Summary Financial Statements Research Articles

Econometric Model for the Financial Performance of Romanian Companies Operating in the Water Supply and Sewerage Field

This research aims to measure the financial performance of companies in the water and sewerage sector by creating a sustainable econometric model for making long-term strategic decisions for managers and stakeholders. The research methodology consisted of the use and statistical processing of the data included in the summary financial statements of 40 regional operators in the field from 2014 to 2020. Multiple linear regression has been created with which stakeholders and water and sewerage specialists can shape changes in value-added variation, the average cost per employee, labor productivity, and energy expenditure on the net profit of water operators and sewerage. The results indicated that the independent variables used, such as value-added, labor productivity, or intangible assets have a direct influence on increasing the net profit of water and sewerage companies. Other independent variables such as the average cost per employee or the expenditure on electricity and water negatively influence the increase in the net profit of companies in the water and sewerage sector. The conclusions indicated that the average net profit is influenced by independent variables and the model created, and it can be successfully applied to other international companies in the field.

Detecting the Elements for Cosmeticizing the Financial Statements Using Analytical Models

Throughout the last three decades, the published literature has been drawing attention towards the ongoing deterioration of the quality of the summary financial statements published by the economic entities. Nevertheless, the financial statements provide conclusive information regarding the companies’ fraud potential. In this article, we aim to illustrate the utility of analytical models for fraud risk assessment by leveraging the information presented in the financial statements. These analytical procedures are even more useful in the current environment of the COVID-19 pandemic.

Financial - Accounts View on the Governmental Expenses and the Autonomy Administration in the Conditions of the Slovak Republic

The extension of state activities currently raises the need to fund specific public projects in the area of the infrastructure, ecology, or the entire expenditure programs in the field of education, health and social care and culture. Into the accounts methodology of the national and autonomy administration were introduced the transfers which represent prevalent expenses, capital expenditures, grants, subsidies and contributions. From an accounting perspective views there is an important fact from which the transfer passes, respectively whether the transfer is provided by the founder, the transfer by another entity within the public administration, or the transfer goes from an entity outside of the public administration. Watching transfers is important for the subsequent preparation of consolidated financial statements and summary financial statements of the public administration. The aggregate accounts of government administration in 2012 expanded by another group of accounting entities namely the state enterprises, RSR, Eximbanka and other public entities.

Financial reporting on the internet in South Africa

The inherent nature of the Internet affects financial reporting in the sense that information on a website is available to anyone, anywhere and at any time. Financial reporting on the Internet reduces the cost of financial reporting, makes instantaneous reporting a reality, adds breadth and depth to business reporting, allows analytical tools to be used on underlying business data and makes it easier to disseminate reports to any place in the world where there is a computer. A cursory exploration of financial reporting on the websites of South African companies reveals great variations in terms of the amount of content (e.g. summary financial statements vs detailed financial statements), the style of presentation (e.g. similar to paper‐based reports vs inclusion of multi‐media) and the manner in which companies incorporate navigation aids (e.g. hyperlinks, search boxes and others). The advantages of the Internet as a new mode of information dissemination are clear, but Internet financial reporting creates a number of challenges for companies and their auditors as well as for regulatory and standard‐setting organisations. This paper assesses Internet reporting in South Africa. It explores the manner in which financial and certain non‐financial information is presented on companies’ websites and determine whether reporting practices on the websites of South African companies differ fromthose of their international counterparts. The study revealed that although Internet usage in South Africa has expanded as a medium for presentation of financial information via companies’ websites, top South African companies use their websites as a bulletin board with limited real‐time financial information and note disclaimers.

Accounting for forestry assets: The development of an Australian policy

Summary Financial statements are an important communication tool, which can be used by forest managers to influence decisions made by resource providers such as investors, creditors, government agencies and the general public. Until recently, there have been no formal guidelines for forestry accounting which has resulted in a diverse range of reporting practices. The current paper contains a review of the current status of forestry reporting and provides an overview of recent initiatives that have been undertaken by accounting policy makers both in Australia and the international arena. In particular, the potential policy implications of these directions for the forestry sector in Australia are highlighted; and the impact of factors such as the forest industry's reaction to the proposals and the need for international competitiveness are discussed.