Financial Accounting Information Research Articles

Application of ISAK 35 to the Presentation of Financial Reports of the Manado Diocese of the Catholic Church

This study aims to determine the existing forms of financial reporting and to find out stages, impacts and driving factors of the process of implementing ISAK 35 on the presentation of financial reports of the Manado Diocese of the Catholic Church based on the institutional theory of the form of coercive isomorphism and the Edward III model theory, namely communication, resources, disposition, bureaucratic structure. This study uses the method descriptive qualitative where data collection was carried out by means of interviews and documentation studies. The results show that the policy for implementing financial accounting information systems is not yet fully in accordance with applicable accounting standards. The organization has not fully adhered to the standard of ISAK 35. Financial records are processed using existing financial applications. By the aspect of resources, the attitude of the implementers still shows that the implementers still have minimal/not yet adequate knowledge about the accounting system created and communication between implementing agents is not yet optimal. The indicators in the bureaucratic structure variable in the form of SOPs have been achieved well because in 2019 the Manado Diocese has created a Financial Guideline that must be implemented by every parish, although in practice it is not yet perfect. In its implementation, there are still obstacles from a practical perspective, such as human error, hardware weaknesses, software weaknesses and system weaknesses. Efforts to overcome obstacles include continuing to update applications that have been created based on the latest standards and providing regular training materials that are packaged easily so that the attitude of the application implementing agents themselves can accept the new policy and those responsible for parish finances must be wiser and adhere to diocesan policies to produce financial reports that are transparent, accountable, and trustworthy.

Analysis Of Determinant Factors Quality Of Financial Reporting Of Regional Financial Management Work Units In Indonesia

This study intends to investigate the effects on the quality and value of financial report information of human resource quality, internal control systems, government accounting standards implementation, use of regional financial accounting information systems, and accounting knowledge. This study examines relationships between causes and effects. Questionnaires are used to collect data. The research's population consists of all employees who have employed information systems to do their jobs. With a sample size of 100, the sampling strategy is non-probability sampling. Multiple linear regression analysis was employed as the analytical technique in this study. The study's result demonstrates that a number of variables have varying effects on the informational usefulness and quality of regional financial reports. First off, there isn't much of an impact from the caliber of human resources. Furthermore, there is no notable impact from the internal control system. Third, the information value and quality of regional financial reports are greatly impacted by the use of government accounting rules. Fourth, there is no discernible impact from using regional financial accounting information systems. Fifth, the informational value of regional financial reports is greatly impacted by one's grasp of accounting. Overall, each of these variables affects regional financial reports' information value and quality at the same time, highlighting the need of effective management in these areas for raising the caliber of regional financial data.

Leveraging quantum‐inspired chimp optimization and deep neural networks for enhanced profit forecasting in financial accounting systems

AbstractDeep learning and metaheuristic algorithms have recently increased in various sciences, including financial accounting information systems (FAISs). However, the existence of large datasets has dramatically increased the complexity of these hybrid networks, so to address this shortcoming, this paper aims to develop a quantum‐behaved chimp optimization algorithm (QCHOA) and deep neural network (DNN) for the prediction of the profit based on FAISs. Considering that there is no suitable dataset for the challenge, a novel dataset is developed utilizing the 15 features from the Chinese market dataset to compare more. This work designs QCHOA and five DNN‐based predictors to forecast profit. These algorithms include the universal learning CHOA (ULCHOA), the niching CHOA (NCHOA) as the two best‐modified versions of CHOA, the quantum‐behaved whale optimization algorithm (QWOA), and the quantum‐behaved grey wolf optimizer (QGWO) as the two best quantum‐behaved optimizers as well as classic CHOA. The most effective deep learning‐based predictors for forecasting the profit, ranked from highest to lowest, are DNN‐QCHOA, DNN‐NCHOA, DNN‐QWOA, DNN‐QGWO, DNN‐ULCHOA, DNN‐CHOA, and classic DNN, with corresponding ranking scores of 42, 36, 30, 24, 18, 12, and 6. As a final suggestion for profit prediction, the DNN‐CHOA is shown to be the most accurate model.

The use of blockchain technology in enterprise financial accounting information sharing.

This work intends to comprehensively analyze the application of blockchain technology in enterprise financial accounting information sharing and address prevalent issues such as information opacity, data tampering, and data security in the current practices. Therefore, it writes smart contracts based on the Ethereum platform to achieve the secure sharing of financial accounting information between enterprises. This work employs a randomized experimental design approach, using a computer-generated random number program to divide 100 enterprises into experimental and control groups, each comprising 50 enterprises. Enterprises in the experimental group share financial accounting information using smart contracts on the Ethereum platform during the experiment. The financial personnel of these enterprises upload reconciled data to the corresponding smart contracts using the enterprise's digital signatures after each month's accounting process. Enterprises in the control group continue to use traditional methods of financial accounting information sharing (such as email and web platforms) to share financial data files directly. Quantitative analysis is performed to compare the data between the experimental and control groups. Empirical results reveal a notable enhancement in information-sharing efficiency by 25.7%, a 19.8% improvement in data accuracy, and a 13.6% reduction in financial information-sharing costs within the experimental group compared to the control group. This work provides compelling evidence that adopting blockchain-based information-sharing methods can effectively elevate data trustworthiness and security. Supported by systematic empirical findings, this work validates the significant potential of blockchain technology in the realm of enterprise financial accounting information sharing.

Are credit rating agencies users of government accounting information? Evidence from the sovereign rating process

IMPACT Sovereign governments are regularly evaluated by credit rating agencies (CRAs) that perform an analysis of creditworthiness based on mostly public data. This article shows that the data used by CRAs is mainly drawn from economic and statistical accounts rather than government financial statements. Thus, CRAs cannot be considered users of financial accounting information, at least at the sovereign government level. The evidence also suggests that governmental accounting information is neglected because it lacks the fundamental quality of comparability that CRAs require, given that ratings are ordinal measure of creditworthiness. Unless governments begin producing harmonized financial statements, it is unlikely that CRAs will ever become users of accounting information. Meanwhile, CRAs ground their sovereign rating process on harmonized economic and statistical accounts that are lacking important information on government payables, receivables, contingent liabilities and assets.

Effectiveness of International Financial Reporting Standard Enforcement in Nigeria

Background to the Study The general belief in accounting literature is that the adoption and application of IFRS in developing countries will enhance the quality of financial statement information including its reliability and comparability (Ballas, Skoutela and Tzovas, 2010). However, it is also argued that no matter how high the quality of the accounting standards adopted, comparable and high-quality accounting information will not be achieved without strict enforcement of these standards (White house, 2012). IFRS is “a set of accounting rules, principles and procedures that aim to create a common financial reporting platform with the objective of bringing transparency, accountability, efficiency to financial markets, harmonization of accounting practices and enforcement. Even though some countries claimed they have officially adopted IFRS and mandated companies to prepare financial statements accordingly, some companies may selectively implement IFRS recognition and disclosure requirements. Even with increasing IFRS adoption around the world, notable differences in financial reporting systems will remain due to regulatory, political, and institutional differences across countries, leading to variation in IFRS compliance between different jurisdictions (Soder storm and Sun, 2007). Such variation hinders the main goal of developing a global set of accounting standards which is comparability of accounting information across countries. Chen and Zhang (2010) provided empirical corroboration from the Chinese market that mere adoption of IFRS does not necessarily lead to the perceived high-quality and comparable financial accounting information because of enforcement challenges and lack of full compliance.

Factors affecting the application of management accounting of revenue, costs, and business results

The effective management accounting of revenue, costs, and business results holds significant importance in enterprise management accounting, particularly for businesses situated in countries with fragile economies such as Vietnam. However, the current situation of applying accounting of revenue, costs, and business results at enterprises, in general, and electricity enterprises in Northern Vietnam, in particular, still has many limitations. Therefore, this article aims to promote the level of effective management accounting for revenue, costs, and business results. A quantitative study was undertaken, involving the distribution of questionnaires to 57 companies within the electricity sector in Northern Vietnam. The collected data was then analyzed using Excel and Statistical Package for the Social Sciences (SPSS) 22 software. The findings of the study reveal that there are six elements influencing the management accounting of revenue, costs, and business results in electricity enterprises, including 1) the amount of financial accounting information provided; 2) enterprise size; 3) corporate culture; 4) qualifications/quality of accounting staffs; 5) level of awareness of business managers, and 6) availability of information technology. Therefore, the article proposes a recommended solution to ameliorate the management accounting of revenue, costs, and business results in electricity enterprises in Vietnam.

The effect of audit committee financial expertise on earnings management tactics in the post-SOX era

To restore investor confidence and promote the integrity of financial accounting information provided to investors, following the passage of the Sarbanes-Oxley Act (SOX), the SEC adopted two new rules for public firms in early 2003, requiring the disclosure of audit committee financial expertise (ACFE) per SOX 407 and the reconciliation of non-GAAP financial measures to those most comparable in GAAP (Regulation G) per SOX 401(b). Using quarterly filing data in the post-SOX era from March 2003 to December 2016, this study examines the impact of these requirements, with a focus on the effect of ACFE on the main earnings manipulation tactics used to just meet or beat analyst expectations (JUSTMBE). Our study investigates the effects of overall ACFE and its components on three key earnings management tactics, namely, discretionary accruals, real activities management, and non-GAAP financial disclosures. We observe that firms with a higher level of ACFE, particularly accounting and finance expertise, exhibit a lower propensity to JUSTMBE. Furthermore, we posit that two upward earnings manipulations, accrual-based and real activities management, are significantly mitigated by ACFE through a complementary effect of its accounting and supervisory expertise components. However, we identify a clear strategic shift in which non-GAAP financial disclosures with unexpected exclusions become a popular alternative tactic for managers to JUSTMBE under the increasing presence of ACFE. This study provides empirical evidence with implications for regulators to consider more rigorous intervention and regulation on non-GAAP disclosures and to refine the requirement of audit committee financial experts with an emphasis on the complement of accounting and non-accounting financial expertise to effectively curtail earnings manipulation.

Vulnerabilities of Financial Auditing and its Adaptation to the Current Needs of the Users

Abstract Starting from the premise that the great economic crises of the last decades were based on the great financial scandals that shook the world economy, I found that auditing in general, and the process of auditing financial statements, has started to be questioned. Thus, I believe that it is necessary and obligatory to analyze whether financial audit, as it is now, is still suitable for modern society, i.e. whether its construction and methodology still meets the requirements of a constantly evolving market economy. Because of this, I considered it appropriate to carry out an analysis, aimed to identify new perspectives for the development of financial auditing in line with the requirements of a constantly changing market economy. I started my scientific approach from the identification and presentation of possible vulnerabilities in the work carried out by financial auditors, which may occur when formulating the audit opinion. My aim was to analyze the main elements that generate or enhance these vulnerabilities and to identify possible ways of combating and eliminating these effects in order to improve and increase the confidence of users of financial accounting information in their work.

The role of state finance audit in the system of accounting and analytical support of the state funds management system

During the period of martial law, the problem of the need for constant control over state finances in connection with their limitations and the importance of effective use became important. The issues of the activities of audit firms and the effective organization of audits are constantly in the focus of attention of scholars. The purpose of the article was to substantiate the theoretical aspects and provide scientific and practical recommendations aimed at improving the audit of state finances. The method of induction was used at the stage of collecting, systematizing and processing information for conducting research, deduction – in the process of theoretical understanding of the main questions and problems of the audit of state finances and the search for the root causes of their occurrence, generalization – during the identification of the main features and properties of the system of accounting and analytical support of the audit of state finances, methods of comparison, analysis, synthesis, abstract-logical method. Scientific works were summarized and analysed in order to determine the essence of important components of scientific research, in particular: audit of state finances, state financial audit, accounting and analytical information, accounting and analytical support and the main components of an effective system of management and control over state finances were determined. The main components of financial control in the public sector of Ukraine are schematically presented, and the place of public finance audit as a component of state financial control is determined. The need to distinguish the concepts of “audit of state finances” and “state financial audit” was discussed. The main conditions that contribute to the creation of an effective system of management and control over state funds are highlighted. Common and distinctive features of control over state funds in Ukraine and foreign countries are identified. The main problems and shortcomings of the system of management of state funds are identified and recommendations for their solution are provided. The results of the study can be used by all state enterprises that are looking for new approaches in management and strive for the effective distribution of state funds in the conditions of martial law

Does Government Accounting Information Matter to Gain Votes? Evidence from Local Elections in Indonesia

Voting decisions have become a strategic tool to analyze whether voters consider an incumbent's economic policies make it worthwhile re-electing the incumbent. If a strong correlation between the information on economic policies and the election results could be proved, evidence would thus be found that government accounting captures data on the attributes of government finances, consistent with the information incorporated by constituents in their voting decisions. This study investigates the association between government accounting information and local election outcomes and observes two regional government clusters that held local elections in 2017 and 2018, in which 198 incumbents ran for office again. By employing regression analysis, this study finds that several accounting information items impact the vote acquisition of the incumbents. The specific finding is that budget accounting information has a more decisive influence on votes for the incumbents than financial accounting information does. The result implies budgetary accounting information that represents service performance is beneficial for gaining votes. The limitation that should be considered is the emphasis on the assumption of voter rationality, in which the voters accumulate performance information on the incumbents for their voting decisions. It is highly improbable that voters will allocate time to collecting and reading government financial statements on purpose.

Profit prediction optimization using financial accounting information system by optimized DLSTM

Financial accounting information systems (FAISs) are one of the scientific fields where deep learning (DL) and swarm-based algorithms have recently seen increased use. Nevertheless, the application of these hybrid networks has become more challenging as a result of the heightened complexity imposed by extensive datasets. In order to tackle this issue, we present a new methodology that integrates the twin adjustable reinforced chimp optimization algorithm (TAR-CHOA) with deep long short-term memory (DLSTM) to forecast profits using FAISs. The main contribution of this research is the development of the TAR-CHOA algorithm, which improves the efficacy of profit prediction models. Moreover, due to the unavailability of an appropriate dataset for this particular problem, a newly formed dataset has been constructed by employing fifteen inputs based on the prior Chinese stock market Kaggle dataset. In this study, we have designed and assessed five DLSTM-based optimization algorithms, for forecasting financial accounting profit. The performance of various models has been evaluated and ranked for financial accounting profit prediction. According to our research, the best-performing DL-based model is DLSTM-TAR-CHOA. One constraint of our methodology is its dependence on historical financial accounting data, operating under the assumption that past patterns and relationships will persist in the future. Furthermore, it is important to note that the efficacy of our models may differ based on the distinct attributes and fluctuations observed in various financial markets. These identified limitations present potential avenues for future research to investigate alternative methodologies and broaden the extent of our findings.

Либерализация валютного регулирования в России в условиях санкций

The purpose of the work is to analyze the transformation of the regime of monetary and financial regulation in Russia in the context of international sanctions in 2022. The course towards the liberalization of foreign exchange regulation in Russia has been temporarily changed in order to reduce capital outflow, protect the interests of Russian companies, and maintain the stability of the monetary and financial systems. The main measure was a temporary return to the requirements for the repatriation of foreign exchange earnings by exporters. After the measures took effect, the process of gradual abandonment of the imposed restrictions began. It is concluded that with the abolition of the requirement for the repatriation of foreign exchange earnings, the previously taken course towards the liberalization of foreign exchange regulation has generally recovered and is being maintained despite an unfavorable change in foreign economic and foreign policy conditions. Since the decisions on the introduction of currency restrictions and subsequent decisions on their abolition were taken as temporary measures, they need to be legislated. An analysis of some possible ways of further developing the liberalization of foreign exchange regulation in Russia is presented. It can be aimed at reducing the overall regulatory burden on businesses, promoting the development of non-commodity exports, de-dollarizing trade and investment, reorienting to the most promising foreign economic partners, and expanding international cooperation within the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information.

Evolving deep gated recurrent unit using improved marine predator algorithm for profit prediction based on financial accounting information system

This research proposes a hybrid improved marine predator algorithm (IMPA) and deep gated recurrent unit (DGRU) model for profit prediction in financial accounting information systems (FAIS). The study addresses the challenge of real-time processing performance caused by the increasing complexity of hybrid networks due to the growing size of datasets. To enable effective comparison, a new dataset is created using 15 input parameters from the original Chinese stock market Kaggle dataset. Additionally, five DGRU-based models are developed, including chaotic MPA (CMPA) and the nonlinear MPA (NMPA), as well as the best Levy-based variants, such as the dynamic Levy flight chimp optimization algorithm (DLFCHOA) and the Levy-base gray wolf optimization algorithm (LGWO). The results indicate that the most accurate model for profit forecasting among the tested algorithms is DGRU-IMPA, followed by DGRU-NMPA, DGRU-LGWO, DGRU-DLFCHOA, DGRU-CMPA, and traditional DGRU. The findings highlight the potential of the proposed hybrid model to improve profit prediction accuracy in FAIS, leading to enhanced decision-making and financial management.

Web-based Financial Accounting Information Intelligent Management Platform Construction

Conventional financial accounting information management platform mainly uses AJAX, DWR technology to deal with the server side as a carrier, vulnerable to the server deployment location, resulting in some of the functional modules run abnormally, therefore, the need to design a new Web-based financial accounting information management platform. The test results show that each functional module of the designed Web-based financial accounting information intelligent management platform can run in an orderly manner and has reliability, which is a new exploration for optimising the intelligent management of financial accounting information and promoting the transformation of enterprise digital intelligence.

Balance of confidentiality and tax transparency in legal regulation of automatic exchange of financial account information in the United States

The subjectof research, relevance. Exchange of information is an important measure of administrative cooperation between and among tax authorities aimed at the fight with tax evasion. Tax evasion is a problem that has gone beyond national borders, thus individual states can’t cope with it alone. In the light of this problem tax authorities develop new forms of administrative cooperation such as automatic exchange of information. While developing new forms, states should remember about the balance of private and public interest. In the context of automatic exchange of information this problem looks like a problem of finding a balance between confidentiality and tax transparency.The purpose.The article discusses the problem of finding a balance between confidentiality and tax transparency on the example of the United States. The choice of the United States may be explained by its national approach to such a balance that differs from the approach of other states that have implemented the Common Reporting Standard and Mandatory Disclosure Rules.The aimof the article is to show what peculiarities in national and international regulation in the United States influence their unique approach and what is the effect of this approach on the global system of automatic exchange of information and the rights of the US taxpayers.The methodological basis.The following scientific methods were used: comparative-legal, formal-juridical and historic-legal. The research was conducted in compliance with the principles of independence and verification of the results.The main results,scope of application. The conclusion of this article is that the balance of private and public interest in the context of automatic exchange of information is reached by the United States through confidentiality provisions exclusively. They use their national state legislation on beneficial ownership and the lack of reciprocity in intergovernmental agreements implementing FATCA to attract foreign investors (non-resident aliens) wishing to avoid reporting under the Common Reporting Standard. Meanwhile, the United States acquire full information on the financial accounts of their citizens and resident aliens who are beneficial owners of such accounts held in foreign financial institutions. Such a state of affairs is dangerous for the effectiveness of the global system of automatic exchange of information. Moreover, it impairs the rights of Accidental Americans who permanently reside in foreign states and have no connection with the United States except for their citizenship but still have reporting obligations before the US Internal Revenue Service.Conclusions.Automatic exchange of information should be developed in compliance with the principle of balance between tax transparency and confidentiality. States should follow one and the same approach to providing such a balance. At the same time the taxpayers’ rights, in particular the rights of Accidental Americans, should be protected and they can’t be outweighed by the need of administrative cooperation between or among tax authorities.

Analysis of the Impact of External Auditors’ Autonomy on Financial Accounting Information Quality Case Study Commercial Banks in Northern Iraq

The purpose of this research is to determine how independent auditors affect the integrity of financial accounting data at commercial banks in northern Iraq. A total of 342 employees from commercial banks in Northern Iraq were surveyed using a quantitative research technique. The research uses structural equation modelling (SEM) to examine the hypothesis that the independence of external auditors improves the integrity of financial accounting information. The study’s findings indicate that financial accounting information quality in commercial banks in Northern Iraq is significantly affected by the independence of external auditors. This suggests that giving external auditors more leeway to do their jobs could boost the quality of financial accounting information at these institutions. Policymakers, auditors, and managers at commercial banks in northern Iraq can learn a lot from these results. In sum, this research adds to the existing body of work on the independence of external auditors and the accuracy of financial accounting information, with a focus on commercial banks in Northern Iraq. This research shows that increasing the independence and autonomy of external auditors in commercial banks could have positive effects on the quality of financial accounting information.

Requesting Financial-Accounting Information from the Perspective of Potential Benefits to the Organization

Abstract In order for financial-accounting information to be useful and timely, it must correspond to the informational needs of users. It is also necessary for the organization to be willing to provide financial-accounting information but also to request it, both from the internal and external environment. In this context, the objective of the paper is to identify the availability of providing financial-accounting information to external users, the impact that the provision of information could have on management and the organization, the frequency with which users request certain information provided through the annual financial statements, the statements of receipts, payments, stocks, etc.

Information disclosure as a means of minimizing asymmetric financial reporting: The role of market reaction

This study investigates the effect of information disclosure on financial accounting information comparability. We use a sample of Chinese A-share companies listed from 2001 to 2018 and discover that higher information disclosure quality can increase financial accounting information comparability. Our results reveal that high information disclosure ratings attract greater investor and analyst interest than does increased liquidity and that increased financial accounting information comparability is the main transmission pathway for this effect. Furthermore, the results remain robust after instrumental variables are used to solve endogeneity problems and also after robustness tests. Our findings suggest that regulatory activity to improve public firms’ information disclosure in the Chinese stock market can increase the market’s efficiency. In addition, when facing agency problems, enterprises should defer to external supervision and governance from investors.

Integration of Farm Financial Accounting and Farm Management Information Systems for Better Sustainability Reporting

Farmers face an increasing administrative burden as agricultural policies and certification systems of trade partners ask for more sustainability reporting. Several indicator frameworks have been developed to measure sustainability, but they often lack empirical operationalization and are not always measured at the farm level. The research gap we address in this paper is the empirical link between the data needs for sustainability reporting and the developments in data management at the farm level. Family farms do not collect much data for internal management, but external demand for sustainability data can partly be fulfilled by reorganizing data management in the farm office. The Farm Financial Accounts (FFAs) and Farm Management Information Systems (FMISs) are the main data sources in the farm office. They originate from the same source of note-taking by farmers but became separated when formalized and computerized. Nearly all European farms have a bank account and must keep financial accounts (e.g., for Value-Added Tax or income tax) that can be audited. Financial accounts are not designed for environmental accounting or calculating sustainability metrics but provide a wealth of information to make assessments on these subjects. FMISs are much less frequently used but collect more technical and fine-grained data at crop or enterprise level for different fields. FMISs are also strong in integrating sensor and satellite data. Integrating data availability and workflows of FFAs and FMISs makes sustainability reporting less cumbersome regarding data entry and adds valuable data to environmental accounts. This paper applies a design science approach to design an artifact, a dashboard for sustainability reporting based on the integration of information flows from farm financial accounting systems and farm management information systems. The design developed in this paper illustrates that if invoices were digitized, most data-gathering needed for external sustainability reporting would automatically be done when the invoices is paid by a bank transfer. Data on the use of inputs and production could be added with procedures as in current FMISs, but with less data entry, fewer risks of differences in outcomes, and possibilities of cross-checking the results.