CEEOL - Browse Subjects Result

We kindly inform you that, as long as the subject affiliation of our 300.000+ articles is in progress, you might get unsufficient or no results on your third level or second level search. In this case, please broaden your search criteria.

Private SME accounting in Poland. Does bank lending influence their accounting and financial reporting practice?

Author(s): Anna Białek-Jaworska / Language(s): English Issue: 2/2017

Using data from private Polish Small and Medium-sized Entities (SMEs) for 2003-2013, I investigate in this paper the influence of bank borrowing on their book-tax conformity and accounting practices. In order to verify the importance of the link between tax law and the accounts of private firms, I created variables capturing the records according to local GAAP and I separated records in line with tax rules reflecting the impact of tax law on the accounting practices. Besides the book-tax differences measurement proposed by Watrin et al. (2014), I applied Tang's (2015) approach to estimate book-tax conformity that captures permanent and temporary book-tax differences. I find that bank lending increases the book-tax conformity of profitable firms. Tax avoidance applied by borrowers has a lower impact on book-tax differential than in the case of non-borrowers. Moreover, the findings indicate that monitoring by lenders force SMEs to adopt more advanced accounting practices by adhering to the prudence principle. This allows lenders to learn more about the ability of borrowers to repay loans thanks to more informative earnings. However, only 22.5% of borrowers applied accounting standards that are not recognized by tax law.

More...

Accounting by SMEs – Evidence from Slovenia

Author(s): Mateja Jerman / Language(s): English Issue: 2/2017

The paper aims to investigate the characteristics of financial reporting and management accounting by Slovenian Small and Medium-sized Entities (SMEs), which represent 99.8% of all Slovene enterprises. The paper examines the most important legal bases for external financial reporting of SMEs, rules in national accounting standards and their close linkage with taxation. The paper highlights how Slovenia adopted the relevant European Union (EU) Directives and emphasizes the particularities of the Slovenian environment that demonstrate diversity at the international level. The paper raises issues concerning lenient requirements on accounting practitioners’ qualifications and a lack of supervision of financial statements. We then provide a literature review of relevant studies in the field of financial and management accounting. The financial accounting literature seems to be more developed than that of management accounting. Studies reviewed in this paper mainly focused on the link between financial accounting and taxation, indicating that the use of accounting discretion is motivated by the effort to minimize taxation.

More...

The Use of Management Accounting Practices by Romanian Small and Medium-Sized Enterprises: A Field Study

Author(s): Dan Dacian Cuzdriorean / Language(s): English Issue: 2/2017

Small and medium-sized enterprises (SMEs) are an important part of each economy all around the world. However, little is known about the taxonomy of both traditional and modern management accounting practices (MAPs) used by SMEs in the process of decision making. In order to address this gap in the literature, this current paper examines the MAPs adopted by the Romanian SMEs. The methodology comprises an analysis of 37 responses to a questionnaire survey carried out among SMEs from one of the most developed regions of Romania. The goal of our study is to determine which tools are being used by Romanian SMEs, and on the other hand, to identify underlying reasons why some specific MAPs are not being used. We find that the large majority of our respondents use a small number of traditional MAPs while most of the modern MAPs documented in the literature and accounting textbooks are very little used. Among the most used traditional MAPs we document the budgeting systems for controlling costs and planning cash flows. On the other hand, the most used modern MAPs were the benchmarking and performance reporting based on financial and non-financial indicators. High costs of implementation, lack of management commitment or financial constraints were the main reasons for the lack of use for certain traditional and modern MAPs. Suggestions for future research and limits are also approached.

More...

Adoption process of IFRS for SMEs in Turkey: Insights from academics and accountants

Author(s): Merve Kılıç,Ali Uyar / Language(s): English Issue: 2/2017

In 2009, the International Accounting Standards Board (IASB) issued International Financial Reporting Standards (IFRS) for Small and Medium-sized Entities (SMEs) as a simplified version of the full IFRS addressing the financial reporting needs of SMEs. Although IFRS for SMEs is still not required in this jurisdiction, Turkey was one of the first ones that have taken substantive steps towards adoption of IFRS for SMEs. The main purpose of this research is to investigate the perceptions of Turkish accountants, academicians, and auditors regarding the adoption process of IFRS for SMEs via in-depth interview methodology. The findings of the research confirmed the need for a stand-alone standard set for SMEs. The interviewees asserted that more simplification on IFRS for SMEs may hinder comparability of financial statements. While high-quality financial information will be the most important advantage of applying IFRS for SMEs, cost burdens on firms and lack of trained personnel will be the major obstacles for the implementation process.

More...

Does simplified accounting limit small and micro companies’ access to bank financing?

Author(s): Halina Waniak-Michalak / Language(s): English Issue: 2/2017

Enterprises that use simplified accounting can provide less information to lenders, thereby possibly hampering risk analysis. In this paper I investigate whether simplified accounting is a barrier for Polish Small and Medium-sized Entities (SMEs) enterprises to access financing resources, or makes funding more expensive for them. Telephone interviews with managers of banks and a review of statistical data are used to show that simplified accounting methods may influence the cost of capital of Polish SMEs, but it does not create a barrier to accessing external sources of financing.

More...

Fantasy Pitching

Author(s): Robert Faff,Searat Ali,Muhammad Atif,Matthew L. Brenner,Hasibul Chowdhury,Leelyn Crudas,Alison Joubet,Ihtisham Malik,Lin Mi,Vinu Nagar,Tim Pullen,Manuel Siegrist,Steve Smythe,Jeff Stephenson,Beile Zhang,Kun Zhang / Language(s): English Issue: 2/2017

This paper outlines a fantasy research pitch exercise conducted in a PhD course at the University of Queensland. Using Faff’s (2015, 2017) pitching research template, students attending the course were asked to engage in a group exercise to pitch a “fantasy” research topic. While the final exercise was completed in a 90-minute timeframe (60 minutes of brainstorming, followed by 30 minutes of reporting back to the full group), the cohort had already been exposed to 5 x 90 minute sessions of related material over the weekend PhD module. Three groups of five were formed and they pitched three “fun” (or nonsense) topics: (a) Teenage Mutant Ninja Turtles: Impact on Society; (b) Wipe-a-Baby; (c) Quality of Dairy Products: The Happiness of the Cow Does Matter.

More...

Developing a Research Agenda through Pitching

Author(s): Victor Maxwell / Language(s): English Issue: 2/2017

This paper details my use of the pitching template framework (Faff, 2015) in the development of the research agenda for my PhD at the University of Queensland (UQ) Business School. I used the pitching template once for the research proposal submitted when applying for the PhD program and twice more during the early months of the program. Use of the pitching template framework appears to have helped progress my thinking about and communication of my research agenda. This is as anecdotal evidence of the pitching template’s benefits for researchers.

More...

Case Studies: Developing Financial Mathematics’ Systems

Author(s): Luis Emilio Alvarez-Dionisi,Gladys Tapia de Vidal / Language(s): English Issue: 1/2017

In this research, we introduce four case studies corresponding to the development of four Financial Mathematics’Systems using Object-oriented Analysis and Design (OOAD). These systems were developed by undergraduate accountingstudents at Santa María University in Barinas, Venezuela. While Microsoft Excel is not an Object-oriented Programming (OOP)language, it was used by the students to develop these systems. In fact, Microsoft Excel is widely applicable in the accountingcommunity. Consequently, an exploratory multiple case design was utilized and a comparison analysis was performed; amethodology for creating case studies was developed and implemented, and finally, a conclusion and recommendations wereprovided.

More...

Отчитане на инвентаризацията, бракуването и ликвидацията на дълготрайните материални активи в бюджетните организации

Author(s): Ivan Apostolov / Language(s): Bulgarian Issue: 1-2/2017

Accounting in the budgetary organizations is highly regulated and does not allow the application of an individual approach for accounting of individual business operations. Regardless of the detailed instructions provided by the Minister of finance on how each economic event should be accurately accounted for, there are still gaps and differences. That is also the case in regard to the process of fixed assets inventory, disposal and subsequent liquidation, as the technology used to perform them, although quite similar to that of the real-sector enterprises, is quite different from accounting point of view. From the factual survey carried out in the territorial directorate of National revenue agency (NRA) in Burgas, office Yambol1, the scientific literature and the accounting policy of a number of municipalities and other budgetary organizations, the necessity of such kind of research is evident. The purpose of this article is to formulate proposals relating to the inventory, disposal and liquidation of fixed assets that will be valid for all budget organizations and, by decision of the Minister of Finance, to be able to become a part of the regulatory framework, thereby improving the comparability of generated accounting information.

More...

Accountancy entangled by financial capital

Author(s): Maria Smejda / Language(s): English Issue: 1/2017

This paper aims at presenting some contradictions that can be found in the contemporary theoretical approach to the issue of accounting. Accounting has changed the systemic perception of economic phenomena into the process related one. This may be manifested in using current value to assess fixed asset component, which results in distortions in the informative system of accounting, thus encouraging application of creative accounting. Partial contradictions demonstrated in this paper are deeply rooted in the theoretical background of accounting and they have one common foundation – seeing productive capital through the prism of financial capital. This approach results from financial capital related tendencies to search for new forms of capital returns. New accounting allows for following such tendencies on the microeconomic level. New subjective interests of accounting deepen the dichotomy between theory and practice.

More...

Timeliness of corporate reporting in developing economies: Evidence from Turkey

Author(s): Ömer Faruk Güleç / Language(s): English Issue: 3/2017

This paper empirically investigates the effects of both firm and audit -specific factors on the timeliness of financial reporting practices of firms listed on Borsa Istanbul using panel data methodology. This study employs a data set containing annual data from 150 non-financial Turkish listed companies in Borsa Istanbul between the years 2009 – 2014 to document their reporting behaviors. Descriptive analysis indicates that average reporting time is 69 days for the whole sample and 62 days and 74 days for individual and consolidated financial statements respectively. In line with prior studies, firm size, dividend per share, auditor type and good news (income), unsurprisingly, has a significant negative impact on timeliness behavior of sample firms. In addition, financial statement type (individual and consolidated financial statements) also has a significant effect on reporting time. On the other hand price to book ratio and leverage of firms have no significant impact as hypothesized. Examining the reporting behavior of emerging markets contribute to the literature through comparing with the developed countries and indicating the factors which have impact on timeliness. The outcomes of research also provide some insights to the interested parties and regulatory bodies to evaluate the preparation of financial statements in terms of timeliness.

More...

The reputation driven interplay of relationships between clients and auditors in an auditor selection process: A multilevel network approach

Author(s): Slobodan Kacanski / Language(s): English Issue: 3/2017

This study investigates the reputation-based interplay between auditor selection and interlocking directorships from a multilevel network perspective. The aim of this article is to explore how and under what conditions reputation influences patterns of social selection processes in an assurance service context. To empirically determine the impact of reputation on establishing relational ties, this study applies exponential random graph models (ERGMs) for multilevel networks. The case study was carried out in the Danish field of mandatory audits, and findings here make a valuable contribution to the literature on auditor selection. A total of 774 annual reports were collected from 145 - 165 Danish public listed companies, and the relational data of companies was assembled, as comprised of the members of supervisory boards and partners who signed audit reports during the five-year period from 2010 to 2014. In this study, mechanisms for auditor selection were controlled by mechanisms for interlocking directorships in order to obtain a broader picture of the conditions under which board members have tendencies to select reputable auditors. The findings suggest that reputation has a significant impact on both observed processes, however, results reveal that reputation has a compensatory nature, as it drives both mechanisms of social selection but never simultaneously.

More...

The impact of board oversight functions on the performance of listed companies in Nigeria

Author(s): Ezekiel Oluwagbemiga Oyerogba,Muyiwa Ezekiel Alade,Patrick Esiemogie Idode,Isaiah Ogungbade Oluyinka / Language(s): English Issue: 3/2017

We ascertain the impact of board oversight functions on the financial performance of listed companies. The study covers the entire 186 companies listed on the Nigeria stock exchange for a period of five years between 2010 and 2014. Three aspect of board oversight function which includes the audit committee function, risk management committee function and remuneration/human capital committee function were considered in this study in line with the provision of (SEC) code of corporate governance and (OECD) code of corporate governance. Return on capital employed and earnings per share were used as the measures of firm financial performance. We conducted both descriptive and inferential statistics on a set of data extracted from the audited financial statement of the listed companies. The descriptive statistics include the mean, standard deviation, minimum and maximum value for each variable while the inferential statistics includes the univariate t- test and multivariate regression analysis. The findings of this study revealed that board oversight function have significant impact on the financial performance of listed companies in Nigeria. The significant relationship between the board oversight functions and financial performance reported in this study have been asserted in previous literature in Africa (Beltratti & Stulz, 2009) and Asia (Fahlenbrach & Stulz, 2009; Fernandes & Fich, 2009) which implies that this might be the global trend on the topic. Thus, the general hypothesis which predicts a significantrelationship between board oversight function and firm financial performance cannot be rejected. Therefore, the recommendations emanating from this study is that concerted efforts should be put in place by the security and exchange commission to ensure strict compliance with regulations regarding the formation of audit committee and other oversight committees by the Nigerian listed companies.

More...

Independent auditing effect on investment decisions of institutional investors

Author(s): Atila Karkacıer,Fatih Coşkun Ertaş / Language(s): English Issue: 3/2017

It is very important for investors to get accurate and reliable information so that they can earn large amounts of revenue from decisions they make. However, in recent years, population growth, the expansion of the economy and the complexity of economic life have reduced the credibility of the information presented. The need for accurate and reliable information leads to requests for accounting and auditing activities. The independent audit, which increases the credibility of the information provided by the company and the reports it prepares, is also important in terms of investors, lenders and business owners. The aim of this study is to determine whether institutional investors are influenced by independent audit practices and the results of their investment decisions, and if so, how effective they are. In this study, firstly information about institutional investors is given and the factors affecting investment decisions are mentioned. Later, information on auditing was included. In the last part of the study, a questionnaire was applied to the managers of institutional investors consisting of banks, brokerage houses, investment trusts and portfolio management companies registered in the Turkish Capital Markets Association (TCMA) to investigate whether any independent auditing practices and results had any effect on investment decisions of institutional investors. As a result of the analyzes made, it has been determined that institutional investors consider the independent audit report and its results together with the investment decisions of the independent audit financial tables and have effects on their decisions.

More...

An analysis of the influences of individual optimism, risk taking and self-confidence on professional accounting judgment

Author(s): Victoria Bogdan,Ioana Teodora Meşter,Dana Simona Gherai,Carmen Mihaela Scorţe / Language(s): English Issue: 3/2017

Chaotic dynamics of today’s global business environment exert a tremendous pressure on professionals accounting judgment performance. A survey was mailed to Romanian professional accountants to examine their perception on accounting judgments and decisions. The results based on 531 valid responses indicate that professionals considered that a judgment in accounting is influenced by the responsibility of the accountant in preparing the financial statements according to the regulatory financial reporting framework. Also, they think that an adequate accounting judgment is best characterized by: "logical, consistent and substantiated", characteristics. Exploring statistical differences between accountants, grouped by age, gender, as well as years of practice, we found that younger investigated accountants are more optimistic that the ones over 45. We have used Chi-Square test and Pearson’s correlation coefficient and showed that there is a correlation between accountants’ propensity towards optimism and their perception regarding the need of a theoretical framework of JDM, and between accountants’ propensity towards risk and their choice regarding the aspects that influence accounting judgment. Also, accountants’ self-confidence is in direct correlation with their opinion regarding the aspects that influence JDM in accounting, but there is no statistical correlation between accountants’ propensity towards optimism and their choice regarding the aspects that influence accounting judgment. Our results showed that is on interest to further investigate these correlations to identify new ways to improve JDM in accounting. The role ofprofessional accountant is shaped by the pressure of several external factors that also mark their behavior, hence, accountants are not robots, are humans.

More...

An exploration of the accounting profession – The stream of mobile devices

Author(s): Victoria Stanciu,Mirela Gheorghe / Language(s): English Issue: 3/2017

Facing the digital era challenge, the accounting profession is implied in its renewal process aiming at responding in an adequate manner to the companies’ and society’s continuous changing requirements. The paper emphasizes the impact of the information technology on the accounting profession and signals the positive impact and also the concerns brought by mobile devices in the accountants’ work and training. In this context, the authors performed a survey aiming to understand the accounting students’ perception in regard with IT impact over the accounting profession and the usefulness of mobile devices. The study’s findings provide important insights on the mobile devices use in the accounting work and how the teaching process can help students acquire IT skills and awareness on the professional use of mobile devices. The paper contributes to the research on the accounting developments in the digital era demonstrating the benefit of new technologies’ implementation and integration of the mobile devices. The Romanian as well as the south-eastern European scientific literature are scarce in regard with mobile use in the accounting profession. In this regard the authors’ research provide significant insights aiming at motivate and stimulate the mobile devices use in the accounting profession and in the academic and long life accounting training.

More...

Unsettling trends in collective bargaining today

Author(s): Raluca Dimitriu / Language(s): English Issue: 3/2017

Today, there is virtually no legal system that does not enshrine collective bargaining – as the foundation of a balance of forces in the labour market. At each level it is conducted (international - European - national - sector - local - unit), it determines the way labour relations are regulated and gives workers the opportunity to express themselves, through solidarity, with a unique voice. Through collective bargaining, employees have the opportunity, by uniting their bargaining power to counter-balance the superior power of the employer, to determine the acceptance of (some of) the demands and the contractual regulation of fair wages and working conditions, in relation to the possibilities and needs of each party. Currently, one cannot but notice that collective bargaining has indeed its limits, some circumstantial, others permanent. Collective bargaining takes place increasingly more timid and in rather marginal areas, its results covering a smaller number of employees. As traditional expression of the solidarity between workers, collective bargaining – while this solidarity displays signs of dissolution – has diminished its strength and shows a centrifugal, decentralising tendency.The paper presents some of the circumstances that can be considered responsible for the tendency to compress collective bargaining at all levels. Certain causes are therefore analyzed: globalization, detailed legalization, the competitive relationship between employees, the consumers’ pressure or the opposition of the individual employee.

More...

Impact of behavioral factors towards the adoption of mobile learning among higher education students in public and private universities: A pitch

Author(s): Haroon Iqbal,Hafiz Ahmad Ashraf / Language(s): English Issue: 3/2017

This pitch research letter (PRL) applies the pitch template developed by Faff (2015, 2017) to an academic project on the impact of behavioral factors towards the adoption of mobile learning among higher education students in public and private universities of Pakistan. This template is helpful in identifying the core elements of the proposed research project. This PRL consists of a brief introduction about the pitch, followed by a brief commentary on the pitch and personal reflections of the pitcher on the pitch exercise itself.

More...

How did they make it? An examination of online personal branding: A pitch

Author(s): Charlane Wong / Language(s): English Issue: 3/2017

This paper applies Faff (2017)’s pitching template to an academic research topic in marketing. Specifically, I will provide a reflection on the use of this pitching template and encourage other academic researchers to utilize this template for their research topics.

More...

Determinants of Nordic entrepreneurship: A reverse engineered pitch

Author(s): Ondřej Dvouletý / Language(s): English Issue: 3/2017

Faff (2015; 2017) has introduced a very useful pitching research template for understanding academic literature and for formation of research ideas and concepts. This pitching research letter (PRL) applies Faff´s (2015; 2017) template to the example of a “reverse engineering” pitch in the field of entrepreneurship. I share the positive experience of Salehudin (2017) who applied pitching research template on an already published study. In my case, the pitching research template is applied on the article written by Dvouletý (2017), which focuses on the determinants of Nordic entrepreneurship. The letter offers a personal reflection on the application of the pitching research template. Finally, it highlights the need to increase visibility of my own research.

More...