Abstract: In this content analysis research note the aim was to explore to how sustainability and especially environmental issues are conveyed into environmental items in annual reports and disclosures. As The Global Reporting Initiative (GRI) is a globally wide multistakeholder process, the enterprises using voluntarily GRI framework are considered to be aware of sustainability and environmental concerns. The findings were that although these enterprises included in an environmentally sensitive industry sector and had special capabilities to consider environmental issues there were few GRIreporting enterprises presented substantially detailed environmental items in audited financial statements. There were only slight differences between publishing years 2008 and 2009 - the beginning years of economic turmoil. The environmental issues seemed not to be considered substantial enough for financial reporting as a basis for concerning investment or voting decisions.
Abstract: There is limited evidence from various countries
about the possible impact of various criteria to be used to determine
the scope of the IFRS for SMEs issued in 2009 and, research is
needed in this area. We provide evidence from Romania, an
emerging economy member of the European Union. The aim of this
paper is to analyze in a local setting if size is a relevant factor for
deciding between local and global standards for SMEs. Our results
indicate that size is a moderate indicator of the existence of possible
users interested in financial statements and that there is a difference
between the scopes of the standard determined on various criteria..
Also, we suggest that the international exposure is quite reduced in
the case of SMEs, but is sufficient to suggest that at least some SMEs
would benefit from international comparability of financial
statements
Abstract: A Decision Support System/Expert System for stock
portfolio selection presented where at first step, both technical and
fundamental data used to estimate technical and fundamental return
and risk (1st phase); Then, the estimated values are aggregated with
the investor preferences (2nd phase) to produce convenient stock
portfolio.
In the 1st phase, there are two expert systems, each of which is
responsible for technical or fundamental estimation. In the technical
expert system, for each stock, twenty seven candidates are identified
and with using rough sets-based clustering method (RC) the effective
variables have been selected. Next, for each stock two fuzzy rulebases
are developed with fuzzy C-Mean method and Takai-Sugeno-
Kang (TSK) approach; one for return estimation and the other for
risk. Thereafter, the parameters of the rule-bases are tuned with backpropagation
method. In parallel, for fundamental expert systems,
fuzzy rule-bases have been identified in the form of “IF-THEN" rules
through brainstorming with the stock market experts and the input
data have been derived from financial statements; as a result two
fuzzy rule-bases have been generated for all the stocks, one for return
and the other for risk.
In the 2nd phase, user preferences represented by four criteria and
are obtained by questionnaire. Using an expert system, four estimated
values of return and risk have been aggregated with the respective
values of user preference. At last, a fuzzy rule base having four rules,
treats these values and produce a ranking score for each stock which
will lead to a satisfactory portfolio for the user.
The stocks of six manufacturing companies and the period of
2003-2006 selected for data gathering.
Abstract: This paper explores the effectiveness of machine
learning techniques in detecting firms that issue fraudulent financial
statements (FFS) and deals with the identification of factors
associated to FFS. To this end, a number of experiments have been
conducted using representative learning algorithms, which were
trained using a data set of 164 fraud and non-fraud Greek firms in the
recent period 2001-2002. The decision of which particular method to
choose is a complicated problem. A good alternative to choosing
only one method is to create a hybrid forecasting system
incorporating a number of possible solution methods as components
(an ensemble of classifiers). For this purpose, we have implemented
a hybrid decision support system that combines the representative
algorithms using a stacking variant methodology and achieves better
performance than any examined simple and ensemble method. To
sum up, this study indicates that the investigation of financial
information can be used in the identification of FFS and underline the
importance of financial ratios.
Abstract: This paper examines the readability of the chairman’s narratives, as determined by the Flesch score, of a Malaysian public listed company’s corporate reports from 1962 to 2009. It partially supports earlier studies which demonstrated that corporate reports were difficult to read, and had shown very negligible decrease in difficulty over time. Net profit to sales and readability was significantly positively correlated but number of financial statements was significantly negatively correlated with readability.
Abstract: This study examines the possibility to apply the theory of multidimensional accounting (momentum accounting) in a Brazilian Navy-s Services Provider Military Organization (Organização Militar Prestadora de Serviços - OMPS). In general, the core of the said theory is the fact that Accounting does not recognize the inertia of transactions occurring in an entity, and that occur repeatedly in some cases, regardless of the implementation of new actions by its managers. The study evaluates the possibility of greater use of information recorded in the financial statements of the unit of analysis, within the strategic decisions of the organization. As a research strategy, we adopted the case study. The results infer that it is possible to use the theory in the context of a multidimensional OMPS, promoting useful information for decision-making and thereby contributing to the strengthening of the necessary alignment of its administration with the current desires of the Brazilian society.
Abstract: Although agriculture is an important part of the world
economy, accounting in agriculture still has many shortcomings. The
adoption of IAS 41 “Agriculture” has tried to improve this situation
and increase the comparability of financial statements of entities in
the agricultural sector. Although controversial, IAS 41 is the first
step of a consistent transition to fair value assessment in the
agricultural sector. The objective of our work is the analysis of IAS
41 and current accounting agricultural situation in Romania.
Accounting regulations in Romania are in accordance with European
directives and, in many respects, converged with IFRS referential.
Provisions of IAS 41, however, are not reflected directly in
Romanian regulations. With the increase of forest land transactions,
it is expected that recognition and measurement of biological assets
under IAS 41 to become a necessity.
Abstract: Internal controls of accounting are an essential
business function for a growth-oriented organization, and include the
elements of risk assessment, information communications and even
employees' roles and responsibilities. Internal controls of accounting
systems are designed to protect a company from fraud, abuse and
inaccurate data recording and help organizations keep track of
essential financial activities. Internal controls of accounting provide a
streamlined solution for organizing all accounting procedures and
ensuring that the accounting cycle is completed consistently and
successfully. Implementing a formal Accounting Procedures Manual
for the organization allows the financial department to facilitate
several processes and maintain rigorous standards. Internal controls
also allow organizations to keep detailed records, manage and
organize important financial transactions and set a high standard for
the organization's financial management structure and protocols. A
well-implemented system also reduces the risk of accounting errors
and abuse. A well-implemented controls system allows a company's
financial managers to regulate and streamline all functions of the
accounting department. Internal controls of accounting can be set up
for every area to track deposits, monitor check handling, keep track
of creditor accounts, and even assess budgets and financial statements
on an ongoing basis. Setting up an effective accounting system to
monitor accounting reports, analyze records and protect sensitive
financial information also can help a company set clear goals and
make accurate projections. Creating efficient accounting processes
allows an organization to set specific policies and protocols on
accounting procedures, and reach its financial objectives on a regular
basis. Internal accounting controls can help keep track of such areas
as cash-receipt recording, payroll management, appropriate recording
of grants and gifts, cash disbursements by authorized personnel, and
the recording of assets. These systems also can take into account any
government regulations and requirements for financial reporting.