Using a variety of alternative accounting policies brings about different effects on the stated business results and the value of the company.
The objective of this paper is to develop a fuzzy logic ...solution for determining bias in financial reports on low-activity financial markets, and to find a method applicable to unquoted entities.
A fuzzy logic system was developed using data on Croatian companies, the MatLab software, and the Mamdani fuzzy inference method.
The paper provides the summary of results obtained using a fuzzy logic system, and they indicate that the model has relevant validity.
The model can serve as a stimulus for more detailed studies of biased financial statements elements. The fuzzy logic model should be further tested on a larger sample of companies classified based on their activity and under different business conditions.
The reporting of alternative performance measures (APMs) is currently the focus of much debate in the world. In this paper, we analyse APMs basics, e.g. financial statements as the basis for ...alternative performance measurement. Accounting, with the basic concepts of documentation and verifiability, provides wide intervals of evaluation of all positions of all financial statements that have found economic expression in accounting policies. Using a variety of alternative accounting policies brings about different effects on the stated financial results and the value of the company. Each of the standard financial statements users has different information needs and their understanding of fair financial reporting. Which is why, APMs and financial ratios mustn't be basis for financial decisions without deep insight into the numbers from which ratios have been made. In this paper is given an overall literature review of accounting conservatism models, which should be used in assessment of bias in financial reporting.
The reporting of alternative performance measures (APMs) is currently the focus of much debate in the world. In this paper, we analyse APMs basics, e.g. financial statements as the basis for ...alternative performance measurement. Accounting, with the basic concepts of documentation and verifiability, provides wide intervals of evaluation of all positions of all financial statements that have found economic expression in accounting policies. Using a variety of alternative accounting policies brings about different effects on the stated financial results and the value of the company. Each of the standard financial statements users has different information needs and their understanding of fair financial reporting. Which is why, APMs and financial ratios mustn't be basis for financial decisions without deep insight into the numbers from which ratios have been made. In this paper is given an overall literature review of accounting conservatism models, which should be used in assessment of bias in financial reporting.
Background: Non-financial reporting in the public sector is a relatively new topic. In the European Union, through Directive 2014/95/EU, non-financial reporting of public interest entities with over ...five hundred employees at the reporting date was introduced. Thus, member states are obliged to incorporate non-financial reporting into their national legislation. Purpose: The paper examines the assumption that more profitable companies will publish more information in non-financial reports to show their performance. Another assumption is that more indebted companies are producing more non-financial disclosures. Therefore, the purpose of this study was to determine whether there was a relationship between the information that is made public in public sector enterprises' (SOEs') non-financial reports and their financial performance. Methods/Approach: The paper analyses data from publicly available non-financial reports of SOEs for the period 2017-2019. The sample consists of 27 companies, including 10 Croatian SOEs, 10 Slovenian SOEs, and 7 Hungarian SOEs. Findings: Based on the conducted research we have drawn following findings; State ownership has a negative impact on the information provided in non-financial reports, while the quantity of information provided and the number of employees are positively correlated. Profitability has a negative impact on non-financial reporting, while a higher net profit will increase non-financial disclosures. Leverage has a positive impact on the IRD index in the sample of Croatia and Slovenia that was observed. Conclusion: Non-financial reporting has been implemented in accordance with Directive 2014/95/EU. In the examined sample of SOEs a correlation was found between non-financial reporting and the profitability and indebtedness of SOEs. Originality: Research in the paper has been made on previously unresearched examples – SOEs non-financial reporting in Croatia, Slovenia and Hungary.
Nowadays, women make more than 60% university graduates, but their status in the labour market does not fully reflect educational achievements, which leads to greater financial dependence of women on ...men and gender inequality in other areas. To determine the potential solutions to this situation the paper analyses correlation between public spending on childcare services, gender equality in terms of time spent in unpaid work and differences in employment rates of women with children under the age of 6 and women without children in EU. Results confirm significant positive correlation between specified variables and highlight the need to take into account different gender roles of men and women in the decision-making during the budgeting process in order to ensure equal opportunities to male and female labour force in the labour market as a precondition for greater gender equality.
The paper discusses the main factors that determine the level of accounting conservatism, with all the consequences for the future business prospects. Described factors of conservatism in accounting ...are mainly caused by the motives of management, from tax motives, the maximum possible conservative accounting policies, to the motive of access to the capital markets with the least possible conservatism, or by using aggressive accounting policies. This paper studies the theoretical assumptions of conservatism in an enterprise, with the possible consequences resulting in hidden reserves or, in the opposite case, the hidden losses in future reporting periods. The aim of this paper is to examine the impact of accounting conservatism onto the reported financial position and business results and, indirectly, on the investment. Since the combination of chosen accounting policies affects financial reports, a model i offered to measure the impact of the selected accounting policies onto the financial statements. Investors are thus provided opportunities for better risk assessment of investments.
Računovodstvo pruža mogućnosti evidentiranja poslovanja poduzeća na različite načine. Primjenom različitih alternativnih računovodstvenih politika postižu se različiti učinci na iskazani poslovni ...rezultat i na vrijednost poduzeća u cjelini. Teorijski, primjena različitih računovodstvenih politika u kratkom roku ima učinak na iskazani poslovni rezultat i na vrijednost poduzeća, dok je u dugom roku učinak primjene različitih standardnih računovodstvenih politika u sustavu stalnih cijena neutralan. Ipak, teorija ne uzima u obzir stohastičnost poslovnog okruženja i moguće promjene u zakonskoj regulativi. Teorijski modeli su ceteris paribus modeli kojima je najčešće nemoguće točno predvidjeti gospodarska kretanja i poziciju poduzeća na dugi rok. Stoga utjecajne skupine, koje određuju poslovnu politiku poduzeća, kombiniranjem dostupnih alternativnih računovodstvenih politika, utječu na kratkoročni rezultat poduzeća i na vrijednost poduzeća u cjelini. Ovim se radom opisuju mogući koncepti fi nancijskog izvještavanja koji su u najvećoj mogućoj mjeri usklađeni s pojedinačnim ciljevima dionika poduzeća, a koji će biti usklađeni s maksimalnom dugoročnom održivosti poduzeća. Opisanim će se konceptima u najvećoj mjeri uvažiti dugoročni interesi utjecajnih skupina. Analiza dugoročnih interesa svih dionika daje za njih prihvatljiv računovodstveni koncept, kojemu su osnove opisane ovim radom.
The COVID-19 pandemic is having a significant and far-reaching impact on nations around the world. Most governments are implementing interventions to mitigate the effects of the pandemic. These ...interventions have immediate and on-going long-term financial impacts. The nature and scale of these government interventions vary widely across different countries. It is important for governments to assess and report the impact of COVID-19 on their statements of financial position and financial performance in a wider context and with the long-term view. Therefore, the main aim of this paper is to research necessary changes in financial and nonfinancial reporting in order to respond to new COVID environment. We will also investigate integrated reporting and if this reporting is actually an appropriate framework for nonfinancial reporting in the public sector in COVID-19 environment and how can integrated reporting be better adapted to bring real value to the user. The overall conclusion of the paper is that integrated reporting is the framework with integrated, holistic thinking that is more than ever required now in the COVID-19 and post COVID-19 environment. This is especially so given the wide range of information users in public sector.
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