Use Of Accounting Information Research Articles

On the formation of accounting and analytical information in investment management

Subject. This article considers a set of theoretical and practical provisions on the formation and use of accounting and analytical information in the investment management during the activities of a commercial organization. Objectives. The article aims to theoretically substantiate the composition of accounting and analytical information and develop practical recommendations for the use of this information in making and implementing investment decisions. Methods. For the study, we used the general scientific research methods and special techniques, observation, and systems and comparative analyses. Results. Based on the study of the process of implementing an investment decision, the article defines three stages in it and theoretically substantiates the composition of the accounting integrated information space at each stage of the investment decision. It also reveals the content of the investment analysis area and offers practical recommendations on the use of accounting and analytical information in investment management. Conclusions and Relevance. The article concludes that there is no approach to the formation of an integrated accounting and analytical information space in investment management. The results of the study can be used by managers and specialists whose professional activities are related to investment activities in the process of preparing information for investment decisions by the management of the organization.

The Effect of Felt Accountability on User Satisfaction with Accounting Information

Felt accountability affects an account-givers’ behavior, decisions, and organizational performance. Accounting information (AI) is provided for decision-making and accountability in the public sector. This study investigated the effects of felt accountability on expertise, legitimacy, and AI disclosure level for accountability on users’ satisfaction. Survey data included 401 responses across public institutions in Vietnam, and SEM linear structure analysis was used to examine the results. The research findings indicate that felt accountability directly affects users’ satisfaction and their expertise and legitimacy, and the level of AI disclosure. The expertise and legitimacy of the account-holder and the level of AI disclosure partially mediate the relationship between felt accountability and users’ satisfaction. This implies that AI's needs, purposes, and importance are determined based on hypothetical users that are not useful in reality. In practice, AI must meet accountability requirements to bring satisfaction to users. The satisfaction level of actual users of AI is influenced by the account-givers’ perceived accountability regarding the needs, expertise, and legitimacy of the account-holder. Therefore, it is essential to identify the type of information needed, the timing of AI disclosure, and the actual AI users to reduce the gap between the supply and demand of AI. The research results provide evidence supporting agency and social contingency theories in accountability relationships. Doi: 10.28991/ESJ-2024-08-02-023 Full Text: PDF

Pengaruh Ketepatwaktuan dan Pengendalian Internal Terhadap Kebermanfaatan Informasi Akuntansi Akrual: Studi Empiris pada Satuan Kerja Perangkat Daerah Kota Padang

This purpose of this study was to the influence of timeliness and internal control on the usefulness of accrual accounting information. Respondents in this research were Heads of Departments, Head of Finance Subdivision and treasurers at SKPD Padang City. The sample determination method uses purposive sampling. The sample in this study was obtained by distributing a total of 96 questionnaires and 88 questionnaires that could be processed. The data analysis method used is multiple linear regression analysis with the help of IBM SPSS 25 software. The results of this research show that timeliness and internal control have an influence on the usefulness of accrual accounting information.

Enhancing Accounting Use in MSMEs through Experience, Knowledge, and Education

This study examines the influence of length of business, accounting knowledge, and level of education on the use of accounting information in micro, small, and medium enterprises (MSMEs) in Ponti Sidoarjo. Using a descriptive quantitative approach and multiple linear regression analysis on data collected from 50 respondents through questionnaires, the research finds that the length of business significantly affects the use of accounting information, indicating longer-established businesses are more likely to utilize it effectively. Additionally, accounting knowledge and level of education positively influence the use of accounting information in these MSMEs. The findings highlight the importance of considering these factors collectively in enhancing accounting practices and decision-making in Ponti Sidoarjo's MSME sector, offering insights for policymakers and stakeholders to develop targeted interventions and educational programs for economic growth and sustainability. Highlight : Length of Business: Experience significantly influences accounting information use in MSMEs. Accounting Knowledge: Expertise enhances effective use of accounting information in MSMEs. Education Level: Higher education positively impacts accounting information utilization in MSMEs. Keyword : Length of Business, Accounting Knowledge, Education Level, Accounting Information, MSMEs

Penerapan Biaya Diferensial Dalam Pengambilan Keputusan Membeli Atau Memproduksi Sendiri Outlet Pisang Goreng Nugget

This study aims to analyze the application of management accounting information at Pisang Goreng Nugget Outlets in making decisions to buy or produce their own banana nugget raw materials. The type of research used in this study is qualitative, the research method used is a quantitative descriptive method in which this method describes or describes the application of management accounting information so that it can be used as a short-term decision-making tool at the Metro City Fried Banana Nugget Outlet. Data collection techniques in conducting this research, using observation and interview data collection methods. The results of this study the use of differential accounting information is very useful for the management of the Metro City Fried Banana Nugget Outlet in obtaining the information needed to be able to compare which decision is more profitable between buying or producing bugget banana raw materials yourself.

Are credit rating agencies users of government accounting information? Evidence from the sovereign rating process

IMPACT Sovereign governments are regularly evaluated by credit rating agencies (CRAs) that perform an analysis of creditworthiness based on mostly public data. This article shows that the data used by CRAs is mainly drawn from economic and statistical accounts rather than government financial statements. Thus, CRAs cannot be considered users of financial accounting information, at least at the sovereign government level. The evidence also suggests that governmental accounting information is neglected because it lacks the fundamental quality of comparability that CRAs require, given that ratings are ordinal measure of creditworthiness. Unless governments begin producing harmonized financial statements, it is unlikely that CRAs will ever become users of accounting information. Meanwhile, CRAs ground their sovereign rating process on harmonized economic and statistical accounts that are lacking important information on government payables, receivables, contingent liabilities and assets.

Structural Barriers to Accounting Users’ Interactions: A Critical Analysis of Earning Conferences

Emphasizing the cruciality of the communicative aspect of accounting, this research investigates the contextual setting within Kuwaiti banks’ earning conference Q&As and examines structural barriers that guide discourse but also hinder effective accounting communication. However, while prior accounting studies take the contextual structure of this discursive session for granted, this research uncovers and ultimately addresses the structural practices that hinder effective communication. The research employs a grounded theory approach and a content analysis method, via which it analyzes Kuwaiti banks’ quarterly earning conference transcripts (from 2018 to 2022) and reviews their annual reports. Four contextual barriers prevail: constraining accounting information users’ interactions by having textual enquiries in a verbal communication setting; ending the Q&As before reflecting on all accounting users’ concerns; having limited involvement from CEOs; and disregarding some language barriers. This research culminates in detailed recommendations for policy makers to enhance accounting communication.

Revenue management: changes in the analytical landscape of the enterprise through improving the organization of accounting and analysis

Income management is an important concept in the system of managing the financial and economic activities of an enterprise. A solid revenue management strategy requires the use of analytics and available data to forecast product demand, make strategic pricing decisions, and maximize revenue.
 The article examines the dynamics of the income structure of enterprises and presents a sectoral analysis of companies according to the sectoral distribution of the market environment. The main trends are established and the main problems of the company's income management arising in conditions of uncertainty and risks are outlined. The paper presents the role of income in the management system of the enterprise, which directly affects the efficiency of the process of managing the economic activity of the enterprise.
 In the course of the study, ways of improving the formation and use of accounting and analytical information about the company's income for management purposes were proposed. The scheme of the organization of income analysis for the formation of analytical information is presented. Reasonable importance of management reporting, which is intended to provide understanding, clarity and direction of management activities. When considering the content of the management report, we recommend taking into account visualization forms and design layouts. The KPI dashboard is a visual tool that provides a centralized view of various data sources for effective tracking and optimization of goals. With the help of indicators and KPIs, companies can get an overview of their performance at an operational or strategic level.

Vulnerabilities of Financial Auditing and its Adaptation to the Current Needs of the Users

Abstract Starting from the premise that the great economic crises of the last decades were based on the great financial scandals that shook the world economy, I found that auditing in general, and the process of auditing financial statements, has started to be questioned. Thus, I believe that it is necessary and obligatory to analyze whether financial audit, as it is now, is still suitable for modern society, i.e. whether its construction and methodology still meets the requirements of a constantly evolving market economy. Because of this, I considered it appropriate to carry out an analysis, aimed to identify new perspectives for the development of financial auditing in line with the requirements of a constantly changing market economy. I started my scientific approach from the identification and presentation of possible vulnerabilities in the work carried out by financial auditors, which may occur when formulating the audit opinion. My aim was to analyze the main elements that generate or enhance these vulnerabilities and to identify possible ways of combating and eliminating these effects in order to improve and increase the confidence of users of financial accounting information in their work.

Enhancing Accounting Use in MSMEs through Experience, Knowledge, and Education

This study examines the influence of length of business, accounting knowledge, and level of education on the use of accounting information in micro, small, and medium enterprises (MSMEs) in Ponti Sidoarjo. Using a descriptive quantitative approach and multiple linear regression analysis on data collected from 50 respondents through questionnaires, the research finds that the length of business significantly affects the use of accounting information, indicating longer-established businesses are more likely to utilize it effectively. Additionally, accounting knowledge and level of education positively influence the use of accounting information in these MSMEs. The findings highlight the importance of considering these factors collectively in enhancing accounting practices and decision-making in Ponti Sidoarjo's MSME sector, offering insights for policymakers and stakeholders to develop targeted interventions and educational programs for economic growth and sustainability. Highlight: Length of Business: Experience significantly influences accounting information use in MSMEs. Accounting Knowledge: Expertise enhances effective use of accounting information in MSMEs. Education Level: Higher education positively impacts accounting information utilization in MSMEs. Keywords: Length of Business, Accounting Knowledge, Education Level, Accounting Information, MSMEs

온실가스 배출권 재무공시 현황 및 시사점

[Purpose] This study aims at providing the implications and the improvements of the financial disclosure of the carbon emissions and the carbon credits.
 [Methodology] This paper reviews the current financial disclosure of the companies which have large quantities of carbon emissions from accounting users’ perspectives. This study covers financial disclosures, including financial statements and their notes on their annual and quarterly reports.
 [Findings] This paper documents the gaps between the K-GAAP and the current disclosure practice. There is inconsistency between the carbon credits and carbon liabilities. There are wide deviations across companies with respect to the unit price of carbon credit when companies estimate the amounts of their carbon liabilities. The paper also proposes additional disclosure for the carbon liabilities and cost flow assumptions, etc.
 [Implications] Differentiated from the previous literature that is focused on quantitative analysis, this paper reviews the quality of the carbon related disclosures. This study provides proposals that can enhance the usefulness of carbon disclosure to the accounting information users.

Board diversity and the marginal value of corporate cash holdings

Using the Blau index, this study measures board diversity and uses data on A-share companies listed in Shanghai and Shenzhen between 2011 and 2020 to investigate how board diversity affects the marginal value of corporate cash holdings. We find that greater board diversity indicates a greater marginal value of corporate cash holdings. Board independence, property rights, and environmental dynamism moderate the relationship between board diversity and the marginal value of corporate cash holdings. Further mechanism analysis shows that high-diversity boards improve the marginal value of corporate cash holdings by alleviating agency problems and increasing firms' resources. This study provides new ideas and evidence for discussing how macro- and micro-factors affect corporate governance. Furthermore, the results provide a reference for accounting information users to analyze corporate value and make reasonable investment decisions.

The impact of IFRS adoption on Saudi Arabia

PurposeThis study aims to examine the implementation of International Financial Reporting Standards (IFRS) in Saudi Arabia. It investigates how the adoption of IFRS has affected four critical areas in the financial statements of publicly listed companies: profit and loss statement, balance sheet, cash flow statement and retained equity statement in Saudi Arabia. The paper also explores the essential factors/drivers that influence the adoption of IFRS and its implication in Saudi Arabia.Design/methodology/approachData was obtained from Saudi Stock Exchange (Tadawul) listed companies from eleven industries in Saudi Arabia. This cross-sectional study analyses critical financial data across eleven distinctive industries. To identify the impact of adopting IFRS, the researchers use a paired t-test to evaluate seven key elements of financial statements underlying the critical areas: non-current asset, current asset, total assets, shareholders equity, non-current liability, current liability and total liability. The sample captures cross-sectional data from well-developed global industries in Saudi Arabia, pre- and post-implementation of IFRS. Thus, the analysis of the sample data gives a representative picture of the population of the Saudi Arabian industry.FindingsThe results reveal significant differences between GAAP and IFRS reporting standards in the measurement, recognition and classification of non-current assets and liabilities. The differences are expressed in the variance between the GAAP and IFRS. Specifically, the differences between GAAP and IFRS demonstrated by the t-value are significant and reliable (respectively, 5.3 and 4.1). Additionally, the t-value is validated by the p-value, which in both was significant.Research limitations/implicationsThe outcomes of this research will benefit accounting information users, practitioners, researchers and regulators. Since Saudi Arabia’s policymakers have mandated the full adoption of IFRS in financial reporting, the study contributes to the adoption of IFRS practices throughout the Saudi industry. Adopting full IFRS standards requires widespread IFRS expertise to cope with the transition.Originality/valueThis study advances research into the perennial issues associated with changes in reporting towards IFRS standards, especially in Saudi Arabia. The contribution to theory and practice enters new and fruitful areas.

The Usefulness of Accounting Information and Management Accounting Practices under Environmental Uncertainty

The purpose of this paper is twofold. Firstly, we aim to investigate the relationships among environmental uncertainty, broad-scope and timely management accounting information usefulness, and (traditional and contemporary) management accounting practices (MAPs) usage. Secondly, we intend to explore how these relationships influence decision-makers’ satisfaction with management accounting information. Survey data were obtained through an online questionnaire from 114 large manufacturing companies operating in Portugal. The findings indicate a positive relationship between environmental uncertainty and timely management accounting information usefulness and between (broad-scope and timely) management accounting information usefulness and (traditional and contemporary) MAPs usage. The findings also show that decision-makers’ satisfaction with management accounting information improves when there is a good fit between environmental uncertainty, broad-scope and timely management accounting information usefulness, and MAPs usage. In this way, organisations need to adjust the implementation and usage of MAPs to contextual factors, using both contemporary and traditional MAPs, to achieve greater decision-makers’ satisfaction with management accounting information. Thus, the results achieved in this study are useful for both theory and practice and have several implications for professionals engaged in MAPs implementation and decision-making activities.

Use and non-use of accounting information: The case of controversial projects in public and non-profit settings

This paper investigates whether and how accounting information is used in debates and decision-making processes about controversial projects in public sector and non-profit settings in the Netherlands and Italy. The research is based on two case studies and relies on multiple methods of qualitative data collection, including documents, interviews with key actors and media reports. The research finds a more limited extent of accounting information use than expected given the controversiality of the projects. It raises various types of explanations for this limited accounting information use, especially that ruling groups of actors supporting the project do not give room to the opposing minority for putting forward their concerns and preferences. The power position of the ruling majority thus matters in mitigating opportunities for a dialogic use of accounting information leading to the decision-making about the projects. So, controversiality is a determining factor, but insufficient as an explanation for the extent to which accounting information is used. In addition, the type of accounting information use is depending on the actors’ appreciation of the project. Advocates and opponents concerning both projects were in general inclined to an ammunition type of accounting information use, whereas actors holding a neutral position used available accounting information in a more rational way.

Problems of agency costs in construction corporations

The article reflects the results of research on the identification and delineation of the problem of agency costs in construction corporations of Ukraine from the standpoint of neo-institutional theory and its separate element - agency theory. The evolution of scientists' views on the emergence of the agency problem in corporations is analyzed. The main approaches to solving the agency problem are differentiated. The conditions for reducing agent opportunism and increasing the efficiency of corporate management are outlined. Ways to minimize the negative impact of the agency problem in the corporate governance system are analyzed. Attention is focused on the negative impact of information asymmetry between principals and agents. It was determined that the application of certain methods of minimizing agency costs in integration with other mechanisms is not always able to generate a net positive effect for the corporation, sometimes leading to an increase in the costs of their implementation and causing excessive regulation of the activities of agents. The probability of manipulation of the spectrum of financial reporting indicators with the help of accounting policy tools and creative practices is emphasized, which is a consequence of the generation of an agency problem between users of accounting and analytical information and the subjects of its formation. It has been proven that the combination of internal and external corporate management tools will contribute to mitigating the consequences of the agency problem, without providing a full solution to it, since a certain range of tools, methods and measures are optimal only for a specific corporation in a certain period of time. The procedure for implementing a range of mechanisms and methods for minimizing agency costs and consequences of the agency problem is recommended to be carried out taking into account existing practices, as well as the results of monitoring the economic and informational environment of the corporation, which will ultimately contribute to the formation of their optimal combination. The vectors of minimization of agency costs and the consequences of the agency problem in the management system of construction corporations from the accounting point of view are determined. A matrix classification of approaches to solving the consequences of the agency problem and minimizing agency costs in construction corporations has been formed. Based on the application of the provisions of the neo-institutional theory in order to minimize agency costs and the consequences of the agency problem, the priority directions for strengthening the effectiveness of corporate management in the context of improving the system of its accounting and analytical support are determined.

Determinants of the extent of usage of accounting information by Public Accounts Committee in Tanzania public corporations: Moderating role of effective communication.

The objective of the paper is to examine determinants of the extent of usage of accounting information by the Public Accounts Committee in Tanzania public corporations moderated by effective communication. This study's guiding theories are an agency, accounting information usefulness, and communication. The study used a positivist philosophy, deductive approach, and cross-sectional survey design. The researcher used quantitative data analysis focused on 110 questionnaires made by PAC members and nonmembers. The Partial Least Square –Structural Equation Modeling [PLS-SEM] was used to support multivariate statistical analysis. The study reported a coefficient of determination (R2) of 0.584, implying that trust in accounting information, perception of quality of accounting information, knowledge of accounting information, and effective communication moderated by effective communication explain a 58.4% variation in the extent of usage of accounting information. The study results showed that trust in accounting information and knowledge of accounting information has a statistically significant positive impact on the extent of use of accounting information. The perception of the quality of accounting information and effective communication had a statistically insignificant positive effect on the extent of accounting information usage. Besides, the study results confirmed the absence of moderating effects of effective communication of accounting information on the relationships between determinants of accounting information usage and the extent of use of accounting information.

A New Perspective on Interpreting the Accounting Information of Listed Companies: Research on the Asset Structure Difference and Earnings Value Based on a Sustainable Development Strategic Perspective

The quality of accounting information of listed companies has always been of great concern for investors, creditors, government departments, and other stakeholders. As the core component of accounting information, earnings information is essential, which is hailed as a wind vane by every stakeholder. The sustainable development strategy of companies requires companies to reasonably allocate company resources and promote the long-term and rapid development of the company. Based on the sustainable development strategic perspective, this paper takes Chinese A-share non-financial listed companies from 2007 to 2020 as a sample to study the correlation between asset structure differences and earnings value relevance. The research logic of this paper is: the corporate strategy determines the resource allocation scheme of the company, the resource allocation scheme determines the asset structure, and the asset structure determines the generation mode of profits. Therefore, there are different profit compositions, and the differences in profit compositions lead to differences in the corporate earnings value relevance. The research results show that, overall, compared to the companies with a large proportion of investment assets, the companies with a large proportion of operating assets have a stronger earnings value relevance to their net profit. From the perspective of the main composition of profits, companies with a large proportion of operating assets have a stronger value relevance to their core profits. Companies with a large proportion of investment assets have a stronger value relevance to their investment income. Listed companies’ different asset structures is an essential factor affecting the corporate earnings value relevance. Additionally, listed companies’ different asset structure results from the corporate strategic development choice, which shows that the corporate strategy affects the relevance of the corporate earnings value. This provides a new perspective for accounting information users to interpret the corporate earnings information, helps accounting information users to understand and analyze corporate financial statements more accurately, and has a particular reference significance for investment decision making.

Description and Implementation of Accounting Digital Rights Management Based on Semantics

Aiming at the problem of security risk of accounting secret information outflow to illegal users due to the introduction of XBRL GL(eXtensible Business Repo Rting Lang Uage for Global Ledg er) technology in accounting information release, a semantic-based accounting digtal rights management description language (ADRM L) is proposed. This method is based on the introduction of digital rights mechanism, this paper describes the rights and obligations of different accounting information publishers and users，ADRML language to facilitate the safe use of semantic segments (accounting elements) defined by the semantic network, in the following, the algorithm of ADRM L parser will be further studied and optimized to improve the parsing efficiency.

Theoretical Approach to the Application of Environmental Financial Accounting

The awareness evolution of company’s economic players about the environmental issues, leads to changes in the companies and their stakeholder’s real behavior, this brings to adopt different actions protective of the environment. However, this new perspective has challenged the organizational model, the management system and the organization’s competition strategic vision. Otherwise, the implementation of these actions in the sustainable development context generates significant expenses which must be accounted for governance purposes. Nevertheless, the traditional accounting has proved incapable to register flows related to depollution and pollution prevention actions The intervention of accounting standard-setters is therefore required, such as IAS / IFRS standards. This has proved an ability to promote financial environmental accounting by determining concepts besides a modern vison of accounting information use, in order to help companies assess their environmental performance and inform investors about potential environmental risk.