Financial Accounting Perspective Research Articles

Extending mechanical thrombectomy service provision to 24/7: a break-even analysis

BackgroundComprehensive stroke centres across England have developed investment proposals, showing the estimated increases in mechanical thrombectomy (MT) treatment volume that would justify extending the standard hours to a 24/7 service provision. These investment proposals have been developed taking a financial accounting perspective, that is by considering the financial revenues from tariff income. However, given the pressure put on local health authorities to provide value for money services, an affordability question emerges. That is, at what additional MT treatment volume the additional treatment costs are offset by the additional health economic benefits, that is quality-adjusted life years (QALYs) and societal cost savings, generated by administering MT compared to standard care.MethodsA break-even analysis was conducted to identify the additional MT treatment volume required. The incremental hospital-related costs associated with the 24/7 MT extension were estimated using information and parameters from four relevant business cases. The additional societal cost savings and health benefits were estimated by adapting a previously developed Markov chain-based model.ResultsThe additional hospital-related annual costs for extending MT to a 24/7 service were estimated at a mean of £3,756,818 (range £1,847,387 to £5,092,788). On average, 750 (range 246 to 1,571) additional eligible stroke patients are required to be treated with MT yearly for the proposed 24/7 service extension to be affordable from a health economic perspective. Overall, the additional facility and equipment costs associated with the 24/7 extension would affect this estimate by 20%.ConclusionsThese findings support the ongoing debate regarding the optimal levels of MT treatment required for a 24/7 extension and respective changes in hospital organisational activities. They also highlight a need for a regional-level coordination between local authorities and hospital administrations to ensure equity provision in that stroke patients can benefit from MT and that the optimal MT treatment volume is reached. Future studies should contemplate reproducing the presented analysis for different health service provision settings and decision making contexts.

Application of Blockchain Technology in Increasing Financial Statement Transparency: An Overview of Financial Accounting Aspects

Transparency and integrity of financial statements are crucial elements in building stakeholder trust in business entities. However, a number of massive financial scandals have shaken public confidence in the reliability of reported financial information. This research aims to explore the application of blockchain technology in improving the transparency of financial statements from a financial accounting perspective. Using qualitative approaches and literature study methods, this research analyzes the concept, architecture, and operational mechanisms of blockchain, as well as examines case studies and best practices that have been applied. The results show that blockchain has the potential to improve the transparency and integrity of financial statements by creating a reliable and immutable audit trail, as well as providing a distributed and decentralized platform that eliminates the need for third parties vulnerable to data manipulation. However, blockchain deployments also face challenges such as regulatory issues, lack of standardization, resistance to change, and technical constraints. The research recommends closer collaboration between stakeholders, development of effective implementation frameworks and guidelines, as well as advanced research to explore the technical, regulatory, and social aspects of implementing blockchain in financial accounting.

Based on Financial Accounting Perspective Analysis of Financial Risk Prevention Strategy

<div>In recent years, the development of financial market in our country is very rapid, and has got remarkable achievements. Along with</div><div>the sustainable development of our economy, our country’s financial industry has also got great development. While the rapid development</div><div>of China’s financial industry, some problems have also emerged, which have had a serious impact on China’s economic development and fi</div><div>nancial market order. Therefore, we must strengthen the guard against financial risks to ensure the normal operation of financial markets. This</div><div>article starts from the financial accounting Angle, analyzes and discusses the existing problems in China’s financial risk prevention, and pro</div><div>poses corresponding measures to ensure the stable operation of the financial market in our country.</div>

More than a compliance exercise? The case of consolidated financial accounts in Swedish municipalities

IMPACT This study shows that consolidated financial accounts (CFAs) do not only appear to be useful from a municipal financial accounting perspective. For serious adopters, who change their behaviour and adapt their strategy in line with the information provided, CFAs seem to be a powerful tool for monitoring and governance purposes.

Nexus between business process management (BPM) and accounting

PurposeMultidisciplinary business process management (BPM) research can reap significant impact. We can particularly benefit from incorporating accounting concepts to address some of the key BPM challenges, such as value-creation and return on investment of BPM activities. However, research which addresses a relationship between BPM and accounting is scarce. The purpose of this paper is to provide a detailed synthesis of the current literature that has integrated accounting aspects with BPM. The authors profile and thematically describe existing research, and derive evidence-based directions to guide future research.Design/methodology/approachA multi-staged structured literature review approach to search for the two broad themes, accounting and BPM, supported by NVivo (to manage the papers and the coding and analysis processes) was designed and followed.FindingsThe paper confirms the dearth of work that ties the two disciplines, despite the synergetic multidisciplinary results that can be attained. Available literature is mostly from the management accounting perspective and relates to describing how performance management, in particular performance measurement, can be applicable to process improvement initiatives together with tools such as activity-based costing and the balanced scorecard. There is a lack of research that examines BPM in relation to any financial accounting perspectives (such as external reporting). Future research directions are proposed together with implications for practitioners with the findings of this structured literature review.Research limitations/implicationsThe paper provides a detailed synthesis of the existing literature on the nexus between accounting and BPM. It summarizes the implications for practitioners and provides directions for future research by identifying key gaps and opportunities with a sound contextual basis for extension and new work.Originality/valueEffective literature reviews create strong foundations for future research and accumulate the otherwise scattered knowledge into a single place. This is the first structured literature review that provides a detailed synthesis of the research that ties together the accounting and BPM disciplines, providing a basis for future research directions together with implications for practitioners.

Firms' Financial Benefits and Costs of Internationalization Today

In this paper, we collect and contrast theoretical arguments on the benefits and costs of internationalization and develop a comprehensive and structured overview of different theoretical concepts. We also critically evaluate these concepts in terms of their practical importance: this refers to both the relevance for multinational firms (MNEs) today, and to the specificity or applicability to what we term benefits and costs from a financial accounting perspective. We find a slight overweight of positive financial effects of internationalization, which – however – is less clear as might practically have been assumed. Without directly incorporating contextual or management aspects, we are unable to draw theoretical inference on a strong positive or negative development of financial positions. This paper therefore provides a conceptualization of different cost and revenue developments – nothing more, but also nothing less.

Achieving Good Corporate Governance Using a Financial Optimisation Model: Managerial and Financial Accounting Perspectives

Phenomenal corporate collapses and financial crises have been repeated and responses urging implementation of good corporate governance (GCG) have been made, but why is there still company failure and why is it that a company which claims to have GCG still cannot achieve value maximisation? The literature shows that the current management strategies to achieve GCG are still partial, due to, for example, not integrating all the perspectives of GCG or including the business and regulatory environments. As a result, these strategies would not be appropriate for becoming the basis of decision making. Therefore, implementing all theoretical GCG concepts into the corporate system and management activities in an integrated manner, and synchronising the concepts with corporate objectives and management activities would benefit the company, thereby increasing the value of the company and making it sustainable. The purpose of this paper is to develop an integrated financial model using an optimisation approach for achieving GCG. This model proposes to quantify and derive all the qualitative and normative of GCG recommendations, all business environments and risks, and measure their monetary effects on value of a firm. The integrated financial model offers a significant contribution to the literature because it provides a managerial application model showing interactivity between individual governance variables, as well as considering external governance mechanisms. This would be of significant value to organisations pursuing GCG practice. From an academic point of view, this research would fill the vacuum of the application of an integrated financial optimisation model in the corporate governance study.

International Transfer Pricing at Marks Pharmaceuticals: A Tax and Financial Accounting Perspective

This case presents a realistic global business situation dealing with an important and timely topic: transfer pricing. Specifically, the case addresses transfer pricing issues relating to both tangibles and intangibles and examines the issue from both tax and financial accounting perspectives. Recent developments in the tax and financial reporting domains make this an ideal setting in which to introduce students to current issues and to demonstrate the interrelated nature of these subdisciplines. The case can be readily adapted for use in a variety of classes (research, tax, or financial accounting) at both the graduate and undergraduate levels.

Behind Closed Doors at WorldCom: 2001

WorldCom was a large telecom company that enjoyed an almost meteoric rise during the 1990s but ran into trouble in the early 2000s. 2001 was particularly difficult. This case gives future generations of accountants the opportunity to study the largest accounting scandal in history from an internal financial accounting perspective. To the extent possible, this case uses the actual “voices” of participants to gain an understanding of their viewpoints and motives. We get a chance to see some participants at their best and others at their worst. While our primary focus throughout this case is on the financial accounting issues, we also briefly touch on some of the safeguards available in preventing accounting fraud: internal controls, internal audit, external audit, and the Audit Committee. Throughout this case, you should ask yourself, “How would I respond if I were the corporate decision maker?”

FAS 133 Option Fair Value Hedges: Financial Engineering and Financial Accounting Perspectives

FAS 133 Option Fair Value Hedges: Financial Engineering and Financial Accounting Perspectives

Discussion of Estimation and Market Valuation of Environmental Liabilities Relating to Superfund Sites

Accounting research on the estimation and valuation of environmental liabilities is rare despite the importance of environmental liabilities for both financial and managerial accounting. From a financial accounting perspective, individuals interested in valuing organizations which are potentially subject to environmental costs must estimate the valuation implications of those environmental costs, and further must be able to estimate the extent to which the financial statements already incorporate accruals for those environmental liabilities. As such, this area is of potential importance to those interested in valuing firms and to standard setters such as the FASB or the SEC who establish standards for disclosing and recognizing environmental costs. In this context, the Barth and McNichols paper addresses a topic of concern to managers, investors, and standard setters. The Barth and McNichols paper addresses two primary issues. The first issue is whether projected environmental costs associated with the cleanup and maintenance of Superfund sites can be reasonably estimated by a simple linear model using data from various stages in the identification of Superfund sites. The second issue is whether the market's assessment of environmental liabilities exceeds amounts accrued by corporations. Many comments at the conference focused on the extent to which the paper addresses important accounting issues related