Importance Of Financial Statements Research Articles

The Importance of Financial Statements in Clinical Practice.

Financial statements provide vital information to department chiefs and hospital leadership alike. They reflect departmental performance and guide critical financial decisions for their teams. However, financial statements can be inherently difficult to read and interpret and require time and attention, understandably challenging for busy clinicians. Here, we aimed to demystify the several types of financial statements, including profit and loss statements, balance sheets, and cash flow statements, and explain what they reveal (and ignore). We describe key performance indicators based on these statements that are routinely used by hospital administrations. This work targets clinicians, team leaders, academic faculty, and administrators alike, recognizing that all of them share the same goals. Mastering the basics of financial statements and using the information within them creates a healthier clinical practice. In turn, it enhances provider satisfaction and enables the team to deliver patient care without financial anxiety. Understanding financial statements helps shared decision-making between clinicians and their administrators-strengthening partnerships that synergistically drive revenue, profitability, and growth.

The Importance of Financial Statements in Corporate Management --Take Bright Dairy Co., Ltd. as an Example

The Importance of Financial Statements in Corporate Management --Take Bright Dairy Co., Ltd. as an Example

The influence of perceived level of education, personality, and experience on accounting understanding (on micro, small and medium enterprises in north Sumatra)

This study aims to determine the perception and understanding of Micro, Small and Medium Enterprises (MSMEs) on the importance of financial statements. In this study is a type of quantitative descriptive research. This study used primary data obtained from the results of questionnaires distributed to approximately 200 MSME actors in North Sumatra spread across several sub-districts. The results showed that the perception of MSME actors in North Sumatra Regency has experienced a good perception as evidenced by the results of the study that the average repsonden already knows the importance of financial statements in a business, including to find out business development, support business interests such as tax interests and the interest of applying for credit to the Bank as additional capital. This good perception is influenced by experience or length of time running a business and also educational background. However, the understanding of MSME actors in North Sumatra still needs to be improved. There are some business actors who do not know the concept of transaction journaling even though this is the basis for preparing financial statements.

Pentingnya Laporan Keuangan untuk Menilai Kinerja Suatu Perusahaan


 Performance is measured by the capital adequacy, liquidity and profitability indices, which together paint a picture of the state of a financial organization over a certain period of time both from the aspect of raising funds which can be seen from the indicators of capital held. Managing organizational operations, assisting in decision making, identifying employee training and development needs, providing feedback to employees on how their superiors perceive their performance, and providing a basis for award distribution are all advantages of performance appraisal for management. The purpose of this study is to determine the value of financial reporting in evaluating business performance. Research is useful for businesses because it provides information about the importance of financial statements in evaluating company performance and making decisions in the future. Researchers can learn how important financial reports are to assess the success of this research. This study uses a naturalistic approach, sometimes known as a qualitative approach. This study uses qualitative data, or information that is composed of words, sentences, or diagrams and pictures. The research data comes from secondary sources, or information obtained through documents, existing books, and literature studies.
 Keywords: Financial Statements, Financial Ratios, Financial Performance

The Effect of COVID-19 on the Value Relevance of European Firms’ Financial Statements

The main topic of this study was the value relevance of accounting information. It employed a sample of 1,645 companies listed on the stock exchanges of the top six European Economies (in terms of GDP) – France, Germany, Italy, the Netherlands, Spain and the United Kingdom – for the period 2010-2020. The study’s analysis was based on the Ohlson model and used linear regression. The paper examines the difference between these countries in terms of value relevance. In addition, the paper examines the effects that the Covid-19 pandemic outbreak had on the value relevance of financial statements. The purpose is to examine how investors have been affected by the pandemic and the influence it has had on the importance of financial statements and specific accounting variables. Furthermore, we compare the importance of the two most significant accounting variables, earnings and book value (equity) before and after the pandemic. The results suggest that the explanatory power of financial statements is almost the same for all countries, except Germany, where it is significantly higher. The explanatory power of financial statements decreased in all countries after the start of the pandemic. Moreover, in most countries, earnings seem to have lost value relevance compared with book value due to the financial crisis.

Finansijska analiza kao sveobuhvatno analitičko ispitivanje poslovanja banaka

Financial The analysis of the bank's financial statements is focused on the assessment of its financial condition and the achieved result, development and further perspective. In addition to the data contained in the financial statements, the analysis also uses data from accounting records and other sources. The very essence of financial analysis is the calculation of relative indicators and their comparison with each other. Banking management, current and potential owners of the bank, investors, depositors, the public and others interested in the bank's performance are sympathetic to the practice of analytical testing of the bank's operations. The results are a guide for formulating business policy and making adequate business decisions for all stakeholders. In this paper, we try to point out the specificity and importance of financial statements in banks, financial analysis as a method of examining business results and determining the performance of banks and the impact of analysis results on business decisions of bank managers.

Pemberdayaan masyarakat untuk umkm melalui pelatihan penyusunan proposal usaha dan analisis laporan keuangan UMKM di Kabupaten Kampar

The aim of this activity is to Micro-Small and Medium Enterprises (MSMEs) be able to compile Business Proposals and be able to analyze financial statements, so that the realization of MSMEs becomes an efficient, healthy and high-growth business, and able to become the people's economic strength and make a large contribution to national economic development. The method of this service activity is the direct survey method for MSMEs without gathering participants, this method was chosen by considering mutual security because it is still in Covid-19 pandemic. The stages of this service activity begin by explaining the obstacles that are often faced by MSMEs, then explaining the importance of business proposals, tips and tricks for preparing business proposals, and the importance of financial statements analyzing. Results achieved: has provided skills and knowledge to MSMEs, especially in Kampar regarding Business Proposals and Financial Statement Analysis even though in limited due to the Covid-19 pandemic.

Impact of financial statements for financial decision-making

The study aimed to know the effects of analysis of financial statements on financial decisions, and the degree of benefit from them, and to identify what financial statements, what is its importance for the institutions within the framework of the Kingdom's Vision 2030 of ideas and trends, and to identify the contribution of financial statement analysis to financial decision-making. The study was based on the descriptive and analytical approach, and the study population consisted of all financial decision makers. The study was based on a simple random method (70) of financial decision makers. The study was based on the questionnaire and consisted of the following axes (financial statements in companies, financial decision-making, the effects of analysis of financial statements on financial decision-making). The study came out with a number of results, the most important of which are: There is approval by the respondents to all paragraphs of the first axis "financial statements in companies", with a relative weight of 82.8%. There is an agreement by the respondents on all paragraphs of the second axis "making financial decisions in companies", with a relative weight of 81.3%. There is strong approval by the respondents on all paragraphs of the third axis "the effects of analysis of financial statements on financial decision-making", with a relative weight of 86.4%. The financial statements are a key tool to know the financial position of the company, so they must be accurate and reliable before being published by management. The lack of credibility in the financial statements leads to mistrust in the company by investors, and does not give them the possibility to diagnose and make sound decisions. In light of the previous results, the study recommended the following: • Organizing several forums, conferences and forums to clarify the mechanism of preparing the financial statements and how to analyze them, and the need to raise awareness of financial decision makers about the importance of financial statements in the financial decision-making process.

Membumikan penyusunan laporan keuangan industri perkebunan kelapa sawit menggunakan pendekatan aset biologis berdasarkan PSAK 69

Usaha Mikro Kecil dan Menengah (UMKM) telah menjadi primadona pertumbuhan ekonomi Indonesia. Besaran kontribusi UMKM terhadap GDP di tahun 2018 mencapai 60,34%. Kontribusi tersebut mendorong pemerintah lebih mengembangkan UMKM, termasuk aspek manajemennya berupa penyusunan laporan keuangan. Keberadaan daerah perdagangan bebas, juga menuntut semua industri menyajikan laporan keuangannya menggunakan standar internasional, termasuk pada industri perkebunan kelapa sawit baik besar maupun kecil seperti UMKM. Oleh karenanya IAI telah menerbitkan PSAK 69 tentang agrikultur yang di adopsi dari IAS 41 menggunakan pendekatan aset biologis. Namun PSAK tersebut tidak menunjukkan penerapannya pada industri ini, mengingat luasnya cakupan agrikultur. Melalui hibah riset nasional di tahun 2018, pelaksana pengabdian telah melakukan kajian, dan menghasilkan petunjuk teknis pelaporan tersebut. Kegiatan pengabdian ini dilakukan untuk mendiseminasi hasil temuan tersebut sekaligus menerapkannya pada UMKM kelapa sawit. Metode yang digunakan adalah survey kemampuan penyusunan laporan keuangan umum, dilanjutkan dengan diseminasi penyusunan laporan keuangan menggunakan aset biologis, pendampingan dan diakhir dengan evaluasi atas diseminasi dan pendampingan yang dilakukan. Kegiatan pengabdian dilakukan pada Kepenghuluan Mukti Jaya Kecamatan Rimba Melintang Kabupaten Rokan Hilir. Hasil yang diperoleh menunjukkan adanya peningkatan pemahaman akan arti penting laporan keuangan secara umum dan dihasilnya laporan keuangan sederhana untuk industri kelapa sawit pada UMKM daerah sasaran.

What drives voluntary audit adoption in small German companies?

The purpose of this study is to validate the drivers of voluntary audit in small companies identified in previous research and uncover additional determinants related to agency conflicts with owners. For our research we use the German institutional setting, documented in the literature as being very different from its Anglo‐Saxon equivalent. Based on a random sample of 405 small companies responding to a postal questionnaire survey, we find that the proportion of owners not involved in management, the subsidiary status of a company, a company's legal form, and the importance of financial statements' information to management activities all increase the likelihood of voluntary audit. In contrast, firms that outsource accounting tasks to an external expert are less likely to opt for voluntary audit, suggesting that an external expert's involvement substitutes for an external audit. In addition, owing to the absence of a statutory audit history for small companies in Germany, we find that voluntary audits are less common compared with findings from previous studies.

Structural Comparability of Financial Statements

This study investigates comparability of firms’ financial statement structure, i.e. similarity of line items, and its effects on accounting information users. Prior research demonstrates a relationship between accounting-function comparability (i.e., earnings comparability) and analysts’ forecast properties. Given the importance of financial statements as a source of information for analysts, we examine whether and how structural comparability of firms’ financial statements affects that relationship. Using a dataset of 7,797 firm-year observations from 2009 to 2015, our results indicate that structural comparability mediates the relation between earnings comparability and analysts’ coverage, forecast accuracy, and forecast dispersion. While our findings imply that structural comparability enhances financial statement informativeness to analysts, we also provide evidence suggesting that uniformity reduces financial statement informativeness. Overall, this study provides evidence on the underlying mechanism by which accounting-function comparability affects analysts’ forecast properties as well as some perspective on the distinction between comparability and uniformity in informative financial reporting.

What Drives Voluntary Audit Adoption in Small German Companies?

The purpose of this study is to validate the drivers of voluntary audit in small companies identified in previous research and uncover additional determinants related to agency conflicts with owners. For our research we use the German institutional setting, documented in the literature as being very different from its Anglo‐Saxon equivalent. Based on a random sample of 405 small companies responding to a postal questionnaire survey, we find that the proportion of owners not involved in management, the subsidiary status of a company, a company's legal form, and the importance of financial statements' information to management activities all increase the likelihood of voluntary audit. In contrast, firms that outsource accounting tasks to an external expert are less likely to opt for voluntary audit, suggesting that an external expert's involvement substitutes for an external audit. In addition, owing to the absence of a statutory audit history for small companies in Germany, we find that voluntary audits are less common compared with findings from previous studies.

Factors That Affect The Perception Of Small And Medium-Sized Businesses (Smes)’ Community On The Importance Of Financial Statements, The Amount Of Credit Received And Implementation Prospects

<p>The research aims to determine the perception of those practicing SMEs and examine the effect of the quality of financial statements of SMEs on the amount of credit received using several indicators, such as education background, education level, size of the business, age, quality of financial statements, credit guarantee, credit amount received and term loans. Data is collected througha questionnaire distribution from 40 respondents who run their business in the city of Jayapura. The results show that the education background and the level of education do not influence the perception of SMEs’ actors, but the size and age of business do. While the size, age, credit guarantees and credit terms affect the amount of credit received, the quality of financial reports does not. This is likely due to the fact that the financial statement of SMEs have not been sources of reliable and relevant information for the banks in their decision to provide credit for SMEs’ business.</p>

The need for financial statements to disclose true business performance to stakeholders

This desk top study reviewed relevant literature in order to determine the extent to which Financial Statements disclose true business performance to stakeholders. Literature reviewed established that management fraudulent reporting, relevance of reports and reliability of information are to be taken into account when assessing level of reliance that can be placed on financial statements on disclosing business performance. It also emerged that cost and benefits of disclosing financial information, relevance of financial statements and significance of stakeholder groups are some of the factors to be considered when carrying out a cost benefit analysis on the importance of financial statements. The study concludes that management fraudulent reporting, relevance of reports, reliability of information and source of information are to be taken into account when assessing level of reliance that can be placed on financial statements to determine their ability to disclose business performance.

Financial Crisis and Value Relevance of Financial Statements

Purpose - Our purpose is to examine the impact of the financial crisis that occurred in the United States of America in 2008 on the value relevance of companies ‘financial statements. Also to examine what changed on the importance of the two most significant accounting variables, earnings and book value. Design/methodology/approach - We determine value relevance basing on Ohlson's model using price models. Our sample consists of companies that constitute the Standard & Poor's 500 Index and we examine the period 2002 to 2014. We split our sample in pre and post crisis period. For each period we study the value relevance of financial statements and the importance of specific accounting variables. Findings - According to findings, after the crisis there was a decline in value relevance of financial statements as the crisis has created an increase of uncertainty about the financial position of companies. Also earnings have gained in terms of value relevance against Book Value. Investors are expected to pay more attention to the ability of the company to produce wealth and less on financial position. Research limitations/implications - Because we focus only on a specific Financial Crisis and only on USA listed firms, the research results may lack generalisability. Therefore, researchers are encouraged to test value relevance of financial statements during additional crises periods. Practical implications - The paper includes implications for the development financial reporting standards as reveals weaknesses of financial statements on crises periods. Originality/value - This paper fulfills an identified need to study how reliability and importance of financial statements can be changes on a financial crisis.

The Role and the Relative Importance of Financial Statements in Equity Valuation

Earnings, book value, dividends and other financial statement variables have been used in theoretical and empirical research as important factors in models of equity valuation. Similarly, courts of law have relied on financial variables in determining equity values of private firms. Our focus is on determining the robustness and relative rankings of these valuation models and to test the relative importance of the financial statement variables in explaining equity valuation. Our results indicate that book value and earnings related variables are the most important variables for Canadian equity valuation. In addition, dividend levels are found to be relevant in equity valuation; and valuation formulas that incorporate industry relatives, such as certain court accepted models, perform well.