of financial reports of non-profit organizations, while voluntary disclosure of internet financial reports strengthens the relationship between the utilization of accounting information technology and report quality. Finance for nonprofit organizations.

The Effect Of Local Government Commitment And Audit Opinion On Disclosure Of Local Government Financial Reports In Indonesia

In this study, the authors are interested in examining how the influence of heads of local government commitment and audit opinions on the disclosure of local government financial statements in Indonesia with the level of public education as a moderating variable. This study used a population of all provinces in Indonesia from 2019 to 2021, totaling 34 samples, according to the criteria needed in this study. This study uses logistic regression analysis with the results of the study that heads of local government commitment has a positive effect on local government financial statement disclosures, and audit opinions have a positive effect on local government financial statement disclosures. The level of education moderation variable can only strengthen the positive influence of heads of local government commitment on local government financial statement disclosures and weaken the positive effect of audit opinions on local government financial statement disclosures.

Corporate COVID-19-Related Risk Disclosure in the Electricity Sector: Evidence of Public Companies from Central and Eastern Europe

Risk disclosures contribute to financial stability by providing stakeholders with a better understanding of companies’ risk exposures and risk management practices. Presently, corporate risk has been accelerated by the COVID-19 pandemic, and the level of disclosure varies across industries, companies, and organizations. Due to the strategic importance of the energy industry, the paper aims to assess COVID-19-related risk disclosure in the biggest electricity companies in Central and Eastern European countries, and to identify the main determinants of the disclosure. For this purpose, risk disclosure was assessed based on publicly available data disclosed by the 10 biggest public electricity companies operating in this region. Our findings indicate that factors such as the company’s size, leverage, and profitability do not significantly affect COVID-19-related risk disclosure in financial reports; nevertheless, COVID-19 risk disclosure in non-financial reports is significantly correlated with the company’s assets and revenues. Moreover, there is a significantly strong positive relationship between the scope of COVID-19-related risk disclosure in the management reports and the number of women on the company’s management board. COVID-19-related risk disclosure in management board’s reports is significantly higher than disclosure in non-financial reports and explanatory notes of financial statements. Our results suggest that risk disclosure is needed to mitigate information asymmetry, especially in pandemic situations.

Does more voluntary environmental information disclosure cut down the cost of equity: heavy pollution industries in China.

Examining the coexisting policies for mandatory and voluntary disclosure of environmental information, this paper focuses on the unique background for such disclosure in the context of domestic companies in heavy pollution industries (EHPIs), a topic thus far overlooked by the literature. We aim to identify, in regard to compulsory environmental information disclosure in financial reports, whether adding further voluntary information disclosure to corporate social responsibility (CSR) results in an extra discount from investors during an equity financing. We evaluate a sample of 4390 A-share listed companies in EHPIs operating in China between 2010 and 2018. Specifically, linguistic analysis and image recognition are conducted with Python, and a regression model is applied to test our hypotheses. The positive impact of the following variables on the cost reduction in equity capital is thus demonstrated: (a) CSR disclosure, (b) higher quality CSR reports, (c) increased environmental information disclosure in CSR reports (CSR_E), (d) more accurate environmental investment information, and (e) additional graphs and text. Moreover, the degree of CSR_E disclosure's reduction in the cost of equity is 30 times that of CSR disclosure, while charts have specific positive effects that text does not. Therefore, we identify a new path for remitting information asymmetry in a financial market by extending information manipulation research, especially studies of nonfinancial information. Overall, information disclosure should be taken seriously by both firms and supervisors. Hence, this study offers guidelines for regulatory authorities to explore the coordination effect of mandatory and voluntary disclosure policies, i.e., to achieve environmental governance and the sustainable development of enterprises by improving corporate governance.

KAJIAN ETIKA PENYUSUNAN LAPORAN KEUANGAN BERBASIS MAQASIDU SYARIAH

This study aims to understand ethics in the preparation of financial statements and interpret the ethics of preparing financial statements based on maqashid sharia at the National Amil Zakat Agency (BAZNAS) Bone Regency. This research is a type of descriptive qualitative research using a phenomenological approach. Sources of data used in this study are primary data and secondary data. Primary data in the form of information and data obtained during observations and interviews in the research process. While secondary data is in the form of additional information or data obtained from trusted institutions or sources which have then been published to the general public for reprocessing in research. The results of this study indicate that with regard to the ethics of preparing financial statements carried out by BAZNAS, Bone Regency, it is in accordance with the existing rules in the implementation of financial statement disclosures which are also carried out every 6 months in accordance with Government Regulation of the Republic of Indonesia Number 14 of 2014 concerning the Implementation of Law No. Law Number 23 which regulates the Standard Operating Procedure (SOP). Then BAZNAS Bone Regency has also carried out its responsibilities in accordance with maqasidu sharia, namely by bridging the obligations of muzakki and mustahiq needs with a full sense of moral responsibility to Allah Subhanahu Wata'ala. Disclosure of financial reports carried out by BAZNAS Bone Regency has also covered several aspects such as physical, mental and spiritual aspects.

Determinant factors on the disclosure level of local government’s financial statements in Indonesia

Financial reports are required from both the federal and municipal governments to demonstrate and improve governance and raise openness and accountability of government financial management. This study aims to determine how much mandatory disclosure in local government financial reports can be increased by adding variables such as the number of members in the legislative body, debt, and population, as well as a control variable – the age of the municipal authorities. The population of this study comprised all Local Government Financial Statements (LGFS) in Indonesia and the Supreme Audit Agency’s financial statement auditing requirements as of 2018. The paper adopted a purposive sample technique; 248 local governments in Indonesia were sampled. This study tested hypotheses using multiple regression analysis with the SPSS Version 25 application. The findings show that the number of members in the legislative body, debt, and total population do not affect the level of LGFS disclosure; however, the level of welfare does. This study should provide information that can help increase LGFS disclosure in a way that is valuable for local governments. Utilization of information technology in meeting social demands more efficiently and effectively is one of the strategies for local governments in carrying out financial statement disclosures.

Pengaruh Pengawasan Legislatif dan Temuan Audit terhadap Internet Financial Report Pemda Dimoderasi Sistem Pengendalian Internal

This study aims to provide empirical evidence regarding the effect of legislative oversight and audit findings on the disclosure of Internet Financial Reports (IFR) for the local governments of NTB, NTT and Bali (Bali Nusra), as well as the moderating effect of the internal control system (SPI). The total population of the study was 44 local governments consisting of provincial, district and city governments in Bali Nusra. The study was conducted during 2018-2019 with a total of 88 observations. The sampling method used non-probability sampling with saturated sampling (census). The results of the study indicate that legislative oversight has a positive and significant impact on the disclosure of the Bali Nusra Regional Government's IFR. Meanwhile, the audit findings have no significant negative effect on the disclosure of the Bali Nusra Regional Government IFR. In addition, the SPI strengthens but is not significant in moderating the effect of legislative oversight and audit findings on the disclosure of IFR for the local government of Bali Nusra. The implication of this research is to provide input to the heads of local governments as consideration for improving the implementation of IFR, as a benchmark and form of evaluation related to the implementation of IFR to increase transparency.
 Keywords : Legislative Oversight; Audit Findings; Internal Control System; Internet Financial Report.