Statement Comparability Research Articles

Analisis Perlakuan Akuntansi Atas Perolehan Dan Penyusutan Aset Tetap Dan Pengaruhnya Terhadap Laporan Keuangan

In the treatment of its fixed assets, PT Bahagia Jaya Sejahtera still has a mismatch. The discrepancy is in the recording of the acquisition price of the fixed assets, the company still records the fixed assets based on the purchase price only, while the costs associated with the fixed assets are charged as costs in the period of occurrence, which are charged as administrative and general costs. In addition to those expenses intended to condition the fixed assets so that they are always ready to be used, recorded as administrative and general expenses in the current period, for example in the purchase of fixed assets in the form of machines, PT Bahagia Jaya does not add these costs to the acquisition price of fixed assets. And when calculating depreciation of fixed assets, companies tend to use the straight-line method, whereas there are other methods that can be used to support the company's earnings. From the results of this analysis, it will be known the comparison of the acquisition price of fixed assets and cost allocation as well as the amount of depreciation costs between the company and the SAK regulations. The results of this analysis are presented in the form of comparative financial statements to determine the effect on financial statements. In the income statement, administrative and general costs are recorded to be too high, due to costs that should add to the acquisition value of fixed assets but instead are allocated to administrative and general costs.Thus, to present financial statements especially in Asset accounting treatment, it should be understood and implemented a fixed accounting policy in accordance with financial accounting standards.
 
 Keywords: Fixed assets, depreciation, financial statements

Does financial statement comparability mitigate delayed trading volume before earnings announcements?

This paper examines the role of financial statement comparability in shaping trading volume prior to earnings announcements. We find that the degree of delayed trading volume prior to earnings announcements is less pronounced for firms with more comparable financial statements. In addition, the effect of financial statement comparability on pre-announcement trading volume is stronger in more opaque information environments. Our findings are incrementally significant after controlling for a comprehensive set of within-firm earnings attributes and robust to various research design choices including alternative comparability models with differing peer group selection. Collectively, our results show that financial statement comparability serves an integral mechanism facilitating a firm’s pre-existing information environment. In sum, this paper constitutes the first, volume-based evidence which lends support to the usefulness of financial statement comparability in investors’ trading activity.

FAİZSİZ FİNANSAL ARAÇLARDA ÖLÇÜM SORUNLARI

Faizsiz finansal araçların raporlanması açısından karşılaşılan en büyük zorluk farklı muhasebe standartlarında, farklı ifadelerin yer alması ve bunların sonucunda üretilen finansal tabloların karşılaştırılabilirlik, güvenilirlik ve uyum konusunda karşılaştığı zorluklardır. Geleneksel çerçevelere dayalı olarak oluşturulan mevcut standartlar, faizsiz finansal araçları açıklamakta ve ölçmekte yetersiz kalmaktadır. Tüm dünyada uygulanan tek bir İslami finansal raporlama seti olmadığı için faizsiz finansal araçlara, farklı ülkelerde farklı finansal raporlama yaklaşımları uygulandığı görülmektedir. Bu bağlamda çalışmada islami muhasebe standartlarına olan ihtiyaç değerlendirilmiş ve İslami finansal kuruluşların en fazla kullandığı finansal araçlardan Muşaraka, Mudaraba, İcara, Sukuk ve Qard için AAOIFI (İslami Finansal Kurumlar Muhasebe ve Denetimi Organizasyonu), MASB (Malezya Muhasebe Standartları Kurulu) ve IASB (Uluslararası Muhasebe Standartları Kurulu) çerçevesinde uygulanan standartlar, yorumlar ve değerlendirmelere yer verilmiştir. Ayrıca finansal araçların muhasebeleştirilmesinde ve ölçülmesinde İslami finansal kuruluşların uygulamış olduğu yöntemler belirtilmiştir.

International Public Sector Accounting Standards (IPSAS) Adoption and Implementation in Nigerian Public Sector

This study evaluated the relationship between IPSAS adoption and financial reporting quality in South West, Nigeria. Specifically, it analysed the effect of IPSAS adoption on credibility and comparability of financial statements. Additionally; salient factors influencing IPSAS implementation were investigated. Primary data collected from one hundred and eighty accountants in South West Nigeria were analysed using tabulation, graphs, factor analysis, and Goodman and Kruskal’s gamma statistics.The empirical results indicated that IPSAS adoption exerted significant and positive relationships with financial reporting quality, credibility and comparability of financial statements. Decisively, discoveries from this study reflect that implementation cost, staff training, technological factor, IPSAS knowledge and awareness and availability of expertise significantly affect IPSAS implementation. However, findings further revealed that IPSAS implementation is not significantly influenced by institutional commitment, cultural, sociological, legal, political and environmental factors. Based on these findings, the authors recommend that considerable amount of money should be set aside for full adoption and implementation of IPSAS in Nigeria.

Transition to Ind AS and Profit Reporting of the Initial Adopters

Once investment and product market were opened up world-wide, it did not take much time to realise that differences in procedures of financial reporting in different parts of the world stood as a major barrier to readability of financial statements and consequently hampers expansion. As a uniform accounting and reporting framework, the IFRS was introduced with the objective to bring more transparency and for the better understanding of financial statements. However, unlike many other countries, India did not straightway adopt the IFRS, instead the Accounting Standard Board of the ICAI, in consultation with the Ministry of Corporate Affairs, opined for convergence with the IFRS by drafting a complete new set of Indian Accounting Standards, popularly known as Ind AS. The MCA released a phase-wise implementation plan and accordingly, the first phase of adoption took place in the financial year 2016-17. Nearly 350 companies adopted Ind AS for the year and also redrafted their comparative financial statements. Reporting of Profit has been a major concern for corporates because of its stock-market implications. It has been seen that due to the transition to Ind AS, many figures including the Net Worth, the Working Capital, the Reserves have witnessed revisions. Further, the author of this paper in his earlier papers, observed that transition to Ind AS resulted in revaluation as well as reclassification of Balance Sheet items. Existing Literatures provide varied outcomes regarding the effect of IFRS over the financial reporting in different parts of the world. India’s case is unique and calls for evaluation as India is implanting a framework which is neither the old Indian GAAP, nor the IFRS. On other words, since the Ind AS differs from both, depending upon literatures that evaluated IFRS may not be appropriate. In this paper, an attempt has been made to evaluate how the transition to Ind AS affected the profit reporting of the companies that adopted it during the first phase. Both the absolute profit figures and the relative return ratios have been taken into consideration. It is observed that unlike Balance Sheet items, the Reported Profit did not significantly change due to the transition. This is because the revenue items did not witness much of revaluation as a result of adoption of Ind AS. However, since Ind AS hit the Balance Sheets with reclassification of equity and liabilities, it affected the ROE ratios. This paper concludes that unlike Balance Sheet items, Reported Profit does not vary to a great extent due to the transition to Ind AS.

고객기업의 재무제표 비교가능성은 감사보수에 반영되는가?

본 연구는 고객기업의 재무제표 비교가능성이 감사계약 체결 시 감사보수 결정에 영향을 미치는지 조사한다. 감사인은 감사계약을 수임할 때 명백한 회계기준 위반이나 감사범위의 제한 등과 같이 감사의견에 변형을 가져오는 위험이 아닐지라도 고객기업의 재무적 취약성, 파산가능성, 경영진과의 마찰이나 외부투자자의 재무제표 의존도 등에 따라 부담을 느낄 수 있다. 이러한 감사수임위험(Engagement risk)은 직접적으로 재무제표 감사 실패와 연결되지는 않더라도, 향후 감사인이 잠재적 소송 등에 노출될 가능성이 상대적으로 높은 고객기업에 대해 가지는 위험을 의미한다. 본 연구는 관련 선행연구를 바탕으로 재무제표의 비교가능성이 이러한 감사수임위험과 결부되어 감사보수에 체계적 영향을 미칠 것으로 예측한다. 우선, 재무제표의 높은 비교가능성은 투자자의 회계정보 획득비용을 줄이므로 비교가능성이 충분히 확보되는 기업이라면 투자자가 감사인의 의견에만 의존할 가능성이 현저히 낮을 것이다. 또한 타 기업과의 재무제표 비교가능성이 높은 기업은 주가가 일시에 폭락하는 경향이 사전에 예방되는 경향이 있으므로, 만약 감사인이 이러한 기업을 감사한다면 피소가능성, 감사실패가능성이 상대적으로 낮아져 감사위험 수준이 낮을 것으로 예상된다. 바꿔 말하면 재무제표 비교가능성이 낮은 기업에 대해서는 감사인이 평가하는 위험이 상대적으로 높을 것이며, 이는 감사보수 결정에 반영될 것이다.<BR>이러한 예측에 근거하여 본 연구에서 조사하여 발견한 결과는 다음과 같다. 우선, 재무제표 비교가능성이 낮을수록 해당기업의 감사보수는 높아지는 경향이 있었다. 경제적 효과 측면에서 비교가능성이 1표준편차 감소할 때 감사보수는 5.8~6.7% 증가하였다. 이는 감사보수 결정과정에서 고객기업의 재무제표 비교가능성이 유의한 영향을 미치는 것을 의미한다. 특히, 고객기업의 규모, 복잡성, 손실여부 등 여러 고유 특성들을 통제한 이후에도 재무제표 비교가능성은 감사보수의 결정요인으로 작용하였다. 또한 감사보수를 감사시간과 시간당보수로 구분하여 각각 비교가능성과 조사한 결과, 낮은 비교가능성은 감사시간과 시간당보수를 모두 높이는 것으로 나타났다.<BR>다음으로, 상대적으로 긴 계속감사기간과 Big 4 감사인과의 계약 여부는 낮은 재무제표 비교가능성과 감사보수 간 양의 관계를 증분적으로 완화하는 효과가 있었다. 이는 고객기업에 대한 핵심 감사정보가 상대적으로 적은 감사인들은 낮은 재무제표 비교가능성을 감사위험으로 인지하여 높은 감사보수를 수임하는 반면, 오랜 감사기간 동안 고객기업에 대한 지식을 축적하거나 인적 · 물적 자원을 충분히 확보 가능한 고품질 감사인은 낮은 재무제표 비교가능성으로 인한 감사위험을 흡수하고 있음을 의미한다. 또한 이 결과는 이들 감사인이 상대적으로 비교가능성이 높은 재무제표가 보고되도록 유도하는 결과일 가능성도 있다. 추가분석으로, 내생성 완화를 위해 성향점수로 매칭된 표본을 이용한 결과와 비교가능성의 다른 대용치를 이용한 결과 등에서도 모두 질적으로 유사한 결과를 발견하였다.

가치평가오류, 투자자별 거래행태, 회계정보의 비교가능성

가치평가오류, 투자자별 거래행태, 회계정보의 비교가능성

The Importance of The Improvement And Convergence of Ias/Ifrs to the National Accounting System of Uzbekistan

The relevance of research: • Economic integration • Comparability and uniformity of financial statements • Attraction of prospective overseas investors. •The requirements of global financial markets and stock exchanges. • Reduced costs of studying local standards. Research Objectives: • Work to improve our accounting systems to accelerate the development of our country with the help of capital of foreign investors. • Development of our domestic accounting principles based on transnational financial reporting principles and identification of problems associated with this.

Does Financial Statement Comparability Facilitate SEC Oversight?

This study examines the impact of cross-firm financial statement comparability on regulatory oversight of accounting quality. Consistent with the notion that comparable accounting systems enhance regulators’ ability to identify accounting deviations from financial reporting, we find that the likelihood that the SEC issues a comment letter on 10-K filings that have poor accounting quality increases with financial statement comparability. Further analysis reveals that the regulatory benefits from financial statement comparability are more salient when the SEC faces higher monitoring constraints in filing reviews. Overall, we provide novel evidence suggesting that higher financial statement comparability improves the efficacy of the SEC’s oversight of accounting quality by reducing the information costs associated with cross-firm comparisons.

Common Ownership, Common Information Environment?

We examine the influence of common ownership on commonalities in the information environment. Specifically, we study commonalities in financial statements and in the actions of key agents such as financial analysts and firm managers who contribute and respond to the information environment. Using a differences-in-differences research design centered on the mergers of financial institutions, we find that an increase in common ownership leads to increased comparability of financial statements issued by commonly owned firms. An increase in common ownership also leads to higher likelihood of filing restatements, as greater comparability and potentially greater correlation of economic fundamentals uncover inconsistencies, errors and irregularities in reporting, particularly in the presence of shared auditors. In addition, common ownership leads to more shared coverage by financial analysts. Analysts’ earnings expectations become more correlated across peer firms, but analysts are also more likely to revise their expectations when peer firms issue earnings guidance. Finally, we shed light on the real consequences of such changes in the information environment. Managers become more likely to use the information captured in peer firms’ stock price when making investment decisions following an increase in common ownership.

이익 창출 능력과 재무제표 비교가능성 : DuPont 분석의 이용

이익 창출 능력과 재무제표 비교가능성 : DuPont 분석의 이용

О СИНТАКСИЧЕСКИХ ЕДИНИЦАХ И СИНТАКСИЧЕСКИХ МИФАХ (ЧАСТЬ 2)

Статья посвящена русской грамматической традиции в установлении единиц синтаксиса, рассматриваемой с позиций понимания науки как системы операций с утверждениями. Анализируются два компонента формирования этой традиции: собственные утверждения ученых касательно единиц и объектов синтаксиса и интерпретация утверждений предшественников, которая может находиться на разном расстоянии от оригинальной научной парадигмы, в которой эти утверждения изначально были сделаны. Выявляется ряд неточностей в оперировании утверждениями, сделанными классиками отечественной лингвистики А. А. Шахматовым и В. В. Виноградовым, у их последователей Abstract Within the modern methodological framework of regarding science as operations with statements (B. Latour, S. Woolgar) the article aims at answering the question: which approaches to syntactic units could really be labelled as the Russian grammar tradition Two aspects constituting this tradition are discussed: independent statements made by outstanding scientists (original texts) and their later interpretations (posttexts) which may be rather distant from the original paradigm these statements were made in. Comparing the original texts and later posttexts, we discover and try to systematize the misrepresentations and misinterpretations which are further spread among new generations of linguists via internet. Thus, comparison of statements on syntactic units made by the fathers of Russian linguistics A. A. Shakhamatov and V. V. Vinogradov and their re ection in the works of their successors reveals a number of inaccuracies which themselves form a tradition. The fact that substantial misinterpretations of the fathers syntactic views can be found even in classical university textbooks is illustrated by introducing M. V. Lomonosov and A. A. Shakhamatov in V. A. Beloshapkovas wellknown Russian syntax for universities as the founders of the allegedly traditional idea that two syntactic units should be distinguished: sentence (predlozhenie) and word combination (slovosochetanie). Also we demonstrate the following types of misrepresentations and misinterpretations: 1) the tendency of integrating Shakhamatovs and Vinogradovs views on syntactic units into the structuralistic levelbased approach to language 2) the distortion of causal relations in textbook explanations why this or that scholar formulated his or her idea of syntactic units and 3) the excessively broad or narrow approach to the idea of succession which can be selected by authors of posttexts to defend their own position in Russian grammar tradition and to cross scienti c opponents out of it. Recognizing that some of these inaccuracies arise from the original texts themselves (changes in the scholars views during his life ambiguous statements combination of terminological and nonterminological usage of the same word), we argue that a lot of them still stem from a conscious or unconscious wish of an author of a textbook or other posttext to present an integrated view of the Russian grammar tradition rather than investigate the real history of operations with statements on syntactic units in it.

Auditor Style and Common Disclosure Deficiencies: Evidence from SEC Comment Letters

Policies and procedures that centralize decision-making within an audit firm create auditor style effects. Prior research suggests this style increases financial statement comparability, implicitly making financial statements more useful. However, a potential hazard of auditor style is the propagation of decision errors. We examine the association between auditor style and common disclosure deficiencies among audit clients. We measure auditor style as the presence of a common auditor and use disclosure issues identified through the SEC’s filing review process to measure the occurrence of common disclosure deficiencies. We find that auditor style is associated with common disclosure deficiencies among Big 4 clientele. We also find that clients with the same auditor converge in deficiencies as tenure increases and some evidence that clients assume the deficiencies of a subsequent auditor. These results provide the first evidence that auditor style has potential costs in the form of common disclosure deficiencies.

Product market competition and efficiency of corporate tax management

PurposeThe purpose of this paper is to test the economic theory that product market competition should enhance firm performance in the US corporate tax management setting. It identifies one mechanism through which corporate management can improve firm performance. The paper also identifies business conditions that may facility or impede effective corporate tax management.Design/methodology/approachThe paper tests the relationship between product market competition and corporate tax efficiency using large archival data. The primary data source is COMPUSTAT, which contains annual and quarterly accounting data for US public firms. Other data sources include accounting comparability data generously shared by Professor Vedi.FindingsThe paper finds that firms in competitive industries are more efficient in managing taxes. Specifically, the paper documents that firms in competitive industries exhibit lower effective tax rates than their non-competitive counterparts. Furthermore, the paper finds that the positive link between competition and the efficiency of tax management is much stronger for firms with lower cash flow volatility and for firms with fewer industry investment opportunities. The lack of financial statement comparability may weaken this link.Research limitations/implicationsTax laws vary greatly from country to country. Readers should interpret the results within the US tax environments.Practical implicationsResults in this paper have implications for multinational corporations that are interested in investing and doing business in the USA.Originality/valueThis paper sheds light on how competition influences firm performance through efficient tax management, a specific mechanism through which competition improves firm performance. To the best of the author’s knowledge, this study provides the first documentation of how product market competition affects tax planning for US publicly traded companies.

Relative Effects of IFRS Adoption and IFRS Convergence on Financial Statement Comparability

ABSTRACTOne of the primary objectives of both adoption of IFRS and convergence between IFRS and U.S. GAAP is to increase financial statement comparability. Using a unique setting in Germany, we compare the effectiveness of these two approaches in achieving this desired outcome. Our empirical tests show that both adoption and convergence lead to an increase in comparability after the new enforcement regulation in 2005. However, difference‐in‐differences tests show that adoption does not lead to a significant incremental increase in comparability beyond convergence. The findings of this study should be of interest to regulators and standard setters as they assess alternative methods of aligning domestic standards with IFRS.

Korzyści wynikające z zastosowania XBRL na potrzeby raportowania na rynkach kapitałowych w świetle stanowisk nadzorców rynków oraz badań naukowych

Celem artykułu jest identyfikacja najważniejszych korzyści związanych z zastosowaniem XBRL na potrzeby raportowania na rynkach kapitałowych, wymienianych i analizowanych przez nadzorców tych rynków, a także weryfikowanych w empirycznych badaniach naukowych. Analizy i badania wskazują, że zastosowanie standardu XBRL jako narzędzia wspomagającego raportowanie finansowe może prowadzić do usprawnienia przepływu informacji, zwiększenia: jakości i ilości danych dostępnych dla odbiorców, porównywalności sprawozdań finansowych, a także zdolności przetwarzania i analizowania danych przez ich użytkowników. Standard może mieć duży wpływ na funkcjonowanie rynku kapitałowego, prowadząc między innymi do zmniejszenia asymetrii informacyjnej między uczestnikami rynku, redukcji kosztów kapitału własnego, zwiększenia płynności rynku. Korzyści z zastosowania XBRL mogą być odnotowywane przez wszystkich uczestników rynków kapitałowych–przedsiębiorstwa finansujące swoją działalność za pośrednictwem tych rynków, regulatorów rynków, inwestorów i analityków.

Financial Statement Comparability and New Debt Issues

Using a large sample of firms issuing new debts, this paper investigates how a firm’s financial statements comparability affects its cost of new debt issues. We predict and find that higher comparability is associated with (1) higher bond ratings and (2) lower bond yield spreads when companies issue new debts. Our results are consistent with the view that bond rating analysts and bond investor favor greater comparability when they evaluate new bonds and make investment decisions.

Using Abnormal Analyst Coverage to Unlock New Evidence on Stock Price Crash Risk

We employ a characteristic-based model to decompose total analyst coverage into abnormal and expected components and show that abnormal coverage contains valuable information about individual firm ex-ante crash risk (proxied by implied volatility smirk from options data). Specifically, one standard deviation increase in unexpected or abnormal coverage is associated with a 5.5% decrease in the ex-ante crash risk. The abnormal coverage signal is more useful in firms with a more transparent information environment, proxied by lower analyst dispersed opinions, lower financial opacity, and more comparable financial statements. Collectively, the results suggest that options market investors utilise abnormal coverage to identify and assess crash risk of mispriced firms.

Auditor Style Dan Komparabilitas Laporan Keuangan

Auditor style defined as a unique set of internal working rules for the interpretation and enforcement of accounting standard within the auditor’s clienteles belongs to particular audit firm, especially Big 4 audit firms. As a consequence, financial statements of two companies audited by the same Big 4 auditor, subjected to the same audit style, tend to have comparable earnings which have a more similar accrual, than two companies audited by two different Big 4 auditors with different styles. This research attempts to examine the effect of this auditor style issue on manufacturing financial statement comparability listed in Indonesian Stock Exchange. For five years’ observations, through 2012-2016 this research demonstrated a result with auditor style affects the comparability of reported earnings within a Big 4 auditor’s clientele and found no effect of auditor style on financial statement comparability within a non-Big 4 auditor’s clientele

Toward Sustainable Accounting Information: Evidence from IFRS Adoption in Korea

The harmonization of accounting standards has been an international trend in the past two decades. As of 2018, 144 of 166 profiled jurisdictions require the use of International Financial Reporting Standards (IFRS). Nevertheless, there is mixed evidence on the effect of IFRS on sustainable accounting information. This study examines whether IFRS adoption improves earnings sustainability, focusing on emerging markets. Specifically, it tests the effect of IFRS on earnings quality by comparing earnings management and financial statement comparability of Korean listed firms for the pre- and post-IFRS periods. The results show that firms report less managed earnings in the post-IFRS period than in the pre-IFRS period. Furthermore, the results suggest the enhancement of financial statement comparability in the post-IFRS period compared to the pre-IFRS period. In particular, this paper documents that the effect of IFRS on sustainable accounting information is more pronounced in competitive industries. Moreover, it shows that small firms benefit more from adopting IFRS. Overall, this study finds that IFRS adoption in Korea improves the overall sustainability of accounting information.