Financial Accounting Information Research Articles

Analysis of Local Government Financial Information Quality Based on Internal and External Factors

Abstract This study attempts to analyze the quality of local government financial information through internal and external factors. This type of research is a causative research using primary data collected through a questionnaire using a likert scale of 1-5. The location of this research is in Buleleng Regency, Bali Province. The sample of this study consisted of the head of the finance department and the accounting staff at each Regional Work Units, amounting to 45 people. The analytical method used in this research is multiple linear regression. The results showed that the competency and working experience (as internal factors), implementation of accounting information system, the role of internal audit (as external factors) had a positive and significant effect on the quality of local government financial reports However, in the future it is hoped that it can be improved through improvements and guidance in several aspects such as increasing the capacity of government officials regarding a more adequate regional financial accounting information system through improving facilities and infrastructure to support regional financial management to achieve good, transparent and accountable governance.

Aspectos relevantes de la convergencia a NIC-SP en los bienes patrimoniales del sector público no financiero

Las Normas Internacionales de Contabilidad enfocadas al sector público (NICSP) emitidas por el Consejo de Normas Internacionales (IPSASB), constituyen estándares altos en la gestión de información financiera-contable. En la actualidad varios países del mundo han adoptado estos estándares, como es el caso de Ecuador. El presente estudio fue desarrollado en el Gobierno Autónomo Descentralizado Municipal de Azogues (GADMA), frente a la necesidad de reconocer y registrar los bienes patrimoniales en los estados financieros; el objetivo de la investigación consiste en plantear un proceso para la implementación de la NIC-SP 17 para el reconocimiento de los bienes patrimoniales. La metodología empleada en esta investigación fue de tipo no experimental y transversal, pues las variables se analizaron en su estado natural y en un solo momento del tiempo. En el diagnóstico se determinó la inexistencia de una norma específica que controle los bienes patrimoniales, su inventario fue levantado por última vez hace más de diez años por el Instituto Nacional Patrimonio y Cultural (INPC) y no por el GADMA, la gran mayoría de estos bienes no se encuentran bajo el dominio de la institución. Se concluye que con la implementación de la NIC-SP 17 se obtendrá información confiable para el reconocimiento de los activos de la Municipalidad los mismos que deberán ser registrados en la cuenta de Bienes de Patrimonio Nacional Histórico Artístico y/o Cultural como es el caso del cementerio Municipal, el Museo Rodrigo Pesántez y la Quinta San José; con ello la entidad presentará estados financieros razonables.

PENGARUH PEMANFAATAN SISTEM INFORMASI AKUNTANSI KEUANGAN DAERAH, KUALITAS SUMBER DAYA MANUSIA, DAN PENGAWASAN KEUANGAN DAERAH TERHADAP KUALITAS LAPORAN KEUANGAN PEMERINTAH ACEH

The research examines the influence of the use of regional financial accounting information system, quality of human resources and regional financial supervision on the quality of the Aceh Goverment financial report. The population in this study is SKPA of Aceh Province. The sampling technique used is simple random sampling. This study uses primary data which obtained through the questionnaire results. The data were colleccted 64 questionnaires from 32 SKPA. Data analysis using multiple linear regression. The results show that together, regional financial accounting information system, quality of human resources and regional financial supervision on the quality of the Aceh Goverment financial report. Partially, each independent variable is an regional financial accounting information system, quality of human resources and regional financial supervision affects the quality of the Aceh Goverment financial report

Does the EU Directive on non‐financial information influence the value relevance of ESG disclosure? Italian evidence

AbstractThe implementation of the EU Directive on non‐financial information determines the transition from a voluntary to a mandatory disclosure setting. This paper is a first attempt to investigate if this transition influences the value relevance of non‐financial information, which relates to the environmental, social and governance disclosure (ESG) requirements of the Directive. Italy provides an interesting setting as non‐financial information was generally voluntary before the Directive, which was implemented with the Italian Legislative Decree 254/2016. To this extent, we examine the non‐financial, environmental and social disclosure practices of 231 Italian listed firms in the pre‐ (2016) and post‐ (2017) Legislative Decree application. Our results do not show any relevant increase of such disclosures after the Legislative Decree application, as Italian listed firms limit such disclosure to a minimum requirement. Further, this finding is confirmed also for those firms voluntarily providing a non‐financial report (sustainability or integrated report) before the Legislative Decree application. Our regression analysis shows that accounting numbers are associated with share prices, while non‐financial, environmental and social information are not value‐relevant with reference to the pre‐ and post‐Legislative Decree application. This means that the non‐financial, environmental and social information beyond the financial accounting information do not explain any incremental value‐relevant information to investors in the non‐financial mandatory disclosure setting required by the new regulation. Our results enrich previous evidence concerning the value relevance of non‐financial and ESG disclosure mainly focused on Anglo‐Saxon contexts.

PENINGKATAN KOMPETENSI PENGGUNA SISTEM INFORMASI AKUNTANSI KEUANGAN PADA SEKOLAH MUHAMMADIYAH DI BUKIT KECIL KOTA PALEMBANG

Partners in the implementation of community service are Muhammadiyah 2 Middle School, Muhammadiyah 1 Aliyah Madrasah School, Muhammadiyah 2 Middle School, Muhammadiyah 1 Tsanawiah Madrasah School and Muhammadiayah Elementary School 1. These schools are under the supervision of the Muhammadiyah Bukit Kecil Branch Palembang. Based on the analysis of the situation, it can be identified several problems faced by partners such as the knowledge possessed by the school treasurer in the use of accounting information systems, and the process of preparing financial statements is also very limited. The service implementation method consists of two stages. The first, step is to arrange material, namely basic accounting and accounting information systems. The second stage conducts training and coaching, to producing financial reports. Results and discussion, community service activities are carried out by means of training and assistance. The community service activities were carried out for the five partners, also involved a treasurer of the Palembang Muhammadiyah Branch Manager. This activity began with conducting a field survey for the stage of preparing the work plan. This activity resulted in an agreement with the principal included in the partner and the Muhammadiyah Palembang Branch Manager, which conducted training on the preparation of financial statements, and trained to develop potential treasurers using the school's financial accounting information system. The conclusions of community service activities are as follows: a) has been running well and smoothly, b) increasing the ability of treasurers of the Muhammadiyah School in Bukit Kecil to use accounting information systems and compile school financial reports..

Calidad de servicio en los proyectos inmobiliarios y la rentabilidad de las empresas constructoras en el distrito de El Tambo Huancayo-2018

Actualmente existe consenso respecto a la calidad de servicio y la rentabilidad en los proyectos inmobiliarios en el Perú, estos dos conceptos conjugan como variables fundamentales dentro de una gestión organizacional, sin embargo, no está claro el conocimiento de cuáles son los efectos específicos que tienen dichas variables en lograr una mejor valuación de las empresas constructoras en general., debido a ello, el investigador se pregunta ¿Cómo la calidad de servicio en los proyectos inmobiliarios influye en la rentabilidad económica de las Empresas Constructoras en el Distrito de El Tambo 2018? Dando origen a la hipótesis: La calidad de servicio influiría significativamente en la rentabilidad de los proyectos inmobiliarios de las Empresas Constructoras en el Distrito de El Tambo 2018., para demostrar esta hipótesis se recopiló información a través de la aplicación de un cuestionario de 15 preguntas a 12 colaboradores de la Empresa Constructora Consorcio Arquitectos & Ingenieros ubicada en el distrito de el Tambo, esta encuesta fue contestada de forma individual bajo estricta confidencialidad, así mismo se elaboró una ficha de análisis de los estados financieros de dos años de la misma unidad de análisis Consorcio Arquitectos & Ingenieros SAC, el análisis de estos documentos permitió observar el comportamiento de las partidas contables del estado de situación financiera y el estado de resultados de los periodos 2017 y 2018 a través del análisis de ratios financieros. Esta investigación pretende aportar a las empresas de este rubro, herramientas para su administración y gestión contable, asimismo a la práctica constante de una gestión de calidad que sirva como un instrumento de referencia para las políticas económicas y financieras en esta empresa constructora, que sirvió como unidad de análisis, permitiendo mejorar los procesos de gestión contable, control de inventarios, control de caja, control de las cuentas por cobrar de la empresa, asimismo pretende incentivar a la planificación de los servicios de construcción y mejorando su calidad través de una supervisión constante en el proceso de la obra. Al finalizar la investigación se determinó que si existe influencia de la calidad de servicio en la rentabilidad de los proyectos inmobiliarios de las Empresas Constructoras en el Distrito de El Tambo 2018, asimismo se describió, que la gestión de calidad de servicio es buena pero la gestión contable está todavía incipiente en nuestra unidad de análisis Consorcio Arquitectos & Ingenieros SAC, asimismo se recomendó motivar a los empresarios del sector construcción a formalizar su información contable financiero que en el transcurso del tiempo beneficiara económicamente a la empresa.

The role of top managers’ support in financial accounting information transparency in Vietnam’s public sector

The Vietnamese economy has been strongly integrating with the world economy. As a result, the requirement to provide transparent financial accounting information has been putting considerable pressure on the public sector. Moreover, as the Government is promoting self-sufficiency in the public sector to reduce the burden on the governmental budget, top managers are the main decision-makers to the organizational, personnel, operational and financial issues in their companies. Therefore, the support of top managers can significantly affect the improvement of financial information transparency in the public sector. The research model takes the form of SEM and is evaluated using PLS-SEM methodology on the Smart PLS 3.2.7 software. The results from analyzing data from 164 Vietnam’s public companies confirm that the support of top managers has a direct impact on the accounting information system as observed from intermediate variables that reflect the relationship between top managers’ support and financial information transparency, namely chief accountant’s expertise, the availability and function of the hardware, software and the communication technology network.

СУЧАСНІ ПІДХОДИ ДО ПЛАНУВАННЯ ВИТРАТ ТА ПРИБУТКУ НА ПІДПРИЄМСТВАХ СФЕРИ ТУРОПЕРЕЙТИНГУ

Introduction . The predominant focus of management systems in the sphere of tour operators’ activity on retrospective financial accounting information does not allow tour operators to use the optimization planning function, which negatively affects their economic efficiency. Purpose . The aim of the article is to develop modern methodical approaches to improve the system of cost and profit planning at the enterprises of tour operators on the basis of the margin approach, which involves modeling the causal links between costs, income, profit on the one hand and the relevant factors that determine them – on the other. Results . In the article there is used a systematic approach to determine the place and role of the tour operator in the value chain of the tourism industry, the characteristics of the economic process of the tour operator and its economic relations with the external environment. To plan costs and profits there is used the apparatus of the theory of economic and mathematical modeling. Based on a systematic approach, the author's descriptive model of the tour operator's activity and its relations with counterparties in the market of resources and products is developed and proposed. This model provides classification of incoming resource flows of the tour operator into two types: resources purchased on the side of primary tourist services and resources that are necessary elements to perform various functions within the business process of the tour operator. According to the classification of resource flows, it is proposed to structure the costs of the tour operator into two groups: the cost of purchased primary travel services and conversion costs. In order to identify cost-generating factors, a comprehensive model of the economic process of the tour operator and the universal model of the main process of the enterprise are proposed. It is substantiated that the main economic process of a tour operator by the nature of the relationship between the flow of resources and the flow of products (services) can be defined as convergent. It is substantiated that the activity of the development of a complex of tourism product should be considered not as a separate function within the main process, but as an element of an independent innovative process of the tour operator. It is justified that resources are consumed not in the main economic process as a whole, but during the performance of individual functions within the main process. So the primary is causal link between cost-generating factors and consumed resources at the level of a particular function. For the sphere of tour operating activity, there are substantiated the criteria for identifying variable conversion costs: costs can be proportionally adapted to fluctuations in the volume of activity of a particular function and the volume of activity of the specified function behaves in direct proportion to the volume of the realized tourist services (quantity or cost of the realized tourist packages). It is substantiated that the «standard list» of variable conversion costs for the sphere of tour operators’ activity cannot be given, because variable costs are not an objective empirical phenomenon, and their behavior depends on the subjective management decision of an individual manager, which in turn is made within specific objective circumstances. According to W. Kilger's concept, it is proposed to determine 2 indicators of marginal cost: marginal cost for short-term decisions and marginal cost for long-term decisions, which is especially relevant in the allocation of costs for the situation of purchasing primary travel services on the basis of contracts with a guaranteed amount of capacity reservation. Originality . In the article there is proposed the methodical approach to formation of an indicator of normative marginal cost of a tourist product. Based on the concept of marginal profit, there is suggested the author's approach to planning of the costs and financial results of enterprises in the sphere tour operators’ activity. There is proposed a methodical approach to determine the break-even point of the tour operator based on the comparison of the planned marginal profit and the function of the total fixed and discretionary costs of the tour operator for the planned season. All abovementioned author's methodical approaches make up a scientific novelty, the use of which in the practice of enterprises in the sphere of tour operators’ activity allows to increase the efficiency of the management system and, accordingly, the profitability of enterprises. Conclusion . Thus, the use of the concept of the marginal profit in contrast to existing approaches allows to improve the quality of information support of the management system because within the proposed approach there is a possibility of more accurate modeling of cost and profit behavior at the enterprises of tour operators’ activity compared to the alternative concepts.

The Effects of Immigration on Labour Tax Avoidance: An Empirical Spatial Analysis

We investigate whether the geographic concentration of non-EU immigrants in the various Italian provinces affects labour tax avoidance (LTAV) practices adopted by firms located in the same provinces, as well as in the neighbouring provinces, and operating in construction and agriculture industries that mostly employ immigrants in Italy. For this purpose, we develop a LTAV proxy based on the financial accounting information of a sample of 993,606 firm-years, disseminated throughout the 108 Italian provinces, over the period 2008–2016. Our results, based on a Spatial Durbin Model panel regression, reveal a statistically significant positive association between the concentration of non-EU immigrants and LTAV at province level, as well as the presence of spillover effects among neighbouring provinces. Our findings are robust to several additional analyses, including instrumental variable estimations. Our study provides empirical support to previous structuralist or marginalization theories holding that socioeconomically marginalized groups, such as non-EU immigrants, are more likely to be involved in labour exploitation practices, which could underlie our LTAV outcomes. Furthermore, it supports the need for tax authorities to strengthen labour inspections, coordinated at national level, especially in those contexts where non-EU immigrants are mostly employed. On the other hand, a greater social integration, assistance, and recognition of rights of immigrants may help to alleviate their situation of weakness that makes them more vulnerable to LTAV practices. Finally, tackling LTAV, associated with the underemployment of immigrants, may prevent its negative effects for society arising from the reduction of public resources to sustain the social welfare and finance public goods and services.

Financial Reporting Quality and Sustainability Information Disclosure in Brazil

Currently, businesses face an information disclosure approach involving the triple bottom line (social, environmental, and financial). This paper aims to investigate the relationship between corporate social responsibility (CSR) information and financial reporting quality (FRQ). We argue that CSR companies behave differently in preparing financial accounting reports. Recent literature supports this theme, providing two distinct hypotheses: transparent financial reporting and retreatment. We used a sample of 1,181 companies from the years 2012 to 2016 to identify if socially responsible companies have better quality financial accounting information. In contrast to the hypotheses raised, we didn’t find a relationship between the CSR disclosures and the FRQ proxies. This suggests that sustainable companies do not explain lower or higher levels of earnings management. Our findings remain unchanged when we replace results management through discretionary accruals for manipulations of operating activities. Estimates with comparable samples also didn’t change the interpretations of the results.

The Impact of Economic Crisis on the Financial Performance of the European Companies

Financial-accounting information plays an important role in assessing and forecasting firms’ financial performance. But besides that, there are other external factors affecting the firm’s performance, such as the economic and financial crisis that causes imbalances over the economy and affect the business environment. Thus, based on financial statements data, in this paper, the determinants of financial performance are examined and also the impact of financial crisis on these factors is analysed using the fixed and random effects panel estimators. For this research it was used a sample of non-financial firms from European countries considering annual data from 2006 until 2015. The results achieved by panel data analysis show that crisis exerts a significant positive effect over financial performance as well as liquidity, assets turnover and labour productivity inducing that firms tend to do higher efforts to keep financial performance in face of a crisis. Financial performance is significantly and negatively influenced by leverage independently of the crisis effect showing that return on assets is lower than average interest rate.

Green financial behavior and green development strategy of Chinese power companies in the context of carbon tax

Abstract Power sector is the main source of carbon emissions, whether the carbon tax levy promotes the emergence of green financial behavior of China’s power companies. From the perspective of financial management, this paper analyzes the possible influence of carbon tax policy on green financial performance, green financial activities, green financial accounting and financial information disclosure of micro-economic entity power companies based on specific cases. And in terms of the green financial strategy, green financial management and green financial evaluation, this paper proposes countermeasures for the green development of China’s power companies. The study suggests that under the construction of China’s green tax system, the financial behavior of power companies is gradually moving towards green. This not only conforms to China’s green tax policy, but also is an inevitable strategic choice for China’s power companies to achieve green development.

Design and Implementation of Financial Accounting Information Management System of Shipping Companies Based on ERP

Lin, P., 2019. Design and implementation of financial accounting information management system of shipping companies based on ERP. In: Gong, D.; Zhu, H., and Liu, R. (eds.), Selected Topics in Coastal Research: Engineering, Industry, Economy, and Sustainable Development. Journal of Coastal Research, Special Issue No. 94, pp. 470–474. Coconut Creek (Florida), ISSN 0749-0208.With the coming of information age, the traditional financial accounting information management of shipping companies cannot meet the needs of their development and competition. Based on the detailed analysis of the requirements of financial accounting and management accounting of shipping companies, this paper proposes the financial accounting information management system of a shipping company based on ERP, and design its business flow in detail. Finally, the design system is tested and the test result is basically consistent with the design expectation, providing a kind of more efficient integrated information management system which can be referred to for the financial management system of shipping industry. The research result has the positive reference significance to shipping management companies.

Pakistan: Economy under Elites – Tax Amnesty Schemes, 2018

Abstract The purpose of the paper is to take an incisive glimpse into Pakistan’s political economy through the lens of a tax policy abnorm i.e. the tax amnesty scheme, 2018. The paper is theoretically anchored in the elitist framework which arguably best explains structural composition of the economy. The paper refines the elitist framework, accentuates its significance, and innovates on it to induct the competing Freudian concepts of “pleasure principle” and “reality principle” to sharpen our understanding of Pakistan’s political economy. It is argued that impending inflows of offshore bank and financial account information of Pakistan resident persons under the OECD’s Multilateral Convention was the main dynamic of the amnestization initiative in which the Supreme Court of Pakistan played the role of the agent provocateur. The empirical results obtained help conclude that the amnestization initiatives have helped proliferate underground economy, and enhance the elitist economic status quo in Pakistan.

Dashboard – Control and Pilot Instrument in the Romanian Patrimonial Entities

Abstract Assess the performance of a patrimonial entity, its financial position and its change, the degree of risk in an economic and financial environment - socially dynamic, requires information far beyond the scope of financial-accounting information. Therefore, it is necessary to complete the financial data provided by the financial statements with the information on the technical and human potential (equipment quality, modernization, qualification of employees, level of labor productivity, etc.), commercial potential (quality of products / services and distribution network, price level, etc.), the intensity of competition, the position of the entity on the market, the image of the entity and its products / services, etc. All this information can be synthesized on responsibility boards (technical and production, human resources, trade-supply / sales / marketing, etc.) in a dashboard, which is a synoptic, legible and interpretable instrument, carried out with a certain frequency, which highlights the significant deviations between the results achieved and the fixed objectives, in order to ensure the necessary corrections for the good performance of the activity. This communication aims to highlight the results of the research on the importance of the dashboard as a control and pilotage tool for Romanian patrimonial entities.

ANALYSIS USING REGION’S FINANCIAL ACCOUNTING INFORMATION SYSTEM ON THE QUALITY OF LOCAL GOVERNMENT FINANCE REPORTS

This study aimed to analyze the use of region’s financial accounting information system to the quality of local government financial reports. The quality of the financial statements include the relevance, reliable, comparable, and understandable. The dependent variable in this study is the quality of local government financial reports, while the independent variable in this study is the region’s financial accounting information system. This research method is qualitative research with this type of approach theoretical studies that the methods used to collect data or resources related to the topics in a study. Data obtained from journals, thesis,books , and various other literature related to the study. The results showed that the use of local financial information systems positive effect on the quality of local government financial reports.

ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI KUALITAS LAPORAN KEUANGAN DAERAH

Respondents in this study are The Chief of Regional Work Unit, Chief of Financial Officer and Financial Officer of Regional Work Unit Bengkulu Province. The analysis method used SmartPLS 1.0 M3 program. The results showed that the implementation of good governance did not affect the quality of financial statement, the implementation of Government Accounting Standards has a positive effect on the quality of financial statements, and utilization of financial accounting information systems has a positive effect on the quality of financial statement.Keywords: Quality of Financial Statements, Good Governance, Government Accounting Standards, Regional Financial Accounting Information Systems

Role of Big Data in Accounting & Auditing

Volume, Velocity, Variety, and Veracity are 4 Vs of Big Data as its striking dimensions which are useful for any organisation only if it can be used to generate the fifth V viz. Value. In modern times Big Data has proved its utility in many areas of business management including accounting and auditing..In this study an attempt is made to discuss the role of Big Data in financial accounting, management accounting and auditing. Financial accounting information using big data can lead to better disclosure which in turn may enhance investor trust. Big Data can play a vital role in refining existing accounting standards and developing the needed ones. In nutshell, Big Data proposing a lot of opportunity in the area of accounting and auditing, thereby challenging accounting profession to develop competencies so as to make it their strength.

Assessing a golden opportunity: CEO performance at McDonald’s

Assessing a golden opportunity: CEO performance at McDonald’s

Establishing the representational faithfulness of financial accounting information using multiparty security, network analysis and a blockchain

This paper aims to develop a design for an accounting information system that will enhance the representational faithfulness of financial reporting information. One of the functions of financial reporting is to aggregate and report the entity's private data. This paper shows that recognizing that some of the firm's private data is already shared with others allows the methods of multiparty security to be applied to the reporting and audit processes. We contend that using both public key cryptography and network analysis allows the identity of an entity to be modelled as a place on a network. We also develop accounting recordkeeping techniques to balance public access with privacy using a blockchain. Taken together, these three design ideas can enhance the representational faithfulness of financial reporting systems because they use shared data from independent entities, a transparent system, and open-access immutable storage. Faithful representation is enhanced because information from this system can be used by auditors to support their audit opinion or by stakeholders who need credible information about the entity.