The global economic crisis, exacerbated by the pandemic of the new coronavirus infection, has led to a significant deterioration in the financial state of most economic entities. This problem has ...also affected public sector entities receiving budget financing. Even if a given public sector entity is engaged in entrepreneurial activity, with a decrease in sales cash flow decreases, whereas accounts receivable and payable increase. To carry out their statutory activities, state entities of the penitentiary system in the Russian Federation use not only budgetary funds, but also funds received from the sale of products manufactured by convicts. Therefore, the interest of users in the cash flows of penitentiary institutions is steadily increasing. The above strengthens the information and analytical functions of cash flow statements. Unlike other forms of reporting, the cash flow statement should report cash flows during the period classified by operating and investing activities (financing activity is not typical for penitentiary entities). In addition, the statement of cash flows provides useful information not only for controlling the use of budget funds, but also for current and forecast analysis. The article investigates the theoretical principles of accounting of cash flows of public sector entities of the penitentiary system of the Russian Federation. Results of the study include a proposal to improve the form of the cash flow statement by including an analytical feature — the source of financing activities. The study also presents and tests a methodology for analyzing cash flows in the context of funding sources.
The article deals with the theoretical aspects of the cash flow statement analysis and presents the cash flow classification. Horizontal and vertical analysis of the financial statements of the ...transport company “Transpo” for 2019–2021 was performed: cash flows from operating activities, cash flows from investing activities, cash flows from financing activities, cash flows, cash and cash equivalents were analized. The company's operating cash flows were mainly affected by net profit, depreciation and amortization expenses. The majority of cash flows from investing activities were related to the acquisition of fixed assets. Cash flows from financing activities were dominated by borrowings and repayments. The net cash flows generated by the company were negative due to high payments from the company's investment and financial activities. Keywords: cash flow, cash flow statement, cash flow classification.
This study examines the impact of creative accounting practices on the credibility of financial reports in Jordanian commercial banks. It highlights the use of innovative accounting techniques and ...manipulative strategies employed by firms to present accounting information misleadingly, thereby influencing the judgments of financial statement users. The research aims to investigate the influence of these practices on the reliability of financial reporting in Jordanian commercial banks. A questionnaire was developed and distributed to senior and middle management as well as workers in Jordanian commercial banks, with 51 usable responses out of 80 participants. The findings reveal a negative impact of creative accounting practices on the credibility of financial reports in Jordanian commercial banks. The study concludes by recommending that regulatory bodies in Jordan adopt policies to detect and address creative accounting methods in financial statements and develop deterrent laws with penalties and sanctions for those engaging in harmful techniques in creative accounting.
In this paper we exploit the choice allowed by International Financial Reporting Standards (IFRS) regarding the presentation of interest payments on the cash flow statement to answer two related ...questions: First, whether the classification choice is explained by firm reporting incentives and second, whether it is value relevant. Using a UK sample, we find that firms reporting losses, with a greater proportion of their debt stemming from public sources, with CFO-based covenants and greater increases in leverage in the year of adoption are less likely to report interest payments in cash flows from operating activities (CFOA). Results also suggest that the incentive to meet or beat analyst CFO forecasts decreases, but strong corporate governance increases the probability of including interest payments in CFOA. Based on the assumption that the decision not to classify interest payments in CFOA captures lower disclosure quality or poor future expected performance, we posit that these firms should also exhibit lower valuations. Results obtained after correcting for self-selection bias confirm this assertion. We conclude that managers' decision not to classify interest payments in CFOA is consistent with the opportunistic use of the choice allowed by IFRS.
This study sought to identify incentives that influence the accounting choices for classifying interest and dividends received or paid in Cash Flow Statements (CFSs), in the period from 2008 to 2014, ...in non-financial companies of the Brazilian capital market. The hypotheses refer to the effect of the choice of classification for interest and dividends over cash flow from operations (CFO), according to indebtedness, profitability, size, negative CFO, sector, and auditor. This article seeks to contribute by providing evidence on the accounting choices for classification in CFSs, considering the lack of consensus in the results of studies in the Brazilian capital market and helping to better understand these accounting choices and the incentives behind them. A correct understanding of the information in CFSs is fundamental for them to be useful to their users. The existence of accounting choices for classification in CFSs may directly affect this understanding and, consequently, their usefulness. The results help in better understanding the discretion contained in CFSs, enabling the correct use of their information. They can also generate evidence for regulatory bodies to rethink their accounting rules and for academia to direct future research. Two panel data models were developed, using a sample of 352 companies, 2,290 analyzed reports, and 3,764 data items. The results indicate that companies with a greater level of debt, profitability, and size make their accounting choices in order to report higher CFO in the CFS. The evidence obtained reinforces the international findings and adds new analyses in the Brazilian context, contributing to the development of accounting choice theory.
Previous studies show that, in common-law countries, the explanatory power of stock returns is higher using cash flows than earnings and accruals, while the opposite is true in code-law countries. ...Moreover, the literature has shown the existence of a country-specific effect motivated by different causes (taxation, financial system, creditor protection, among others). Our aim is to analyze whether this country-specific effect exists among companies in the largest Eurozone countries (France, Germany, Italy and Spain) despite the common regulatory framework, and also to study the causes that explain this country effect. We find empirical evidence that French, Italian and Spanish firms are influenced by tax rules, while German companies are more affected by creditors protection; also, Spain presents a bank-oriented financial system. Besides, the transitory earnings effect, characteristic of code-law countries, is not a cause of the country-specific effect. Therefore, national regulations are more relevant than the general EU regulatory framework.
The present study is concerned about the relationship between the cash flow statement and payment balance sheet of listed companies on the Iraq Stock Exchange, compared with the conducted studies on ...the Tehran Stock Exchange. In other words, the present study attempts to figure out whether or not the change of cash flow statement items and balance sheets can lead to an increase or decrease in the changes in audit fees.The multivariable regression model was used for hypothesis testing. Research hypotheses were tested using a 774 firm-year sample on the Tehran Stock Exchange and 210 firm-year on the Iraq Stock exchange during 2012-2017 using multiple regression models based on the mixed data technique.The obtained results indicate that there is a significant relationship between the change of cash flow statement items and balance sheet and audit fees, which means the relationship between changes in debts, assets, dividends, operational, investment, and financing cash flow and tenure, audit fee, and auditor change is significant. The current study is the first study that compares the relationship between cash flow statement items and balance sheet and audit fee of listed companies on the (Iran and Iraq) stock exchange, so this study contributes to the development of knowledge in this field.
We examine the effects of the availability of operating cash flow (OCF) information disclosed by firms operating in 15 international countries during the pre-IFRS era on: (1) the comparability of ...these firms' disaggregated earnings to those of U.S. firms for equity valuation purposes, (2) the properties of analysts' earnings forecasts, and (3) the efficiency of firms' investment decisions. We find that the comparability of disaggregated earnings improves after company-disclosed OCF information is available. We also find decreases in analysts' forecast errors and dispersion and a decrease in firms’ tendency to over- or under-invest when they are predisposed to do so.
Bu çalışmada, BIST Bilişim sektöründe faaliyet gösteren işletmelerin 2017-2021 yılları arasındaki finansal
performanslarının nakit akış tablosuna dayalı oranlarla analizi amaçlanmıştır. Bunun için ...seçilen oranlar,
objektif bir yöntem olan CRITIC yöntemi ile ağırlıklandırılmıştır. Şirketlerin finansal performanslarının değerlendirilmesinde çok kriterli karar verme yöntemlerinden biri olan TOPSIS yönteminden yararlanılmıştır. Analiz sonucunda; 2017 yılından 2021 yılına kadar en başarılı işletmelerin sırasıyla KRONT,
LINK, LINK, INDES ve LINK olduğu görülmüştür. Finansal performans açısından en başarısız işletmelerin
ise sırasıyla DESPC, NETAS, DGATE, DESPC ve NETAS olduğu tespit edilmiştir.
In this study, fourteen cash flow statement ratios were used to evaluate the financial performance of the companies operating in the BIST IT sector between the years 2017-2021. The rates selected for this are weighed by the CRITIC method, which is an objective method. It was analysed by TOPSIS method, which is one of the multi-criteria decision making methods. As a result of the study; From 2017 to 2020, the most successful businesses were KRONT, LINK, LINK, INDES and LINK respectively. The most unsuccessful enterprises in terms of financial performance were DESPC, NETAS, DGATE, DESPC and NETAS respectively.
Cash management is of great importance for the successful operation of insurance companies, and the amount of cash is affected by many management decisions. Often you might encounter in the financial ...papers and textbooks the assertion that cash is the 'bloodstream' of business. In this respect, it is emphasized that it is important for the accountants to provide timely information on cash flows. The report that is especially important for financial decision-making is the statement of cash flows, if one bears in mind that insurance companies take risks in dealing with intangible products, and therefore need to be sufficiently liquid and solvent to pay the obligations that are arising from claims at the time of the accident or the occurrence of hazards.
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