Accounting Research Articles

HALF A CENTURY OF PROGRESS IN CONTROLLING

The science of controlling has made significant advances in recent decades. Managerial accounting, linked to financial accounting, has evolved to bring together the accounting and planning of costs and results, permeating the entire activity of the company, from finance to production, sales, marketing, human resources processes, satisfying the growing information needs of management. In the development of controlling, a distinction can be made between trends specific to the Anglo-Saxon and German-speaking areas. The basic difference is that the Anglo-Saxon approach sees controlling as an integral part of management, with the main task of helping to allocate resources efficiently. The German approach, on the other hand, sees controlling as an independent information-producing tool, a separate organisational unit, on the basis of which the various planning and control processes of management are implemented. Common to both approaches is that controlling is not limited to operational management areas but is increasingly extended to strategic levels, thus helping to improve corporate performance effectively.

The Influence of Eco-Control, Company Size, Environmental Performance on Sustainability Reporting Disclosure

Sustainability reporting in Indonesia has become a mandatory report published by financial institutions and public companies listed on the Indonesia Stock Exchange. Obligations related to sustainability reporting refer to Statement of Financial Accounting Standards (PSAK) No.1 Revised 2019, namely that companies are required to disclose additional reports related to environmental life. Under the Global Reporting Initiative (GRI) 2021 standards, the information on a company's applicant list can build stakeholder trust, maintain reputation, increase company value and demonstrate company accountability. Factors that can encourage disclosure of sustainability reporting are Eco-control, company size and environmental performance. One industry that is closely related to the environment and natural resources is the agricultural industry, apart from having a positive impact, there are also negative impacts that also cause harm to the environment. The sample in this research is agricultural sector companies listed on the IDX for 2018-2022. The research uses multiple linear analysis methods with SPSS 23 statistical software. After testing the hypothesis, the results obtained are that Eco-control has a positive influence on sustainability reporting disclosures, while the company size variable has no influence on sustainability reporting disclosures, starting with the environmental performance variable. .

Analysis of Presentation and Reporting of Financial Transactions in the Pulau Harapan Cooperative, Agam District

This research aims to analyze the presentation and reporting of financial transactions at the Pulau Harapan Cooperative, Agam Regency. As well as analyzing the extent to which the presentation is in accordance with sharia principles and applicable accounting standards. The research method used is qualitative with a case study approach. Data was obtained through in-depth interviews, observation and analysis of cooperative financial documents. This research uses data originating from daily financial transactions at the Pulau Harapan Cooperative, Agam Regency. Data is analyzed and processed to produce financial reports based on the Sharia Financial Accounting Standards (PSAK). The results of the research concluded that cooperative financial transactions, which only take the form of daily transactions, can already prepare financial reports based on the Sharia Financial Accounting Standards (PSAK) and produce financial reports for each business unit as well as consolidated financial reports

Pembukuan Laporan Keuangan Sederhana Pada Warung Sate Cak Ummar Dan Warung Tas Rajut Pak Toe

Many MSME participants still do not understand how important it is to preserve organized financial records and bookkeeping. In actuality, business actors can determine the health of their enterprise through bookkeeping. With the help of this Community Service Activity (PKM), participants will get an awareness of the significance of business actors (MSMEs) in financial accounting and recording, as well as the procedures involved in creating financial reports. The majority of MSME participants currently maintain records, however their financial report preparation is still subpar. Training, activity implementation, and assessment are the techniques employed. The degree of comprehension exhibited by business actors both before to and during information presentation and training serves as the basis for measuring this achievement. The service's outcomes demonstrate that.

Topic modeling of financial accounting research over 70 years

AbstractI utilize latent Dirichlet allocation and dynamic topic model that are machine learning algorithms across a data set encompassing 25,990 financial accounting articles issued from 1956 to 2023 in 16 accounting journals, and impartially ascertain 20 research topics. The topics of mergers and acquisitions, disclosure and internal control, and political connection exhibited the most rapid expansion, whereas management control systems, earnings management, and valuation experienced the greatest contraction from 2014 to 2023. I also catalog the most referenced papers for each topic and highlight the most swiftly expanding and contracting topics within the realm of 21,620 SSRN working papers. Additionally, my analysis reveals a declining trend in the concentration of research interests within published articles over the preceding seven decades. This research on topic classification itself will aid accounting investigators in bypassing superfluous efforts and fostering increased interdisciplinary research.

Financial Management Practices and Financial Accounting Standards Compliance: Case of MSMEs in the Northern Philippines

Starting a business appeared simple; however, many businesses fail to maintain their operations in the long run. Based on this issue, this study explores the depth of understanding and knowledge of MSME business owners in Ilocos Norte, Philippines, regarding compliance with Financial Accounting Standards (FAS) and Financial Management Practices (FMP). Additionally, it seeks to determine the relationship between FAS and FMP and the success of businesses. The methodology used was a descriptive and correlational design. The data was gathered from 379 MSMEs through a survey questionnaire. A 4-Likert scale was used to analyze and interpret the results. Also, researchers used the International Business Machines Statistical Package for the Social Sciences (IBMSPSS), specifically regression analysis, to correlate the financial performance of the MSMEs to their financial management practices and compliance with the financial accounting standards. The study revealed that micro, small, and medium enterprises (MSMEs) in Ilocos Norte maintain a moderate level of implementation of financial management practices and compliance with financial accounting standards, concentrating on the Statement of Comprehensive Income. The study also revealed a significant relationship between financial management practices, compliance with financial accounting standards, and business performance, leading to success. It is justified that effectively and efficiently managing financial matters can contribute to the enhancement of business performance.

Analysis of the Presentation of the Budget Realization Report (LRA) of Bengkayang District for the 2022 Budget Year (Implementation Study of PP No. 71 of 2010)

The Budget Realization Report (LRA) is an important document that reflects the budget implementation of an entity, including regional governments. This research aims to analyze the presentation of the Bengkayang Regency LRA for the 2022 fiscal year by referring to the implementation of Government Regulation (PP) No. 71 of 2010. The Bengkayang Regency LRA provides information regarding income and expenditure that occurred during the fiscal year, as well as recording the achievement of objectives and evaluating financial performance. This research also identifies gaps between budget planning and realization in Bengkayang Regency in the 2022 fiscal year. The research method used is qualitative research with a descriptive approach. Primary data was obtained through observation and analysis of the LRA of Bengkayang Regency. Other relevant research reports are also used as comparisons. The analysis was carried out to evaluate the quality of the information presented in the LRA Budget Realization Report , the level of compliance with PP No. 71 of 2010, and conformity with applicable accounting principles. It is hoped that the results of this research will provide a better understanding of the presentation of the Bengkayang Regency LRA. The findings of this research can identify shortcomings or weaknesses in the preparation of reports and provide recommendations for future improvements. This research also compares the results with previous research which had a different focus and regulatory reference. With this research, it is hoped that it can be evaluated to what extent the implementation of PP No. 71 of 2010 in presenting the Bengkayang Regency LRA for the 2022 fiscal year. This research contributes to understanding and improving regional government financial accountability and the effectiveness of budget use.

ANALYSIS OF ADDITIONAL TAX CALCULATION AND REPORTING VALUE ADDED TAX (VAT) AND ITS IMPACT ON REPORT PRESENTATION FINANCE

This research aims to determine whether the Value Added Tax (VAT) Calculation and Reporting is by the provisions of the applicable Tax Law and financial accounting standards and to analyze its effect on the Financial Reports at PT. Kalaborang Residence. The findings of this research are significant as they provide insights into the compliance of PT. Kalaborang Residence with the tax laws and financial accounting standards, and the practical implications of VAT on the company's financial statements. Kalaborang Residence. Samples and indicators are taken from the company's profit and loss report and balance sheet. The research method used in this research is the qualitative approach. Data was obtained from interviews, observations, and documentation related to the problems studied. The data obtained was then analyzed using interactive methods. Based on the research results of VAT Calculation and Reporting. PT Kalaborang Residence is by Law Number 42 of 2009 and Harmonization of Taxation Regulations Law Number 7 of 2021, using rates of 10% and 11% by calculating output tax minus input tax; there is no delay in depositing and reporting the company has used e-Annual Tax Returns so that you are not late in reporting every VAT period—the impact of Value Added Tax on the presentation of PT's financial statements. Kalaborang Residence has no impact because its End User is only an intermediary for its financial reports. If seen theoretically, PT. Kalaborang Residence, as a Taxable Entrepreneur, is required to report its taxes in the financial reports contained in the Profit and Loss Report and Balance Sheet Report. From the results of observations made by researchers in the field during that period, there was no VAT that could not be credited to the PT's Profit and Loss Report.

Public Financial Reporting Practices, Regulations and Accountability for State-Owned Enterprises in Kenya

Public Financial Reporting Practices, Regulations and Accountability for State-Owned Enterprises in Kenya

Analisis Pengakuan Pendapatan dan Beban Pada PTPN III (Persero) Medan

This study aims to determine whether the recognition of revenues and expenses at PT Perkebunan Nusantara III (Persero) Medan is by financial accounting standards. This study's primary and secondary data sources are primary and secondary. Data collection techniques in this study were interviews and documentation. The data analysis methods used in this research are descriptive and comparative analysis. At PT Perkebunan Nusantara III (Persero) Medan, the method applied in revenue recognition is the accrual basis. Revenue is recognized based on the amount of money received from customers less expenses. At PT Perkebunan Nusantara III (Persero), Medan expenses are recognized in the financial statements by the basis used, namely the accrual basis; the expenses are recognized when the transaction occurs. The results show that the company has applied the revenue recognition method according to PSAK.72, where revenue is recognized when the asset is transferred to the customer.

Analisis Faktor-Faktor Yang Mempengaruhi Audit Delay Pada Perusahaan Manufaktur Periode 2016-2020

Audit reports are important for stakeholders and management. For management, it is required to submit financial reports that are in accordance with financial accounting standards and have been audited by a public accountant registered with BAPEPAM. The issuance of financial reports will expedite the process of publishing financial statements. As for the timeliness of the publication of financial reports to be published, it will affect the timeliness of decision making. The purpose of this study was to determine and analyze the effect of company size, solvency, profitability, and audit committee on audit delay. The company population is all manufacturing companies in 2016-2020 and the research sample is 10 companies. The data used is secondary data in the form of financial report documentation and company annual reports obtained from the IDX. The results of the study, namely partially, show that the variables that influence audit delay are company size and profitability (ROA). The significance level of these variables is 0.022 and 0.034. While the solvency and audit committee variables have no effect. The test results simultaneously show that all variables have a significant effect on audit delay.

The Functionality of Financial Control Activities in a Decentralised Basic Education Program in Uganda

Financial control activities are critical in enhancing financial accountability. This article aimed at determining the functionality of financial control activities in decentralised basic education programmes. It sought to investigate how control activities in the Universal Primary Education programme (UPE) affect the internal controls and subsequently financial accountability of the grant. The researchers conducted an exploratory review of the literature and used semi-structured interviews to collect primary data. The findings focused on physical controls in the UPE capitation grant. Under physical controls, emphasis was placed on mechanisms for securing cash and inventory. The findings revealed that physical control of the custody of cash in UPE schools is weak. This puts other school assets at risk of burglary by individuals who may get to know that there is cash in the office. The weak physical controls create an urge for the head teachers to divert resources. A scrutiny of the inventory management process exposed some gaps affecting the entire physical control system. The inventory management system is heavily compromised. Given the foregoing findings, we can argue that the financial control activities in this UPE programme are dysfunctional. The functionality of financial control activities will be enhanced if the physical control activities are strengthened and all the receipts and inventories are properly recorded. Keywords: Functionality, Financial Control, Decentralised Basic Education System and Financial Accountability

Accounting statements of budgetary organizations: features of methodological approaches to the composition of statements and the formation of a balance sheet

The article studies methodological approaches to the composition of accounting (financial) statements and the disclosure in them of information about the financial position of budgetary organizations in the system of Russian regulatory documents on accounting. A comparison is made of the requirements for the composition of financial statements and the content of the balance sheet of Russian budgetary organizations with the regulations for the composition of financial statements and the content of the balance sheet of Russian commercial organizations. In addition, the requirements for the composition of financial statements and the content of the balance sheet in the system of Russian accounting standards are compared with the regulations on the composition of accounting (financial) statements and the content of the report on the financial position of public sector organizations in the system of international financial reporting standards for public sector organizations. Significant differences are revealed in the methodological approaches to the composition of reporting and the content of the balance sheet in the systems of accounting standards under consideration. Discursive issues regarding aspects of the research carried out are substantiated, and possible ways to solve them are argued.

Excess goodwill and enterprise litigation risk

Corporate mergers and acquisitions (M&A) are now a common strategic choice for enterprises. As such, goodwill, which is a core asset of M&A activities, is pivotal for financial valuation and accounting. However, the phenomenon of ‘excess goodwill’, resulting from overvaluation due to management overconfidence and performance promises, poses significant risks, including potential financial statement distortions and increased litigation. This study investigates the intrinsic link between excess goodwill and corporate litigation risk by utilising theoretical analyses and empirical tests. By analysing data from A-share listed companies in Shanghai and Shenzhen from 2007 to 2022, we employed the regression residual method to measure excess goodwill and determine its impact on litigation risk through mediating factors such as financing constraints, risk-taking and agency costs. The findings indicate that excess goodwill significantly increases litigation risk, with a more pronounced effect on manufacturing firms and those with low internal control quality. This research provides valuable insights into optimising goodwill accounting treatment and enhancing enterprise risk management practices. The study's implications suggest that stricter internal controls and cautious goodwill valuation practices are essential to mitigate risks, ultimately contributing to the stability of the capital market and the protection of investor interests.

The effect of financial distress on accounting misstatements during the Covid-19 pandemic

This study aims to examine the effect of financial distress on accounting misstatements and to find out whether the COVID-19 pandemic moderates the relationship between financial distress and accounting misstatements. This study uses data from property and real estate companies listed on the Indonesia Stock Exchange (IDX) for the period from 2017 to 2021. The total research sample is 145 entities. The statistical methodology used in this study is panel regression analysis with the following steps: selecting the best regression model, classical assumption testing, and regression testing to determine coefficient values and significance levels. The results of this study show that financial distress has no significant effect on accounting misstatements. This study also finds empirical evidence that the COVID-19 pandemic does not moderate the relationship between financial distress and accounting misstatement. Although accounting misstatements have been a research topic for many years, little attention has been paid to their impact on companies experiencing financial distress and crises. Further research still needs to be carried out regarding the impact of the COVID-19 pandemic on the relationship between financial distress and accounting misstatement using a sample of companies that have a high multiplier effect. It is hoped that the results of this study can provide additional references to prove that agency theory and prospect theory can explain accounting misstatements.

Why Do Companies Cook the Books? Empirical Study of the Motives of Creative Accounting of Slovak Companies

Studies on creative accounting date back to the latter part of the 20th century. Creative accounting is still a big challenge in financial accounting. The problem of financial statement manipulation might be investigated, for instance, from an accounting, legal, ethical, or psychological perspective. This research aims to identify the main motives for the use of creative accounting and to find out whether corporate culture has an impact on the motives leading to the use of creative accounting. Data collection took place from 18 November 2023 to 18 December 2022. In the research, we used Pearson’s χ2 test to determine the dependence of the studied variables in contingency tables. Subsequently, correspondence analysis was used. The type of corporate culture does not have an impact on the motives that lead to creative accounting. It was proven that the type of corporate culture has an impact on the performance of creative accounting actions based on the request of a senior employee. The uniqueness of the research lies in the investigation of creative accounting from a psychological and managerial point of view in the territory of the Slovak Republic.

The evolution of the financial performance statement within the framework of the concept of sustainable development

The subject of the article is the development trends of the financial results statement. The study is based on the analysis of documents regulating the preparation of financial statements according to Russian and international standards, as well as the main provisions of the concept of sustainable development. The features of the financial results statement effective in 1996 are presented. The article substantiates significant changes in the income statement from 1996 to 2023. The main documents regulating the presentation of financial performance report indicators are highlighted. An analysis was carried out of the appearance of indicators reflecting the result of the revaluation of fixed assets and intangible assets and the total financial result of the period. Changes in the financial results statement introduced in the reporting generated from 2025 are highlighted. A conclusion is drawn about the advantages of bringing domestic reporting forms closer to IFRS. The need to include expenses in line with the concept of sustainable development in the financial performance report has been identified. The importance of reflecting the elements of the concept of sustainable development should be reflected in the accounting (financial) statements is substantiated. The foundations for the development of accounting (financial) reporting in our country are determined: IFRS and the concept of sustainable development.

Preparation of Financial Statements in Accordance with SAK EMKM in the UD Restu Jaya Cracker Business, Puger District, Jember Regency

This study aims to analyze the application of financial accounting standards for micro, small and medium entities (SAK EMKM) at UD Restu Jaya Puger. This research was conducted on MSMEs engaged in production, namely cracker production. This research uses a qualitative method with a type of descriptive approach. This research was carried out by obtaining data through observation, interviews and documentation. The results of this study show that UD Restu Jaya in its financial records is still manual and simple, because the owner has not understood how to prepare financial statements in accordance with SAK EMKM and there has been no socialization received related to the SAK EMKM that has been determined. This research is expected to provide information for MSME owners in implementing financial statements in accordance with SAK EMKM.

TURKISH COURT OF ACCOUNTS: ANALYZING FINANCIAL AUDIT, DIGITALIZATION, AI IMPACT

Countries’ audit institutions play a critical role in financial management and accountability. These institutions perform tasks such as financial accountability, detection of corruption and errors, evaluation of government performance, accountable public administration, transparency and legal oversight, and prevention of legal violations, contributing to public trust. The Court of Accounts Presidency is the supreme audit institution of the Republic of Türkiye. This study sequentially addresses the audit process and procedure of the Court of Accounts, the impact of digitization, information technologies, and artificial intelligence on the audit process. Additionally, an evaluation of the institution’s technology and information infrastructure is conducted. A detailed assessment is presented regarding the Court of Accounts’ use of the Court of Accounts Data Analysis System (VERA), Unified Data Transfer System (BVAS), and Audit Management Program (SayCap). The institution’s technology and information infrastructure related to big data and big data analytics are evaluated based on the institution’s reports and documents. Finally, evaluating the potential integration of artificial intelligence into these systems is considered highly beneficial. For human resources in the field to be more proficient in current technologies, implementing artificial intelligence, big data, and big data analytics in the audit domain of public institutions is seen as highly advantageous. Additionally, it is strongly recommended that educational institutions training audit professionals incorporate courses on data analytics, big data, big data analytics, machine learning, and artificial intelligence into their curricula.

Digital Marketing and the Presentation of Corporate Financial Statements: An Analysis of the Literature on Transformation and Impact

This study aims to analyze the integration of digital marketing with corporate financial reporting, focusing on its impact on transparency, accountability, and the challenges associated with its implementation. The research adopts a qualitative approach through an extensive literature review, systematically examining scholarly articles, industry reports, and case studies from reputable sources. The analysis uses thematic coding to identify trends, challenges, and the implications of integrating digital marketing data into financial reporting. The findings reveal that digital marketing significantly enhances financial transparency and accountability by providing real-time data and facilitating dynamic stakeholder engagement. Platforms such as social media and corporate websites are pivotal in disseminating financial information and receiving real-time feedback, improving financial reports' accuracy. However, integrating digital marketing data poses challenges, including data security, regulatory compliance, and the need for new skills among financial professionals. Companies that effectively harness AI and big data analytics in their financial reporting demonstrate improved forecasting and decision-making capabilities. This integration offers transformative opportunities for businesses to enhance their financial reporting's accuracy and timeliness. Nevertheless, addressing the challenges of data integration and security, as well as bridging the skills gap, is crucial for realizing the full potential of digital marketing in financial reporting.