Regulatory harmonisation stands as a central issue in the European Union (EU), playing a key role in achieving the single market. Accounting harmonisation, in particular, has been the subject of ...different regulatory frameworks, mainly directives. However, the literature suggests that the implementation of these directives within the EU does not consistently meet its harmonisation goals due to diverse legal, cultural, and business interpretations among the Member States. In the realm of social and environmental accounting, Directive 2014/95/EU (NFRD) compels specific companies to prepare and present Sustainability Reports (SRs), with the primary goal of enhancing the availability of sustainability information while also fostering greater consistency and comparability. Nevertheless, the flexibility afforded by this Directive may give rise to divergences among the national regulations of the EU Member States, as has been the case previously. Therefore, this study aims to analyse the success of the NFRD in harmonising sustainability disclosure by examining the quantity and homogeneity of such information disclosed in the SRs of 100 large agri-food companies in Italy, the Netherlands, Germany, and Spain. To do so, a content analysis and non-parametric tests were applied. The findings show a limited performance and high heterogeneity in disclosure across countries, suggesting that the NFRD has fallen short of harmonising national regulations on disclosing sustainability information.
This paper examines the impact of media communication on the stock market in the context of the digital age, particularly its role in stock price volatility. With the significant increase in the ...speed, breadth and depth of media communication, the efficiency of stock market information transmission has been dramatically improved, significantly impacting stock price volatility. The article first explores the specific impact of media coverage characteristics and methods on stock price volatility by quantitatively analyzing media coverage’s breadth, manner and content. Then, the article utilizes multiple linear regression models to deeply explore the impact of various news texts on stock price volatility in different reporting modes (e.g., live reporting, television, and text reporting) in the Shanghai and Shenzhen stock markets. The findings show a significant association between the breadth of media coverage and stock prices at the 1% significance level. In addition, the regression coefficients of content and manner of coverage on stock price changes are 0.096 and 0.229, respectively, which are both significant at the 5% significance level. The research results of this paper not only reveal the close relationship between media communication and stock market volatility and provide theoretical support for predicting dramatic stock market volatility, which helps to promote the construction of a healthy and orderly capital market order.
The development of accounting for public sector entities and its convergence with public sector IFRS pose new methodical and methodological problems. Inventory is essential to ensure faithful ...representation of financial reports provided to users. This confirms the relevance of the study. The article contains a theoretical study of inventory in the context of implementation of federal standards for accounting in public finance. The paper studies the relationship of inventory with other elements of the accounting method as well as accounting procedures: recognition, classification, evaluation, adjustment of estimates, presentation and disclosure of information in financial reports, and confirmation of reporting reliability made by an independent entity. In addition, the study has established the effect of inventory on the achievement of qualitative characteristics of financial reports to increase its usefulness to users. Since information requests by users change under the influence of external and internal environmental conditions, an inventory should confirm not only the recognition and classification of the object, but also its estimate. It is concluded that it is advisable to disclose information on the valuation of objects in financial statements at both actual and fair values. This would ensure the control function of accounting and strengthen its information function. The results obtained by the author can be used for further development of regulation of accounting in public finance.
Managing business operations of a company is performed by making decisions in different organizational positions and on a different level of responsibility. Decision in a company means hiring ...available resources and expecting results. In order for a decision to be effective and efficient, it needs to be based on timely, relevant and reliable information. The most common source of information for decision makers is from the accounting information system. Accounting information system is in charge of gathering data, processing, managing a database and generating reports for different purposes. Information from the accounting information system needs to be relevant, timely and reliable because of the character of bookkeeping as a highly formalized record based on complete and permanent gathering and systematic, chronological and real-time data processing in relation to resulting individual business events, which can be shown in value.
The work aimed to explore the value relevance of sustainability reporting practices within the annual reports of the Iraqi tourism companies using a sample of Iraqi tourism companies listed in Iraq ...Stock Exchange. The research investigates whether sustainability information disclosed by the tourism companies add to the value of annual reports data. This research utilized a quantitative method using a sample of Iraqi tourism companies consist of 52 year-firm observations for the period between 2013-2018. To determine the value relevance of sustainability reporting, two market indicators were used are share price and traded shares. The findings indicate that the sustainability reporting is value relevant for the change in share price of the sample tourism companies, and there a significant positive correlation between sustainability reporting and share price. However, when we examined the value relevance with the traded shares, the results show insignificant correlation between sustainability reporting and traded shares. Thus, the results imply that the sustainability reporting is sensitive only to the share price and it is not reflected the size of the traded share of the companies.
Purpose: The objective of this article is to assess how many entities have faced going concern problems and to identify what uncertainties may affect a going concern, especially during the COVID-19 ...pandemic.
Methodology/research approach: The subject of the research was financial reports of com-panies listed on the main market of the Warsaw Stock Exchange in the following sectors: clothing and cosmetics, recreation and leisure, and transport and logistics. Thirty-three (out of 37) reports for the first half of 2020 were examined. We analysed the content of full ver-sions of the descriptive parts of financial statements, reports on the auditor’s review and management comment letters.
Results: Nearly half of the surveyed entities that declared they were a going concern dis-closed going concern uncertainties. The pandemic affected the scope of disclosures present-ed in the reports. The variety of presentation styles and the selectivity of the place of the disclosure may hinder stakeholders when drawing conclusions.
Research limitations/implications: Only three sectors were examined, and the sector analysis was conducted only in listed companies with complete and available reports. We analysed half-yearly reports that were reviewed by statutory auditors. The reports were analysed early in the pandemic. The article may be an inspiration for further research, including comparative research, in companies from the same and other sectors. The issue is vital, all the more so as the impact of the pandemic may change over time.
Originality/Value: The article is a practical study of going concern disclosures during the pandemic. The study reveals the multifaceted nature and complexity of the issues related to continuation assessment.
Bulgarian economy is a part of the ongoing worldwide processes of globalization. Of the other part, the importance of the tourism sector of Bulgarian economy is essential. Changing the theoretical ...and practical knowledge in every field of science should follow the general direction of development. The same goes for accounting. Accountability is related to the effective management of the enterprise. On the other hand, accounting is a "conservative science" but "revolutionary" changed in recent years. This article aims to show the contemporary bioeconomical problems in tourism.
Purpose: There is evidence that managers engage in opportunistic practice to manipulate reported performance to attract unsuspecting investors. This paper seeks to detect the likelihood of ...manipulations on the financial reports of financial service firms (banks and other financial institutions) as well as to identify the financial indicators that are the likely predictors of the probability of manipulations in Nigeria.
Theoretical framework: The M-score models, from Beneish (1999), are employed as theoretical basis for the paper. The model use financial ratios computed using accounting data to confirm the probability that firms’ reported earnings are manipulated.
Design/Methodology/Approach: The study uses data from the Nigerian Exchange Group, from 2010 to 2019 to compute M8/M5-scores and classify firms into likely manipulators and unlikely manipulators. In addition, a probit regression model was applied to establish financial ratios that significantly predict the likelihood of FSF amongst the financial firms.
Findings: The results based on M8 (M5)-score indicate that 26.67% (23.33%) of firms likely manipulate financial books and exhibit the possibility of FSF. In addition, only sales in receivable, sales growth, depreciation expenses, leverage and accruals to assets ratios are found to be (positive) significant predictors of the probability of manipulations.
Research, Practical & Social implications: The implication of the outcome is that subjecting financial statements to empirical and statistical scrutiny should not be ignored because it would detect and reduce associated risks to manipulations. Therefore, more regulatory interventions and empirical auditing of reports are needed to ensure their readability and reliability to the investors.
Originality/Value: The study offers a novel and first evidence, based on Beneish M-score, to scrutinise reports of financial firms in Nigeria. The evidence ensures quality reporting of the financial statements in order to credibility as well as protect the integrity of the capital markets.
PDF
