General Purpose Financial Statements Research Articles

Міжнародний досвід надання державної допомоги підприємствам в особливих умовах

Introduction. The coronavirus pandemic has led to disruptions in supply chains at both the global and national levels. State support for economic agents plays an important role in maintaining economic activity of business entities. The purpose is to identify best practices in the field of state aid through the study of international experience in implementing state support programs for enterprises in special conditions (the case of EU). Research methods: basic methods of policy analysis (institutional analysis, descriptive analysis); synthesis and generalization of the data obtained; graphical method (to ensure the clarity of the data). Results and conclusions. The institutional mechanism for supervision and control over the expediency of state aid at the EU level is represented by a standard document, which is supplemented by specific aspects in accordance with the funding program. An important feature of the mechanism for allocating state aid in the EU is the creation of prerequisites for proper oversight of the expediency of using funds, transparency of decisions and accountability of applicants. Information support for disclosure of data by enterprises applying for participation in state aid programs is based on the disclosure of reliable information on the current state of financial and economic activity and development prospects. This has created a strong reporting infrastructure for companies, which includes general purpose financial statements, a management report, and a sustainability report as part of it (or as a separate document). The introduction of corporate sustainability reporting in Ukraine as a source of assessing the admissibility of state aid through the implementation of EU directives is a promising area for further research.

Approaches to climate-related risk disclosure in the draft international climate-related disclosure standard

Subject. This article discusses the Exposure Draft IFRS S2 Climate-related Disclosure Standard. Objectives. The article aims to address the content of the proposals set forth in the Exposure Draft that is one of the first documents published by the International Sustainability Standards Board in the structure of the IFRS Foundation for comment. Methods. For the study, I used analysis, synthesis, comparison, and generalization. Results. Based on a study of the structure of the Exposure Draft IFRS S2 Standard, the article notes that the main focus is on disclosing information about the impact of significant climate-related risks and opportunities on the value of the enterprise, which is useful to users of general-purpose financial statements. Conclusions and Relevance. The approaches to disclosing climate-related risks and opportunities proposed in the Exposure Draft IFRS S2 Standard can help improve the quality of decision-making by key users of general-purpose financial statements. They can be used by Russian organizations to disclose information on climate-related risks and opportunities.

NCP 1. Structure and Content of Financial Statements an Approach

The objective of this standard is to establish the basis for the presentation of financial statements. General purpose financial statements are those intended to meet the needs of users who are not in a position to demand reports prepared to meet their particular information needs. This Standard applies to bodies in the Portuguese Public Administration. This work seeks to highlight the most relevant aspects.

Pengaruh Kompetensi, Perilaku Organisasi Dan Komitmen Terhadap Kualitas Laporan Keuangan Direktorat Reserse Narkoba Polda Sumsel

General purpose financial statements to meet the information needs of all user groups. As such, government financial reports are not designed to meet the specific needs of each user group. However, since the government's financial statements act as a form of accountability in the management of state finances, the report components presented at least include the types of reports and information elements required by statutory provisions (staturory reports). Research Objectives To find out the results of the analysis of the influence of Competence on the quality of financial statements in the Directorate of Drug Investigation of the South Sumatra Police, To find out the results of the analysis of the influence of Organizational Behavior on the quality of financial statements in the Directorate of Drug Investigation of the South Sumatra Police and Also To find out the results of the analysis of the effect of commitment to the quality of financial statements at the Directorate South Sumatra Police Narcotics Detective. The type of data in this study are primary data and secondary data. Primary data is data obtained from first sources, both individuals or individuals, such as interviews or questionnaire results. In this study primary data were taken using a direct questionnaire on primary data sources, namely the National Police and the South Sumatra Police Narcotics Investigation Directorate. While secondary data is data obtained indirectly from the source or is primary data that has been further processed and presented either by the primary data collection party or by other parties in the form of tables and diagrams for further processing. Results and Discussion. The results of statistical calculations are presented in descriptive form to describe the data description by using inferential analysis to find out the relationship and influence between the research variables. In conclusion, Competence has a partial effect on the quality of the financial statements of the Directorate of Drug Investigation of the South Sumatra Regional Police. Organizational behavior does not have a partial effect on the quality of the financial statements of the Directorate of Narcotics Police Investigation in South Sumatra. Competency, Organizational Behavior and Commitment simultaneously influence the Financial Report Quality of the South Sumatra Police Narcotics Investigation Directorate

Incremental Usefulness of the Parent-only Balance Sheet to Debt Holders: Evidence from Banks

Debt contracts are signed by specific legal entities. However, general-purpose financial statements prepared under U.S. GAAP and Canadian GAAP are for a consolidated reporting entity—a collection of legal entities that include the parent and any subsidiaries it controls. This reporting model results in a loss of crucial information about the individual legal entities within the consolidated reporting entity. Our study uses bank holding companies, which report both consolidated and parent-only financial statements under bank regulations, to examine whether the parent-only balance sheet provides useful information for pricing the parent’s default risk beyond the consolidated balance sheet. We find robust evidence that after controlling for the consolidated leverage ratio, the parent-only leverage ratio is positively associated with the price of protection against the parent’s default risk. The incremental usefulness of parent-only leverage is more pronounced when the parent does not guarantee the subsidiaries’ debt and when the internal capital market within the consolidated reporting entity is weak. Our findings suggest that supplementing consolidated financial statements with parent-only financial statements may better serve debt holders’ information needs.

Financial Reporting by Charities: Why Do Some Choose to Report Under a More Extensive Reporting Framework?

While voluntary disclosure theory posits that profit‐oriented companies voluntarily disclose information to increase their market value, this does not explain why a charity would report in accordance with a more comprehensive financial reporting framework than required. Using a unique financial reporting framework choice available in Australia, our study examines factors associated with large charities’ choice of a General Purpose Financial Statements (GPFS) reporting framework, which encompasses expansive financial reporting requirements, versus a Special Purpose Financial Statements (SPFS) reporting framework, where management, within limits, effectively chooses that subset of accounting standards applicable to that charity. For those preparing GPFS, we then examine the factors that determine those charities that report in accordance with the complete set of Australian Accounting Standards (Tier 1) versus Reduced Disclosure Requirements (Tier 2). Using manually collected data from 11,471 large‐registered charities for 2014–2016, we find that the economic importance of the charity, its funding sources, and level of indebtedness are significant in explaining charities choosing a more comprehensive financial reporting framework. Further, we find a substantial increase in the proportion of large charities electing to disclose GPFS‐Tier 2 over this three‐year window. The choice of a large audit firm (Big 4 and mid‐tier audit firms) is significantly associated with charities both lodging more comprehensive GPFS, and also reporting GPFS in accordance with the less onerous GPFS‐Tier 2 framework. Our results provide insights into voluntary reporting choices made by charities and inform charities, accounting firms, and regulators of factors influencing charities’ choice of financial reporting frameworks.

Pendampingan Penyusunan Laporan Keuangan Pada KPRI Karya Praja Bakorwil I Madiun

Entity Financial Accounting Standards Without Public Accountability (SAK ETAP) that are used for entities without public accountability. SAK ETAP is an entity that does not have significant public accountability and publishes general purpose financial statements for external users such as owners who are not directly involved in business management, creditors, and credit rating agencies. For this reason, KPRI Karya Praja needs to understand and compile financial reports according to these regulations. The purpose of this community service is to assist the KPRI Karya Praja management in preparing financial reports in accordance with SAK ETAP and the Cooperative Law, namely by providing assistance. The benefit of this assistance is that the KPRI Karya Praja management is expected to understand the presentation and preparation of the correct financial statements in accordance with SAK ETAP and the Cooperative Act. The method used by the socialization of SAK ETAP and the Cooperative Act was continued with assistance in preparing financial statements. The results of this activity provide knowledge and understanding to the administrative, bookkeeping and treasurer sections on the basics of bookkeeping, code adjustments and account classification based on Financial Accounting Standards ETAP and Cooperative Law and provide assistance in the preparation of correct financial statements in accordance with ETAP Financial Statements and Laws. - About Cooperatives. Keywords—: Assistance; Preparation of Financial Statements.

A Review on Corporate Environmental Reporting (CER): An Emerging Issue in the Corporate World

Corporate environmental reporting has been treated as a vital issue in today’s corporate world. The current scenario and prospect give an indication that it is going to capture a long-lasting position in the bundle of general-purpose financial statements. The main reason is that the stakeholders prove a sharp interest in such disclosures. To sustain in today’s corporate world, every organization has to come forward to protect the environment and it is treated as one of the vital social responsibilities. It is assumed that corporations are the main force to create an environmental crisis so as to pay for this (cost-benefit trade-off). But we know reporting is guided by some standards guidelines and measurements and for this, we do not have any standards designed for such disclosure. Hence, such reporting is still considered voluntary and has no specific format and design. As it is voluntary disclosure, it often leads to some non-disclosure and mandatory disclosures which in turn leads to minimal disclosures. As it is a question of life and sustainability, environmental disclosure should have considered both types of disclosures; hence, this paper will try to evaluate the conceptual discussion on environmental reporting.

The Effect of Adoption of International Public Sector Accounting Standards on General Purpose Financial Statements in the Public Sector : A Case Study of Local Governments / Local Council Development Areas in Lagos State

The Effect of Adoption of International Public Sector Accounting Standards on General Purpose Financial Statements in the Public Sector : A Case Study of Local Governments / Local Council Development Areas in Lagos State

Information and Strategic Aspects of Financial Statements in the Assessment of their Users

Abstract Research background: General purpose financial statements constitute a source of financial information used by different groups of stakeholders. However, the frequency of changes concerning the form and content of reports insinuates uncertainty in relation to the credibility and thorough understanding of included information. Purpose: The aim of the article is to verify the suitability and utilisation of financial statements in decision-making processes and evaluation of their reliability as assessed by unit managers and tax advisors. Research methodology: In the first half of 2018 a survey was conducted among 60 tax advisors concerned with legal and tax services of economic entities and an identical survey was conducted among 60 managers of entities recognised as big economic entities functioning in the area of Kuyavian-Pomeranian and Pomeranian Voivodships. Results: The surveys conducted in selected groups of stakeholders make it possible to indicate the areas in which the presented contents are not fully used and do not provide any basis for them to be recognised as compatible with the rules of ethics. Novelty: For the first time, questionnaires were conducted in various groups of users of financial statements, they determined the level of their interest in particular elements of the report and the principles of accounting ethics.

Exemptions Resulting from the International Public Sector Accounting Standards (IPSAS) and European Standards for Intangible Investment, Inventories and Personnel Expenditures in Public Entities

Abstract Simultaneously with the globalization of economies, it was necessary the adoption and implementation of international accounting standards for the public sector also. In 1996 a set of accounting standards for public sector entities was developed, namely International Public Sector Accounting Standards (IPSAS). After 31st July 1998, 32 IPSAS standards, mostly inspired by IASs, centered on model and engagement-based accounting, were issued. IPSAS 1 – Presentation of financial statements relating to the place of intangible assets, inventories and personnel expenses in the content and format of the financial statements is applied to all general purpose financial statements realized under accrual accounting. The IPSAS 12 – Inventory objective is to state the stock accounting treatment. The IPSAS 25 objective – Employee benefits is to state the employee benefits from an accounting perspective.

Income Statement vs. Comprehensive Income Statement

The objective of general purpose financial statements is to provide information about the financial position, financial performance, and cash flows of a company that is useful to a wide range of users in making economic decisions. In June 1997, the FASB issued FAS130 on how to report comprehensive income, so second type of income statement is came up. Under the traditional income concept-income statement, extraordinary and nonrecurring gains and losses are excluded from income. Under the all-inclusive income concept- comprehensive income statement, all revenues, expenses, gains, and losses recognized during the period are included in income, regardless of whether they are considered to be operations of the period. International Accounting Standards Board (IASB) also introduced this issue in 2009. According to the standard a business entity using IFRS must also include a statement of comprehensive income. The aim of this study is to discuss the necessity and need for presentation of two performance statements- income comprehensive income- especially from the perspective from investors while these items are stated in equity section of the balance sheets. Effects of this dual reporting of income statements which leads confusion are also discussed by examining cases from different countries and survey is conducted to BIST (Borsa Istanbul) 30 companies from Turkey. Keywords: Income statement, comprehensive income statement, net income, dual reporting case, Turkey Jel Code: M 41 DOI : 10.7176/EJBM/11-35-05 Publication date: December 31 st 2019

Disclosure Overload? A Professional User Perspective on the Usefulness of General Purpose Financial Statements

ABSTRACTWe survey a broad group of professionals who use financial statements as part of their job to assess the extent to which they believe financial reports suffer from disclosure overload. Consistent with the claims made by regulators, auditors, and preparers, we find that a significant portion of professional financial statement users believe disclosure overload is a problem. However, this group is in the minority, with about twice as many professional users believing that overload is not a problem and that more information should be disclosed in financial statements. This dichotomy presents a difficult challenge to standard setters aiming to improve financial reporting by altering the amount of information provided in financial reports. To that end, we complement existing research on the informativeness of accounting information by measuring perceptions of the usefulness of the various financial statements and their footnotes across a variety of tasks. Finally, we develop a framework that could be useful in developing a theory of disclosure overload.

Exploring the underlying factors affecting capital structure decision: A quantitative analysis

AbstractObjectiveThis study deploys an earnest effort to understand the factors that affect the managers involved in managing the portfolio of funding in companies. Capital structure decision is one of the crucial decisions that finance managers have to make. This study tries to identify a host of factors controlling the attitude of finance managers in choosing different sources of financing, as reflected in financials of respected companies.Design/methodology/approachBased on the data available in different secondary sources (such as the financial statements published by the sampled companies), an exploratory form of research is applied here. The samples for the study are selected from companies which are listed in Dhaka Stock Exchange (DSE) under pharmaceutical, textile, and banking sectors. Different descriptive and inferential statistical tools are used to present the data and test relevant hypotheses by using statistical package for the social sciences.FindingsBased on the literature review, the study has identified a couple of factors affecting capital structure decision. These factors are replicated in selected Bangladeshi firms to understand their implications. Although the study fails to report any determinants having strong relationship which is statistically significant, the model passes goodness‐of‐fit test and residual analysis, which shows the presence of normality.Research limitations/implicationsThe findings of the study could not be generalized due to some inherent limitations of the research. The study only covers selective companies from three sectors, leaving others from the preview of analysis, which limits the scope of the study. However, the findings of the research could be helpful for individual firms to find their status in the recent trend of practicing capital structure decision; thereby they can adopt or revise their policy in this regard. Another major limitation of the study is that, it applies a quantitative form of analysis based on the data published in general purpose financial statements. It would be more beneficial if quantitative findings could be validated through qualitative analysis in order to bring data triangulation which is left for further study. Extending the analysis to cover all the firms listed in DSE can give a better outlook on capital structure issues in Bangladesh.Originality/valueThis study has been conducted for the first time in Bangladesh, identifying determinants from different theories which may help the future researchers to extend the analysis. Thus, the study adds significant value to the current body of knowledge.

Large Charities' Financial Reporting Framework Choice in Australia

Our study informs the current debate around financial reporting framework choice by examining factors associated with whether large charities produce General Purpose Financial Statements (GPFS) or Special Purpose Financial Statements (SPFS). For those producing GPFS, we further examine whether these charities report in accordance with the complete set of Australian Accounting Standards (Tier 1) or Reduced Disclosure Requirements (Tier 2), as per AASB 1053. Using manually-collected data from 7,637 large-registered charities, we find that while revenue concentration, total revenue, donation income, deductible gift recipient endorsement and total liabilities are significant in explaining charities producing GPFS, around 88 percent of the variation could not be explained by a model containing eight measures of the three indicative factors from the Statement of Accounting Concepts (SAC) 1. Further, we find significant variation across different industry sectors and types of audit providers in factors explaining charities’ decisions to produce GPFS versus SPFS. For those that lodge GPFS, we find that the model has very little explanatory power for choice of GFPS Tier 1 versus Tier 2. For the comparison of SPFS versus GPFS-Tier 2, charities are more likely to be audited by a Big 4 or a mid-tier audit firm, and have a greater spread of ownership, a higher economic importance, and a higher level of indebtedness. Our results inform charities and accounting firms in factors influencing their choice of financial reporting frameworks, and the AASB and the ACNC in their current review of reporting frameworks.

INDICATORS OF FRAUD IN FINANCIAL REPORTING IN THE REPUBLIC OF SERBIA

Companies can use various manipulative techniques when preparing general-purpose financial statements in order to present better financial position and better performance. Fraudulent financial statements can lead their users to wrong decisions and, consequently, cause big losses and distort confidence in the financial reporting system. Therefore, it is important to timely discover and prevent financial reporting frauds. Timely detection of fraud is one of the key tasks of forensic accountants, who should pay attention to fraud indicators, i.e. warning signs of fraud. Warning signs are not evidence of fraud but point to the need for a more detailed investigation. The aim of the research in this paper is to examine whether there are warning signs and to understand the degree of fraud risk in financial reporting by analyzing financial statements of companies in the Republic of Serbia. The research is conducted on a sample of 42 companies. By applying the Beneish model, we find that the general fraud risk is not insignificant. Borrowing activities of companies are identified as a significant source of this risk, while forensic accountants should pay special attention to income recognition and accrual items, i.e., items related to recognition of income and expenses before or after cash inflows or outflows, including depreciation. Higher risk of fraud is identified in manufacturing companies and financial institutions than in trade and service companies. The research results indicate the need to strengthen the mechanisms of financial reporting control in the Republic of Serbia.

До питання термінологічного трактування дефініції «фінансова звітність»

The unified terminology allows to eliminate the ambiguity of the interpretation of the same concepts, facilitates the use of definitions in the learning process, helps to simplify the relationship between different participants and partners of economic activities. The purpose of the article is to deepen the content of the term based on the analysis and systematization of the definitions proposed by various researchers and national regulatory documents and IFRS. Interpretations of the reporting, which are contained in the legislative and regulatory documents of Ukraine were analyzed. The main differences in the interpretation of financial reporting by national and international accounting standards were identified. It was determined that in the legislative and regulatory documents of Ukraine the interpretation of financial reporting is based on the composition of reporting forms. The interpretation according to international standards is based on the purpose of preparing financial and its purpose. The approaches of domestic and foreign scientists to the interpretation of the concept of were systematized. The limited presentation of financial reporting by representatives of the first approach was proved, according to which financial reporting is a set of forms or a set of generalized indicators, because this approach does not disclose reporting as an element of the accounting method. Attention is drawn to the inexpediency of interpreting a term based on the role and importance of financial reporting because the reporting is a multifaceted concept. Based on the results of the study it was proved, that the Financial and General-purpose financial statements are not identical concepts. The arguments presented in the article indicate the need for further standardization of accounting in terms of the application of a unified terminological apparatus.

EVALUASI PENERAPAN LAPORAN ARUS KAS BERDASARKAN STANDAR AKUNTANSI KEUANGAN ENTITAS TANPA AKUNTABILITAS PUBLIK (SAK ETAP) PADA PERUSAHAAN PT. AIR MANADO

The cash flow report presents information on historical changes in cash and cash equivalents of the entity, which shows separately the changes that occur during one period of operating, investing and funding activities. The main purpose of the cash flow statement is the financial position report provides information on net cash inflows in a period, the results of the three main activities of the company are operations, investments and funding. SAK ETAP provides many facilities for companies compared to PSAK with more complex reporting provisions. In accordance with the scope of SAK ETAP, this standard is intended to be used by entities without public accountability (entities that do not have significant public accountability; and do not publish general-purpose financial statements). The presence of Entity Accounting Standards without Public Accountability (SAK ETAP) is expected to provide convenience for PT. Air Manado in presenting financial statements. The purpose of SAK ETAP itself is to provide facilities for small and medium scale entities. In accordance with SAK-ETAP, Entities without intended public accountability are entities that do not have significant public accountability and publish general-purpose financial reports for external users. This study uses a type of descriptive research - comparative. The results showed that PT. Air Manado has implemented financial statements in accordance with applicable standards but there are still items or elements in the cash flow statement that have not fully implemented the Entity Financial Accounting Standards without Public Accountability (SAK ETAP) in the cash flow statement. Keyword : SAK ETAP, Cash Flow Report,Financial Accounting,PT. Air Manado,Public Accountability

The lack of impact of fair value accounting: a commentary on ‘“fair value” accounting as the normative Fisherian phase of accounting’

ABSTRACTThis commentary argues that the question of fair value measurement is a non-issue from the standpoint of accounting standards setting, as well as for issuers and users of financial statements. In our view, fair value measurements only apply to a small number of accounts and to a small number of companies. In fact, over the past century we observe little interest on the part of companies, professional accountants and standards setters in applying fair value accounting measurements to general purpose financial statements over the last century. While Cardao-Pito and Ferreira make a good case that similarities exist between the work of Irving Fisher and accounting pronouncements pertaining to fair value, I contend that this is a coincidence.

La comunicación de la información contable: de un leguaje técnico a un lenguaje tecnológico

Accounting is known as the language of business and, therefore, communicates information through general purpose financial statements. As a consequence of the technological advances, the eXtensible Business Reporting Language (XBRL) arises, which allows users to consult the information and build it according to their needs. The objective of the investigation is to determine the consequences of the communication of the financial information of the companies, using the XBRL. Among the conclusions highlights that, although for the moment most of the companies do not have the necessary technological capacity, the XBRL has been erected as an alternative means to communicate information, facilitating the transmission of this in a clear and transparent way.