• Journal of Distribution Science
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• v.18 no.9
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• pp.5-11
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• 2020

Purpose: We sought to investigate the operation status of internal accounting control systems in the distribution and service industries and verify whether investing in internal accounting personnel significantly influences the quality of the companies' financial reporting. Research design, data and methodology: We identified descriptive statistics and performed a univariate analysis. Furthermore, a regression analysis verified the impact of investing in internal accounting personnel on the absolute value of discretionary accruals, a proxy for financial reporting quality. Results: Distribution and service companies allocated a significantly higher number of accountants to their internal accounting control systems than companies in other industries. We also confirmed that the absolute value of discretionary accruals significantly decreased as the average working experience of internal accounting personnel in distribution and service companies, in months, increased. Conclusions: In this study, we confirmed that distribution and service companies are devoting efforts to establishing internal accounting control systems and found that financial reporting quality is more effectively controlled as companies allocate more experienced personnel in their internal accounting control system.

• The Journal of Small Business Innovation
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• v.19 no.1
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• pp.59-84
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• 2016

Using an international setting, this study investigates the relation between cash holdings and financial reporting quality, measured by accruals quality. Empirical results show that the balance of cash holdings is positively related to the opacity of financial reporting in non-U.S. international markets. The relation becomes stronger as the strength of investor protection increases, implying that precautionary motives, instead of agency motives, drive the increase of cash holdings of opaque firms. In addition, the positive relation is stronger for discretionary accruals quality. The decomposition of the aspects of investor protection shows that public enforcement through regulation authorities is the main driver of the positive relation between cash holdings and the opacity of financial reporting.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.9
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• pp.217-227
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• 2022

With the aim of examining the effects of implementing international financial reporting standards (IFRS) on teaching accounting and auditing at universities and colleges in Vietnam, a case study was conducted at 30 universities, colleges, and 208 lecturers in Vietnam. Next, the study employed the structural model analysis method by PLS_SEM software to process and analyze the collected data. The research results show that: (1) There are eight factors that affect how IFRS is applied to teaching, including the training program, (ii) teaching staff, (iii) IFRS application regulations, (iv) related party requirements, (v) faculty/school administrators, (vi) teaching aids, (vii) IFRS teaching methods, and (iii) students; (2) there are three factors that affect the quality of teaching staff, including applying IFRS to teaching at the university and colleges, (ii) Regulations on the application of IFRS, (iii) Requirements from related parties. At the same time, the study also shows that, regarding the indirect relationships, applying IFRS to teaching does not play an intermediary role in these relationships. However, at the 10% significance level, it was found that there is an indirect relationship between regulations on the application of IFRS by the Ministry of Finance and the quality of teaching staff through the variable applying IFRS to teaching.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.7 no.2
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• pp.113-127
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• 2012

From the end of 1st quarter of 2012, Korean mandatory firms had started releasing financial reports conforming to the K-IFRS(Korean adopted International Financial Reporting Standards). Major characteristics of IFRS, such as 'principles based' features, consolidated reporting, 'fair value' measurement, increased pressure for non-financial disclosures have resulted in brief and various disclosure practices regarding the main body of each statements and vast amount of note description requirements. Meanwhile, a host of previous studies on IFRS disclosures have incorporated regulatory and/or 'compete information' perspectives, mainly focusing on suggesting further enforcement of strengthened requirements and providing guidelines for specific treatments. Thus, as an extension of prior findings and suggestions this study had explored to conduct an integrative approach embracing views of the reporting entities and the users of financial information. In spite of all the state-driven efforts for faithful representation and comparability of corporate financial reports, an overhaul of disclosure practices of fiscal year 2010 and 2011 had revealed numerous cases of insufficiency and discordance in terms of mandatory norms and market expectations. As to the causes of such shortcomings, this study identified several factors from the corporate side and the users of the information; some inherent aspects of IFRS, industry/corporate-specific context, expenditures related to internalizing IFRS system, reduced time frame for presentation. lack of clarity and details to meet the quality of information - understandability, comparability etc. - commonly requested by the user group. In order to improve current disclosure practices, dual approach had been suggested; Firstly, to encourage and facilitate implementation, (1) further segmentation and differentiation of mandates among companies, (2) redefining the scope and depth of note descriptions, (3) diversification and coordination of reporting periods, (4) providing support for equipping disclosure systems and granting incentives for best practices had been discussed. Secondly, as for the hard measures, (5) regularizing active involvement of corporate and user group delegations in the establishment and amendment process of K-IFRS (6) enforcing detailed and standardized disclosure on reporting entities had been recommended.

• Asian Journal of Business Environment
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• v.5 no.3
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• pp.17-21
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• 2015

Purpose - This paper compares current requirements for depreciation accounting from the Financial Accounting Standards Board in America for equity securities and all debt securities with determinable fair value, and disclosure requirements related to the fair value of securities below registered cost with the requirements of the international Financial Reporting Standards Board and accounting standards committee. Research design, data, and methodology - Mini-review statements are examined relating to depreciation of investments in America and the Financial Accounting Standards depreciation of investments in Iran that meet the requirements of international reporting standards and the Iranian Accounting Standards Committee. Results - Accounting rules for depreciation of investments in securities requires a good deal of judgment. In particular, devaluation decisions during the recession and market crisis were controversial, although even with no clear guidelines on devaluation, sometimes such decisions were simple. Conclusions -Companies can choose from formal policies applied uniformly and documentations of interest to provide a summary of the principles and conclusions obtained through disclosure, enabling market participants to assess the entity's conclusions reasonably, thereby easing investor and market worries.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.12
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• pp.153-158
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• 2021

Convergence is the process of gradual adoption of a certain accounting standard issued by different regulatory bodies. The aim is to achieve uniformity and standardization across borders to open opportunities for international investment and collaboration. The implementation of IFRS, in theory, encourages more transactions by presenting financial statements in a simple and understandable manner for all investors and other businesses interested in the company. Using event study methodology, this study investigates whether Malaysian companies' adoption of IFRS is recognized by the investment community. A total of 89 public listed companies in Bursa Malaysia are involved in this study. The results show that about 62.8 percent of the companies that adopted IFRS-based financial statements experienced an increase in their average abnormal return after the announcement. However, the paired sample test results show that only 5.6 percent out of 89 companies studied experience a significant difference in abnormal return before and after the announcement. The inexistence of the average abnormal return difference between before and after the announcement may indicate that IFRS-based financial statements do not have any new market informational content. This study found little evidence to show that convergence with IFRS affects the company's stock price in Malaysia.

• The Journal of the Korea Contents Association
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• v.8 no.8
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• pp.274-284
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• 2008

XBRL is an XML-based language, actively used for diverse business reporting applications including financial reporting. It can be flexibly applied to each application by defining concepts and their relationships existing within the application. In these business reporting processes, it is very important for senders and receivers to validate the consistency and completeness of reporting contents in the syntatic and semantic levels. The basic method is to directly represent and validate the semantic constraints using application program codes. However, the method makes it difficult to represent, change, share semantic constraints. While XML constraint languages for XML documents such as XSLT and Schemantron support explicit representation and sharing of semantic constraints, they are limited in the efficiency and effectiveness of representing XBRL semantic constraints. This paper reviews XBRL formula, actively being discussed recently for standardization, and discusses the representation capability and limitations through a case analysis, which applies XBRL formula to business documents in the area of financial reporting.

• Journal of Contemporary Eastern Asia
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• v.21 no.2
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• pp.47-68
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• 2022

Micro, Small, and Medium Enterprises (East Java, Indonesia) are one of the businesses that drive developing nations' economies with various challenges, particularly in finance and digitalization. The impact of financial literacy and the use of digitalization can affect the recording and reporting of company performance. This is quantitative research, and the population in this research is SMEs in East Java, with 401 SMEs from various businesses for the sample used. This research uses the primary data method of SMEs in East Java with the Structural Equation Model as a data analysis tool. The results showed a significant relationship between financial literacy and financial performance, and digital literacy was based on financial performance. However, digital literacy could not moderate financial literacy with the financial performance of East Java SMEs. Much of the untapped potential in this study was adopted from financial governance and digitalization. It is hoped that the subsequent study will examine other phenomena on the variables used in the post-pandemic.

• Journal of the Korea Convergence Society
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• v.10 no.1
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• pp.227-238
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• 2019

In this study, we investigate the effects of disclosure and high-quality audit on donations to charitable organizations in Korea. We find that the mandatory disclosure of financial information and high-quality audit is significantly and positively related to donations to charitable organizations. We also find that charitable organizations audited by Big 4 audit firms have greater likelihood to receive more donations, compared to those audited by non-Big 4 audit firms. Furthermore, we find that those positive associations are more pronounced for smaller charitable organizations. Collectively, those results imply that, as in the profit-making sector, disclosure and high-quality audit play a critical role in enhancing accountability and transparency of financial reporting and revenue for charitable organizations.

• Knowledge Management Research
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• v.21 no.2
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• pp.177-196
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• 2020

Since the adoption of K-IFRS(Korean International Financial Reporting Standards), the amount of financial footnotes has been increased. However, due to the stereotypical phrase and the lack of conciseness, deriving the core information from footnotes is not really easy yet. To propose a solution for this problem, this study tried financial footnote analysis for financial ratio predictions based on text-mining techniques. Using the financial statements data from 2013 to 2018, we tried to predict the earning per share (EPS) of the following quarter. We found that measured prediction errors were significantly reduced when text-mined footnotes data were jointly used. We believe this result came from the fact that discretionary financial figures, which were hardly predicted with quantitative financial data, were more correlated with footnotes texts.