International Accounting Research Articles

ВИЗНАННЯ ЗАБЕЗПЕЧЕНЬ У ВІТЧИЗНЯНІЙ І МІЖНАРОДНІЙ ПРАКТИЦІ ОБЛІКУ І ЗВІТНОСТІ

Introduction. Provisioning is the process of setting aside an amount that may be necessary to settle a possible obligation when neither the amount nor the date of the obligation can be estimated with certainty. The objective of accounting and reporting in this area is to establish provisions and to choose the best option for making such provisions. Due to their dynamic nature, liabilities significantly affect the solvency of a business entity, require effective cash flow management and control over the actual status of settlements. The purpose of this article is to study the main aspects of recognising collateral, covering domestic and international accounting and reporting practices. Methods. In the course of the study, the following methods were used: monographic method for studying the literature on the recognition of collateral; method of regulatory support for assessing the established rules and regulations on collateral; analytical method for analytical assessment of the justification of collateral. Results. The creation of collateral is a necessity determined by current legislation and regulations. However, the list of collateral provided in National Accounting Standards 11 is not exhaustive, as an entity should create collateral to reimburse any future expenses (of course, subject to the recognition conditions). Taking into account the specifics of the entities' business, various circumstances may arise that will lead to the emergence and recognition of provisions, which in turn requires careful analysis and justification. Conclusions. Based on the study of the conditions for the formation of collateral in the accounting system and the tasks of accounting and management of enterprises, it is advisable to involve qualified specialists and managers to justify the recognition of collateral. Also, the order on accounting policy should reflect information on the types of payments for which a specific provision is formed. It is recommended to improve the wording of the criteria for recognising collateral in accounting, which will facilitate the convergence of National Accounting Standards 11 and IAS 37.

Bibliometric analysis of research hotspots and trends in the field of volatile organic compound (VOC) emission accounting.

Volatile organic compounds (VOCs) have been extensively studied because of their significant roles as precursors of atmospheric ozone and secondary organic aerosol pollution. The research aims to comprehend the current advancements in domestic and international VOC emission accounting. The study utilized the CiteSpace software to represent the pertinent material from Web of Science visually. The hot spots and future development trends of VOC emission calculation are analyzed from the perspectives of thesis subject words, cooperative relationships, co-citation relationships, journals, and core papers. According to the statistics, the approaches most often employed in VOC accounting between 2013 and 2023 are source analysis and emission factor method. Atmospheric environment is the journal with the most publications in the area. The Chinese Academy of Sciences and the University of Colorado System are prominent institutions in VOC emission accounting research, both domestically and internationally. The primary research focuses on the realm of VOC emission accounting clusters, which are "emission factor," "source analysis," "model," "air quality," and "health." A current trend in VOC emission accounting involves the construction of a VOC emission inventory using a novel model that combines emission factors and source analysis. This study reviews the progress made in calculating volatile organic compound (VOC) emissions over the past decade. It aims to provide researchers with a new perspective to promote the development of this field.

Research on Fair Value Application and Financial Impact - Taking Zhongnan Construction Company as an Example

The history of economic and accounting development shows that the more the economy develops, the more important accounting is; the more the economy develops, the stronger the ability of accounting information to promote or hinder economic development. In the long history of accounting, measurement has always been the core of accounting. The choice of accounting methods focuses on the choice of measurement attributes, rather than the choice of measurement units. With the development of market economy and knowledge economy, the accounting information provided by historical cost accounting only involves past costs and ignores future values. It cannot reflect changes in the economic environment in a timely and complete manner, and has no connection with the economic decision-making process. The measurement of fair value can reflect the current and future changes in the economic environment in a timely and complete manner. In the more than ten years since it has been in line with the international accounting community, the issue of fair value has always been an urgent problem to be solved. Corresponding research on related issues, from theoretical review to the practical application of fair value measurement. At present, the control of fair value measurement by Chinese enterprises is still not stable enough, and how to effectively improve is still an in-depth question.

PSAK 68 MEASUREMENT OF FAIR VALUE IFRS CONVERGENCE Fair Value Concept

Abstract Purpose - This study aims to find out about the concept of fair value in PSAK 68: IFRS Convergence Fair Value Measurement, as a substitute for book value. The convergence of the application of new accounting standards is oriented towards the International Financial Reporting Standard (IFRS) issued by the International Accounting Standard Boards (IASB). In this new accounting standard, the concept of fair value is emphasized more than the concept of book value. This is what makes the difference and triggers this convergence to change the simpler book value model Design/methodology/approach - This study uses a descriptive qualitative method with a literature study approach on fair value measurement. Finding - The result of this study is the concept of fair value (fair value) that is currently considered to have an advantage over book value is a concept that is widely applied all over the world, as well as with accounting in Indonesia should be ready to apply the concepts of reasonable value in its accounting standards Originality – Paper Type – Research Paper

The Effect of Voluntary IFRS Adoption on MD&A Information

ABSTRACT We analyze the textual management discussion and analysis (MD&A) information of Japanese firms that voluntarily adopted International Financial Reporting Standards (IFRS) and disclosed information in the Japanese language. We conduct a difference-in-differences analysis of firms that voluntarily adopted IFRS and those that continue to use Japanese generally accepted accounting principles. We find that the voluntary adoption of IFRS decreases the textual length but does not change the difficulty of MD&A information. The results indicate that IFRS adoption decreases the level of MD&A disclosure. However, the decrease in textual length is not observed after the 2018 MD&A regulation changes. This suggests that the negative effect of IFRS adoption is offset by the positive effect of the regulation change. This study is unlike previous research as it contributes to international accounting literature by analyzing financial reporting in a non-English language, viz. Japanese, which is, technically, a very difficult language. Data Availability: All financial data and some textual data used in this study are available from commercial providers (NEEDS–FinancialQUEST2.0, NEEDS–MT Executive (Yakuin), and eol), and the other textual data are available from a governmental public source (EDINET). JEL Classifications: M41; M48; G14.

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.

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.

Methodological and Practical Aspects on Accounting for Foreign Currency Advances

This Study addresses the methodological and practical aspects of accounting for operations that include the payment, receipt, use, repayment and settlement of foreign currency advances. Such aspects cover the classification methods for advances paid and received, for recognising and measuring the foreign exchange differences related to transactions that include foreign currency advances. In particular, the issues of accounting for such advances in compliance with the national and international accounting requirements are investigated. Likewise, the way of presenting the information on foreign currency advances in complete and abridged financial statements is reviewed, as well as the tax matters related to the operations with the mentioned advances. The authors have developed recommendations on how to modernise the accounting for advances paid and received in a foreign currency, which will ensure a higher level of financial information reliability, transparency and comparability at the national and international levels.

Evolution of Materiality according to the International Accounting Professional Regulatory Bodies

Evolution of Materiality according to the International Accounting Professional Regulatory Bodies

The Reflection of International Accounting Education Standards on Accounting Education and their Impact on Achieving Sustainable Development

The research aims to explore to which extent the application of international accounting education standards contributes to the development of accounting education curricula in Iraq. Also, it seeks to explain the fundamental role of these standards in supporting accountants with the experience and competence required in a workplace. A questionnaire survey (n=97) was distributed to the faculty members, a group of graduates, and a number of professional accountants. The research findings prove that international accounting education standards are essential in developing the accounting education curriculum and reducing the disparity between what is studied in theory and professional practice. Accordingly, the researcher recommends linking the accounting curriculum to the problems of the practical reality of the profession and introducing different accounting and behavioural skills to suit its needs.

International accounting in Latin America: an overview of International Financial Reporting Standards (IFRS)

The research aimed to examine the implementation of international financial reporting standards in Latin America. To achieve this, a comprehensive literature review was conducted, including theses, scientific articles, and the International Financial Reporting Standards Foundation website. The analysis indicates that the adoption of international financial reporting standards in the 18 countries studied is driven by the goal of aligning with global accounting practices and facilitating transparent financial reporting. The results suggest that while each country has its own accounting methods, adopting these standards prompts a convergence process and influences accounting procedures.

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.

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.

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.

Sparked Intuition Power: An Audit Risk Activity

This case explores the subjective nature of professional judgment related to audit risk through the lens of a fictitious company, Sparked Intuition Power (SIP). SIP has just been accepted as a new audit client by an international accounting firm. Students play the role of associates on the audit engagement team. As part of their work on the audit, the students identify potential risks present at SIP as part of the initial risk assessment process. Once these risks have been identified, the students decide how to assess the potential severity of each risk and determine the resulting effect on the overall auditor workload. Through interaction and discussion with their instructors, the students should be better able to navigate the decision-making process related to risk evaluation in an audit engagement.

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.

Editorial

The Journal Scientific Research World Economy EconConnections - Professionals On Line, plays an essential role as the main platform for the dissemination of theoretical and empirical research in a wide range of disciplines within the field of economics and related areas. Enveloping a wide range of topics, it stands as the primary channel for the exploration of general economic theory, political economy, business economics, industrial economics, labor economics, urban and rural economics, development economics, technological economics, tourism economics, transportation economics, macroeconomics, microeconomics, quantitative economics, resources and environmental economics, economic history and demography, as well as international trade, exchange rates, finance , accounting and insurance.