Accounting Research Articles

Rethinking the academic accounting research model

Current academic incentive systems primarily reward accounting faculty for publishing research articles in elite journals. Faculty members decide what research questions to address and what research methods to use to investigate those re-search questions. Regulators, accounting service firms, and practicing accountants have little input about which research questions are investigated, how the research is conducted, and how and where the results are disseminated. This current ap-proach often results in financial accounting and auditing research that is not rele-vant to the practice of accounting. This commentary proposes a market-driven approach to the conduct of financial and auditing accounting research similar to that used in the medical sciences where pharmaceutical companies and govern-mental entities determine the most pressing medical issues. Besides university-sponsored research, faculty members in the medical sciences apply for grants to support research targeted at improving the treatment of these medical issues, and relevant research findings are quickly disseminated through highly-regarded peer-reviewed outlets such as The New England Journal of Medicine, The Journal of the American Medical Association, the British Medical Journal, and The Lancet so doctors and other medical professionals may quickly implement them into practice.

A paradox of size: Case-volume, financial outcomes, and risk in the enhancing oncology model baseline period.

e13809 Background: The Centers for Medicare and Medicaid Innovation’s (CMMI) Enhancing Oncology Model (EOM) is a risk-bearing, population-based value-based care (VBC) model requiring participating physician group practices (PGP) to take financial risk and performance accountability for episodes of care for seven common cancers. We studied the association between case volume, financial outcomes, and risk in the EOM. Methods: Using deidentified public use EOM baseline episode files (2016 - 2020), and the EOM Price Prediction Model provided by CMMI, we calculated the predicted baseline price (BP) per episode and savings (difference between baseline price and actual expenditures (AE)), grouped PGPs per baseline period by episode count (case volume), and evaluated the risk (variation of savings). ANOVA, F-test, and pair-wise tests were used to evaluate statistical significance. Results: Two-thirds of the 16,348 PGP appearances per time-period (n) had <72 episodes (average: 93.8, median: 36). Table 1 shows population and savings metrics. There was a significant effect of episode counts on savings (ANOVA/F-test: F(5,16342) = 24.5, p<0.0005). Post hoc pair-wise t-tests (Holm correction to adjust p) indicated groups with <72 episodes had increased risk (4.5:1, p<0.0005) and >361 episodes had the least risk (p<0.0005). Groups with <72 episodes had four times the median savings than groups with >361 episodes. Conclusions: As expected with the law of large numbers, groups with fewer episodes are exposed to higher risk and extremes of financial outcomes in EOM-like models while paradoxically generating better savings. The impact of case-mix differences among groups is apt for further exploration. Differences in PGP dynamics and provider like-mindedness with care transformation is one possible explanation for this paradox. Future models should incorporate risk mitigating modeling techniques (case-volume adjustments) or facilitate easier partnering arrangements to engage groups with fewer episodes. [Table: see text]

Administrative burden of establishing health care coverage for the uninsured and its impact on timely access to care.

11050 Background: Although safety net coverage programs like Medicaid exist to fund health care for low-income patients, the administrative burden of the lengthy application limits uptake by eligible individuals. Therefore, many patients do not attempt to enroll until they become ill, which is common among uninsured adults diagnosed with cancer. The literature reports worse cancer outcomes for those with Medicaid, but reasons for this are unclear. The delays in enrollment for patients with uncertain coverage at the time of diagnosis – those in limbo – are understudied and may explain some of this persisting disparity. We estimated the patient and health system burdens for those with uncertain coverage status at the time of cancer diagnosis at Parkland Health, the main provider of cancer treatment for the uninsured in Dallas, Texas. Methods: We assembled the electronic health record financial encounter data of patients with an incident cancer diagnosis in the Parkland tumor registry, diagnosed from 2010 – 2022. We defined patients as being “in limbo” if they had self-pay, pending, or missing insurance plans at the date of diagnosis. We also included patients whose coverage verification date occurred after diagnosis date, since coverage programs can apply retroactively for 90 days. We used plan verification dates to identify when limbo status resolved. We used coarsened exact matching to balance across age, race, Spanish-language preference, Charlson, and screenable cancer type, then multivariate regression to compare patients that were in limbo to those that had established coverage before cancer diagnosis. Results: We identified 17,468 adults newly diagnosed with cancer, 80% of whom were < age 65, 55% female, 73% Hispanic and/or Black, and 30% Spanish-language preferring. The most common cancer types were GI/colorectal (19%), breast (17%), and lung (9%); 23% were advanced stage at diagnosis and 13% died within 180 days of diagnosis. 52.1% were already enrolled in Medicaid/charity care, but one-third (35%) were in limbo at diagnosis, which lasted for a median 31 days (IQR 13 – 126). Over half (55%) of patients in limbo resolved to Medicaid or charity care. Patients who experienced limbo had a median of 596 financial account notes in the first year after diagnosis, 121 more than the comparison group (95% CI 86.7 - 156.1) and began treatment 10 days later (95% CI 7.7 - 12.7). They also had a median of 1 ED visit in the year after diagnosis, 0.2 more than patients never in limbo (95% CI 0.11 - 0.26). Conclusions: The administrative burden of enrolling into coverage programs for the uninsured may impose direct and indirect costs on patients and safety-net health systems and may contribute to worse cancer care outcomes. A more comprehensive accounting of the effects of administrative burdens might suggest ways to redesign coverage enrollment for the uninsured to improve care and reduce costs.

Taxable Business Income in Palestine: Tax Treatment in Palestine for Depreciation Expense for Assets vs. Accounting Treatment According to International Accounting Standards

Accounting is the source of information that any facility's relevant body requires in order to make economic judgments because it arranges the facility's financial reports regularly. The administration, for example, benefits from financial accounting findings because it uses them to plan, direct, and supervise financial operations. Additionally, it oversees and decides on the affairs of lenders, investors, governmental organizations, and scientific research institutions [3] There is a need for unified accounting standards to govern measuring and releasing information whenever financial reports are made in the age of globalization, the expansion of global marketplaces, and the beginning of the industrial revolution. Beneficiaries will be able to quickly compare them to assess and evaluate financial reports and make the most accurate decisions. In 1973, the International Accounting Standards Committee (IASC) issued the first international standards, the International Accounting Standards (IAS). They also wanted to make global business comparisons easier, increase transparency, and restore faith in financial reports. Later, the International Financial Reporting Standards (IFRS) replaced the International Accounting Standards (IAS) [9]. Moreover, the primary goals of commercial accounting and taxation are not the same. The former requires a straightforward representation of the actual data because it involves gathering information to monitor and make decisions; the latter—even though its primary goal is to increase revenue is frequently employed as a tool for the state's economic and social objectives [16]. The taxation reconciliation process often begins with the financial report's 'net income before taxation', unless there are special purpose financial reports that directly result in 'net [taxable] income'. Subsequently, this value is modified by a range of factors to provide 'net income' [6]. Net profit prepared according to international accounting standards, amending reports based on the approved income tax act to account for any liabilities in Palestine. The purpose of the research is to identify issues in the computation of taxable income in Palestine about which assessors and taxpayers have different opinions in Calculating the issue of depreciation assets and what is tax-recognized and what is not tax-accepted.

The Application of Blockchain in the Accounting Industry

Blockchain technology is one of the new information technologies, because of its consensus mechanism, distributed mechanism, smart contract and other technical characteristics, as well as non-forgery, open and transparent, traceability, whole-process traces, collective maintenance and other characteristics, has been widely concerned by various industries. Accounting is the language of business and a management information system that provides financial and accounting information. In today’s highly developed market economy, accounting plays an indispensable and important role. The in-depth application of blockchain technology in the accounting industry can promote the development of the accounting industry, but also can promote the integration of blockchain technology into the overall social and economic environment. This paper studies the application of blockchain technology in the accounting industry. “Luckin coffee financial fraud” events as examples, by analyzing the Luckin coffee event accounting problems, put forward the problems existing in the traditional way of accounting, and block chain technology used in comparing the advantage of the accounting profession, points out that block chain technology can solve the problem of some of the existing accounting, to perfect the accounting and internal control to provide a better strategy and scheme. At the same time, this paper also analyzes the risks existing in the application of blockchain technology in the accounting industry, and briefly puts forward several countermeasures. Finally, the development of block chain technology into the accounting industry is prospected. Blockchain technology not only promotes the development of traditional financial accounting, but also promotes the development of management accounting, and promotes the overall reform of the accounting industry.

A Note On Revolving Credit Estimates

Revolving credit represents a notable share of consumer debt and is an important part of house- hold balance sheets. At the end of 2023, revolving credit was measured at over $1.3 trillion in the Z.1 Statistical Release, "Financial Accounts of the United States," and accounted for more than 25 per- cent of total consumer credit.

Analyzing the impact of sources of financing of organization's activities on ensuring its economic security

Subject. The article considers sources of financing activities in ensuring the economic security of the organization. Objectives. The purpose is to examine the impact of changes in size and structure of sources of financing of organization's activities on return on equity and profit, assess the degree of manifestation of the effect of financial leverage to select the optimal source of financing. Methods. The study rests on theoretical provisions on methods of analyzing the structure, dynamics, and effective use of own and borrowed resources, accounting (financial) statements of the object of research. We employ methods of scientific cognition, like data retrieval, situation modeling, analysis and synthesis of information. Results. We made calculations of the financial leverage effect indicators to assess their impact on economic security of the organization. The findings can be used to select the sources of formation of organization's assets in order to ensure its economic security. Conclusions. The use of the findings in theoretical and practical activities will help objectively assess the impact of the ratio of own and borrowed funds in the structure of capital sources on the financial stability of the organization, the profitability of using the equity, the increment of net profit and, as a result, on ensuring its economic security.

INTERNATIONAL FINANCIAL REPOTING STANDARDS & IT’S CONVERGENCE IN INDIA 1.

In order to improve financial statemet comparability, accountability, and transparency, the adoption and convergence of International Financial Reporting Standards (IFRS) have become essential components of financial reporting on a global scale. This study examines the development and effects of IFRS convergence in India, focusing on the corporate, regulatory, and financial ecosystem consequences. Financial reporting procedures have undergone major changes as a result of the gradual implementation of the Indian Accounting Standards (Ind AS), which are convergent with IFRS, across a number of sectors. The present study scrutinizes the advantages of implementing IFRS, such as enhanced investor trust and global comparability, in conjunction with the obstacles encountered by Indian enterprises, such as escalated compliance expenses and the intricacy of novel standards. The study also explores the role regulatory organizations play in promoting the convergence process, including the Securities and Exchange Board of India (SEBI) and the Institute of Chartered Accountants of India (ICAI). This study offers insights into the efficacy of IFRS convergence in India by a thorough analysis of the body of research, case studies, and empirical data. It highlights significant areas of success as well as persistent challenges. The results indicate that although convergence has helped India's standing in the international financial sphere, ongoing work is still needed to resolve implementation problems and guarantee the smooth adoption of IFRS in the Indian setting. Keywords: Finance, Financial Report, IFRS.

APAKAH MANAJEMEN LABA MERUSAK PRINSIP TRANSPARANSI DAN AKUNTABILITAS INFORMASI KEUANGAN?

The practice of earnings management is carried out by companies to present financial reports that are appealing to stakeholders. However, some manipulations conducted in the context of earnings management are feared to compromise the transparency and accountability principles of financial reporting. The differing definitions of earnings management presented by experts also contribute to making this topic controversial. This literature review aims to elucidate and re-examine the practices of earnings management and perspectives from both sides: the proponent side supporting earnings management practices and the opposing side rejecting the implementation of earnings management in companies. The review's findings indicate that earnings management practices can be supported through the implementation of fraud prevention measures aimed at preserving these practices to continue operating within the confines of financial accounting standards.

Assistance in preparing financial reports for digital-based MSME actors in Tungkal Ilir Sub-District

Having good and correct financial reports using the Financial Accounting Standards for Micro, Small, and Medium Entities for MSMEs makes a benchmark for representing how the ongoing business performance is so that it can determine the future direction of the business smoothly The method used in this Community Service Activity (CSA) is Participatory Action Research (PAR). There are three main pillars of the PAR method, starting from the research methodology, the action dimension, and finally the participation dimension. The evaluation results of the implementation of activities for two days showed that the participants were very enthusiastic about making and preparing financial reports by utilizing the menu in the MSME Business Financial Records Application (Toko Ku). Participants can also utilize the report menu which consists of sales reports, expense reports, profit/loss reports, and general reports. These reports are outputs from menus such as cash, products, inventory, sales, receivables, payables, and expenses.

Emotional Intelligence and Culture Boost Accounting Understanding in Indonesia

This study investigates the impact of learning behavior, interest in learning, emotional intelligence, and culture on the understanding of financial accounting. Despite extensive research on factors influencing academic performance, there remains a gap in understanding how these specific variables affect accounting students' comprehension. The research employs a quantitative approach, analyzing data from 77 accounting students from the 2018 and 2019 cohorts at Muhammadiyah University of Sidoarjo. Data were collected via questionnaires distributed through Google Forms and analyzed using multiple regression analysis with SPSS. Results indicate that while learning behavior and interest in learning do not significantly influence financial accounting understanding, emotional intelligence and culture do. These findings suggest that emotional intelligence and cultural context play crucial roles in academic performance, highlighting the need for educational strategies that enhance these aspects to improve accounting education. Future research should explore the mechanisms through which emotional intelligence and culture affect learning outcomes in different educational settings. Highlight: Emotional intelligence and culture significantly influence accounting understanding. Learning behavior and interest do not affect financial accounting comprehension. Enhancing emotional intelligence and cultural awareness can improve academic performance. Keywoard: Learning Behavior, Interest in Learning, Emotional Intelligence, Culture, Financial Accounting Understanding

ACCOUNTABILITY OF FINANCIAL MANAGEMENT OF THE GRAND MOSQUE OF SHEIKH ABDUL GANI AND THE GRAND MOSQUE OF BANTAENG DISTRICT, SOUTH SULAWESI INDONESIA

This study aims to determine the accountability of financial management at mosques in Bantaeng Regency. This type of qualitative descriptive research uses data collection methods in the form of observation, interviews, and documentation. The informants of this study were mosque administrators and worshipers at two mosques in Bantaeng Regency, South Sulawesi, Indonesia. The results showed that the financial management accountability of mosques, namely the Great Sheikh Abdul Gani mosque and the Raya Bantaeng mosque, generally presented their financial reports using straightforward records, namely income, expenses, and balances, submitted once a week on Fridays before prayers were carried out. The method of delivery was using the mosque's microphone. Recording financial reports has important indicators: firstly, income (input), namely funds or money received by the mosque for the benefit of the mosque itself, which is explained from which sources. Second, expenditure (output), namely the funds that go to the mosque, are used to spend on infrastructure for the benefit of the mosque itself. Third, the results and benefits (outcomes and benefits) are the results and benefits obtained from spending mosque funds and for the convenience of the community and the people of the Great Mosque of Sheikh Abdul Gani and the Great Bantaeng mosque.

Adaptation and growth: a start-up’s resilience in the face of crisis and preparation for the future

Research methodology The case uses secondary data. The data was collected from the company’s founder. Case overview/synopsis ParisZigzag is a media-experiential company engaging in media-related activities, such as content creation on social networks, designing and producing books and magazines, with a distinct focus on lifestyle themes. Additionally, the company organizes tours and cultural events in Paris that resonate with and enhance specific lifestyle choices or cultural identities. The company uses both online media and events as tools for advertising, allowing brands and companies to enhance their visibility among audiences. During the global health crisis, the capacity to swiftly adapt and transform proved to be a critical factor for ParisZigzag. This case study shows how a fast-growing startup could cope with an uncertain and threatening economic and health environment, in particular: 1. entrepreneurs’ reactions to crisis and the crucial role of resilience in responding quickly and constructively to crises and ensuring a startup’s survival; and 2. the significance of proactive planning for future strategies and adapting the business model to tackle forthcoming challenges. Complexity academic level This instructional case can be used in financial and managerial accounting courses and entrepreneurship courses of the graduate or undergraduate level of business programs. This case requires fundamental knowledge in accounting and management.

Penentuan Goodwill Pendekatan Dua Kolom dengan Memperhitungkan Unsur Pajak Penghasilan pada Laporan Keuangan Kombinasi Bisnis

The assets and liabilities of the acquiree and the acquirer are combined because of the business merger. The value of goodwill will be recognized if there is a discrepancy between the entire investment value and the value of assets and liabilities recognized, or equity eliminated. Financial Accounting Standards No. 22 of 2014 solely considers the fair value of the net assets purchased for determining goodwill. The aim of this study is to define the amount of goodwill is determined using the two-column approach in PSAK 22 2014 when considering the income tax aspect of a business combination because, in accordance with the tax law, a business combination is an object of income tax. This study is qualitative descriptive that relies on doing literature reviews pertaining to the computation of goodwill. From the discussion's findings, it can be inferred that the acquirer would recognize more tax debt when assets and liabilities are combined, increasing goodwill. The calculation of goodwill when accounting for income tax components may be expressed algebraically: goodwill = consideration provided + prior ownership plus non-controlling interests plus taxes due minus net assets. Theoretically, the result is that the amount of goodwill recognized and recorded will increase in proportion to the amount of tax debt that is recognized when assets and liabilities are combined. The amount of tax that must be realized by the acquirer is implied managerially to be proportionate to the net assets that the acquirer has acquired.

Management interventions in pacing a planned financial accounting outsourcing transition

PurposeThis paper aims to explore how the time and temporal aspects are managed in a financial accounting outsourcing (FAO) transition process in an international interorganizational context. As a research outcome, the authors identify management interventions of both the service provider (SP) and the outsourcing company (OC) at both the corporate and operational levels.Design/methodology/approachThe framework by Huy (2001a, 2001b) was used to analyze the qualitative data, which draw on observations, participation in 32 official meetings during the outsourcing process, informal discussions with key actors from the SP and the OC, and archival data of a single case company.FindingsThe authors illustrate how the time and temporal aspects of planned accelerated change are managed through management interventions during the FAO transition process. All four ideal intervention types (commanding, engineering, teaching and socializing) were used sequentially but also jointly to complement one another. The pacing was mostly rapid, owing to strong commanding interventions initiating almost every stage. When analyzing the FAO transition process, the authors identified four stages: contact, contract, convergence and control. Moreover, the authors focused on the role of the operational-level managers and accounting specialists of both organizations. The findings indicate that management interventions vary with the management level.Originality/valueThis study contributes to the interorganizational control literature by considering the time and temporal aspects in planned organizational change and the role of operational-level managers in managing large-scale changes.

Disclosure of information on cash flow in accounting (financial) statements

The Ministry of Finance of the Russian Federation, as the state regulator of accounting, annually discloses new aspects of improving the Cash Flow Statement included in the accounting (financial) statements, including by issuing annual recommendations to auditors and audit organizations on verifying the reliability of annual statements. Further recommendations were formulated for reporting for 2023. In the cash flows reflected in the cash flow statements, tax payment flows must be clearly separated, including separately cash flow for the payment of income tax and all other taxes, tax payment flows by the reporting company as a tax agent. Special requirements are established for the disclosure of information on rental payments from the tenant and the landlord. The non-governmental accounting regulator “Accounting Methodological Center” also in its Recommendations sets out its position on the reflection of cash flows for the payment of value added tax by the reporting organization. When conducting research, we used such methods as analysis and synthesis, comparison, grouping method, analogy method, logical approach, systematic approach. As a result of the conducted research, this article, in particular, presents generalized requirements for the formation of information on cash flows for current (operating), investment and financial activities of reporting organizations. In addition, in this paper, proposals are made to improve the accounting standard for the formation of cash flow statements. The results of this study will be of interest to a wide range of readers studying various problems of modern Russian and foreign accounting, and can also be used in the educational process of higher educational institutions.

Research on the Path of Financial Accounting Transformation to Management Accounting in the Big Data Era

This paper explores the significance, existing problems, and strategies for addressing the transformation of financial accounting to management accounting in the era of big data. It first elucidates the importance of the transformation, including enhancing decision support, conducting cost-benefit analysis, and improving performance. Subsequently, it analyzes the problems encountered during the transformation process, such as lack of skills and knowledge, low utilization of data resources, and difficulties in system integration. It then proposes countermeasures to address these issues, including technological capacity building, talent training and recruitment, system integration coordination, and enhancement of management accounting decision analysis capabilities. Finally, it points out that as technology and market environments evolve, this transformation will continue to deepen, necessitating continuous skill enhancement for professionals in the financial accounting field and proactive adaptation by enterprises to enhance competitiveness.

An empirical examination of financial performance and distress profiles during COVID-19: the case of fishery and food production firms in Vietnam

Purpose Financial ratios are often used to classify firms into different clusters of financial performance. This study aims to classify firms using financial ratios with advanced techniques and identify the transition matrix of firms moving clusters during the COVID-19 period. Design/methodology/approach This study uses compositional data (CoDa) analysis based on existing clustering methods with transformed data by weighted logarithms of financial ratios. The data include 66 listed firms in Vietnam’s food and beverage and fishery sectors over a three-year period from 2019 to 2021, including the COVID-19 period. Findings These firms can be classified into three clusters of distinctive characteristics, which can serve as benchmarks for solvency and profitability. The results also show the migration from one cluster to another during the COVID-19 pandemic, allowing for the calculation of the transition probability or the transition matrix. Practical implications The findings indicate three distinct clusters (good, average and below-average firm performance) that can help financial analysts, accountants, investors and other strategic decision-makers in making informed choices. Originality/value Clustering firms with their financial ratios often suffer from various limitations, such as ratio choices, skewed distributions, outliers and redundancy. This study is motivated by a weighted CoDa approach that addresses these issues. This method can be extended to classify firms in multiple sectors or other emerging markets.

Does Financial Derivative Hedging Reduce Firms’ Financial Constraints?

This study examines the relationship between the firms’ derivative risk management and its financial constraints. Firms face a wedge between their internal and external financing for their investments. I test whether this wedge reduces firms’ financial constraints when they hedge using interest rate, foreign currency, and commodity derivatives. Using an event study and a difference-in-differences framework around implementing Financial Accounting Standard (FAS) 123R, this study shows a strong causal relationship between derivative hedging and financial constraints. I find that net debt increases for the derivative hedging firms, on the other hand, cash holdings and net equity issuance decreases. When managers of non-financial corporations believe that their firm will face a liquidity shortage, they save more cash out of cash flow as a precautionary measure. Both cash flow-cash sensitivity and investment-cash flow sensitivity decrease. The analysis also shows that both the loan spread and the probability of covenant violation decrease after firms start derivative hedging. The main implication of the analysis is that risk management influences the asymmetric information between lenders and borrowers: the increase in risk management, the less the asymmetry.

Implementation of SAK-EMKM: The Influence of Socialization, Understanding Accounting and Readiness of MSMEs

The objective of this study is to examine the impact of socialization, accounting comprehension, and readiness of micro, small, and medium enterprises (MSMEs) on the implementation of financial statement preparation based on the Indonesian Financial Accounting Standards for Micro, Small, and Medium Enterprises (SAK-EMKM). The research method is categorized as quantitative research. The study utilizes primary data in the form of a questionnaire. The study focused on the population of Micro, Small, and Medium Enterprises (MSMEs) that actively took part in the UMKM Juara program in the Karawang Regency during the year 2022. The sampling technique employed was saturation sampling, wherein the whole population under study was sampled. The utilized specimen had a value of 132. The findings indicated that partial socialization positively and significantly influences the implementation of financial statement preparation based on SAK-EMKM. On the other hand, an understanding of accounting has little impact on implementing financial statement preparation based on SAK-EMKM. Additionally, MSME readiness significantly affects the implementation of financial statement preparation based on SAK-EMKM. The concurrent processes of socialization, comprehension of accounting principles, and preparedness of MSMEs have a favorable and substantial impact on the execution of financial statement preparation based on SAK-EMKM.