Elements Of Financial Statements Research Articles

ОБ’ЄКТИ БУХГАЛТЕРСЬКОГО ОБЛІКУ ІНСТИТУТІВ ГРОМАДЯНСЬКОГО СУСПІЛЬСТВА

Research on the definition and recognition of accounting objects is expediently carried out, taking into account the significant transformational changes that are taking place in the global information space as a response to challenges to society and the need to obtain complete information about the activities of economic entities, including civil society organisations (institutions). The article analyzes the provisions of International and national standards of accounting (financial reporting) regarding the definition of the main elements of financial statements. The existence of certain discrepancies in the composition and content of the objects of accounting (elements of financial statements) proposed for use by economic entities of certain sectors of the economy was determined. A comparison of accounting objects according to International and national standards of accounting (financial reporting) for the business sector, in particular for small and medium-sized entities, and for the public sector is given. The peculiarities of the accounting policy of institutions of civil society are determined by the fact that the public of the country or even society as a whole act as the main user of accounting information. Accounting objects of civil society, taking into account the peculiarities of their creation and functioning, we define: assets; liabilities; equity; income and expenses. In order to provide the public with complete and reliable information about the activities of public, charitable, and other civil society organizations, the definition and recognition of their assets, liabilities, equity, income and expenses as accounting objects should be clarified. We propose to supplement the definition and conditions of recognition of accounting objects of civil society institutions as a sign of receiving potential benefits from their use in the future. By service potential benefit, we understand satisfaction by public, charitable organizations, other civil society institutions of services for the implementation and protection of rights and freedoms, the implementation of economic, social, cultural, environmental and other interests of citizens, other public services or the interests of a certain group of people, including in in the form of receiving money and their equivalents, beneficial exchange, repayment of obligations, other.

Impact of Leverage, Capital Intensity, Inventory Intensity, Cash Effective Tax Rate on Tax Avoidance: Assessment for Energy Sector Corporate

This study looks at how the Cash Effective Tax Rate (CETR) explicitly evaluates the effects of leverage, capital, and inventory intensity on tax avoidance. The present study was undertaken on the energy sector businesses listed on the Indonesia Stock Exchange (IDX) during the period spanning from 2016 to 2019. A purposive sampling strategy was employed to choose 22 companies, comprising a dataset of 88 observations. The data were subjected to analysis and hypothesis testing using the STATA software. A panel data estimation model determination test was conducted, which indicated that the standard effect model was appropriate for this research. The testing steps encompass many statistical procedures: the classical assumption test, panel data regression analysis, coefficient of determination test, and partial test. The study revealed a notable favorable impact of leverage and inventory intensity on CETR. In contrast, the effect of capital intensity on CETR was shown to be statistically insignificant. The results of this study support the positive accounting theory, which says that managers choose assessment methods and measure financial statement elements based on self-interest and opportunistic behavior. Specifically, management may opt for strategies that minimize tax liabilities or align with the company's goals, such as efficient contracting behavior, which aims to mitigate the risk of tax avoidance. Implications for Tax authorities in Indonesia should consider financial indicators, notably leverage, and inventory intensity, as valuable indicators of potential tax avoidance, particularly within the energy industry.

IDENTIFYING PROBABLE FRAUDULENCE IN FINANCIAL STATEMENTS OF SELECTED AUTOMOBILE COMPANIES

A deliberate misstatement of material facts by management in the books of accounts of the companies with a view to deceive investors, creditors and other stakeholders is known as Financial Statements Fraud. Some of the common techniques for financial statement fraud include overstatement of assets, sales and profits while understatement of liabilities, expenses or losses. Due to such kind of falsification, sometimes the elements of financial statements do not represent the true picture of the companies. The main objective of this study is to identify the probabilities of financial statement fraud and the determinants discriminating the selected automobile companies between possible fraud and possible non-fraud companies for the period of ten years (2008-09 to 2017-18) using the Beneish Model and Discriminant Analysis. The findings of the study indicate a 40% chance of Bajaj Auto Ltd. being possibly fraudulent for the selected time periods. This study reveals that Total Accruals to Total Assets Index and Day’s Sales Receivable Index are the most important determinants for discriminating the selected automobile companies between possible fraud and possible non-fraud companies.

Pengembangan Model Pembelajaran Project Based Learning (PjBL) dalam Akuntansi Keuangan

The development of the Project Based Learning (PjBL) learning model in financial accounting courses aims to increase student HOTs in analyzing elements of financial statements. The model used is ADDIE, in the MSME Accounting management course. The model is applied for one semester. The effectiveness test results show that it is very effective, and the practicality results also show a very practical score so that the PjBL development model in financial accounting can be used without revision.

The impact of IFRS adoption on Saudi Arabia

PurposeThis study aims to examine the implementation of International Financial Reporting Standards (IFRS) in Saudi Arabia. It investigates how the adoption of IFRS has affected four critical areas in the financial statements of publicly listed companies: profit and loss statement, balance sheet, cash flow statement and retained equity statement in Saudi Arabia. The paper also explores the essential factors/drivers that influence the adoption of IFRS and its implication in Saudi Arabia.Design/methodology/approachData was obtained from Saudi Stock Exchange (Tadawul) listed companies from eleven industries in Saudi Arabia. This cross-sectional study analyses critical financial data across eleven distinctive industries. To identify the impact of adopting IFRS, the researchers use a paired t-test to evaluate seven key elements of financial statements underlying the critical areas: non-current asset, current asset, total assets, shareholders equity, non-current liability, current liability and total liability. The sample captures cross-sectional data from well-developed global industries in Saudi Arabia, pre- and post-implementation of IFRS. Thus, the analysis of the sample data gives a representative picture of the population of the Saudi Arabian industry.FindingsThe results reveal significant differences between GAAP and IFRS reporting standards in the measurement, recognition and classification of non-current assets and liabilities. The differences are expressed in the variance between the GAAP and IFRS. Specifically, the differences between GAAP and IFRS demonstrated by the t-value are significant and reliable (respectively, 5.3 and 4.1). Additionally, the t-value is validated by the p-value, which in both was significant.Research limitations/implicationsThe outcomes of this research will benefit accounting information users, practitioners, researchers and regulators. Since Saudi Arabia’s policymakers have mandated the full adoption of IFRS in financial reporting, the study contributes to the adoption of IFRS practices throughout the Saudi industry. Adopting full IFRS standards requires widespread IFRS expertise to cope with the transition.Originality/valueThis study advances research into the perennial issues associated with changes in reporting towards IFRS standards, especially in Saudi Arabia. The contribution to theory and practice enters new and fruitful areas.

The new generation of the FASBs Conceptual Framework

Purpose: The article presents and comments on the main structures, key approaches, and content of the new conceptual framework promulgated by the Financial Accounting Standards Board (FASB) in December 2021.Methodology/approach: Descriptive-analytical and content analysis.Findings: After presenting the modernization of FASBs conceptual approach towards financial reporting, the article presents the results of this modernization. It shows how the primary users have been redefined and it also describes the quality and constitutive elements of financial statements, how the components of these elements are measured, and the principles for shaping general purpose financial reporting. The article points out important differences between the FASB Framework 2021 and the IFRS/IASB Framework 2018 regarding the definition of a reporting entity, the types of financial statements, the number and type of elements of the financial statements, the definition of assets, and the quality of financial information in the notes to the financial statements.Practical implications: FASB modernized approach verifies and develops the conceptual frameworks as a financial reporting theory. It confirms their role as the basis for the standard-setting function, and interpreting standards and financial statements. In this way, the general level of distrust towards financial reporting relevancy and reliability may be reduced, increasing the opportunities to use the new FASB framework for a broadened and deepened interpretation of Polish financial reporting and auditing regulations and practice. As a result, it allows them to be better shaped and taught, and it provides a more informed direction for research.Originality/value: This paper is probably the first public presentation in Polish of the ideas of the new FASB conceptual framework for financial reporting.

Modernization of the chart of accounts based on the new system of valuation objects in accounting and reporting

In one of our previous articles, we presented our own vision of improving the system of valuation objects in accounting and reporting, thus proposing a new system of these objects. In continuation of our ideas in this article, we will make recommendations regarding the modernization of the chart of accounts of accounting, based on the system of the above-mentioned objects proposed by us (including for healthcare organizations). Note that the new system of valuation objects (which in the previous article we called accounting objects and elements of financial statements) certainly requires significant changes in the system of accounts used to account for valuation objects. Proposals for these changes are presented by us in this article. When conducting research, such methods as analysis and synthesis, comparison, grouping method, analogy method, logical approach, systematic approach were used. As a result of the research, this article proposes a modernized chart of accounts (including for healthcare organizations), which meets the requirements of modern times. The results presented in this paper will be useful to a wide range of readers interested in the problems of Russian accounting, including the valuation of its objects and the formation of a chart of accounts, and can also be used in the educational process of higher educational institutions, in the practical work of organizations (in particular, healthcare) and in development and improvement of relevant regulatory documents on accounting.

Place and role of financial statement audit in the enterprise activity

This article conducts a comprehensive study and generalisation of the essence of financial statement audit. The main attention is paid to determining the place of financial statement audit in the context of enterprise management in the current economic environment. The study found that the financial statements of an enterprise are designed to meet the information needs of its users, and each element of the statements performs functions that provide information in a certain context. The article analyses the procedures for auditing financial statements that meet its purpose, depending on the elements of financial statements. The possible risks that enterprises may face as a result of not conducting an audit of financial statements are identified. In particular, it was found that failure to audit financial statements may affect internal and external decisions of enterprises, such as investment planning, lending and management decision-making. The study showed that neglecting the frequency of financial statement audits can also lead to losses and financial instability, which can expose companies to financial fraud, illegal actions and uncontrolled risks. According to the results obtained in the course of the study, a specific algorithm of actions has been developed that should be performed by the auditor when checking compliance with the conditions for preparing financial statements by enterprises. The proposed algorithm is aimed at improving the quality of financial statements, simplifying the process of making management decisions and promoting sustainable development of enterprises in Ukraine. The results of the study include an analysis of the methods of collecting audit evidence and their significance for the audit of financial statements. The study showed that in an unstable economic environment, the audit of financial statements is becoming increasingly important, as it addresses global issues related to the reliability of accounting and reporting, analysis of the causes of possible inconsistencies between these statements and the real state of the enterprise, as well as control over the efficiency of financial and economic activities.

Asset Valuation to Determine the Company Zakat Amount with Historical Cost and Current Value

This study aims to analyze and compare historical cost and current value as the basis for asset valuation in determining the amount of zakat of a company. This research was conducted at the Makassar Branch of the Indonesia Stock Exchange. The researcher also visited the official website of the Indonesia Stock Exchange (www.idx.co.id) and the official website of the Financial Services Authority for the Sharia Capital Market (www.syariah.ojk.go.id). The research was carried out in approximately 2 months, starting from August 2020 to September 2020. This study uses quantitative data methods. This study using a case study approach. The data source used in this study is secondary data obtained from the company's published financial statements taken from the Indonesia Stock Exchange. The results show that the calculation of corporate zakat is still experiencing difficulties because there are different calculation formats and different elements of financial statements between the current standard format and the fiqh language due to lack of socialization to the company, and almost all calculation methods show more significant results when the assets are valued using current values

ANALISIS OPTIMISASI DENGAN MENGGUNAKAN METODE GOAL PROGRAMMING TANPA PRIORITAS TERHADAP LAPORAN KEUANGAN BANK (STUDI KASUS: PT BANK NATIONAL NOBU TBK)

Periodically, Nobu Bank releases an annual financial report that describes the company's financial condition. The financial statements contain elements of financial statements, namely assets, liabilities, equity, income, and financial expenses. To analyze the optimization, the five elements of the financial statements are then expressed in a mathematical model as a constraint function to be processed using the Goal Programming Method. The Goal Programming method was chosen because it is considered a mathematical model that can be used to obtain solutions to problems that have many goals. After all, the deviation variable in the Goal Programming model can produce complete information on the relative achievement of existing goals so that optimal results can be achieved. The first step of the Goal Programming Method is to determine the decision variables, then determine the objective function, then determine the constraint function. The analysis and solution were carried out using the Simplex Method and validated with the LINGO. The results of the sensitivity analysis show that the five objectives have been achieved, namely, there are no deviations. This shows that the performance of the financial statements at Bank Nobu is optimal. However, two objectives can still be optimized, such as the value of liabilities can still be reduced by Rp.593,731.14 per year, and the value of financial expenses can still be reduced by Rp.30,599.66 per year.

Improving the system of measurement objects in Russian accounting and reporting

Currently, the process of reforming Russian accounting and reporting (including healthcare organizations) is going very actively. Every year, the Ministry of Finance of the Russian Federation approves new Federal Standards (FAS) and amends existing accounting regulations. At the same time, the system of accounting objects and elements of financial statements is also subject to significant adjustments. In turn, the basis of accounting and reporting is measurement. In this regard, the above objects and elements can, in our opinion, be called measurement objects in accounting and reporting.Improving the system of these objects, including in view of the ongoing changes in Russian accounting and reporting, is analyzed in this article. As research methods, a systematic approach, a logical approach, analysis and synthesis, the method of analogies, comparison, and the grouping method were used. As a result of the research, this article presents proposals for improving the system of measurement objects in accounting and reporting (including healthcare organizations). The results reflected in this work can be used in the practical work of the accounting departments of modern organizations, in the educational process of higher educational institutions and in the development and reform of relevant regulatory documents on accounting and reporting. In addition, the results presented in this article will be useful to a wide range of readers interested in current issues of Russian and foreign accounting and reporting (including healthcare organizations).

The metaphysics of financial performance in financial accounting

This paper argues that the metaphysics of financial performance in the conceptual framework employed by accounting standard-setters is incoherent: income and expenses cannot, as the framework holds, both be independent elements of financial statements, identified from underlying events, tested for recognition and measured by discrete acts, separately from the identification, testing and measurement of other elements and satisfy the analytical relationship between performance and position embraced by the framework. An alternative conceptualisation is proposed, under which income and expenses are part of a wider system of classifying all changes in assets and liabilities, measured indirectly. This approach improves the metaphysical coherence, and thus the intellectual strength, of the framework project; while it leaves the measurement of financial performance unchanged, by emphasising the importance of classification, it invites further attention to the presentation of financial performance, with the potential for improving the usefulness of disclosures.

Language Translation in International Accounting: Challenges and Way Forward

This paper examined the challenges inherent in international accounting language translation especially as it relates to communicating financial information to people of different cultural and linguistic origin and proffered possible solutions to the challenges. The paper drew attention to the innate danger of misunderstanding in the use of special register as a means of communication in accounting because of the problematic nature of translating Language for Specific Purpose (LSP) and the need to distinguish meanings associated with professional terminologies from meanings associated with everyday language usage. The work is also aimed at creating awareness on the need for a more sensitive approach to translation by accounting researchers particularly in Nigeria which could culminate into more scholarly articles on translation in this part of the world. This is because, if as a result of poor information translation, investors and other critical stakeholders of a particular firm misconstrue elements of foreign language financial statements, misguided investment decisions might be made. The study found that, translation is indispensable due to the fact that; individuals and organizations engage in international trades. Secondly, International Financial Reporting Standards (IFRS) and European Union (EU) declarations are translated into diverse of language cultures. Thirdly, language translation is of fundamental importance in international accounting, however, Nigeria has paid far less attention to translation in this area than other academic disciplines. It recommends that, culture should be instilled in translation so as to be widely accepted. Translators should be aware of the boundaries as well as ensure completeness of translation.

Бухгалтерський облік та фінансова звітність в умовах воєнного стану в Україні

Introduction. The armed aggression of the Russian Federation has a devastating effect on the economy of our country and its financial system. It is possible to counteract this, as well as to create conditions for the restoration of the lost, to move forward by implementing the reforms started in peacetime, only on the basis of the modern information basis of management that includes ,in particular , accounting and financial reporting. Problem Statements. Martial law for the economy of the state and enterprises in accounting are treated as activities in case of emergencies. Recognition of the latter has a significant impact on the reflection of results of operations and financial state in the financial statements, separation of adjusting and non-adjusting events after the reporting period, assessment of business continuity as a fundamental principle of reporting, and submission and disclosure of financial statements. Purpose. Martial law is an atypical phenomenon for Ukraine, so the goal is to find out: the ability of the national accounting system to accurately reflect the financial and economic situation of the enterprise under martial law; the ability of the methodology of accounting of institutional sectors of the economy to ensure the formation of the necessary information, the need for which arises at this time; the need and possibility of continuing reforms in accounting. Results. It is determined that the normative and legal support of accounting in Ukraine creates all the necessary conditions for a reliable reflection of the financial and economic condition of the enterprise in the conditions of armed aggression of the Russian Federation. The application of relevant standards ensures that both special circumstances and the consequences of hostilities and events are taken into account by reflecting certain transactions, recognizing and measuring elements of financial statements, and disclosing information. Conclusions. The reform of the public sector accounting and financial reporting system needs to be continued in line with the Strategy for the Modernization of the Public Sector Accounting and Financial Reporting System until 2025, in particular with regard to the consolidation of financial reporting at various levels. The introduction of the government's annual financial statements will strengthen the soundness of management decisions at the macro level, both domestic and interstate.

Evaluasi Penyajian Laporan Keuangan Daerah Berbasis Akrual Pada Badan Pengelola Keuangan Dan Aset Daerah Kabupaten Lampung Timur

This study aimed to determine the accrual accounting presentation of regional financial statements for the East Lampung Regency Financial and Asset Management. Data is obtained from observations, documents and face-to-face interviews of all BPKAD activities or activities, East Lampung Regency. Research data analysis was performed using Miles and Huberman model data analysis, namely data reduction, data visualization and conclusion drawing/verification. The results show that the East Lampung Government has presented 7 (seven) main elements of financial statements, which are reports on budget performance, reports on changes in budget balance, balance sheets. accounting balance sheet, the statement of operations, the statement of cash flows, the statement of changes in equity, and the notes to the financial statements (which are not separate from these financial statements). The implementation of regional financial management in East Lampung Regency Government refers to the government accounting standards (SAP) based on accrual accounting. Keywords: Presentation, Regional Financial Statements, Accruals

Deferred outflows of resources and deferred inflows of resources and municipal bond borrowing cost

The Governmental Accounting Standards Board (GASB) under Concepts Statement No. 4, Elements of Financial Statements (2007a) introduced two new elements to government financial reporting: deferred outflows of resources and deferred inflows of resources. Given the large size of the municipal bond market, and the debate surrounding the GASB’s development of financial reporting requirements for these new elements, we investigate the associated changes to governments’ financial statements and the extent to which these changes may have influenced municipal borrowing costs.Our findings indicate that many governments were impacted by the introduction of the new financial statement elements, and the amounts reported as deferred outflows (inflows) of resources are negatively (positively) associated with interest costs on newly issued general obligation bonds. These findings should be informative to the GASB and users of municipal financial reports, such as bond market participants. Overall, our findings counter arguments made that the new financial statement elements would create needless complexity and confusion by suggesting a potential benefit of the financial statement changes.

Щодо необхідності уточнення базових облікових понять та розвитку вітчизняної теорії обліку

In recent years, a systemic crisis has been observed in Ukraine in accounting theory. It manifests itself in the absence of deep scientific research and the development of new teaching aids for the course “Theory of accounting”, which would meet the requirements of the time and consider the current state of development of the national accounting system. The purpose of the article is to analyze the differences in basic accounting concepts in different models of accounting theory, and identify problems and directions for the development of accounting theory in Ukraine. The role of legislative documents in the formation of theoretical foundations of accounting has been disclosed. Three main models of understanding accounting theory in Ukraine (national normative; normative according to IFRS; educational accounting theory) have been allocated. Peculiarities of origin and content characteristics of each of the selected models have been analyzed. Three areas of research conducted by scientists in the field of accounting theory have been allocated. The lack of clearly defined conceptual proposals among scientists for further development of accounting theory in Ukraine has been grounded. Based on the analysis of normative legislation, the problem of lack of common understanding of basic accounting concepts (business transactions; actions; events) has been identified. Three options for the relation between basic accounting concepts have been allocated. Two main problems have been formulated, which arise due to the existence of a multivariate understanding of the essence and correlation between basic accounting concepts (content-classification problem; the problem of content-time interpretation). Examples of incorrect interpretations of basic accounting concepts by national and foreign scientists have been given. The peculiarities of the relation between basic accounting concepts in the Conceptual Framework for the Financial Reporting and IFRS have been analyzed. The peculiarities of the interpretation of basic accounting concepts according to SFAC no. 6 “Elements of financial statements” have been grounded. The necessity of making changes in the national accounting legislation to clarify the content and correlation between basic accounting concepts has been grounded. In response to modern changes in the economic reality of enterprises and the system of accounting regulation, it has been proposed to develop the national accounting theory by increasing the number of elements of the accounting method, in particular, by including the object identification to the elements of accounting method.

ANALISIS PENCATATAN DAN PENYAJIAN LAPORAN KEUANGAN PADA UMKM BERDASARKAN SAK ENTITAS MIKRO KECIL DAN MENENGAH PADA AISYAH MART

This study aims to analyze the rocognition of items in financialstatements, measurement of financial statement elements, presentation ofitems in financial statements and disclosure of financial statements in AisyahMart Business are in accordance with the provisions in Micro, Small andMedium Entity Financial Accounting Standards (SAK EMKM) 2018. Theanalysis technique used in this study is a comparative descriptive method,which is a method that compares accounting treatment that includesrecognition, measurement, presentation and disclosure in Aisyah Mart andChampion method for calculating cheklist value in determining conformitycriteria. The result of the study indicate that the recognition andmeasurement of the items in the financial statements of Aisyah Mart Businessare not in accordance with SAK EMKM. Whereas the presentation anddisclosure of financial statements for Aisyah Mart Business do not match theSAK EMKM.

COMPARING THE VALUE RELEVANCE OF SELECTED ACCOUNTING INFORMATION IN CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS: THE CASE OF NIGERIAN LISTED FINANCIAL SERVICE FIRMS

In a company with a group structure, financial information is presented in two folds via consolidated and separate financial statements. The reporting of the similarly classified elements of financial statements arranged side by side in two columns carrying two different figures may be puzzling. Consequently, investors and other financial information users having two different figures available to them need to be guided as to which set(s) of information they need to make predictions and decisions. This study provides evidence about the comparative value relevance of accounting information for consolidated and separate financial statement of listed financial service firms in Nigeria. The study population is the entire listed financial services firms throughout the period of 2014-2018. Accounting information was represented by earnings per share, book value per share, dividend per share, and cash flow per share. These proxies were regressed against the market price per share. Data for accounting information were sourced from the annual reports of sampled firms and market prices from the Nigerian stock exchange factbook. A census sampling was used after a three-point filter was applied to the original population. The results show generally that both consolidated and separate accounting information is value relevant. However, consolidated accounting information is found to be more value relevant than separate accounting information. The study thus recommends the strengthening of firms’ operations, re-evaluation of the dividend policy, and enhanced implementation of IFRS standards to enhance value relevant accounting information that will be useful to the shareholders in making informed decision and taking adequate actions.

Methodology of Control Procedures for Creating an Accounting Information Array as a tool for Detecting Falsification of Elements of Financial Statements

The article examines the issues of the formation of accounting registers intended for the systematization and accumulation of information contained in the primary accounting documents accepted for accounting. Based on the content of various accounting documents, it is determined that the implementation implementation of accounting personnel actions and procedures for the formation of basic information messages in the form of accounting records , revealing the array of fait accompli of economic life, is an accounting information system of an economic entity, which is the subject of the study. The article reveals the main reasons for making errors in accounting, gives their classification and possible options for correcting the identified distortions. The results presented in the article are confirmed by the conclusions and recommendations of the research work “Research of trends in accounting, analysis and audit in the conditions of digitalization of society” with the joint participation of teachers of the Financial University under the Government of the Russian Federation and the ICNTI.