Background: Financial statements are one of the main ways for companies to communicate in order to provide financial and non-financial information to their stakeholders. The purpose of this research ...was to investigate the relevance of accounting information value. It was for pharmaceutical companies active in Tehran Stock Exchange. Methods: This descriptive-correlational study was conducted on 26 pharmaceutical companies admitted to the stock exchange during the period of 2000 to 2019. The method of collecting information was based on two library models and the information included in the financial statements of the companies. To estimate the value relevance of accounting information in this study, the non-parametric method of classification and regression tree (CART) was used, which automatically includes non-linear relationships and interactions between variables, and simple linear regression was used to test the trend of value relevance. Results: The results showed that the trend of relevance of the composite value of accounting information increased during the research period for pharmaceutical companies, but it was not statistically significant. The results of the relevance of the value of single variables show a decrease in the relevance of the value of known intangible assets, which includes goodwill and software, and an increase in the relevance of the value of alternative performance measures for pharmaceutical companies. Conclusion: The relevance of the accounting information value of pharmaceutical companies allows investors to easily adjust their investment strategies in the Bahadra Stock Exchange and make informed decisions to achieve their goals and allocate resources to more profitable investments.
Este artigo estuda o tratamento contabilístico das Entidades do Setor Não Lucrativo, encontrando-se as regras definidas na Norma Contabilística e de Relato Financeiro para as Entidades do Sector Não ...Lucrativo (NCRF-ESNL). Assim, numa primeira parte deste trabalho faremos um enquadramento das entidades do setor não lucrativo, enquadrando este setor, com os setores privado e público. Posteriormente foi feita uma pequena resenha sobre a evolução da contabilidade em Portugal. Será analisado o preceituado pela NCRF-ESNL, apresentando uma questão, alvo de opiniões diversas e polémicas, defendidas por vários autores: o reconhecimento dos bens do património, histórico, artístico e cultural (BPHAC). De facto, iremos demonstrar que nem sempre, o reconhecimento destes itens, apresenta os requisitos necessários para que os mesmos possam ser considerados como ativos. A problemática deste conceito, é muito simples. Será que os BPHAC, cumprem, em geral o conceito de ativo, devendo ser reconhecidos como tal? Trata-se de um estudo de caso, privilegiando a análise documental, cedida pela entidade alvo deste estudo, uma Associação. Foi feita uma análise comparativa entre as demonstrações financeiras, onde seriam reconhecidos os BPHAC como ativos fixos, e demonstrações financeiras em que os BPHAC não estariam reconhecidos. Concluiu-se que os bens do património, histórico, artístico e cultural devem ser reconhecidos como ativos, pois melhoram a qualidade das demonstrações financeiras, e consequentemente dos seus indicadores financeiros.
Measurement in Public Sector Financial Reportingpresents a constructive and thoughtful analysis of possible valuation methodologies for the public sector context and related peculiarities and ...critical issues.
Magnum Hunter Resources Corporation (MHRC) was an oil and gas company headquartered near Dallas, TX. Although the company grew rapidly through acquisitions, the accounting department did not keep ...pace with the company's growing size and sophistication. Management identified this as an internal control deficiency (ICD) prior to issuing the 2011 financial statements but did not disclose it because management underestimated its severity. The company later disclosed multiple material weaknesses when it restated its financial statements. This case study is designed for use in the undergraduate or graduate audit classroom to examine the classification and disclosure requirements for ICDs. After completing this case study, students will be able to apply professional standards to classify ICDs; critique the decision-making process of management, consultants, and auditors tasked with evaluating ICDs; and consider the impact of material weakness disclosure on investors.
It has been a pleasure serving as Treasurer for the American Medical Writers Association (AMWA) over the past year, and I am pleased to provide this financial report for the 2019-2020 fiscal year, ...which ended June 30, 2020. I begin this report acknowledging that during the last 2 quarters of the fiscal year, the COVID-19 pandemic caused severe disruption to everyday life and a recession. The leadership of AMWA quickly put a plan in place to minimize the impact of the pandemic. AMWA staff successfully converted to a remote work environment, and expenses were curtailed. Meetings and travel plans were cancelled, and vacant staff positions were put on hold.
The success of the 2019 annual conference in San Diego, popularity of live webinars, increase in membership, and careful management of expenses helped to sustain AMWA through this uncertain time. The full finanical effects of the COVID-19 pandemic may not be experienced until next year.
This paper reviews the academic literature on the different conceptualizations of audit quality. We argue that these discussions are rooted in the historical development of the audit profession, ...which has shown the need for audit quality indicators. However, we also demonstrate that audit quality means different things to different people, such that different conceptualizations of audit quality may lead to conflicts, as these views meet and need to be reconciled. The literature largely recognizes the multi-faceted nature of audit quality, which cannot be simply measured by a focus on adverse outcomes, such as restatements or fraud incidents. Instead, it is the combination of process, people and motivation that drives the quality of audit services provided by firms. Finally, the qualitative audit literature emphasizes that audit practice needs to be understood as a set of social interactions, which are embedded in a diverse set of organizational and contextual factors that together determine audit judgments and auditor behavior.
We use the unique economic, legal, and political landscape of China to examine the impact of auditors on the incidence of accounting fraud. In particular, we examine whether large audit firms reduce ...the incidence of financial statement fraud in China, an emerging market in which auditors face strong government sanctions but low litigation risk associated with audit failures. We find that companies audited by large audit firms are less likely to commit financial statement fraud. This effect is stronger for regulated industries and for revenue-related frauds. Our results are robust to considering the severity of fraud, excluding firms cross-listing in other jurisdictions, using alternative measures of fraud, accounting for the self-selection of auditors, and controlling for other corporate governance mechanisms. Our results highlight the role of government sanctions in assuring audit quality and have important practical implications to help international audit firms – and businesses more generally – successfully compete in China.
As taxpayers, we are sowers and reapers of public services. The ongoing Covid-19 pandemic has put considerable pressure on governments, financially and in terms of maintaining the effective delivery ...of public services. The UK's experience with Whole of Government Accounts (WGA) suggests that, first, while not a panacea, WGA has highlighted assets and liabilities (such as future pension liabilities, clinical negligence claims and public private partnership obligations) that are currently not captured under national accounting principles. Second, there is evidence emerging (albeit slowly) that WGA aids planning, facilitates decisions on the use of assets, enhances the transparency of public sector finances and contributes to conversations on long-term risk management and fiscal policy. Against a backdrop of increasing future obligations and rising debt levels, this article explains how WGA information can aid government decision-making.
ABSTRACT
November 2021 marked 10 years since the publication of the first UK Whole of Government Accounts (WGA), representing the first set of audited financial statements prepared in accordance with international accounting standards for the UK public sector. With governments around the world investing substantial resources into modernizing their financial reporting practices and systems, it is important to consider whether these changes will deliver value for money and will result in tangible benefits. As calls for further research into what public sector accounting reforms bring practical benefits, this new development article considers the usefulness of WGA, outlining what WGA makes visible, its limitations and the challenges that lie ahead.
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