Financial Reporting Standards: A Decision Making Perspective for Non-Accountants

2012 ◽  
Author(s):  
David Doran
Keyword(s):  
Decision Making ◽  
Financial Reporting ◽  
Reporting Standards ◽  
Financial Reporting Standards

A Study of Impact of IFRS Convergence in India on Debt–Equity Components of Financial Statements

2020 ◽  
pp. 097215092091846
Author(s):  
Saumya Jain ◽  
Chandra Prakash Gupta
Keyword(s):  
Decision Making ◽  
Financial Reporting ◽  
Financial Statements ◽  
Annual Reports ◽  
Practical Relevance ◽  
Reporting Standards ◽  
Financial Instruments ◽  
Financial Reporting Standards ◽  
Significant Difference ◽  
The Impact

The present article analyses the impact of International Financial Reporting Standards (IFRS) convergence on financial statements in India. Our focus is on the most significant and challenging standard, that is, IND-AS (financial instruments). Our focus is on the most significant and challenging standard i.e IND-AS(Financial Instruments) and their impact on debt-equity classification brought about by the new standard(s). We analyse the annual reports of 30 listed entities having outstanding preference share capital for the years 2015–2016 and 2016–2017. We redefine the formulae of ratios most commonly used in loan agreements (popularly referred to as ‘debt covenants’) from lenders’ perspective and empirically examine the impact of IFRS convergence on the value of these ratios for the same financial year, that is, 2015–2016. Our results show that there is a significant difference in the value of ratios calculated using newly developed formulae and by applying the old formulae on new data. The study is the first of its kind to empirically examine the impact of IND-AS specifically standard relating to financial instruments on debt ratios in India. Our contribution to the literature is that we not only examine the impact on ratios on transition to IND-AS but also offer a solution as to how the users can mitigate this impact by making adjustments to the debt ratios taking into account the recognition, measurement and presentation changes brought about by IND-AS, so that they can apply our newly developed formulae directly on IND-AS statements and derive the same meaning and interpretation from the ratios as before retaining their practical usage. Thus, our study is of immediate practical relevance to lenders, credit managers and investors aiding their decision making.

Risk Management in Green Corporate Strategies

2015 ◽  
pp. 189-210
Keyword(s):  
Decision Making ◽  
Financial Reporting ◽  
Financial Statements ◽  
Reporting Standards ◽  
Scientific Methods ◽  
Financial Reporting Standards ◽  
Corporate Strategies ◽  
Corporate Reporting ◽  
Major Variable ◽  
Fundamental Research

The risk is almost always a major variable in a corporate decision-making. However, few can predict with any precision the future. Nevertheless, managers that ignore it are in a real threat. Relevant social and environmental risks and potential impacts should be considered in the process of sustainability policies implementation. This chapter presents a literature review of existing risks outlined by the main reporting frameworks. It debates the influence of social and environmental approach in corporate reporting models. Further, the chapter develops an analysis of specific requirements regarding risks and uncertainties reported into the financial statements according to different financial reporting standards and their connection to social and environmental information that an entity should disclose. The focus of this chapter is on fundamental research that is related to inductive accounting theory and uses scientific methods for identification of corporate reporting theoretical difficulties that could impact the practice in economic entities.

scholarly journals LICENÇAS DE EMISSÃO DE GASES DE EFEITO ESTUFA: TRANSPARÊNCIA DA INFORMAÇÃO FINANCEIRA

2022 ◽  
Vol 62 (1) ◽  
Author(s):  
Patricia Milanés-Montero ◽  
Esteban Pérez-Calderón ◽  
Ana Isabel Dias
Keyword(s):  
Decision Making ◽  
Financial Reporting ◽  
Ghg Emissions ◽  
Good News ◽  
Financial Statement ◽  
Decision Making Process ◽  
Reporting Standards ◽  
Financial Reports ◽  
Financial Reporting Standards ◽  
Efficiency Measures

ABSTRACT This research analyzes the influence that the performance of GHG emissions has on the level of transparency in financial reporting. Content analysis of the financial statement notes allowed the level of transparency to be measured. The results suggest that the level of transparency in financial reporting is negatively related to the performance of GHG emissions when financial reports are prepared on the basis of the International Financial Reporting Standards. It was also concluded that more ‘good news’ is disclosed by companies when their GHG emissions’ performance reduces. This study complements previous literature about transparency in financial reporting, and the necessity to relate it to eco-efficiency measures to empower the decision-making process of stakeholders. The study also provides a reference for European accounting regulators on the behavior of companies with regard to this issue.

Risk Management in Green Corporate Strategies

2018 ◽  
pp. 211-232
Author(s):  
Chirața Caraiani ◽  
Camelia I. Lungu ◽  
Cornelia Dascălu ◽  
Florian Colceag
Keyword(s):  
Decision Making ◽  
Financial Reporting ◽  
Financial Statements ◽  
Reporting Standards ◽  
Scientific Methods ◽  
Financial Reporting Standards ◽  
Corporate Strategies ◽  
Corporate Reporting ◽  
Major Variable ◽  
Fundamental Research

The risk is almost always a major variable in a corporate decision-making. However, few can predict with any precision the future. Nevertheless, managers that ignore it are in a real threat. Relevant social and environmental risks and potential impacts should be considered in the process of sustainability policies implementation. This chapter presents a literature review of existing risks outlined by the main reporting frameworks. It debates the influence of social and environmental approach in corporate reporting models. Further, the chapter develops an analysis of specific requirements regarding risks and uncertainties reported into the financial statements according to different financial reporting standards and their connection to social and environmental information that an entity should disclose. The focus of this chapter is on fundamental research that is related to inductive accounting theory and uses scientific methods for identification of corporate reporting theoretical difficulties that could impact the practice in economic entities.

Pengaruh Konvergensi International Financial Reporting Standards (Ifrs) Terhadap Penghindaran Pajak(Tax Avoidance)

2018 ◽  
Vol 26 (2) ◽  
pp. 158-169
Author(s):  
Umi Wahidah ◽  
Sri Ayem
Keyword(s):  
Financial Reporting ◽  
Tax Evasion ◽  
Stock Exchange ◽  
Control Variable ◽  
Tax Avoidance ◽  
Sampling Technique ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Control Variables ◽  
Financial Reporting Standards

This research aimed to examine the effect of the convergence of International Financial Reporting Standards (IFRS) on tax avoidance on companies listed in Indonesia Stock Exchange. Tax avoidance that used in this research was Cash Efective Tax Rate (CETR). This research is also use the control variable to get other different influence that different such as CSR, size, and earning management (EM. This research used populations sector of transport service companies that listed in Indonesia Stock Exchange. The data of this research taken from secondary data that was from the Indonesia Stock Exchange in the form of Indonesian Capital Market Directory (ICMD) and the annual report of the company 2011-2015. The method of collecting sample was purposive sampling technique, the population that to be sampling in this research was populations that has the criteria of a particular sample. Companies that has the criteria of the research sample as many as 78 companies. The method of analysis used in this research is multiple regression analysis. Based on regression testing shows that the convergence of International Financial Reporting Standards (IFRS) has a positiveand significant impact on tax evasion. This shows that IFRS convergence actually improves tax evasion practices. The control variables of firm size and earnings management also significantly influence the application of IFRS in improving tax avoidance practices, while CSR control variables have no role in convergence IFRS in improving tax evasion practice.

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