• Journal of Intelligence and Information Systems
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• v.20 no.4
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• pp.141-154
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• 2014

The adoption of International Financial Reporting Standards (IFRS) is the one of important issues in the recent accounting research because the change from local GAAP (Generally Accepted Accounting Principles) to IFRS has a substantial effect on accounting information. Over 100 countries including Australia, China, Canada and the European Union member countries adopt IFRS (International Financial Reporting Standards) for financial reporting purposes, and several more including the United States and Japan are considering the adoption of IFRS (International Financial Reporting Standards). In Korea, 61 firms voluntarily adopted Korean International Financial Reporting Standard (K-IFRS) in 2009 and 2010 and all listed firms mandatorily adopted K-IFRS (Korea-International Financial Reporting Standards) in 2011. The adoption of IFRS is expected to increase financial statement comparability, improve corporate transparency, increase the quality of financial reporting, and hence, provide benefits to investors This study investigates whether recognized accounts receivable discounting (AR discounting) under Korean International Financial Reporting Standard (K-IFRS) is more value relevant than disclosed AR discounting under Korean Generally Accepted Accounting Principles (K-GAAP). Because more rigorous standards are applied to the derecognition of AR discounting under K-IFRS(Korea-International Financial Reporting Standards), most AR discounting is recognized as a short term debt instead of being disclosed as a contingent liability unless all risks and rewards are transferred. In this research, I try to figure out industrial responses to the changes in accounting rules for the treatment of accounts receivable toward more strict standards in the recognition of sales which occurs with the adoption of Korea International Financial Reporting Standard. This study examines whether accounting information is more value-relevant, especially information on accounts receivable discounting (hereinafter, AR discounting) is value-relevant under K-IFRS (Korea-International Financial Reporting Standards). First, note that AR discounting involves the transfer of financial assets. Under Korean Generally Accepted Accounting Principles (K-GAAP), when firms discount AR to banks before the AR maturity, firms conventionally remove AR from the balance-sheet and report losses from AR discounting and disclose and explain the transactions in the footnotes. Under K-IFRS (Korea-International Financial Reporting Standards), however, most firms keep AR and add a short-term debt as same as discounted AR. This process increases the firms' leverage ratio and raises the concern to the firms about investors' reactions to worsening capital structures. Investors may experience the change in perceived risk of the firm. In the study sample, the average of AR discounting is 75.3 billion won (maximum 3.6 trillion won and minimum 18 million won), which is, on average 7.0% of assets (maximum 38.6% and minimum 0.002%), 26.2% of firms' accounts receivable (maximum 92.5% and minimum 0.003%) and 13.5% of total liabilities (maximum 69.5% and minimum 0.004%). After the adoption of K-IFRS (Korea-International Financial Reporting Standards), total liabilities increase by 13%p on average (maximum 103%p and minimum 0.004%p) attributable to AR discounting. The leverage ratio (total liabilities/total assets) increases by an average 2.4%p (maximum 16%p and minimum 0.001%p) and debt-to-equity ratio increases by average 14.6%p (maximum 134%p and minimum 0.006%) attributable to the recognition of AR discounting as a short-term debt. The structure of debts and equities of the companies engaging in factoring transactions are likely to be affected in the changes of accounting rule. I suggest that the changes in accounting provisions subsequent to Korea International Financial Reporting Standard adoption caused significant influence on the structure of firm's asset and liabilities. Due to this changes, the treatment of account receivable discounting have become critical. This paper proposes an intelligent diagnostic system for estimating negative impact on stock value with self-organizing maps and case based reasoning. To validate the usefulness of this proposed model, real data was analyzed. In order to get the significance of this proposed model, several models were compared to the research model. I found out that this proposed model provides satisfactory results with compared models.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.10
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• pp.219-230
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• 2020

With the largest number of Islamic financial institutions across the world, the demand for a qualified Sharia accountant in Indonesia is indeed inevitable. This study aims to examine the determinant factors of the intention for accounting students to become Certified Sharia Accountant. This study used quantitative method with primary data through questionnaire from 248 selected samples. The data is then analyzed by Partial Least Square Structural Equation Model. This research has used Theory of Planned Behavior combined with Islamic religiosity to explain 67.80% of the intention of accounting students to become Certified Sharia accountants. The test results indicate perceptions of greater job opportunities, good ethical reputation, Islamic religiosity, technical skills, and subjective norm that affects the intention to become Certified Sharia Accountants. The findings of this study contribute to the literature regarding career selection in the field of accounting in general and Certified Sharia Accountants in particular. The results of this study also have a practical impact on the academic world, including the recommendation for curriculum revision and redesign of the learning system. It also has a practical impact on the management of Islamic financial institutions to present them as a promising industry for accounting graduates to work in.

• The Journal of the Korea Contents Association
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• v.16 no.9
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• pp.702-712
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• 2016

This study aims to compare the government accounting reform of advanced countries and South Korea and suggest policy implications for South Korea. The reform steps are structured down to institutional introduction, institutional formation and institutional stability. I researched the literatures on the government accounting system and compiled research materials from the Finance Ministries, Audit Offices, and Government Accounting Standards Boards websites of New Zealand, US, UK and South Korea. Analysis showed that advanced countries and South Korea have adopted accrual accounting systems which have provided more comprehensive and objective financial information. But the government accounting system of South Korea compared with those of advanced countries needs reform. The suggestions of this study include: expanding range of whole of government financial statements; giving coherence to the public accounting standards; adopting government audit system; and introducing accrual budgeting. However, there are differences between business accounting and government accounting and the differences are considered for government accounting reform.

• Information Systems Review
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• v.1 no.2
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• pp.55-71
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• 1999

• The Journal of Asian Finance, Economics and Business
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• v.7 no.5
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• pp.81-90
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• 2020

This study investigates the nexus between the level of Corporate Social Responsibility Disclosures (CSRD) and Risk of Bankruptcy of companies that are listing in the Stock Exchanges of Vietnam. To investigate that relationship, this study collected secondary data from annual audited financial statements from 2014 to 2018 of listing companies. Applying two different regression models with two dependent variables and six independent and control variables, we find out that Vietnamese firms with higher level of CSRD performance can rapidly reduce their risk of bankruptcy. This phenomenon happens in the current year and in the coming years in all firms in the research sample. This result may be that the disclosures of social responsibility information can bring financial and non-financial benefits to the firms. In addition, the results also point out that there is a difference in risk of bankruptcy between the group of companies, which discloses and the one which does not disclose corporate social responsibility on their annual reports. This might be from the effects of various factors such as business size, financial leverage, market to book ratio, return on assets, cash flow from operations, etc. Our research results can be applied to other firms in Vietnam and in other similar jurisdictions.

• Journal of the Korean Dietetic Association
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• v.2 no.2
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• pp.123-140
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• 1996

The purpose of this study was to examine financial management practices in elementary school foodservices. Respondents were asked to provide information on demographics, operational characteristics, financial management activities(responsibility, importance and time demand). Data were collected from 106 elementary school foodservice using the mail questionnaire. The results were as follows 1. Time demand of 14 financial management activities was examined. The results of time-demand showed that most financial activities were performed about once per month. Reporting, inventory checking and production cost accounting were performed several times per week. 2. Major financial management activities performed by school dietitians were inventory checking, record keeping, production cost accounting, and foodservice operation planning. 3. Results of the importance rating of 14 financial management activities showed that the production cost accounting, budgeting, controlling meal costs, reporting the national treasury accounts, and inventory checking were rated as very important(4.00-4.49). Factor analysis was conducted on the importance ratings. Five activities were differentiated such as budgeting, record keeping, cost controlling, cost accounting, and reporting. The cost controlling task was identified at the most important one among them. 4. Important ratings for reporting were found to be significantly different by age, and years of experience. The younger and the less experienced were responded with higher scores on reporting. Analysis of variance for the importance scales by meal costs per one person, food cost percentage, labor cost percentage was conducted, but significant differences were not founded.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.15 no.2
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• pp.688-697
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• 2014

The current accounting for the long term care facilities are enforced by either financial accounting stipulations of social welfare legal entity or the guiding principles of long term care insurance law. In addition, some facilities are not eligible to access to the Korea Health and Welfare information system and even don't have any obligation to report financial information. Thus financial position and performance of activities are not well known to the interested parties. This study investigated the way how to improve the current accounting stipulation of the long term care facilities. In conclusion, we should introduce the accounting standards based on the double entry system but on other aspect, also more simplified financial statement based on single entry system for smaller facilities. Also we should introduce three important appropriation accounts for the net income of institution which matches GAAP. For a successful plantation of accounting standards, it is necessary to establish provisions, government subsidy account, depreciations concept.

• The Journal of the Korea Contents Association
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• v.17 no.10
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• pp.343-359
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• 2017

This study aims to analyze the government accounting system of South Korea on the institutional complex and institutional congruence of new institutional theory and suggests policy reform for the system. I researched the literatures on the national and local accounting system and compiled research materials from the Ministry of Strategy and Finance, the Ministry of Interior and Safety, the Board of Audit and Inspection, and Government Accounting and Finance Statistics Center websites. Analysis showed that the government accounting system consists of various elements in institutional complex and the congruence level of national and local accounting system of South Korea is low in production, disclosure, and application of information. The suggestions of this study include: introducing accounting position recruitment, adopting government audit system, and improving cooperation between national accounting organizations and local accounting organizations for reliable information production; disclosing real time information and revealing information linking national and local accounting for transparent information disclosure; educating information user, providing accurate cost and available financial analysis indicators, introducing chief financial officer, and expanding range of consolidated national financial statements for information application.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.169-176
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• 2020

Business going concern is an important issue to be addressed since it determines how companies will survive. One indicator of the going concern problem is going concern opinion. The going concern opinion is a result of evaluation of auditors on going concern assumption of financial reporting. This research aims to examine the effect of opinion shopping, prior opinion, audit quality, and financial condition on going concern opinion. Research sample consists of 80 listed manufacturing companies on the Indonesian Stock Exchange surveyed between 2013 and 2017. Analysis data uses logistic regression. Based on the result, prior opinion affects going concern opinion, while opinion shopping, audit quality, and financial condition have no effect on going concern opinion. The significant effect of prior opinion on going concern opinion indicates that auditors consider the evaluation of the previous condition of companies' concern problematic since going concern is hard to be solved in a short-term period. This research provides recommendations for companies to increase their business ability so going concern problem can be avoided. This research also suggests to auditors to consider prior opinion to issue current opinion since previous companies' condition can be used as a general picture to initiate the auditing process.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.591-599
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• 2021

The increased risk in financial firms, due to Global Financial Crises and high international trade activities, has encouraged banks to use derivatives for both managing their financial risk and earning non-operating income simultaneously. The present study brings new evidence in the existing literature by determining the drivers behind financial derivative usage in Pakistani banks for 2011 till 2016. Moreover, the paper examines how risk plays a moderating role in determining the relationship between derivative usage and bank value. While assessing the determinants, a two-stage test has conducted, first, the logit regression was used to test the drivers behind the derivative usage in banks. Second, Tobit regression was run to analyze the factors leading to determine the extent of derivative usage. The findings demonstrate that Pakistani banks are using derivatives for both risk management and speculative motive as they are customers and users of derivatives at the same time. Empirical results, regarding moderating role of risk on the value implications of derivative usage, provide mixed findings as derivative usage gives value premium in case of non-systematic risk and foreign exchange risk. Whereas value discounts have been observed for cases where systematic risk is high and managers try to earn non-operating income from speculative activities.