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

• Journal of the Korea Institute of Information and Communication Engineering
• /
• v.14 no.6
• /
• pp.1359-1364
• /
• 2010

In International Financial Reporting Standards(IFRS), companies have difficulties in managing efficiently own accounting rules and demonstrating the adequacy of accounting processes with the conventional accounting system. BRMS(Business Rule Management System) provides methods for managing, processing, and monitoring these accounting rules according to accounting principles and situation. This paper proposed the BRMS-based financial programming framework for managing and processing the accounting principles and the own accounting rules.

• Management & Information Systems Review
• /
• v.10
• /
• pp.117-133
• /
• 2002

In December 1999, the AICPA introduced WebTrust, a electronic commerce assurance service of ensuring safe trading on the web, in order to effect consumer confidence into electronic commerce. Shortly afterwards, CPA associations of other advanced nations, such as Canada, Australia, also adopted this service. This study focuses on introduction of electronic commerce assurance service of ensuring safe trading on the web. WebTrust assurance service expected to be the international standard in electronic commerce in the near future and not only as a source of income for domestic accounting firms, which have simpler income structure than the international counterparts, but also as catalyst for stimulating electronic commerce. The findings of the study are expected to contribute to accounting practice, academy of accounting and electronic commerce firms in the following ways. Domestically, as Korea is considering using the electronic commerce assurance service, this study will help promote adoption of WebTrust assurance service. This study has shown, in the midst of declining income of accounting firms by audit, a way to increase their audit boundary.

• International Journal of Advanced Culture Technology
• /
• v.12 no.1
• /
• pp.293-298
• /
• 2024

The purpose of an internal control system is to prevent the occurrence of errors and fraud in the process of producing accounting information, thereby providing investors with reliable information. For the effective operation of an internal control system, it is necessary to secure a sufficient number of personnel and experienced staff. This study focuses on the personnel directly involved in producing accounting information, examining whether companies that invest in their internal control staff experience a mitigation in the phenomenon of valuation errors. The analysis revealed that the size and experience months of the personnel responsible for internal control have a significant negative relationship with valuation errors. This result implies that by securing sufficient personnel for the smooth operation of the internal control system and placing experienced staff within the system, investors can effectively make judgments about the intrinsic value based on quality accounting information, thereby reducing valuation errors.

• The Journal of Economics, Marketing and Management
• /
• v.12 no.3
• /
• pp.13-22
• /
• 2024

Purpose: While there has been extensive research on discretionary accruals (hereafter, 'DA') and accounting conservatism, interpretations have varied among researchers depending on how discretionary accruals are determined as proxies. This study investigates the relationship between discretionary accruals (DA) and accounting conservatism, focusing on the distinctions between signed DA and absolute DA. Research design, data and methodology: Using financial data from companies listed on the KOSPI and KOSDAQ markets from 2010 to 2020, we employ regression analysis to explore how signed and absolute DA impact accounting conservatism. This approach allows us to parse out the effects of positive versus negative discretionary accruals systematically. Results: Our findings indicate a divergent impact of DA on accounting conservatism. Specifically, in cases of negative DA, an increase in DA corresponds with heightened accounting conservatism. Conversely, when DA is positive, increases in DA do not exhibit a significant relationship with changes in accounting conservatism. These effects suggest that the nature of DA-whether it represents upward or downward earnings adjustments-critically influences its relationship with conservatism. Conclusions: The results elucidate the nuanced role of discretionary accruals in influencing accounting conservatism. The decrease in accounting conservatism associated with absolute increases in DA appears primarily driven by groups with downward earnings adjustments. This suggests that as negative DA diminishes toward zero, accounting conservatism intensifies, whereas positive DA does not have a parallel effect.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.2
• /
• pp.873-882
• /
• 2021

The study investigates the key factors that affect the adoption of the International Financial Reporting Standards (IFRS) by companies listed on Ho Chi Minh Stock Exchange (HOSE) in Vietnam. The factors that are studied in this research include total debt-to-equity ratio, firm size, return-on-equity ratio, audit quality, foreign investment, and financial institution category. The authors have utilized quantitative and qualitative analyses in combination with a logistics regression model and other available analytical tools for conducting the research. All statistics processed in the paper were based on 379 audited financial statements issued in 2018. The results reveal that factors like firm size, return on equity (ROE), audit quality, foreign investment, and financial institution category positively affect the IFRS adoption of HOSE-listed companies, while total debt-to-equity ratio negatively impacts the adoption. The findings suggest Vietnamese law and policy-makers, when promoting the adoption of IFRS by listed companies, should focus more on five variables with positive influence and they can disregard the total debt-to-equity ratio that is insignificant as a factor affecting the adoption of IFRS. This implication could be applied for other firms in Vietnam and for enterprises in other countries, which are in the same stage of IFRS application.

• The Journal of Economics, Marketing and Management
• /
• v.4 no.4
• /
• pp.17-24
• /
• 2016

The purpose of the present study is to investigate the relationship between Management bonuses and earnings stability of the listed companies on the Tehran Stock Exchange (TSE). The population includes 94 firms selected through systematic sampling. The data is collected from the audited financial statements of the firms provided by TSE's website from 2009 to 2016. The results of multiple linear regression analysis show that there is a significant relationship between Management bonuses and earnings stability. The aim of this study primarily investigating the relationship between earnings stability and management bonus. In the case of this target, the next goal of this research is to develop a proposal for legislation in the domain of capital market, students and faculty as well as accounting information users provide research interests. Observations show many companies despite the decline in profitability, bonus managers to continually pay. Increase in listed companies Stock Exchange as well as the importance of communication between earnings quality and bonus managers in Financial Accounting the authors created an incentive to research about this relationship do. The results of this research could be the development of literature done in the past. Thus, more knowledge about the issue of sustainability and its relation to bonus managers the users of accounting information, accounting courses provide students and faculty.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.1
• /
• pp.327-333
• /
• 2021

Accounting information disclosure by enterprises is important for third-party entities (suppliers, creditors, banks, regulators, etc.). Voluntary accounting information disclosure (VAID) refers to additional information related to business activities shown on the annual report above and beyond the required information about business results and financial position as well as cash flow. This supports the stakeholders gaining useful information to make proper business decisions. The article examines the influence of ownership structure on the voluntary accounting information disclosure of the top 100 Vietnamese listed companies (VN100). Data collected by authors on regular annual reports totaled 425 observations from 2015 to 2019. The article uses OLS to test multivariate regression models with time-series data. The research results show that there are three variables affecting voluntary accounting information disclosure, of which foreign ownership and institution ownership have a positive impact, while concentration ownership has an opposite impact. Accordingly, the managers of VN100 should raise awareness in order to demonstrate the obligation of information providers to users to ensure clarity and completeness. The state agencies should encourage VN100 to enhance voluntary accounting information disclosure. This contributes to improve the information level of Vietnamese listed companies to embrace the trend of international economic integration.

• Culinary science and hospitality research
• /
• v.9 no.3
• /
• pp.1-21
• /
• 2003

Domestic hotel businesses are confronted with new market circumstances. Clear accounting and moral management in company which have been reserved or ignored during the past high economic growth period were emphasized. As global standard such as international standard of accounting system, clear accounting, international standard management, and flexibility of employment are emphasized, which is different management is now accomplishing. During these system changes, organization member's identity was threatened a lot. So organization members were required to adopt new environment. Hotel have influence on organizational accomplishment, thought and behavioral response of organization members according to cultural type and share of organization culture. This study are focused culinary team culture as subculture in hotel. What kind of culture more effective to the culinary group\ulcorner What kind of culture are grouped each hotel, include difference imported brand hotel and domestic brand hotel.

• The Journal of Industrial Distribution & Business
• /
• v.8 no.1
• /
• pp.33-39
• /
• 2017

Purpose - The main purpose of the current study is to examine the impact of accounting information quality and information asymmetry on the underinvestment phenomenon among the listed companies on the Tehran Stock Exchange (TSE). Research design, data, and methodology - The population includes 94 firms selected through systematic sampling. The data is collected from the audited financial statements of the firms provided by TSE's website from 2010 to 2015. Accounting information quality and information asymmetry is considered as independent variables, and their impact is examined on the dependent variable (underinvestment). Results - The statistical results, based on data collected from 94 listed companies on the TSE during 2010-2015, revealed positive impact of accounting information quality and positive impact of information asymmetry on underinvestment. There was a significant relationship between accrual quality (AQ) and underinvestment, and spread and underinvestment. The results also showed that information asymmetry is the main factor in the creation underinvestment. Conclusions - Findings of this article can assist accounting researchers and theoreticians in comparing Real world facts with hypotheses developed with respect to accounting information quality, information asymmetry and underinvestment. However, the results of fuzzy regression analysis indicate significant relationships between the independent variable except underinvestment.