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Financial Reporting - Science topic

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Questions related to Financial Reporting
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Is it possible to determine whether the assets of a company have been overstated without testing every single asset for overstatement?
Is it possible to determine whether a company's assets have been overstated using only the information provided in its financial statements?
Question is provoked by the idea of measuring whether a company (or group of companies) is compliant with the prudence concept established in the Conceptual Framework for Financial Reporting (2018). Naturally, it could be extended to overstatement of revenues and understatement of liabilities and expenses.
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I like Nicholas Renaldo's answer of compare asset values with their market value and comparing the firm with the same sector firm -- but I would look to the ROA (return on assets). If the firm cannot earn a fair or superior return on their assets at fair market value (FMV) then they do not have a good reason to be in business and if they cannot earn a good return on the acquisition cost of their assets then they should go out of business. Avoid return on owner's equity as that can be plumped by leverage.
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Can you provide me with any information or source regarding how to measure the quality of financial reporting?
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Considering the historical development and the hybrid nature of the SA GAAP (replaced) which is believed to have little difference and much similarity with IFRS, are they material differences that are substantial?
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The primary difference between the two systems is that GAAP is rules-based and IFRS is principles-based. This disconnect manifests itself in specific details and interpretations. Basically, IFRS guidelines provide much less overall detail than GAAP.
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What are appropriate measures of financial reporting transparency? Can we determine whether one type of company is more transparent than another from a financial reporting perspective based on certain financial ratios or indicators? If yes, which ones exactly?
Thank you
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Although it is a lit bit older, the following paper may help you out in this regard:
Financial reporting transparency
ME Barth, K Schipper - Journal of Accounting, Auditing & …, 2008 - journals.sagepub.com
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Social accounting.
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Dear Abdulnaser,
The article entitled "Non-financial reporting research and practice: Lessons from the last decade" contains a detailed response to your questions. You can find the paper on the following links:
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I am preparing for the undergraduate thesis which is very impoatant to me. The main topic is about the relatioship between bank asset devaluation and risk management, after the implement of IFRS 9, what's the impact on the bank? If you have any related airticles or any ideas want to discuss with me, please cotect me, thank you so much.
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You may want to check Google Scholar for such articles by plugging the name of the topic that you are searching for. Articles published in Google Scholar are more reliable than others since the articles listed there are published in peer-reviewed journals and/or international conferences.
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Journals that discuss the factors contributing to a quality financial reporting
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Certainly, cryptocurrency trading will require high-accuracy hedging strategies because of the huge changes and fluctuations of these currencies that affect the financial position of the investor. Do you think that the International Financial reporting Standards Board(IFRSB) should prepare for the issuance of an accounting standard in this regard?
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whereas i agree with Leonidas G. Davidopoulos
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My dependent variable is a dummy variable where I categorize certain firms as aggressive financial reporting (1) or aggressive tax reporting (0).
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Please, don't mix the research process up. The logistic regression technique is an analytical tool employed to measure the relationship/influence/impact/effect of one or two variables on another variable. On the other hand, the sample size is concerned with the part of the population to be included in the study.
The logistic regression model do not determine the sample size. However, the population/sample size employed can influence the quality of your final output. The larger the population/sample size, the better the output.
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we are planning to issue a call for paper on Financial Accounting Research for an ISBN book. we have to mention the broad areas of research in Financial Acounting.
Can anybody suggest the classification of research in Financial Accounting
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management accounting
cost accounting
forensic accounting
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Any of you know about attempts of standardization for the VAS using the methodology or the National Accounts, i.e, tied to national GDP?
I was asked to prepare a proposal for a professional body in my country and I wonder if this job could be simplified via inspiration in previous attempts.
Thanks a lot in advance for your suggestions,
José A GONZALO-ANGULO
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The development of accounting and financial reporting should be correlated with technological progress in this area, i.e. should take into account the development of IT applications that are commonly used in accounting, accounting and financial reporting in business entities. In addition, in recent years, instrumentalization, standardization and computerization of conducting economic, financial, indicator, fundamental analyzes, etc. supporting reporting processes have been developing rapidly.
In addition, computerized analytics concerning the processing of data generated, among others, in accounting systems on Business Intelligence platforms are also developing. Analyzes carried out in the cloud using Business Intelligence based on data collected in Big Data database systems support financial management processes and management of the entire economic activity conducted by a specific company or financial, public, etc. institute.
Do you agree with my opinion on this matter?
In view of the above, I am asking you the following question:
What are the main determinants of the development of accounting and financial reporting?
Please reply
The issues of the use of information contained in Big Data database systems for the purposes of carrying out Business Intelligence analyzes are described in the publications:
I invite you to discussion and scientific cooperation
Best wishes
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Dear Agumas Alamirew Mebratu,
Thank you for your reply, ie for your views on the main determinants of accounting development and financial reporting influencing the country's accounting development.
Thank you, Best regards,
Dariusz Prokopowicz
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Dear researchers,
I am a PhD student – studying financial performance (FP) of banks as an outcome along with other independent factors. FP data will be obtained from financial reports (Ratios)- my question how to integrate the ratios with the survey responses of the other factors (measured using Likert scale) in order to perform statistics measures using SEM.
Will be that possible to do it manually by assigning a number for each ratio and if the obtained ratio of the bank is good then the number will be given.
I appreciate the response.
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First you can convert ratio measures to ordinal criteria.
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The question is self explanatory
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The accounting for ECL for banks is particularly challenging given ECL accounting is designed to incorporate estimations of credit events, and their consequential cash shortfalls, based on a probability‑weighted approach. In times of heightened uncertainty these estimations become more difficult. This publication highlights the major building blocks to ECL accounting, with particular focus on the measurement of ECL under stressed economic conditions and the impact that modifications and government assistance may have.The scope requirements of ECL accounting are worth revisiting given much of the focus is on its application to loans, but the scope is far broader. The requirements also apply to debt securities (measured at amortised cost or fair value through other comprehensive income), trade receivables, contract assets under IFRS 15 Revenue from Contracts with Customers, lease receivables under IFRS 16 Leases, issued loan commitments and issued financial guarantee contracts which are not accounted under IFRS 4 Insurance Contracts and IFRS 17 Insurance Contracts.Of particular note for banks is the accounting for issued loan commitments and issued financial guarantee contracts. In periods of economic stress, corporate borrowers are increasingly likely to draw down on borrowing facilities. The issuer of the loan commitment will need to reconsider the amount of ECL given future expected drawdowns can be accompanied with an increasing probability of default as corporate borrowers use facilities to meet their short‑term liquidity needs in response to declines in output and revenues. Similarly, financial guarantee contracts that reimburse the holder of the guarantee for failure of a borrower to pay under a specified debt instrument will exhibit greater probability of default when the issuer of the debt that is guaranteed is subject to financial difficultly. All other things being equal, an increase in probability of default will typically result in an increase in the ECL.
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I am looking for metrics that can be used to measure the accounting conservatism for each individual component and not for the company as a whole.
For example, measuring the accounting conservatism for fixed assets, inventory, intangible assets, deferred tax assets, deferred tax liabilities, provisions, and revenues using the information published in the financial reports.
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Yes. I agree with you!
So, regarding questioning, I suggest identifying companies that have systematically present this occurrence and doing a backtest in order to find an indicator that can be transformed into a mathematical formula. There, a case study can validate or not.
success!
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There are IFRS, but still no uniformity in the field of accounting worldwide. One Universe, One Accounting Norms should be there.
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Yes . I agree .
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Hi, I'm conducting a research on fraudulent financial reporting. One of the variables score has been reversed, I wonder if I should refer to the total score that has computed the reversed items or the total scores computed from original values, when doing correlation.
Your guidance is greatly appreciated. Thank you.
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Interesting Q. What do you mean the variable is reversed? Is it an error?
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I'm trying to analyse the impact of sustainability aspect on firm performance. My sample includes firms from the United States (US) as well as non-US firms. The study includes various variables (accounting ratios) such as Return on Assets, Return on Equity, Return on Sales, Debt-to-Equity, Capital Expenditure to Sales, etc. With the difference in the accounting treatment between IFRS and GAAP, are the ratios subjected to differ? If yes, then can the difference adversely affect my study's analysis and its results?
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Hi Athem Mac ! As IFRS and US GAAP differ, I would say that the results of your empirical modeling can also be effected by that. There are already some published papers that talk about these differences and their influence on earnings and financial performance. Please, have a look at:
Barth, M. E., Landsman, W. R., Lang, M., & Williams, C. (2012). Are IFRS-based and US GAAP-based accounting amounts comparable?. Journal of Accounting and Economics, 54(1), 68-93.
Beuren, I. M., Hein, N., & Klann, R. C. (2008). Impact of the IFRS and US‐GAAP on economic‐financial indicators. Managerial Auditing Journal, 23(7), 632-649.
Van der Meulen, S., Gaeremynck, A., & Willekens, M. (2007). Attribute differences between US GAAP and IFRS earnings: An exploratory study. The International Journal of Accounting, 42(2), 123-142.
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Hi, I am doing a content analysis of quantitative and qualitative information from annual financial reports. The results will be quantified and statistically analysed. Later, I am doing interviews and thematic analysis of interviews. What ontology ad epistemology does it belong to? The research design is mixed methods research. My area of research is accounting and finance.
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perhaps we can take a step back and you could say a few words on why you think you need to incorporate issues of ontology and epistemology, and what difference these issues would make for your research?
You wrote rather succinctly that you „had been looking into the corporate reporting structure and [found] that corporate reporting needs improvements on grounds of [a] specific theoretical underpinning“. What are the reasons that this improvement is needed, and can they be related to ontological/epistemological issues? Or is it more a matter of the theory which leads you to assume that such improvement is required, and you wonder what the theory‘s ontological and epistemological bases are?
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Hi this is Ayoob, doing certification in Chartered accountancy, and MBA in finance and currently doing internship in audit & assurance firm.
So, this is my 2nd last semester of MBA and in which we I have to do research thesis phase-1, for this I am in need of to choose topic.
whether I should choose topic from International Standard of Audit (ISA) or from International Accounting Standards(IAS)/International Financial Reporting Standards(IFRS).
Please advise me in this regard.
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My advice is to think about the problem to investigate. What is the problem to investigate? Will I have access to the databases? that is, access to the company or group of companies. Do I like the theme?
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I am studying the impact of having a data breach on the tone/financial reporting quality of the 10ks and to avoid confounding variables, I investigated that propensity score matching was the solution. However, I don't know or dispose of the variables that affect the choice of treatment i.e being breached but I have the variables that "control" the outcome i.e Tone. Does anyone have proposition??
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You may test parallel trend if the parallel trend is exist in prior treatment then you can use DID, PSM DID, Two Step System GMM...
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International Accounting Standard (IAS) and International Financial Reporting Standard (IFRS) are the same. The difference between them is that IAS represents old accounting standard, such as IAS 17 Leases . While, IFRS represents new accounting standard, such as IFRS 16 Leases. IFRS 16 replaces IAS 17 effective 1 January 2019.
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In 1971 the International Accounting Standards Committee (IASC) issued the International Accounting Standards (IASs) and in 2001, the IASC restructured as the International Accounting Standards Board (IASB). The IASB adopted IASs and started issuing and publishing new accounting standards, such as IFRSs (Alharasis forthcoming).
In general, up to now there some IASs are still required and not yet replaced by IFRS. Both IASs and IFRSs are now under the supervision of IASB.
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Break this aim down into more specific (5) objectives. The aim of this study is investigate whether accountants in Pakistan believe Corona has a significant impact on the financial reporting of organizations and to identify the reporting items on which the impact is perceived to be the strongest.
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Break the classification into different types of companies - finance, manufacturing and services. The impact is different and not comparable across the board.
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I am trying to compare pre and post ifrs adoption
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I have been working on similar issue. In my case i have gone through all available jones type model in literature till 2017. Following that, it is documented that the extended modified jones model (Yoon et al., 2006) is more appropriate in the context of emerging economy or developing countries, like Hoang (2014) in case of Vietnamese firms; Alareeni and Aljuaidi (2014) in Palestine; Al-Rassas and Kamardin (2015) in Malaysia; Islam et al. (2011) and Islam (2014) in Bangladesh; (Yoon, Kim, & Woodruff, 2012) in Korea . You may consider that.
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Big Data Analytics has revolutionized various sectors.Let us explore its impact on accounting, auditing and financial reporting
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The accounting and finance data is a subset of enterprise data which includes broader operational and transactional data that can be used for analysis and forecasting. From the literature, there is the broader view of big data which includes new types of internal and external data much of which is unstructured but yields new insights into business performance, risks and opportunities. This more global view of data encompasses social media data which is increasingly gathered as part of companies’ online strategies
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hello dears, I have just interested in IFRS9 ECL models. I have three question and I appreciate all answers.
1) which models are best for pd, LGD & EAD calculation when I have scarce (about 5-7 years quarterly data) data?
2) can I calculate lifetime PD without macroeconomic variables and then add macro effects?
3) when I use transition matrix approach how have to estimate "stage 2" for earlier period, when IFRS9 was not valid and there was not any classification by stages.
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Answering:
(2) PD without macro-variables will be just point-in-time PD. If you are interested in forward-looking PD, you have to add macro variables (easily using 1 above, for example).
(3) Bayesian methods again will help for rigorously adding expert criteria to stage calculations through prior information.
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I need a complete set of data from IFRS adopting countries, with their respective year of adoption, in M.S. Excel format, published by IFRS Foudantion.
Compiling a complete dataset takes a long time, so I'm looking for help if someone has already compiled it.
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You can check bank scope data base. All the best for you in your research.
You can see this thesis;
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Hello, I am interested in IFRS 9 models. I am economist and data scientist and I haven't any knowledge in accounting. Can u provide me with links about simple explanation of IFRS 9 standards and IFRS 9 models.
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How to measure formal harmonization(De Jure) between local standards and IFRSs?
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اعتقد ان افضل اول يجب القيام به هو مقارنة الاطار النظري للمعايير الدولية مع الاطار النظري للمعايير المحلية،ثم قواعد العرض و القياس و الاعتراف.
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How to describe the concept of Financial Reporting Supply Chain.What is exactly covered under its ambit.
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Hello,
Do you want to talk about management control and driving by dashboard with KPIs (Key Indicators Performance) ?
Remaining to your listening
Bruno
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Hi all,
I would like to investigate if higher earnings persistence my reflect earnings smoothing indicating lower than higher financial reporting quality. Thanks in advance.
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Dear Lemonia Marina Rempoutsika,
If I've understood correctly, you're wondering when revenue levels are always high, so is financial reporting high quality or is the business in good economic state?
Answer: we cannot say that the financial reporting is good because besides the income of the enterprise, he must have profit and necessary cash.
However, if you are interested in the degree of objectivity of the financial statements, it is not influenced by enterprise income and other indicators. It is influenced by the professionalism of accountants-managers and auditors.
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International Financial Reporting Standards
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May be that Gahna is not a member in IFAC, and there is no obligation for firms in Ghana to do so.
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What could be the consequences in the 2019 Financial Statements of the application of the new IFRS 16?
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Integrated Reporting or Annual Report + Sustainability Report?
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Managers want to signal their activities in sake of stakeholders to them.
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In your opinion, what are the best ways for financial reporting that can be followed by the ROK to obtain the largest number of shareholders at the international and national levels
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It's not only communicating any financial report but one that is transparent accurate and understandable to all and sundry. Existing and prospective investors only want to have good return on their investments and assurance that their invested capital are safe and nothing else.
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Corporate governance is one of the well researched areas. I will like to assess the effect of corporate governance on financial reporting quality. What are some of the important variables that should be used in assessing corporate governance and financial reporting quality? Your contributions would be very much appreciated.
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for corporate governance the variables can be for example board ,audit committee.external auditor and internal auditor characteristics . for quality , the variables can be for example information relevance , earnings persistence .
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Dear research community,
I want to conduct an event study about the market reaction around 5 preliminary announcements on IFRS 16 for my master thesis. Therefore, I have to download daily stock return data of each company and return on each country's stock market index. I tried with the variables Unadjusted Price(UP)  for the firms and the local index(LI) for the stock market returns but the numbers don't make sense. I was wondering if the variables are wrong or if I did make any mistake. I hope you give me any additional information/ tips.
Thank you in advance!
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If I understand your question correctly, you need to use returns and not prices. In other words, you have to compute something called (the abnormal return) which is the difference between the expected return and the actual return caused by the event. After that, you should use the cumulated abnormal return to account for information asymmetry before the event. To calculate the abnormal return you need to calculate stock beta using market adjusted prices and stocks closing prices. After that, you have to multiply beta for that stock with the market index closing price at specific date and then subtract the result from the actual return. Cumulated abnormal return is simply the total of abnormal returns of the previous dates. At the end you may use t-test to determine if the average abnormal return is significantly different from zero. I hope this help
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There are many studies which revealed that the IFRS adoption may increased the accounting quality. However, for the best of my knowledge there are no studies which have examined the impact of IFRS adoption on non-financial information disclosure such as CSR disclosures.
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Hello dear I am very happy to read the questions and find the answers
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Do you think that GRI indicators (www.globalreporting.org) will become the international standards of non-financial reporting?
These indicators are most detailed in terms of defining nonfinancial reporting on ecology, social responsibility and economics.
What is the share of accounting information (especially environmental accounting) in non-financial reporting?
Do you have any articles on this topic to share with me?
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Yes absolutely! Because it will harmonize the reporting
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Almost one year after the application of IFRS 9, we can carry out ex-post analyzes on the "Business Model" envisaged by this principle, which came into force in January 2018 to precisely understand how to objectively identify the business model and then apply it optimally in the IFRS 9
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How can the media image of the current and prospective situation of companies of issuers of securities, whose shares and bonds are valued on capital markets, be improved?
How should the reporting of issuers of securities companies be improved so that shareholders and investors operating on the markets and stock exchanges will receive more complete and necessary information about the economic and financial situation of individual capital companies?
How should the financial supervision institutions over stock exchange markets motivate capital companies to improve the issues of information practices and reporting, so that shareholders and investors receive current and complete information on the economic and financial situation of individual capital companies?
At present, the trend of increasing the scope of the publicly announced scope of information on the economic and financial situation of individual companies is predominant, so that shareholders and investors, in addition to standard information in the field of reporting, that is, publicized in the media according to certain standards of financial information given in a given financial statement format, also receive information describing the possibilities and prospects for the development of a specific enterprise, a capital company whose securities are valued on the stock exchange. As a result, shareholders and investors should be better informed about the economic and financial situation of individual companies and entire capital markets. The improvement of information standards prevailing in the media in the economic and financial situation of individual capital companies should also increase the correlation of the situation on capital markets with the economic situation in the entire economy. In this way, the probability of further global financial crises will be significantly reduced.
Therefore, I am asking you with the following query:
How can you improve the media image of the current situation of companies operating on capital markets?
Dear Friends and Colleagues of RG
I described the problem of "Anti-crisis state intervention and created in media images of global financial crisis" in the publication:
Please reply
Best wishes
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Hello Everyone
In continuation to @imitiaz suggestion of hiring professional.
A company can came with opt for
1. Print media campaign in financial news paper / pint paper
2. TV advt on popular financial channel like CNBC / Bloomberg etc for example
And many more
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Big Data is the buzzword today. Big Data Analytics is useful in various fields, and accounting is not an exception. My purpose of initiating this discussion is to know the impact of Big Data Analytics on Accounting in general and on Financial Reporting in particular. Hope, intellectuals will share their valuable thoughts on this issue.
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A lot of entities acknowledge the importance of data gathering, may it be on the customers’ purchasing routines or employees’ performance measures. According to Donny Shimamoto, CPA, CGMA, CITP, and a Maximo Mukebalai awardee, accountants play a significant role in data analytics. For instance, Shimamoto pointed out that information is in all places. However, pertinence, lucidity, and accuracy are often missing from this information
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How to measure withdrawals of goods and finished goods by owners in IFRS financial statements?
a) Is the withdrawal at carrying amount or fair value?
b) What is the appropriate booking entry?
per sales of goods to finished products
and sales tax?
)c Are withdrawals by owners actions of owner in their function as owners? (If yes, the journal entry might not have any effect on net income)
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Yes, it goes without saying the cost (FIFO etc) at the end is compared to the market to determine net realizable value, but it is not fair value.
But a good reminder Isolda, thanks, if dividends are paid in not cash form, we must check fair value of inventory . So withdrawal will be debited for the fair value plus VAT from FV of inventory CU (iin the case that material purchased recorded VAT on debit side ) and Finished goods credited (inventory) by cost value, VAT CU credit and yes we have revenue if Fair value > than cost or loss if FV< cost of Inventory (or NRV of Inventory may be the case). see IFRIC 17.
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I need information or references regarding International Accounting Standards and Financial Reporting Standards (IAS / IFRS). Thanks. Can anyone help me?
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Open the website of the International Accounting Standars Board.
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Firms performance represented by the future ROI/ROE, therefore what are the factors that will help the investors to make a rational decision?
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IFRS enables the firm to communicate business and financial information in unified manner at the global context and attracts the global investors.
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Does the integrated report (IR) that fits into integrated thinking create value through the integrated corporate risk management system?
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Dear Prof. Cucaro,
I feel inclined to share a thought or two with you on this somewhat esoteric topic on the education field theory of econophysical science and we have done research on the heart-mind turnpike in asset management and can state that the integrated report can create value only to the extent that complete asset markets exist for pricing the shares of the integrated corporate risk management system, as we have discovered, but incomplete markets which is equivalent to imperfect asset markets cannot create value since markets may not reach equilibrium generically Mallick (2003, 2009) for e.g. in www.researchgate.net/profile/Soumitra_Mallick for resons which have to do with dimensional closure in group homology of digitalised choice sets of assets conditional on expectations integral paths as we have derived elsewhere.
S.K.Mallick (corresponding author)
for S.K.Mallick, S.Raychaudhury, S.Mallick
of The RHMHM School,
USA, Japan, India
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for research purpose
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A financial analyst or an investor interested in making investments in equity of a company will be concerned with the prospects of rise in value of the firm. For equity valuation purpose, the relevant financial measures are as follows:
Profit after tax
1. Earnings per share: Number of outstanding equity shares
Net worth
2. Book value per share: Number of outstanding equity shares
Dividend + Price change
3. Yield: Initial price
Average of market high and low
4. Price-earnings ratio: Earnings per share
Retained earnings
5. Retention ratio: Profit after tax
Earnings before interest and tax
6. Earning power: Total Assets
Profit after tax
7. Return on Equity: Net worth
Total Debt
8. Debt-equity ratio: Net worth
Market high in the year – Market low in the year
9. Price volatility index: Average market price in the year
Besides above, few more are also important such as:
(a) Gross profit margin
(b) Operating profit margin
(c) Net profit margin
(d) Stock beta
(e) Overall beta
To determine the appropriate earnings multiplier (from the dividend payout ratio) an analyst / investor must consider the following:
· The earnings of the security
· The risk of the security
· The growth rate of the dividend stream
· The duration of the expected growth and
· The dividend payout ratio
Determining the extent of change method: Different methods of forecasting earnings are available. The two categories into which the methods fall are given below with a brief list of some of the methods.
1. Earlier methods
· Earnings methods
· Market share / profit margin approach (breakeven analysis)
2. Modern techniques
· Regression and correlation analysis
· Trend analysis (time series analysis)
· Decision trees
· Simulation
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I'm looking for the different between IAS 11 and IFRS 15 , there are two approaches used .
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Theoretically A=L. But question arises whether R=B. It may some times more. Then what the gap spells. Does this types of aspects are discussed in the standard?
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for research purpose
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Thank you
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I'm wondering if there is any research with the impact of introducing IFRS 9? The standard is in use for almost a year.
THX in advance for information.
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Dear Mojca
Implementation of IFRS 9 became effective on January 1, 2018. There may be some anecdotal evidence of its impact, however, scholarly research of its effects is probably too soon to tell. The results generated from IFRS 9 will be compared to IAS 39. There is some literature that studies IAS 39 impact. See:
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I am trying to operationalise a measure of the 4 perspectives of BSC firm performance, - customer, financial, internal business Process and learning and growth” I am have trouble finding a measure that can be used for self reporting to against these items by SME managers. N.B. The SMEs are not listed, so I do not have access to financial reports, which is why I am using self reported measures.
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Server theories are to used in developing the proposed model namely, Theory of Planned Behavior, Diffusion of Innovation Theory and Institutional Theory.
Please educate me regarding the appropriateness of these theories for the above research.
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Hi, If you take respondents as CEO or top managers of the SMEs the personal factor of the decision maker influence the choice making in adoption of IFRS for SMEs. As per the question you posed that SEM to use. yes you can. I suggest that use exploratory study design.
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A model is to be proposed based several social theories such as Theory of Reasoned Action, Theory of Planned Behavior and Diffusion of Innovation Theory.
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I agree with Alistair. You need to modify the topic either to 'suggest 'Exploring the adoption of IFRS for SMES: A case study of ....'. A PhD should bring about a new knowledge or experience that is not obvious from the beginning. Try to read further and find out in clear terms and succinctly what are the issues at hand you are trying to find solutions to.
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I would like to investigate or present the methods of measuring readability in financial reporting. Do you have literature recommendations in this regard?
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Carlo Drago, Gianluca Ginesti, Claudia Pongelli and Salvatore Sciascia, Reporting strategies: What makes family firms beat around the bush? Family-related antecedents of annual report readability, Journal of Family Business Strategy, (2017).
Shixiang Zhou, Heejin Jeong and Paul A. Green, How Consistent Are the Best-Known Readability Equations in Estimating the Readability of Design Standards?, IEEE Transactions on Professional Communication, 60, 1, (97), (2017).
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I am working on the relationship between corporate governance and financial reporting quality, please help.
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The four factors of corporate governance are:
Accountability
The CG outline must provide for the calculated direction of the organization, the efficient scrutinizing of management by the board, and the board’s accountability to the enterprise and shareholders.
Fairness
The CG support must guard shareholder privileges and guarantee the impartial treatment of all stakeholders, including marginal and overseas shareholders.
Responsibility
An effective system of CG must endeavor to channel the self-interests of managers, directors, and the advisers upon whom they depend, into alignment with company, stakeholder and government interests.
Transparency
The CG structure must make sure that timely and truthful disclosure is prepared on all materials about the enterprise, together with its performance, ownership, governance structure and financial situation.
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The study is to evaluate FRQ with the compliance level of Qualitative Characteristics (QC) . Using annual reports of listed entities,Beest, Braam, & Boelens, 2009 quality index is to used to measure compliance level of QC. Also, use professional accountants to evaluate annual reports using the locket scale questionnaire .
what kind of method is this?
is it a content analysis?
Subjective Quality rating?
need to find suitable methodology for this
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Dr. your question is not very clear, therefore, what I understand from your question, I answered it to help you
Methods of evaluating Financial Reporting Quality:-
1. Evaluate the cash flow quality of a company;
2. Evaluate the earnings quality of a company;
3. Evaluate the quality of a company’s financial reports;
4. Indicators of balance sheet quality;
5. Indicators of cash flow quality;
6. Indicators of earnings quality;
7. Troubles that influence the quality of financial reports;
8. Sources of in a row about risk.
9. Study decline in earnings and how the accretions factor of incomes influence the pace of mean waning;
10. The concept of sustainable (importunate) incomes;
11. Use of a theoretical structure for measuring the quality of a company’s financial reports.
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Are there anyone from South Asian countries to collaborate with me in doing this research.
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Thank you.
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I am working on "Impact of Financial Reporting Quality on Investment Efficiency" in Pakistan. But, my I have now proper knowledge about Econometric and tools and techniques. I am using Panel data set for firm level from year 2000-2016.
Inveff i,t+1 = b0 + b1FRQi,t +B2 agei,t + b3 FCFi,t +b4 sizei,t +b5 leveragei,t + b6 agei,t + b7 MTBi,t + b8 Zscorei,t + b9 ROAi,t + b10i,t stdCFOi,t + b11 std change in salei,t + b12 tangabilityi,t + b13 Dlossei,t
Problems that I am facing are
1. Is my data set is dynamic panel data set?
2. How can I find the endogeneity in my model?
3. What instruments should I use in response to endogenous variables?
4. Should I go for simple panel estimation techniques or simple GMM estimation techniques or system GMM estimation technique and why?
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You can use Instrumental Regression but first you have to find appropriate instruments.
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Dear Mardini,
I am planning to write my project about above mentioned topic. Do you have any idea if there's published paper in Qatar about this area?
I know you have done IFRS 8, but my question concerned about the whole IFRS adoption.
If not would you be able to help me with survey response if I send you?
Kind regards
Saeed Osman
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Many thanks Hellmann much appreciated article.
saeed
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Ethiopia use GAAP in previos years but now adays try to adopt IFRS
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Transitional cost
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The International Accounting Standards Board (IASB)’s IFRS 9 standards will require banks to recognise impairment sooner and estimate lifetime expected losses against a wider spectrum of assets. The implementation of these standards in January 2018 are widely expected to increase the stock of credit impairment provisions and affect profits.
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IFRS 9 will lead to high financial reporting quality.
It will increase the discretion of bank managers in determining the level of accruals (e.g. loan loss provisions) for credit risk.
The IASB had to modified IFRS rules to meet the regulatory needs of bank regulators for the banking system. The effect of IFRS 9 should be positive. The main issue that IFRS 9 present to analysts is that it is too forward-looking, which can create incentives for bank managers to manipulate reported earnings - using estimates.
Best,
Peterson
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I would like to use a 5-year data on EPS targets for companies listed on Bursa Malaysia. only actual EPS's are disclosed in the annual reports. Could someone suggest a source where these data can be found?
I would appreciate your suggestion!
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Dear Dr Saed
May you check the data stream in UNISZA, it's free and you can download all kinds of financial data for all countries for everything you need such as EPS.
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Working on a group project on SWOT analysis of Financial report of Lufthansa Passenger Airline Group between 2015 and 2016.
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Financial performance of organization normally depend on the situation on ground. Therefore, you need to know the financial position of the firm at a given point of time and also how is the financial performance over a given period of time.
After you have identified the two points, you may analyse any or all of the following;
1. Working capital analysis
2. Financial structure analysis
3. Activity analysis
4. Profitability analysis
I think this submission may help
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Using listed companies in Nigeria, please how do i extract information on research and development cost from the financial report?
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Some companies differniate between reseach (R) and development (D) expenses. Research expenses , if not lead to development, are treated as operation expenses charged to the current year. Development expenses appear as intangible assets.
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A major reason for the adoption of IFRS in Nigeria is that it will enhance inflow of FDI into Nigeria. 5 years after this has not happened.
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I think the following two papers may help you in this regard. Please check them out.
International Financial Reporting Standards (IFRS): pros and cons for investors
R Ball - Accounting and business research, 2006 - Taylor & Francis
Why do countries adopt international financial reporting standards?
K Ramanna, E Sletten - 2009 - papers.ssrn.com
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Anyone have got some good resources or any suggestion on academic work for the above topic please.
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I think the following article will help you in this regard. You may want to check it out.
A methodology for analysing and evaluating narratives in annual reports: a comprehensive descriptive profile and metrics for disclosure quality attributes‏
V Beattie, B McInnes, S Fearnley - Accounting forum, 2004‏ - Elsevier‏
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I used an unbalanced sample when estimating logistic regression. The reviewer suggests that I should use a balanced, sample though it will reduce the number of observations. Any specific suggestion or reference that can give me any insight?
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It describes actual experiments conducted to reveal effects of imbalanced data on several popular classifiers, including LR, SVM, RF, etc. I think you will find what you are looking for here.
along with few references which all confirm that balancing the data in the case of logistic regression does not yield significant improvements of the prediction accuracy, if any.
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I am currently looking into possible research agenda for my graduate studies thesis. 
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Survey method. Conduct industry based survey. 
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Currently I am investigating whether or not auditor tenure (AT) has a non-linear relationship with audit quality (AQ). I expected a non-linear or parabolic relationship.
AT is measured in years, financial restatements (R) are used as a proxy for AQ.
Currently I have a set of restatements. I want to determine AT for each R so I can see how many R's there are for each AT year and can plot this. However I don't know how to obtain statistical significance for this matter.
I would be most grateful if you could help me out!
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I agree with all the above answers. 
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Information to enable researchers answer the question
International Financial Reporting Standards require extensive disclosure to enable investors and other stakeholders take economic decisions on the financial statements of a company. I want to know whether the level of disclosure affects the performance of a company especially return on capital employed. If the level of disclosure negatively affects return on capital employed, what are the implications?
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See this paper. 
It is expected that as companies have more disclosure with the intention to increase the quality of their information, this should translate into more investors to invest hence increasing their performance.  See a paper on Financial reporting quality. 
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the challenges concern the adoption and application of IFRS for SMEs.
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Assessing and analyzing the challenges and opportunities faced by small and medium sized enterprises in IFRS adoption.
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I want to explore the conflict of financial statement application due to the existence of both IFRS and the UK GAAP
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Be aware that UK GAAP only applies to entities not subject to EU requirements and is not an alternative to IFRS. Expressed differently, UK publicly accountable entities apply IFRS. Even after BREXIT this is likely to be the case. UK GAAP and IFRS for SMEs is a better but not perfect comparison. You could look to comparisons between UK GAAP and EU requirements to see what I mean.
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The impact of external auditors on financial reporting.
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I have a few articles published about corporate governance including both internal and external audits. You may want to check them out.
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The IFRS maintenance of capital concept is defined in the conceptual framework (4.59). We can restrict attention to financial capital maintenance:
Financial capital maintenance. Under this concept a profit is earned only if the financial (or money) amount of the net assets at the end of the period exceeds the financial (or money) amount of net assets at the beginning of the period, after excluding any distributions to, and contributions from, owners during the period.
On the other hand, legal capital maintenance can be described as the doctrine that forbids a corporation to return capital to its shareholders, unless authorized by law (e.g., sanctioned reduction of capital). The corporation is only free to pay profits to the shareholders. Legal capital maintenance in the UK stems from this decision of the House of Lords: https://en.wikipedia.org/wiki/Trevor_v_Whitworth
Is it simply two aspects of the same thing, i.e. IFRS concerns measurement, and law concerns obligations, or is there something more to it?
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In my opinion, the two definitions of capital maintenance represent slightly different approaches. The first one takes the owners' point of view (you should not loose your money which means equity value should not fall) while the other is more focused on creditor protection - the share capital (but not all equity) should be a buffer for creditors claims. Have a look here - maybe you'll find it helpful:
Good luck with your research!
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in micro firm (like. grocery store, shops ...) they act a very big percentage in economic around the world. however they don't publish financial reports. so i want to know what is the best measurements to calculate successful or failure of these shops? and how to calculate the profitability?
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From a practical perspective you can judge the success of a grocery store by the size of the customers willing to buy its products and use its service, competitive prices, means of home delivery and how fast is that achieved, market reputation, profitability.
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What are the factors influencing abnormal return in equity market? Please comment with Important papers and books references. Thank you