Financial accounting measurement model based on numerical analysis of rigid normal differential equation and rigid generalised functional equation

In order to solve the problems of financial accounting measurement quickly and accurately, this paper starts the analysis from the perspective of mathematics and finance and establishes the differential equation and the generalised functional equation for the related numerical analysis through mathematical knowledge. The results show that the limit and integral of rigid differential equation and the rigid generalised functional equation can improve their role and status in the financial accounting measurement environment so that they can be more widely used in the financial accounting measurement environment and promote the development of the financial accounting environment.

Financial Accounting Measurement Model Based on Numerical Analysis of Rigid Normal Differential Equation and Rigid Functional Equation

The initial value problem of stiff functional differential equations often appears in many fields such as automatic control, economics and its theoretical and algorithmic research is of unquestionable importance. The paper proposes a rigid functional equation based on the integral process method of the financial accounting measurement model of numerical analysis. This method provides a unified theoretical basis for the stability analysis of the solution of the functional differential equation encountered in the integrodifferential equation and the financial accounting fair value measurement model of investment real estate.

The Possibility of Applying Fair Value According to IFRS 13 to Achieve Tax Justice in Determining Taxable Income in Iraq: An Applied Study

The research aims to determine the importance of adopting the General Tax Authority in Iraq fair value accounting in determining taxable income by highlighting the failure to apply the historical cost that leads to misleading the users of the financial statements because of the unrealistic and inappropriate information they contain, as well as explaining the role of applying fair value in achieving The basic qualitative characteristics of accounting information in a manner that leads to determining taxable income more closely to justice after being amended according to the applicable income tax law. And analyzing the company's reports so that income is measured according to the fair value on the basis of the IFRS 13, which is subsequently modified according to the applicable income tax law to reach the measurement of taxable income in Iraq as well as the preparation of the Balance sheet In light of this, this measurement is generalized to all Contracting companies listed in the market. The researcher reached a set of conclusions, the most important of which is that the use of fair value accounting in accordance with the IFRS 13 in the contracting sector contributes to providing consistency in accounting measurement and disclosure practices, providing relevance and faithful representation information that is the basis for achieving fairness in tax accounting and recommendations.

Carbon Accounting Measurement with Digital Non-Financial Corporate Reporting and a Comparison to European Automotive Companies Statements

The regulatory environment for both sustainability and financial reporting is changing as standardisation and digital reporting (e.g., XBRL) are gaining traction within regulators. The measurement methodology and mandatory information content of disclosures are yet to be decided for corporate CO2 reporting by EU regulators and standard-setting organisations. In our study, we reviewed the sustainability reports of three leading German automotive groups by revenue for the period 2016–2020 as a case study. The research methodology was carried out with text-mining-aided content analysis to provide a collection of sustainability standards (GRI and SASB) in the evaluation of emissions reporting. As an addition to prior literature, conditions of relevance and clarity regarding published information were introduced in the evaluation process of compliance to CO2 disclosures. Companies by reporting practice were assigned to different stages of carbon management and actual emissions were evaluated. In the conclusions, discussion of the reliability of reported sustainability information, the applicability of digital reporting is provided through regional perspectives. We found that although analytical methods are available to assess the level of corporate carbon management, their usefulness is limited if the data are not reliable. Significant progress can be expected from analyses using standardised, comparable corporate carbon data.

Own Credit Risk Accounting, Modigliani-Miller Theorem, and the Fallacy of Counter-Intuitive Results

Purpose: This article tests own credit risk accounting under Modigliani-Miller theory to determine whether there is a fundamental fallacy in the unsolved issue of counter-intuitive results. Design/methodology/approach: A system of equations derived from the MM theorem to own risk. Findings: Solutions to the wealth transfer hypothesis. Parameters of issuer and holder that nullify own credit risk gain/loss and impairment loss/gain. A theoretical framework is developed to reconcile accounting to Modigliani-Miller theory. If the MM theory is true, as generally it is held to be, the system of equations shows that the recognition of own credit gain or loss would arise from different accounting measurement bases of liability own risk versus assets impairment, and by not reflecting the rebound effect in liability fair value measurement, in both cases not a faithfully representation of the substance of the facts and circumstances. The former would require a re-alignment between impairment and financial liability measurement rules. The latter would require a rethinking of fulfillment vs. fair value measurement to these liabilities. In addition, given the tenet that the accounting does not recognize shareholder wealth transfer, the current financial performance dilemma can be solved by recognizing in equity the concept of capital maintenance adjustment. Originality: Rare, if not unique, innovative direct application of MM paradigm to own risk. Implications: Significant contribution to the debate on performance and OCI, counter-intuitive results and accounting mismatch, fulfilment value versus fair value, incomplete recognition of contemporaneous asset value, and the definition of income in the Conceptual Framework.

Accounting Treatment for Ijarah and Ijarah MuntahiaBittamleek in Sudanese Islamic Banks

Purpose – This paper aims to review and analyze the concept of Ijarah and Ijarah MuntahiaBittamleek (IMB)in Sudanese Islamic banks. Design/methodology/approach-The researchers followed descriptive analytical methodology and Inductive method in conducting this study as well as the comparative method to compare FAS No.8 to IAS 17 concerning the accounting treatments. Also,the applied method was used for the practical side of the study based upon the financial reports in the Sudanese Islamic banks. Findings -The study found that the main difference between two standards is that FAS No.8 focuses on the legal aspect of the financial transactions while IAS 17 focuses on theaspect of economy.The study also found that the Sudanese Islamic Banks were committed to apply FAS No.8 in regard to accounting measurement, but were not committed to apply FAS No.8 in regard to recognition, presentation and disclosure in the financial reports. Practical implication – The paper contributes to the Sudanese Islamic Banks to apply the FAS No.8 with regard to recognition and accounting disclosure. Originality/value –This research is the pioneerin analyzing the concept of Ijarah and Ijarah MuntahiaBittamleek (IMB) in Sudanese Islamic banks.

The Effect of Using Accounting Measurement Bases (Cash and Accrual) on the Performance of the Industrial Companies Listed on Palestine Stock Exchange

This study aimed to measure the performance of the Palestinian industrial corporations, a sample of 13 industrial companies listed on Palestine Stock Exchange had selected for the period between 2009 and 2018, researchers used multiple linear regression analysis to create two models representing the financial performance on accrual and cash basis, return on assets (ROA) was the dependent variable, The independent variables of the accrual based model included: current ratio, net profit margin, return on capital employed, debt to assets and interest coverage ratios, all of them had significant impact on ROA. The cash-based model included: cash to current liabilities, cash to sales, cash to working capital, cash to debt, and cash interest coverage ratios, all of them except debt to assets had significant impact on ROA. Comparison between previous models showed that accrual based model had better performance in explaining changes in ROA.

Accounting measurement at fair value in the conditions of financial crisis

The subject of the paper is the role of fair value, as one of the accounting measurement attributes (measurement basis) of assets and liabilities in the statement of financial position, in the conditions of crisis, based on the experience with global financial crisis which appeared in 2008 in the US financial sector, and later spilled over into the real sector of that country, as well as, to a greater or lesser extent, to the rest of the world. The crisis has stimulated discussions in the scientific and professional community about the usefulness of using fair value and the impact of this measurement attribute on the appearance and widening of the crisis. The aim of the paper is to consider the impact of fair value application on the occurrence of the mentioned financial crisis. Qualitative research methodology based on the review of relevant literature in the field of research subject has been applied. A review of literature available to us has shown that there is no unique attitude about the role of fair value in the financial crisis which appeared in 2008. In that sense, opinions range from the one that fair value played little or no role in the financial crisis, over the opinion that it may have contributed to the acceleration of the crisis, to the opinion that it was one of its main causes and that it should be suspended. It is certain that fair value cannot be declared as the only financial crisis causer, and that there is no only one causer. Inadequate banking practices, risky behaviour of financial markets participants, inconsistent and insufficiently coordinated macroeconomic policies, inadequate structural reforms and omission of credit rating agencies dominantly caused the financial crisis and contributed to its spread.

Human resources accounting between the need of rooting and the difficulties of measurement

This study comes to highlight the human resources accounting, which consider the human resources as an asset must be measured and disclosed, as traditional accounting does not provide any disclosures about its value -the human resources- in the financial statements, despite the growing importance of the human resource that has become one of the most important assets in the enterprise. Through showing the importance of human resources accounting and the various models proposed to measure and disclose human resources, and problems that riddled with. We concluded that the human resources accounting despite the difficulties faced by it, which related mainly to the accounting measurement, it is necessary to root it’s practices and applications, especially in the enterprises that rely heavily on the human element. This is what requires continued research in this area in order to reach more and more consolidation of its bases that diminished their problems. We also concluded that, in general, the historical based cost model is currently the most appropriate model being consistent with current accounting systems and methods of presentation of financial statements