Information In Financial Reports Research Articles

Pengaruh Sistem Akuntansi Keuangan Daerah (SAKD) dan Good Government Governance terhadap Kualitas Informasi Laporan Keuangan pada Pemerintah Daerah Kota Bandung

Until now, the accountability report must be presented by the local government in accordance with the regulations regarding financial reports prepared by the local government as well as the financial accounting system owned by the local government which is effective. Because the system used can have a contribution in terms of recording and reporting regional finances, especially in terms of control for local government performance reports. 
 In achieving its target, the government of a region makes the financial accounting system of the local government which has quality as a guideline that regulates the process of financial activities in the government environment. Good governance is used as a desire to improve the principles of democracy and attain the rights of the people. From the concept compiled by the author, there is the importance of accountability, transparency, and internal control that can be accounted for in local government. Regarding the sample used as many as 34 employees, therefore this study aims to see how much the contribution of each variable in supporting the quality of financial reports and to examine the relationship between variables of regional financial accounting systems and good government governance on the quality of financial report information.

Content requirements for narrative reporting in the public sector: a contextual perspective

PurposeAccounting literature is definite about the content and presentation of traditional financial statements, but the basic information to be provided in the narrative reports of public sector entities remains unsettled. This paper aims to investigate the needs and expectations of stakeholders (primary users and preparers) regarding the content and presentation of narrative reports in the public sector of Nigeria.Design/methodology/approachThe research used a qualitative approach that draws on stakeholder and contingency theories to collect primary data through in-depth individual interviews using semi-structured questionnaires. Data were analysed by a thematic method using the NVivo 11 Pro software package.FindingsThe study reveals that financial statements constitute the statutory financial reports of public sector entities in Nigeria as narrative reporting is undeveloped, both as a concept and in practice. Stakeholders believe that narrative reporting is required to enhance the accountability usefulness of the annual financial reports published by the government and public agencies. Data analysis further reveals that public perception about the management of government financial resources influences the information needs of stakeholders regarding financial reporting. In addition, stakeholders consider the approved budget as the cornerstone of public financial reporting. Accordingly, users and other stakeholders expect public sector narrative reports to provide budget-based performance information that relates the accounting data presented in the financial statements to the key budgetary provisions, in both financial outlays and service delivery achievements. Stakeholders also expect narrative reports to be presented in plain language and provide information about the impact of financial decisions and actions on the basic socioeconomic variables that signpost citizens’ well-being, such as education, health care, employment and security.Practical implicationsThe study suggests that the inclusion of narrative information in the statutory financial reports of public entities in Nigeria is imperative and should engage the attention of policymakers and relevant regulatory authorities. In addition, a more elaborate systematic investigation of the information needs of stakeholders in Nigeria should be undertaken by relevant units of government.Originality/valueTo the best of the authors’ knowledge, this is the first documented research on narrative reporting and the information needs of a broad range of stakeholders in the public sector of Nigeria. The paper identifies the approved budget as the focal point of governmental financial reporting, and a clear linkage between budget provisions, accounting results and service delivery achievements as the basic content of a narrative report in developing countries.

The Effect of the Application of Government Accounting Standards, Apparatus Competence, the Role of Internal Audit and the Internal Control System on the Quality of Information on Local Government Financial Statements

This study aims to determine the effect of the application of Government Accounting Standards,Apparatus Competence, the Role of Internal Audit and the Internal Control System on the Quality of Information on Local Government Financial Statements. The object of this research is all Auditor Functional Officials in the Inspectorate of East Java Province. The research sample was 55 respondents. The sampling method used was purposive sampling. The data analysis method used is multiple linear regression which is then obtained using SPSS 25 software. The results of this study prove that the application of government accounting standards, apparatus competence, the role of internal audit and the internal control system partially has a significant effect on the quality of information on local government financial statements. The conclusion of this study found that to be able to improve the quality of financial report information in the Provincial Government of East Java, it can be done through the effectiveness of review activities on financial statements before the report is submitted to the Republic of Indonesia Audit Board.

“Financial less is more”: An experimental study of financial communication

Past research has demonstrated that many individuals are not well equipped to make financial decisions and hence depend greatly on the flow and quality of financial information. Various governments are implementing reforms aimed at improving the quality of pension financial communication. Certain countries are requiring a move to short-form pension reporting, and some are requiring digital reporting instead of (or in some cases, in addition to) paper reporting. In a series of experiments, we show that the ability to locate information in financial reports is sensitive to the length of the report and to the communication form.

Analisis Manajemen Laba dengan Adposi IFRS, Ukuran Perusahaan, dan Kepemilikan Blockholder menggunakan modifikasi Model Jones

The aim of this research is to determine the effect of IFRS Adoption, Firm Size, Leverage, and Blockholder Ownership on Earnings Management. The research was conducted on manufacturing companies listed on the Indonesia Stock Exchange (BEI) period of 2012-2015. Sample of this research consist of 64 companies using the purposive sampling method. Earnings Management is proxied with discretionary accruals and measured using a modified jones model. IFRS Adoption measured by Dummy Variables. Firm Size is measured by logarithm base ten. Leverage measured by Debt to Total Asset Ratio (DTA) and Blockholder Ownership measured by Dummy Variables. The results in this study showed that there was a positive and insignificant influence between the adoption of IFRS on earnings management, firm size variable had a negative and insignificant effect on earnings management, leverage variable had a positive and significant effect on earnings management and blockholder ownership had a negative and insignificant effect on earnings management. This research is expected to provide input to users of financial statements as decision-makers and to parties with an interest in financial reports regarding the importance of quality financial report information, especially information regarding earnings management

Reaksi Pasar atas Publikasi Laporan Keuangan Interim Diaudit Studi Empiris pada Perusahaan-Perusahaan yang Mempublik di Bursa Efek Indonesia

This study was conducted on interim financial statements of companies included in the calculation of the KOMPAS 100 index on the Indonesia Stock Exchange (IDX) with the consideration that the companies' shares included in the KOMPAS 100 index on average per year control more than 75% in volume trade and market capitalization on the Indonesia Stock Exchange (IDX) so that it is considered the most widely traded stock. Hence, it is expected that many interested parties (especially active investors) of the interim financial report and use accounting information from the company in its investment decisions. The study was conducted on quarterly financial statements, mid-year financial reports and quarterly financial statements.The results of this study indicate that the market responds widely to the announcement of the Interim Financial Report I and Interim Financial Report II published by the issuer. On the other hand the market does not respond broadly to the announcement of the Interim Financial Report III published by the issuer.The involvement of auditors in interim financial reports in the form of reviews and complete audits does not have an impact on improving the quality of information on interim financial statements received by investors. This is demonstrated by the absence of differences in market reactions to the publication of interim financial statements.Keywords: Interim Financial Reports, Market Reactions

The effects of company characteristics on financial reporting quality – the application of the machine learning technique

Purpose: The paper aims to determine the level of financial reporting quality (FRQ) in listed companies in Croatia, as an example of a macro-based accounting system with an underdeveloped capital market, and identify company characteristics that affect it. The paper systematizes the existing key knowledge of FRQ. Furthermore, it critically analyses the principles and direction of influence of various qualitative and quantitative as well as financial and non-financial characteristics of a company. Methodology: The empirical analyses involve joint testing of the machine learning technique (MLT) and the economic hypotheses. M5 algorithm is applied to identify the factors that influence the quality of voluntary reporting as well as the direction and intensity of their influence. Results: The results show that profitability, stock market listing duration (in years), and company size positively affect the level and extent of FRQ through voluntary disclosure of information in the annual financial reports of Croatian listed companies. In addition, differences in FRQ between different areas of economic activity and depending on the type of auditor were found. Conclusion: Croatian companies should adopt good reporting practices to meet the requirements of the global market and thus contribute to the improvement of the overall transparency system. The same is expected from the relevant regulatory authorities who should encourage full disclosure. The paper provides several scientific contributions: first, the spatial dimension of the research; second, the comprehensive literature review; and third, the MLT application in the research on FRQ. An important practical implication of these findings is that they will help financial statement users in the economic decision-making process.

Effects of integrating CSR information in financial reports on investors’ firm value estimates

AbstractUsing an experiment, we find that corporate social responsibility (CSR) performance measures have a greater impact on investors’ firm value estimates when reported in a separate report than when integrated into a financial report. We also find that more investors misclassified CSR information as assured when integrated into financial reports than when reported in separate reports. Investors who misclassified CSR information rated its credibility higher and derived higher firm value estimates compared to investors who correctly classified this information as non‐assured. Overall, our results identify potential costs of integrating CSR measures in financial reports, and inform global regulators considering alternative CSR reporting frameworks.

PERAN LEVERAGE SEBAGAI PEMODERASI: REVALUASI ASET TETAP, KEBIJAKAN DIVIDEN, NILAI PERUSAHAAN

The firm value is closely related to the market's reaction to the information provided by management so that such information can influence investor behavior. This study is aimed to examine the effect of the revaluation of fixed assets and dividend policies on firm value. In addition, this study uses leverage as a moderation variable. This study employs a quantitative method with cross-sectional data. The data used in this study is secondary in the form of corporate financial statements registered in the Indonesian Stock Exchange (BEI) of the basic and chemical industry sectors from 2014 to 2016. Data obtained from the official website of the Indonesian Stock Exchange (BEI) through the site Http: / /www.idx.co.id. Sampling in this study uses purposive sampling method, so the final sample in the study is 34 observations. This study suggests that asset revaluation is negatively association with firm value, while dividend policy is not associated with firm value. Furthermore, leverage successfully reinforces the negative impact of revaluation of fixed assets on firm value. Alson, leverage strengthens the influence of dividend policies that previously had no significant impact, becoming a significant positive impact on firm value. The results of this study show that financial report information can be used by investors in making investment decisions in the capital market, especially in relation to information on the revaluation of fixed assets conducted by the company.

Pengaruh Pemahaman Sistem Akuntansi Keuangan Daerah, Kapasitas Sumber Daya Manusia dan Pemanfaatan Teknologi Informasi terhadap Kualitas Informasi Laporan Keuangan Pemerintah Daerah (Studi Kasus pada Pemerintah Daerah Kota Yogyakarta)

The research is to examine the influence of the understanding of local financial accounting system, capacity of human resource and the utility of information tecnology toward the quality of financial report information of yogyakarta government.The used data for the research is primer data. It is the result from questionnaires spreading. The respondence of this research is manager of financial report of yogyakarta local government. The questionnair is spread to 90 respondents, meanwhile that can be proccesd are 63 questionnaires. The method of sample taking is using purposive sampling. Analytic technique of data in this research is using double linier regretion technique.The result of regretion test shows that the local government financial accounting system understanding and the capacity of human resource are not influenced significantly to the quality of local government financial report information, meanwhile the utility of technology is influenced positively to the quality of local government financial report information.keyword: the understanding of local financial accounting system, capacity of human resource, the utility of information technology and quality of local government financial report information.

EVALUASI KEPATUHAN GOOD CORPORATE GOVERNANCE TERHADAP ASEAN CORPORATE GOVERNANCE STUDI PADA CONSUMER GOODS INDUSTRY YANG TERDAFTAR DI BURSA EFEK INDONESIA

This research is analyzing the score of Indonesia Stock Exchange listed corporations under consumer goods industry sector’s compliance on Good Corporate Governance using ASEAN Corporate Governance. Data used are originated from corporations’ annual reports, financial report, and publicly-accessed information in the period of 2018 over 32 consumer goods corporations. The data gathered was processed through Microsoft Excel. Results show that on consumer goods industry’s corporations, there are three good corporate governance principles (Rights of Shareholders, Equitable Treatment of Shareholders, Responsibilities of the Board) scored not more than 50%, while the other two (Role of Stakeholders, Disclosure and Transparency ) have achieved the score of over 50% of the overall points of recommendations.

Роль инвентаризации в обеспечении достоверности бухгалтерской отчетности организаций бюджетной сферы

The development of accounting for public sector entities and its convergence with public sector IFRS pose new methodical and methodological problems. Inventory is essential to ensure faithful representation of financial reports provided to users. This confirms the relevance of the study. The article contains a theoretical study of inventory in the context of implementation of federal standards for accounting in public finance. The paper studies the relationship of inventory with other elements of the accounting method as well as accounting procedures: recognition, classification, evaluation, adjustment of estimates, presentation and disclosure of information in financial reports, and confirmation of reporting reliability made by an independent entity. In addition, the study has established the effect of inventory on the achievement of qualitative characteristics of financial reports to increase its usefulness to users. Since information requests by users change under the influence of external and internal environmental conditions, an inventory should confirm not only the recognition and classification of the object, but also its estimate. It is concluded that it is advisable to disclose information on the valuation of objects in financial statements at both actual and fair values. This would ensure the control function of accounting and strengthen its information function. The results obtained by the author can be used for further development of regulation of accounting in public finance.

USEFULNESS OF ACCOUNTING INFORMATION SYSTEMS FOR BUSINESSES

Accounting information systems have an important role for the progress of a company. Accounting information systems produce financial information. Financial information is also referred to as financial statements. The accounting information system collects data in the form of transactions that occur in companies such as purchase transactions, sales transactions, cash disbursements transactions and cash receipt transactions. Information in company financial reports is needed by both internal and external parties. The financial statements must meet the requirements, that is, have quality characteristics. To run an Accounting Information System (AIS), elements are needed so that the system can run properly and correctly. namely: (1) Human resources (HR) who have been trained; (2) Financial Data Form; (3) Hardware; (4) Software; (5) Procedure; (6) communication technology network; (7) database. The quality characteristics of financial statements consist of comprehensiveness, relevance, materiality, reliability, honest presentation, substance outperforming form, neutrality, sound judgment, and completeness. The accounting information system functions to oversee all the company's financial activities and collect and store data on the company's financial activities or transactions.

The family business in new EU countries: the spread and agency conflicts they face

Capital financing is vital for the development of the new EU countries. Investors base their economic and financial decisions on the information available in the financial reports that listed EU companies must prepare following International Financial Reporting Standards (IFRS). Studies show that the majority of listed companies worldwide are family owned and face Type II agency problem - the conflict between minority shareholders and large controlling shareholders (family), i.e. controlling family may seek to extract private benefits at the expense of minority shareholders and disclose information in financial reports for self-interested purposes to avoid minority contests. The research of Type II agency conflict effects on mandatory IFRS disclosure levels in the new EU countries is limited, however, with the reference to existing research literature and legal systems in the new EU countries, we find that minority protection is strongest in Malta, and weakest in Latvia. The biggest number of family controlled firms are in Poland and Romania, whilst family business in Poland, Estonia, Croatia, Cyprus, Romania and Bulgaria enjoy the largest market capitalisation. Nationally, the highest market capitalisation of family controlled firms are in Estonia, Cyprus, Latvia and Poland. This paper shows, that due to moderate minority protection in the new EU countries Type II agency conflict is important, and therefore, it is suggested further the research related to mandatory IFRS disclosure levels.

ІНФОРМАЦІЙНА СИСТЕМА УПРАВЛІНСЬКОГО ОБЛІКУ ЯК СКЛАДОВА СВІТОВОГО БІЗНЕС-ПРОСТОРУ: ДОСВІД СХІДНОЄВРОПЕЙСЬКИХ КРАЇН

The article explores the representation of managers regarding the management accounting information system at enterprises operating in Eastern Europe. The starting point was that accounting practices have the same tendency in most countries. The nature of the discrepancy in the interpretation of data obtained through the operation of this system between the "providers" of this data and the main users is studied. The factors that determine the subjectivity of the attitude to the initial data of the M.A.I.S. are analyzed. Emphasis is placed on analyzing the perception of IMI among Hungarian, Romanian and Ukrainian managers. In order to present the results, the authors applied the elements of the D&M information system success model, the concept of perception influencing the assessment of the MIS, and the findings of similar studies in the EU countries concerned. To achieve the main goal of the study, the collection of necessary data was carried out in the form of an online questionnaire of a target group of workers at Ukrainian companies, which, in turn, operate in various regions, various sectors of the national economy, have different sources of financing and the amount of capital as a whole. In order to cover a sufficient amount of information provided in the work, the authors used the results of a similar study conducted by Romanian scientists in the EU countries represented. The results of the survey revealed a shift in the emphasis of demand for information in financial reports among representatives of management personnel towards traditional financial accounting. The wording of these conclusions is due to a pre-conducted cluster analysis of grouped data regarding M.A.I.S. users by factors that form their particular relationship to this system. An analysis of the perception of selected types of information has made it possible to identify those managers who use traditional, financial information and those who use more qualitative information for management processes. It should be noted that non-financial information is more useful in a dynamic environment or for companies implementing innovative concepts such as Just in Time and Total Quality Management. Keywords: management accounting, information system, management, cluster analysis, Eastern Europe.

KOMPARASI KUALITAS INFORMASI DAN ASIMETRI INFORMASI SEBELUM DAN SESUDAH ADOPSI IFRS DI INDONESIA

This research aims to provide empirical evidence relating to information quality and information asymmetry before and after IFRS adoption. This study uses value relevance as a proxy of financial report information quality and bid ask spread as a proxy of information asymmetry. The sample in this study uses secondary data 372 companies listed in Indonesia Stock Exchange form 2008 to 2016. This study uses Multiple Linear Regression method, Chow Test and Paired-Sample t Test Difference Test. The results showed that after IFRS adoption there was an increase in the quality of financial report information and a decrease in information asymmetry.Keywords: IFRS, Quality of information, Information asymmetry

Strategic Analysis of Internal, External Factor Evaluation Matrix and Strategic Planning in BTPN bank, Indonesia

In this digital era, business competition is becoming increasingly tight and makes every company must improve the quality of their services. One sector that experienced this was the financial and banking industry. The digital age created new opportunities and new competitors in the financial industry, marked by the emergence of Financial Technology (Fintech), digital payment, cryptocurrencies and even digital banking. The quality of banking services in Indonesia is expected to increase significantly, inorder to be able to reach all levels of society and be able to survive in business competition.This study aims to review some of latest efforts to develop conceptual and empirical relationships with business competitionstrategies internally and externally in the bank’s performance. The expected benefit of this research is to add knowledge tobusiness people in developing business strategies to be able to solve problems related to the performance of leaders and strategic teams.This research is quantitative research. The research method used is a quantitative method based on secondary data. Datacollection techniques use documentation study techniques from financial report information and data published by the bankconcerned. Written documents can be in the form of annual reports, articles and journals.The results of the study show the company that developed a strategy and decision-making process based on reliable knowledge of the needs of the community or banking customers, supported by a variety of innovative ideas and creative and risk-taking more likely to make high-quality strategic decisions.The main recommendation given for the object of this research is that BTPN should sell retirement savings products and servicesthrough several digital platforms such as creating application software and collaborating with e-commerce to distribute retirement savings products and services. This is because the online retirement products strategy in this study is the mostimportant for the company.

The link between financial transparency and key financial ratios: a case from Turkey

Purpose- Since globalization movements in the capital markets change the information requirements expected from the financial statements to a great extent today, companies tend to provide more reliable, transparent and quality financial and non-financial information within the framework of corporate transparency. These trends also affect the financial reporting processes especially financial disclosures. The purpose of this study is to evaluate disclosures that are essential to an investor’s understanding and analysis of the economics underlying the information in financial reports. Methodology- It focuses on relationship between financial transparency and key financial ratios. In order to reach this aim financial transparency and disclosure checklist is established and companies are classified according to their transparency levels. Using a sample of publicly traded companies from BIST 100 (excluding finance sector) for the year 2016, Standard & Poor’s (S&P) methodology is applied for assessment of financial transparency and disclosure (T&D) levels based on their annual reports and websites. Findings- The results reveal that transparency level has statistical differences among the group means of some key financial ratios. High quality disclosure also means more accountable and transparent companies for investors . Conclusion- The study also evaluates the relationship between the firm-specific T&D scores and financial performance of BIST 100 firms. This paper sufficiently contributes towards literature on financial disclosures . High quality disclosure has significant influence on investors and lenders who must assess risks and returns and decide where to place their money best, strengthen the efficiency of capital allocation as well as offer the benefit of reducing the costs of capital.

Measuring the Consistency of Quantitative and Qualitative Information in Financial Reports: A Design Science Approach

ABSTRACTThis study uses a design science approach to examine the consistency between quantitative financial ratios and qualitative narrative disclosures in the annual reports. To extract information on the tone of unstructured qualitative textual data, we first use the term frequency/inverse document frequency (TFIDF) text mining technique to classify each company's narrative disclosure as either “Positive” or “Negative.” For the quantitative information, we use the K-means method to cluster each company's financial performance data into “Good” or “Poor” groups. Consistency is said to occur when the textual and numerical data form either a “Positive-Good” pair or a “Negative-Poor” pair. The design model is presented in a stepwise fashion and therefore is transparent for evaluation and validation. Our evaluation process demonstrates the feasibility of the design model. The evaluation was conducted using listed semiconductor companies in countries with different levels of market development. The results show that U.S. firms are less likely to exaggerate in their narrative disclosures and are more likely to understate their performance in MD&As compared to companies in other markets such as China and Taiwan.

USING ACCOUNTING INFORMATION FOR STRATEGIC DECISION-MAKING IN A MULTI-SEGMENTED COMPANY

The reason of being of corporate accounting is not only to record, interpret and present data about existing business processes, but also to provide information for supporting main decision-making activities of management. This article presents basic problems outlining the relationship between accounting and strategic management of companies. The main ideas are connected with the philosophy of presenting information in financial and management reports, on the one hand, and the levels of management activities and their relationship to the development strategy of the organization, on the other hand. The aim is to trace the relationship between the segmental accounting and the strategic management of diversified organizations and to highlight problem areas, deserving management attention. The research methods of analysis and synthesis have been used. The outcomes of the research show that choosing a proper cost structure and allocation basis at operating segment level will contribute to increasing the capabilities of managers to make better corporate strategic decisions.