International Accounting Standards Research Articles

The economic essence of the concept "Manufacturing process in beekeeping" according to the requirements of international accounting standards

The paper examines the economic essence of the concept of "production process" from the standpoint of the category as a value characteristic. The elements of the basic model of the production process - production resources, technological environment, product - were adapted to the conceptual apparatus of international standards, taking into account the specific features of the beekeeping industry. The definition of the concept of "production process in beekeeping" is proposed in accordance with the requirements of IAS 41 "Agriculture" and IAS 2 "Inventories". It has been established that bee colonies meet the mandatory conditions stipulated by IAS for recognizing assets as biological, therefore, in order to unify the concept of the production process of beekeeping with the requirements of international accounting practice, bee colonies should be considered as a biological asset, which will allow the evaluation of bee colonies and form information adapted to international standards in current accounting and accounting. However, according to IAS 41 "Agriculture", which relate to the agricultural stage of the beekeeping production process, "the output obtained from the biological assets of the enterprise should be valued at fair value less costs to sell, which are determined at the time of receipt products", and not at its actual cost price, which is not used in international accounting practice. It is recommended to supplement the accounting of beekeeping products in farms that prepare financial statements.

THE MODERATING ROLE OF FIRM TRANSPARENCY IN INCREASING THE IMPACT OF IFRS ADOPTION ON THE FINANCIAL STATEMENTS COMPARABILITY: A CASE STUDY ON NORTH AFRICAN COUNTRIES

Objective: This study investigates how firm transparency affects the relationship between adopting International Financial Reporting Standards (IFRS) and the comparability of financial statements in North African countries. Theoretical Framework: The research is grounded in agency theory, suggesting increased transparency reduces information asymmetry between firms and stakeholders. Method: The study employs a quantitative research design, using data from publicly traded companies in North Africa. A multiple PLS-SEM analysis is conducted to examine the interaction between firm transparency and IFRS adoption, and their combined effect on financial statement comparability. Data sources include financial reports and transparency indices over five years. Results and Discussion: The findings indicate that while IFRS adoption alone improves financial statement comparability, the effect is significantly stronger for firms with higher levels of transparency. Transparent firms benefit more from IFRS adoption, as stakeholders find it easier to compare financial statements across different firms. The study highlights that transparency acts as a crucial moderating variable, amplifying the positive impacts of IFRS on comparability. Research Implications: The results underscore the importance of enhancing firm transparency in conjunction with adopting IFRS to maximize financial reporting benefits. Policymakers and regulators in North African countries should focus on promoting transparency to support more effective financial reporting and decision-making. Originality/Value: This research contributes to the limited literature on IFRS adoption in developing regions, particularly in North Africa. It provides new insights into how transparency influences the effectiveness of international accounting standards, offering valuable implications for both researchers and practitioners.

Exploring IFRS in Islamic finance: a bibliometric and coding analysis of emerging topics and perspectives

PurposeEmerging economies are increasingly benefiting from Islamic finance principles. The distinctive features of this unconventional form of finance are starting to be considered even in developed economies. Islamic finance operates under prohibitions on interest, gambling, speculation and complex derivatives according to the dogma in the Quran, Sunnah, Ijma and Qiyas. International financial reporting standards (IFRS) allow companies to attract global capital due to overcoming international borders. However, Islamic finance cannot apply all accounting standards. Therefore, this study aims to explore the implementation of international accounting standards in the Islamic finance context to present applications and future research fields.Design/methodology/approachUsing a bibliometric and coding analysis, the study analyses 226 peer-reviewed journal papers extracted from the Scopus database. Using the bibliometrix package, the authors explored the literature’s intellectual, conceptual and social structures, categorising the findings into thematic clusters relevant to traditional and Islamic finance paradigms.FindingsThe results reveal new and interesting elements using the lens of the conceptual, intellectual and social structure. Additionally, the authors find out three main thematic clusters: (1) IFRS and Islamic finance: general principles; (2) IFRS and Zakat; (3) IFRS and Murabaha compatibility; (4) IFRS and Takaful; and (5) IFRS and auditing organisation for Islamic financial institution: governance strategies.Originality/valueThe contribution is original as the authors discover institutional theory perspectives and a diatribe between positivist and ontological approaches.

Retained Earnings, Foreign Portfolio Ownership, and the German Current Account: A Firm-Level Approach

Abstract In some countries, a sizable fraction of savings is derived from corporate savings. Although larger, traded corporations are often co-owned by foreign portfolio investors, current international accounting standards allocate all corporate savings to the host country. This paper suggests a framework to correct for this misleading attribution and applies this concept to Germany. For the years 2012–2020, our corrections retrospectively reduce German savings and consequently the German current account surplus by, on average, €11.5 bn annually. This amounts to lowering Germany’s average official current account surplus (€226.6 bn) across these years by approximately five percent.

Carbon Accounting: Its Implications on Accounting Practices and Corporate Sustainability Reports

Carbon Accounting is a new accounting paradigm on ecological-based economic transactions. It is also known as carbon cost management. The issues regarding carbon cost management will have implications for other strategic issues related to management accounting. The concept and application of Carbon Accounting will also have broad implications for the professions and strategic issues of carbon management accounting. This study focuses on the implication of carbon accounting on accounting practices and corporate sustainability reports. The literature reviews and qualitative analyses were conducted to grab the philosophy, practice and implication of implementation of carbon accounting – carbon cost management. Based on the study, carbon accounting implementation implied to accounting practices and corporate sustainability report. In term of calculating carbon emission or greenhouse gasses, there were four methods as set by Inter-governmental Panel for Climate Change (IPCC) and European Renewable Energy. In term of Corporate Sustainability Report, there were three theories considered: Instrumental Theories, Social & Political Theories and Normative Theories. It is difficult to account for emission allowances, and revealed that there is a potential guidance role for auditors during the absence of an international accounting standard. With the emission allowance assets, there is diversity in the accounting treatment of liabilities, and a considerable level of non-disclosure. In practice, this means that the only liability recognition in the financial statements is for shortfalls in allowances.

Framework for Enhancing the Egyptian Accounting Standards Towards Convergence With International Financial Reporting Standards

The Generally Accepted Accounting Principles (GAAP) which are theoretically unique to each country, it provides standards for evaluating and comparing the financial position of companies. However, the International Accounting Standard (IAS), are developed to be used by all countries. The convergence of these national and international accounting standards is important for attracting foreign investors and potential domestic investors. Egypt has undergone serious steps towards convergence, such as the introduction of new standards or converging of old standards to be consistent with the international standards. A number of complex standards has been understood either by separating them into two or more standards or by adding supplements or guidelines to some of them. Alternatives of some of accounting standards are reduced to avoid differences in practices and manipulating profits. This research developed a framework towards convergence of Egyptian accounting standards and International accounting standard that include a number of viable points: started with determining the objective of the financial reports, determining the methods of applying the international standards, the importance of studying the cultural influence, developing accounting education, the need to develop professional organizations concerned with the profession of accounting and for implementing and follow-up of standards. Keywords: International accounting standard, convergence, Generally Accepted Accounting Principles, Egypt.

국제회계기준(IFRS) 도입에 따른 부동산 가격이 국가 재정건전성에 미치는 영향

Due to the COVID-19 virus outbreak, inevitable welfare spending has increased sharply, and as the national debt has increased sharply, international credit rating agencies have considered downgrading Korea's credit rating. However, the Korean government has provided support for supplementary budgets and welfare policies, and as a result, national debt is increasing and national Financial soundness is deteriorating. Accordingly, based on previous studies, this study aims to present real estate-related policy measures that can fundamentally improve the national fiscal soundness so that the national credit rating is not degraded by studying how asset revaluation gains and comprehensive real estate taxes caused by real estate price increases affect national fiscal soundness indicators based on International Accounting Standards (IFRS). As a result of the study's analysis, the introduction of international accounting standards resulted in conditional results that 'an increase in the declared value of real estate can be positive for the national fiscal soundness', and in this study, four policy improvement measures related to real estate were proposed. Through these policy implications and fiscal policies such as institutional improvement measures, the government is expected to improve the national fiscal soundness while maintaining the national credit rating.

Impact of Cost of Capital on European Economic Growth: The Role of IFRS Mandatory Adoption

Since 2005, the International Financial Reporting Standards (IFRS) mandatory adoption in the European Union has played a pivotal role to reduce financing costs which has influenced positively economic growth across member states. Thus, this study examines the effect of Cost of Capital on Economic Growth under IFRS mandatory adoption in 17 European countries between 1994 and 2021 using Pooled Mean Group Autoregressive Distributed Lag (PMG-ARDL) and System Generalized Method of Moments (GMM-system) methods. The findings reveal a positive correlation between the Cost of Capital and Economic Growth under IFRS adoption. Specifically, the model estimates indicate that the Cost of Capital contributes to a 0.58% increase in Economic Growth in the PMG-ARDL framework. Moreover, the GMM-system model underscores the significance of IFRS adoption in reducing the Cost of Capital, leading to a 0.52% increase in Economic Growth. These results provide insights into the benefits of adopting international accounting standards and highlight the importance of institutional and financial factors in shaping the economic impact of adopting accounting standards.

Analysis of existing rules and practices for disclosing information about fair value in financial statements

One of the most important for modern accounting and reporting is fair value. Moreover, this is typical for systems of both Russian and international standards (hereinafter referred to as RAS and IFRS). Indeed, fair value, which is actively used in IFRS, has now been introduced into almost all domestic federal accounting standards (hereinafter referred to as FAS). In this regard, the importance of issues related to the indicated value cannot be overestimated. In our previous works, we explored issues related to the interpretation and calculation of fair value. In this article we turn to the analysis of disclosure of information about fair value in financial statements. When carrying out research, methods such as analysis and synthesis, grouping method, comparison, analogy method, logical approach, systematic approach were used. As a result of the research carried out in this work, the main problems associated with the disclosure of information on fair value in the reporting of modern organizations have been identified. The results obtained in this article will be useful to a wide range of readers interested in current issues related to the preparation of financial statements under RAS and IFRS; they can be used in the educational process of higher educational institutions, in the practical work of accounting departments of modern organizations, as well as in the development and improvement of relevant domestic and international accounting standards.

IPO conditional conservatism, underpricing and post-issue stock market survival

PurposeWe examine the association between conditional conservatism in initial public offering (IPO) underpricing and post-issue stock market survival in the U.S.Design/methodology/approachWe adopt an archival approach by collecting data for 1,761 U.S. IPO issuers for the period 1990–2017. Regression analyses are conducted to evaluate the association between conditional conservatism in initial public offerings with underpricing and post-issue stock market survival. We identify firms that went public in the period 1990–2012. These firms are then followed for five years after the IPO to assess their stock market survival.FindingsWe find that pre-issue conditional conservatism is significantly associated with less IPO underpricing. We also detect that IPO firms with higher levels of conditional conservative reporting are more likely to survive in the post-IPO stock market in the three-, four-, and five-year periods after the IPO. Our main findings are robust after controlling for other factors in our models, such as IPO cycles, venture capitalists, research and development investment, and pre-IPO accounting performance.Originality/valueWe extend research by demonstrating that conditional conservative reporting practices help firms reduce their indirect costs of raising their initial public capital. Additionally, our research introduces new evidence on the association between pre-IPO conditional conservatism and after-issue stock market survival. Our findings empirically support the International Accounting Standards Board’s (IASB) decision to reintroduce the concept of prudence into the conceptual framework, by showing how conservative reporting can reduce information asymmetry in IPO firms.

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

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

Challenges and Opportunities for the Implementation of a Unified Accounting System in Pakistan: A Survey Study

This research aims to establish the effects of a Unified Accounting System (UAS) on foreign investors’ trust in Pakistan's FDI decision by evaluating the accounting information’s completeness, transparency, consistency, and timeliness. A quantitative survey design was used, and the research instruments included a structured questionnaire with 27 statements about UAS and its impact on FDI. The survey was conducted on the working population of professionals in different organizations in Pakistan and adopted a minimum sample of 90 working people with a stratified random sampling method. Specifically, the study reveals a positive attitude towards implementing UAS in Pakistan, consequently maintaining compliance with international accounting standards and improving the nation’s appeal to foreign investors. The commitments underpin the need for detailed and, where possible, public and up-to-date accounting information that can contribute to a good investment environment. The paper offers significant policy implications for the Pakistani context and any underdeveloped country seeking to enhance its investment climate structures through sound accounting practices.

Features of forming the enterprise’s balance according to international financial reporting standards

The formation of market relations and the aggravation of the economic situation in Ukraine require new approaches to enterprise management. The basis for decision-making on all issues of the company's activity is financial information necessary for a complete and comprehensive analysis of the state of its assets, liabilities and equity. The main source of information is financial reporting. The value of the balance sheet as the main reporting form cannot be overestimated, as it allows you to have an idea of the property and financial situation of the enterprise. The purpose of the paper is to research the peculiarities of the formation of the enterprise's balance sheet according to international standards. Also, the analysis of the formation of the balance sheet according to the National Accounting Regulations and in accordance with international standards. Therefore, the balance sheet is a system of indicators that characterizes the wide value ratio of the company's funds. The balance reflects the composition, placement, use and sources of funds of enterprises, organizations and budgetary institutions. The paper examines the peculiarities of forming a company's balance sheet in accordance with international standards. Specifically, it focuses on key aspects that define the process of preparing financial statements in accordance with international accounting standards. The authors explore the impact of international standards on balance sheet formation, including aspects such as asset and liability valuation, reporting on current assets, financial instruments, and more. It is noted that the adoption of international standards requires companies not only to comply with new rules but also to review and improve their internal processes and management systems. The study also highlights the advantages and challenges associated with the implementation of international standards in the practice of corporate accounting. The final recommendations of the paper emphasize the importance for companies to study and implement international standards in order to enhance their competitiveness and financial reporting transparency.

PROSPECTS FOR REGULATION OF ACCOUNTING AND TAXATION OF VIRTUAL ASSETS IN UKRAINE

Introduction. The advent of virtual assets has brought both challenges and opportunities, reshaping global financial systems and necessitating updated regulatory, accounting, and taxation frameworks. Ukraine stands at a critical juncture, integrating these digital innovations into its legal and financial infrastructure while aligning with global standards. Purpose. This article aims to provide a thorough examination of Ukraine’s developing frameworks for the regulation, accounting, and taxation of virtual assets. It assesses the effectiveness of current strategies and identifies areas for enhancement to ensure a robust integration of virtual assets into Ukraine's financial system. Methods. The research employs a comparative analysis method, juxtaposing Ukraine's frameworks with global standards. This approach is supported by a review of recent academic literature and regulatory reports, offering a comprehensive perspective on the adaptation processes and methodologies applied in the integration of virtual assets. Results. The findings reveal that while Ukraine has made significant progress, particularly with the adoption of the "Law on Virtual Assets," gaps remain in fully securing a stable and transparent virtual asset market. The study highlights the need for continual regulatory updates and the adoption of international accounting standards to manage the complexity and volatility of virtual assets. Conclusion. Ukraine’s proactive regulatory adaptations position it to potentially lead in the integration of virtual assets globally. Continued alignment with international standards and responsive updates to regulatory frameworks are essential to harness the economic benefits and mitigate associated risks. This ongoing evolution will support Ukraine's strategic positioning in the global digital economy and foster a stable environment for innovation and investment in virtual assets.

Intangible and Tangible Investments and Future Earnings Volatility

This study delves into the impact of intangible and tangible investments on future earnings volatility within the European financial market context. Drawing from International Accounting Standards (IAS) 16 and 38, we examine the intricate relationship between fixed assets, expenses, and the uncertainty surrounding forthcoming earnings. Our analysis reveals that intangible assets, often associated with heightened uncertainty and risk, contribute to increased earnings volatility compared to capital expenditures. Furthermore, we find that capitalizing intangible assets serves to alleviate uncertainty, resulting in lower earnings volatility compared to expensing them. Our exploration of industries’ effects further reinforce these findings, with the effect of intangible and tangible investments on earnings volatility being more pronounced in high-tech industries than in low-tech industries. Additionally, our robustness test, utilizing goodwill as a proxy for intangible assets and property, plant, and equipment as a proxy for tangible assets, yields consistent results, further bolstering our findings.

A STUDY ON FIXED ASSET MANAGEMENT

Fixed assets management is an accounting process that seeks to track fixed assets for the purposes of financial accounting, preventive maintenance, and theft deterrence. According to International Accounting Standard (IAS), Fixed Assets are assets whose future economic benefit is probable to flow into the entity, whose cost can be measured reliably. Fixed Asset management is crucial to the accounting process in any business. It can be difficult to find the time and the tools to devote the needed attention to assets that they deserve. The truth is that a company’s assets are the largest investments most companies make. Sound management of assets can yield substantial tax savings in depreciation deductions. Without thorough management of assets, the accuracy of financial reports will be threatened and there will be a negative impact on your bottom line. Establishing the highest standards of depreciation accuracy and best practices in fixed asset management will pay off in the form of savings and efficiency.

Adoption of Accrual Accounting in the Brazilian Public Sector: a Case Study in Light of Regulation Theory

Objective: To identify existing gaps in the adoption of full accrual accounting in the public sector, with a focus on analyzing the financial statements of the Ministry of Defense (MD), and to investigate the application of accrual accounting in the public sector, considering its complex regulations. Theoretical Framework: For the analyses, the theoretical foundation is based on the theory of regulation applicable to accounting regimes in the public sector. Methodology: The research, using the Ministry of Defense (MD) as a case study, adopted a multifaceted methodological approach, including a case study, literature review, and documentary analysis. Data sources included books, dissertations, scientific articles, and legislation. Documentary analysis focused on the MD's Financial Statements, accessed through the government portal, covering the years 2018 to 2022. The research also employed content analysis techniques, following the methodology suggested by Sampaio and Lycarião (2021), to evaluate the content of the information in relation to the established objectives. Results and Conclusions: The research identified that there is already partial adherence of the public sector to international standards, as the cash basis is still observed for revenues, and areas for improvement were noted, such as the adoption of the Statement of Comprehensive Income in the context of the public sector. Research Implications: It was observed that regulatory changes are important instruments for influencing the accountability processes of the public sector. Originality/Value: The research emphasizes the partial adoption of international public accounting standards and suggests further discussions and analysis to achieve complete adherence, confirming a gap between the implementation of standards and their practical application.

War and Financial Statements: Assessing the Impact of the Russia-Ukraine Conflict on International Accounting and Reporting Standards

Purpose: This study aims to assess the impact of the Russia-Ukraine conflict on international accounting and reporting standards. The focus is on understanding how geopolitical tensions influence regulatory divergence, enforcement challenges, financial reporting practices, and market dynamics. Research Design and Methodology: A qualitative methodology was employed, involving a systematic review of scholarly articles, books, reports, and other academic sources. Data were collected from comprehensive searches on databases like Google Scholar and JSTOR, with thematic analysis used to identify recurring themes and patterns. Triangulation, member checking, and reflexivity ensured the validity and reliability of the findings. Findings and Discussion: The findings reveal that the Russia-Ukraine conflict exacerbates regulatory divergence, complicates enforcement of international accounting standards, and increases complexities in financial reporting. Geopolitical tensions lead to fragmented regulatory responses, undermining efforts toward harmonization. Corporations adopt enhanced risk disclosures and conservative reporting approaches to navigate uncertainties and reassure stakeholders. Investor sentiment and market perceptions are significantly influenced, resulting in increased market volatility and shifts in investment strategies. Implications: This study highlights the need for adaptive regulatory responses and collaborative efforts to promote harmonization of accounting standards. Technological innovations, such as blockchain and artificial intelligence, offer promising avenues for enhancing regulatory compliance and transparency. The findings underscore the importance of interdisciplinary research and longitudinal studies in informing policy interventions, corporate strategies, and regulatory reforms, promoting financial stability, transparency, and resilience in conflict-affected environments.

THE IMPACT OF APPLYING INTERNATIONAL STANDARD NINE ON THE QUALITY OF ACCOUNTING INFORMATION

There is an increasing need to find professional institutions that sponsor the work of companies in the financial and accounting fields due to the changes and developments taking place in the economic environments. Hence, the International Accounting Standards Board - IASB, which includes many other sub-boards like the Financial Accounting Standards Board - FASB, has issued many scientific publications in financial and accounting fields. Furthermore, the International Accounting Standards Board, through its sub-boards, including the Financial Accounting Standards Board, has formulated several International Financial Reporting Standards ( IFRS ) to improve the quality of financial reporting and the transparency of the information it contains in a globally applicable and accepted manner. This information would reflect the current situation of economic institutions in terms of performance and financial position in response to changes in economic environments, and to meet the needs of This framework will be applied consistently across transactions, industries, and capital markets to improve the comparability of financial data between economic institutions operating in the same sector globally and within a comprehensive, unified, and stable framework.

OBSERVATIONS ON THE STATEMENT OF CASH FLOWS

Cash flow management requires clear information, which is compiled by organizations in accordance with international accounting standards. However, from the point of view of decision-making, the published cash flow reports are not always fully usable by the stakeholders. The article presents the possibilities of making decisions on cash flows and the ways of increasing companies financial stability based on it.