The aim of the paper is to provide an overview of the sensitivity in terms of the preference for using the integrated reporting quality (IRQ) based on the reporting companies’ field of activity. The ...study focusses on designing a sensitivity analysis relying on the most relevant financial and nonfinancial indicators as required by the stakeholders. They were adjusted by the key factors for the IRQ such as the social, natural, human and intellectual capital. The study has been designed based on the upgrade and in compliance with the connectivity principle as required by the IIRC. The data was collected from the IR examples Database between 2015–2017. The results suggest that based on sensitivity function value, those sectors of activity such as transportation and infrastructure, services and trade have a higher sensitivity preference for the IR due to the quantification of the stakeholders’ interest in terms of performance positive trend indexes. Making use of regressive techniques, the authors undertook an econometrical model for the evaluation of the IRQ that may become very useful for those companies that intend to set in place a sustainable business as it provides them the opportunity of measuring the IRQ.
Assessing the CFO'S Perspective on IFRS 15 Implementation Monica-Laura, Zlati; Cristina Gabriela, Cosmulese
Analele Universității "Dunărea de Jos" Galați. Fascicula I, Economie și informatica aplicata,
12/2023, Letnik:
29, Številka:
3
Journal Article
Recenzirano
Odprti dostop
Income recognition is a very complex field that arises from the user's interest in this indicator, and it can even be the basis for errors and scams in its understanding. Even if the principles and ...standards are stable, the difficulty of income recognition is well known to practitioners, as economic conditions may require new experience, adaptive knowledge, and flexibility. Therefore, as the transition to the new IFRS 15 standard takes place, it is more important than ever to consider how the new IFRS 15 standard will be applied. In light of this, the study aims to suggests evaluating how to determine whether or not companies audited by the Big 4 accounting firms worldwide are aware of the implementation process of IFRS 15 and how it will impact the likelihood of the businesses' performance and profitability. Simultaneously, we wish to pinpoint the primary issues and roadblocks that could come up throughout this procedure. For this purpose, we conduct a quantitative study based on a structured questionnaire consisting of thirty questions that was distributed to the CFOs of the audited companies between 2021-2022. The results of the questionnaire on respondents' perceptions of the application of IFRS 15 are mixed. In addition to the advantages, the application of the new standard is perceived by some companies, especially those in the telecommunications sector, as a disadvantage in terms of the usefulness of additional information, the difficulty of estimating it, the level of subjectivity involved (which would affect the comparability of information) or the complexity and cost of implementation.
Revenue recognition is a very complex area due to user interest in this metric and can even lead to errors and fraud in its understanding. The difficulties of revenue recognition are well known to ...practitioners because, even if the principles and standards are stable, economic conditions may require new experiences, adaptive knowledge, and flexibility. Therefore, thinking about how to apply the new IFRS 15 standard is more important than ever as the transition to the new standard takes place. In this context, this study aims to evaluate the way external auditors understand how implementing IFRS 15 will probably affect business performance and profitability, and to identify the main problems and obstacles that could come up during that process. In this sense, a quantitative study was conducted using a survey of auditors working for Big Four companies during 2021–2022. To address these problematic aspects of revenue disclosure under the standard, the study’s findings look into how external auditors perceive the complexity of IFRS 15, the openness of their professional judgment, and the anticipated advantages of engagement activities. In addition, the literature review identified business sectors that demonstrated a significant impact on revenue recognition as a result of the implementation of IFRS 15.
In the last decades, the issue of the behavior geared towards society and the environment of small and medium-sized enterprises (SMEs) has created a new niche for economic researches. Most studies ...point out that entities operating in the forestry sector, despite having difficulties in applying valid corporate social responsibility (CSR) instruments, are concerned about the role they play in society. Therefore, they tend to develop their business by giving importance to the principles of sustainable development. The aim of the paper was to propose an econometric model to report the sustainability of non-financial performance for the companies operating in the forestry field. The main objectives of the study focused on defining and analyzing the studied problem through the specialized literature, defining and conceptualizing the statistical model in order to identify the risk factors and vulnerability, influencing the forestry sector in Romania. In this context, based on a sample of 248 Romanian active companies in the forestry sector in four distinct sectors, we calculated a number of indicators specific to the forestry sector in order to identify the risks and vulnerabilities and analyze the entities associated with this sector. Our research led us to the conclusion that, as far as the forestry sector is concerned, the companies that operate in Statistical classification of economic activities in the European Community (NACE) 240 and NACE 210 have registered superior results compared to the average in regards to the vulnerability of the sector, while those that operate in NACE 220 and NACE 230 focus mostly on those vulnerabilities regarding the risk zone of their sustainable development. The study could be useful both to stakeholders by giving them the possibility to identify those entities, classified according to the NACE code, taking into account the sector vulnerabilities and the risks associated with the profile market, as well as to the state that could influence through economic policies the sectors in which vulnerabilities are manifested.
This article's aim is to examine the indicators thought to be important for evaluating performance when ensuring the sustainability of the business and examining the relationship between stock market ...performance and financial performance. This research is grounded in an empirical study that was conducted using data gathered from the financial statements and reports of 68 Romanian companies listed on the Romanian Stock Exchange, representing a variety of industries. The period analyzed was between 2018 and 2022 and in order to obtain the results and validate the preset hypotheses, the econometric software package SPSS version 26 was used. The study's output is the creation of an econometric model that makes it possible to evaluate how stock market capitalization affects an entity's financial performance. The model can be helpful for practitioners or researchers in the field of economic sciences who wish to highlight their financial issues and provide as credible a financial diagnosis as possible.
Nowadays, among the key elements that contribute to a company's success is its digitization strategy, which is closely linked to its ability to innovate. As technology has developed over time, the ...accountancy profession has benefited from the opportunities it offers in terms of simplifying the work it does and making the system of economic and commercial relations more efficient and reliable. In this context, this paper is focused on identifying and centralizing, through a literature review, those factors that influence in a positive or negative way the willingness of accounting professionals to adopt digital technologies. The article can serve as a reference for current and future researchers, providing a well-founded theoretical framework for those interested in advancing research on the digitization of the accounting profession.
For some organizations, the rapid pace of economic growth, the digital revolution, and the globalization of business meant creating or acquiring intangible assets. These assets have grown in ...significance for determining a company's global value and for promoting economic prosperity, while also serving as a catalyst for the creation of added value. In this way, drawing on specialized literature, the article's aim is to pinpoint and compile the primary problems that occur when an economic entity's market value surpasses its accounting value, Additionally, we want to draw attention to the primary connections that exist between intangible assets, market value, and entity performance. In this respect, only those studies that focused on the valuation of intangible assets in relation to various concepts (competitive advantage, firm value, firm performance, innovative processes, corporate governance, etc.) have been selected, all these studies being undertaken at the level of listed or unlisted entities at national level. This study shows that important internally generated intangible assets (goodwill, intellectual capital, brand etc.) are not well understood, identified, managed, or consistently reported within an entity in Romanian annual financial reports.
The road transport business has changed dramatically in the previous three years and will confront new problems in the next years. From the start of the pandemic crisis to the current geopolitical ...and economic uncertainty, industry players have had to constantly come up with new ways to deal with the paradigm shift and support clients. The aim of this paper is to identify, through a comparative analysis of SMEs in the road transport sector, if and how they contribute to job creation and what economic contribution they make in Romania in the context of the pandemic crisis. For this purpose, through the topfirme.com platform, the economic and financial statements of a sample of 100 enterprises were collected for the period 2016-2020. The study suggests that small firms are significantly more willing than medium and big businesses to endure financial troubles and take remedial steps in this context. However, according to the analysis, the group of tiny firms manages to cope well with uncertainties and shifting market trends in the case of the current study, based on the indicators examined
The current crisis demonstrates the critical role that energy plays in our lives. The vulnerability of some of us in relation to an essential daily service illustrates that public policies need to be ...strengthened to deliver a resilient and fair market in which the consumer takes centre stage. The pandemic has given rise to additional imbalances that risk further undermining social cohesion and the mechanisms of democracy. In this context, it is necessary to develop a solidarity pact to protect the most vulnerable in the context of current and future crises and to address growing social inequalities with a focus on the health and well-being of vulnerable populations. The aim of this paper is to build through data analysis some arguments on the impact of legislative measures applied in Romania on the phenomenon of poverty that must be taken into account in any approach to the concept of energy poverty, according to the literature, the recommendations of European institutions and the experiences of other countries.
Today, food quality and safety, on the one hand, as well as increasing the level of information of consumers with direct implications on their food preferences, on the other hand, are highly debated ...topics in both national and international literature. The lack of consumers’ knowledge of information on food safety could make consumers purchase unsafe food. In the event of the existence of this kind of information, the consumption would be a safer one. Our research aimed to understand the means of adjusting the food offered to the request manifested by young and educated people and the impact of the information asymmetry on the consumers’ behavior. The main objectives of the study focus on exploring the nature of the informational asymmetry and the extent to which it usually affects the consumers’ perception and on identifying the prevalent socioeconomic factors that influence the consumers’ behavior regarding their perception of the quality of the food products and quantifying the impact of the information asymmetry on consumers’ behavior. In this study, a questionnaire survey among 529 young and educated people was used to design a cumulative analysis in order to allow the forecast based on a future trend of the food policies in relation to the change in the consumers’ behavior induced by the informational asymmetry. This analysis was segmented into impact sections that delineate the weight of the generating asymmetry factors from the weight of the factors with resistance to this phenomenon. The results of the survey led both to the identification of a quantification model of the information asymmetry that manifests itself within the relationship between the producer and the consumer and to the identification of a typology of informational asymmetry which manifests itself differently depending on the features of the food products. The study can be useful for those entities that want to identify the changes in the typology of consumption according to certain criteria in order to correlate their offer with the consumers’ requirements, as well as for the national or regional institutional bodies with a role in developing food policies adapted to these requirements.
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