Accrual Basis

The use of models for detecting earnings management in the academic literature, using accrual and real manipulation, is commonplace. The purpose of the current study is to investigate the power of these models in a UK sample of 19,424 firm-year observations during the period 1991-2018. We include artificially induced manipulation of revenues and expenses between zero and 10 percent of total assets to random samples of 500 firm-year observations within the full sample. We use two alternative samples, one with no reversal of manipulation (sample 1) and one with reversal in the following year (sample 2). We find that the traditional real earnings manipulation models have lower power than accrual earnings management models, when manipulating discretionary expenses and revenues. Furthermore, the real earnings manipulation model to detect overproduction has high misspecification, resulting in artificially inflating the power of the model. Modified real manipulation models are used as robustness and we find these to be more misspecified in some cases but less in others. We extend the analysis to a setting in which earnings management is known to occur, i.e. around benchmark-beating. and find consistent evidence of accrual and some forms of real manipulation in this sample using all models examined.

This research aims to predict the effectiveness of implementing International Financial Reporting Standards (IFRS) in reducing earnings management in Saudi Arabia (KSA). Considering that earnings management is influenced by various factors, we also propose examining the impact of corporate governance strength on enhancing the reliability of accounting information. Empirical results are obtained from a sample of 51 Saudi listed firms observed from 2014 to 2020. Discretionary accruals (DA) are utilized to identify earnings management, estimated using Dechow et al.'s (1995) model. Subsequently, a multivariate regression analysis is conducted to explore the relationship between DA, IFRS adoption, and corporate governance structure. The main findings indicate that the independence of both the boards of directors and the audit committee has a significant negative impact on earnings management in Saudi industrial companies. However, the size of the board, the size of the audit committe...

Firms with cross-border operations are highly exposed to foreign exchange risk, prompting the need for strategic financial decisions such as hedging. As primary decision-makers, CEOs significantly influence these risk management strategies. This study examines the effect of CEO characteristics-age, education, and work experience-on hedging decisions and evaluates the moderating role of top management team managerial ability in these relationships. Partial Least Squares Structural Equation Modeling (PLS-SEM) is used to test the model. The analysis is based on 91 firm-year observations from energy sector companies listed on the Indonesia Stock Exchange (IDX) during the 2016-2022 period. The results indicate that CEO age and education are positively associated with hedging decisions, while CEO work experience has a negative effect. Notably, managerial ability strengthens the positive influence of CEO age and CEO education on hedging decisions but does not significantly alter the relationship between CEO work experience and hedging.

1. INTRODUCTION In the emerging economies of the world including Nigeria, just as it did in the advanced economies, the COVID-19 Pandemic posed significant challenges to corporate financial stability. This resulted in increased economic uncertainty, reduced profitability and greater pressure on firms to maintain investors' confidence even after the pandemic. With such economic distortions and quagmire, managers were believed to have been incentivized to manipulate earnings in order to meet performance targets, secure financing or portray stability to its stakeholders (Kabir, 2022; Ombugu & Udeh, 2023). With the shift to remote operations and virtual oversight which was adopted during the pandemic and continued even post COVID-19 era, many have argued that traditional monitoring mechanism has been weakened thereby giving management greater latitude to engage in earning manipulation without immediate detection (Okegbe, Egbunike & Echekoba, 2019). However, many have argued that earning management manipulations would only be rife when corporate governance mechanisms are weak but not when corporate governance mechanisms are strengthened (Al-Azeez, Sukoharsono, Roekhudin & Andayani, 2019; Ombugu & Udeh, 2023). Based on the foregoing, the role of corporate governance mechanism in influencing earning management practices has remained subject of intense scholarly debate (Aleqab & Ighnaim, 2021; Kabir, 2022). While some have found that corporate governance mechanism (components) reduced earning management practices, other scholars have argued that they failed to reduce earning management practices (Al-Azeez, Sukoharsono, Roekhudin & Andayani, 2019; Aleqab & Ighnaim, 2021). For instance, board independence audit committee, CEO duality, audit committee independence and ownership structure and a host of other corporate governance mechanisms, which are designed to promote transparency and accountability, have yielded different effects on earning management practices in firms. While Al-Azeez et al (2019) argued that CEO duality improved earning management practices, Aleqab and Ighnaim (2021) argued that board independence and financial experience failed to improve earning management practices in firms. Furthermore, Ombugu and Udeh (2023) found that audit committee size and independence significantly increased earning management practices in Nigerian firms.

This study aims to examine the extent of the influence of regulatory development on the application of accrual-based government accounting standards; the effect of information systems on the application of accrual-based government accounting standards; and the influence of the quality of human resources on the application of accrual-based government accounting standards. The research design used is the associative method which aims to determine the relationship between one variable and another that is not a cause and effect, an approach that provides an overview of the problem. This research was carried out for approximately one year. This study found that the local government financial statements have implemented Government Regulation No. 71 of 2010 concerning Accrual-Based Government Accounting Standards. Accounting treatment in LKPD is appropriate for recognition, measurement and presentation.

This research investigates the impact of audit committee characteristics (audit committee size, independence, activity, financial expertise, and percentage of common stocks owned by audit committee) on improving accounting conservatism for a sample of 50 Jordanian industrial corporations listed in Amman Stock Exchange (ASE) during the period of 2004-2009. To achieve this goal, accounting conservatism was measured using two methods, Book-to-Market approach and ratio of total accruals to gross profit. By using Pooled Data Regression, the study found that the examined audit committee characteristics are not significantly related to accounting conservatism excluding the financial experience of audit committee members which has a positive relationship with conservatism.

Every microenterprise needs to learn and perform basic accounting practices to ensure that their business progress is running smoothly. Besides able to improve the business performance of a company, accounting practices also represent the result of operations of a company, as well as the statement of financial position. Therefore, by understanding financial performance very well might help the microenterprises not only to evaluate and monitor their business activities but also facilitate them in a critical way to make a better decision. The purpose of this paper is to study the application of basic accounting practices among the microenterprises in Batu Pahat. The data were collected among 157 owners of microenterprises. The data were analysed in frequency and percentage form by using The Statistical Package for Social Sciences (SPSS). The findings showed that most of the microenterprises practiced a very basic accounting system, maintained both cash and accrual accounting and pract...

1. BACKGROUND OF THE STUDY The implementation of International Public Sector Accounting Standards (IPSAS) has garnered significant attention in recent years due to its potential to enhance the quality of financial reporting within public sector organizations. As governments worldwide strive for greater transparency, accountability, and efficient use of public resources, the adoption of IPSAS has emerged as a pivotal step in achieving these objectives (Guthrie et al., 2020). IPSAS provides a comprehensive set of accounting standards specifically tailored for the public sector, aligning it with internationally accepted financial reporting principles. This study examines the implementation of IPSAS within selected ministries and its impact on the quality of financial reporting, focusing on Ghana, a country that has embarked on reforms to strengthen public financial management (Nyah-Okpu & Emenyonu, 2021). The public sector in many countries has faced criticisms for inefficiencies, lack of transparency, and poor financial management practices, which can

This research takes into view the motives that drive opportunistic managers in the Pakistani corporate world to manipulate firm earnings in different financial circumstances by resorting to real (REM) and accrual (AEM) earning management to reap their self-interests. The present study undertakes 188 distressed and 37 non-distressed firms in the sample period of 2010-2017. The summary stats confirm that both in distressed and non-distressed firms' managers resort to REM practices more than AEM. The factors that urge mangers to take REM practices in distressed firms i.e., debt covenant restriction, managerial ownership, and tax avoidance needs to be amended in such a way that it demotivates managers for carrying such practices in distressed firms. The factors that influence AEM practices in distressed firms are debt covenant restrictions, institutional ownership, highly valued firms and managerial ownership whereas in non-distressed firm these factors are debt covenant and effective tax rate. In non-distressed firm's motives that urge mangers to adopt REM practices is raising additional capital and tax avoidance practices.

This research takes in view the motives that drive opportunistic managers in the Pakistani corporate world to manipulate firm earnings in different financial circumstances by resorting to real (REM) and accrual (AEM) earning management to reap their self-interests. The present study undertakes 188 distressed and 37 non-distressed firms for the sample period of 2010-2017. The summary stats confirm that both in distressed and non-distressed firms’ managers resort to REM practices more than AEM. The factors that urge mangers to take REM practices in distressed firms i.e., debt covenant restriction, managerial ownership and tax avoidance needs to be amended in such a way that it demotivates managers for carrying such practices in distressed firms. The factors that influence AEM practices in distressed firms are debt covenant restrictions, institutional ownership, highly valued firms and managerial ownership whereas in non-distressed firm these factors are debt covenant and effective tax...

Sorotan utama penelitian ini adalah profitabilitas ekuitas dengan dasar pemikiran bahwa modal sendiri merupakan hal yang sangat urgen bagi KUD dalam konteks kemandiriannya, karena walaupun KUD tidak bertujuan untuk mengejar keuntungan tetapi harus memperoleh keuntungan untuk berkembang di masa yang akan datang. Bertolak dari alasan di atas, maka penelitian ini dilakukan dengan tujuan untuk mengetahui: ada tidaknya hubungan kausal antara profit margin, investment turnover, dan equity multiplier sebagai variabel independen, dengan profitabilitas ekuitas sebagai variabel dependen dalam arah yang positif bagi kelompok KUD Mandiri dan KUD Calon Mandiri. Untuk mencapai tujuan penelitian ini, maka data selama tahun 1999 -2002 untuk lima KUD Mandiri dan lima KUD Calon Mandiri dikumpulkan dari Dinas Koperasi dan UKM Kota Ambon, dianalisis secara sistematis dengan menggunakan regresi linier sebagai model penelitian. Hasil regresi menunjukkan bahwa ketiga variabel independen tersebut secara parsial maupun simultan berpengaruh signifikan terhadap profitabilitas ekuitas. Pada KUD Mandiri, dominasi pengaruh terletak pada variabel profit margin dan investment turnover sedangkan bagi KUD Calon Mandiri dominasi terletak pada investment turnover.

The rapid growth of Indonesia's economy has led to the emergence of numerous new businesses. This influx of new companies has intensified competition across various industries. To thrive in an increasingly competitive environment, companies must establish clear objectives. According to Ningsih (2021) business development can be assessed through the capital invested by investors. Companies with strong performance are more likely to gain investor trust. Investors prioritize corporate performance as it aligns with the returns generated from their investments. In terms of financial performance at a corporate level, there have been several cases of financial deterioration. In a specific case, Suryahadi (2023) in a report at kontan.co.id stated that PT Adaro Energy Indonesia Tbk (ADRO) experienced a downturn in its performance in the first six months of 2023. In its first six months, ADRO earned a net profit attributable to owners of the parent entity worth USD 873.83 million, representing a 27.9% drop when compared with a similar period in a preceding year, when its net profit totaled USD 1.21 billion. This decline was generated by a reduction in the average selling price and the impact of rising royalty fees on coal mining companies. A substantial portion of past studies have examined financial performance in companies. In Indonesia, studies have been conducted,

Abstrak ___________________________________________________________________ Tujuan penelitian ini untuk mengetahui pengaruh arus kas operasi, arus kas pendanaan, dan arus kas investasi terhadap return saham, serta mengetahui pengaruh arus kas operasi, arus kas pendanaan, dan arus kas investasi secara bersama-sama terhadap return saham. Jumlah sampel yang digunakan adalah 30 sampel dengan metode purposive sampling. Berdasarkan hasil penelitian secara simultan menunjukkan bahwa arus kas operasi, arus kas pendanaan, dan arus kas investasi tidak berpengaruh terhadap return saham. Secara parsial arus kas operasi tidak berpengaruh terhadap return saham, arus kas pendanaan tidak berpengaruh terhadap return saham, arus kas investasi tidak berpengaruh terhadap return saham. Penelitian ini menyimpulkan bahwa arus kas operasi, arus kas pendanaan, dan arus kas investasi tidak berpengaruh terhadap return saham, baik secara simultan maupun secara parsial. Saran dari penelitian ini adalah sebaikny...

This article describes the role of Debt and Corporate Social Responsibility Activity on increasing Corporate Value and does debt as a control mechanism has a role in mediating the relationship between Corporate Social Responsibility Activity in increasing Corporate Value as a monitoring mechanism. So, that CSR activities carried out by companies are not only as green washing, which is carried out as a form of opportunistic behavior from managers, but also activities. CSR through disclosure of SR is carried out solely to fulfill stakeholder interests and increase company and value Socially responsible and expected to improve the company's image. This research comprises companies ranked I on the LQ45 Stock Exchange Index on the Indonesian Stock Exchange for the period from 2016 to 2019. The population that meets the criteria following purposive sampling is determined in this study as many as 164 samples. New research result development Debt acts as a mediator in the relationship between the Corporate Social Responsibility Activity and the Corporate Value. It can help the company develop strategies that support CSR activities that may improve the company's image in the market. Besides, this research also assists decision-makers and strategic planning in developing various policies that will contribute to the company's survival.

The internship was conducted at Suganda Akna Suhri dan Rekan Public Accountant on July 12, 2016 until September 30, 2016 with the placement in the audit division as junior auditor. During the internship, the tasks that were done are doing the working papers of inventory, prepaid income, accounts payable, cost of goods sold and operating expenses, preparing the recapitulation of tax payable, insurance, deed establishment of corporation, equity and checking account, template of notes to financial statement and to notes, match the audited balance of notes to financial statement in 2015 with the notes to financial statement in 2014, footing, cross-footing, proofreading and tie-up, cash opname, vouching. During the internship, most of the tasks can be executed properly. There are some constraint found, for examples the employee of PT KLE hasn’t prepared the data that we’ve been asked before for the audit process. To solve the problem, we are doing a follow-up and asking the employee to s...

Using path analysis, this study investigates the direct and indirect effect of accounting consistency and accounting-based earnings quality proxy on market synchronicity of the Egyptian listed firms. We firstly examine how time-series accounting consistency achieves earnings quality. We find a significant association between time series accounting consistency and lower variation of accruals residuals. We also examine the direct impact of accruals quality on stock returns synchronicity. We find a significant association between lower variation of accruals residuals and higher stock returns synchronicity. Finally, we examine the direct and indirect impact of accounting consistency on market synchronicity. We find that the consistent use of accounting policies can achieve market synchronicity only after achieving earnings quality. Our findings indicate that earnings quality increases the effect of time series accounting consistency on achieving stock returns synchronicity.

Methods An Oversight Committee featuring equal clinical/ patient representation from major geographical areas identified 31 potential countries based on income status. The Committee oversees the Study's adaptation, advises on access issues, and applies a solutions-based approach to challenges. Results 24 countries with up to 10 centres each are engaged, with a projected sample size of >2,000 women. Countries and even centres vary widely in data collection and service organisation. For some, this is their first national or international collaboration. Challenges include: Ensuring participating centres reflect variety of care Accommodating variability of language, literacy, and internet connectivity (interview, paper, secure electronic link) Coverage of core expenses (translation, ethics submission) Ensuring patients and centres with least resource can participate Developing an equitable approach to publication opportunities Balancing countries' differing needs within the study approach Conclusions A unified approach among and even within some LMICs is not feasible. A flexible and pragmatic approach with local teams as well as open channels of communication are essential to challenging inequities on this scale. This approach may add complexity to data analysis, but early benefits are being derived as LMIC patient voices are heard.

At the end of 2007, Washington Mutual, Inc. (generally known as “WaMu”) was the largest savings and loan bank in the U.S., based on assets ($328 billion) and revenue ($25.5 billion). Less than nine months later, WaMu was seized by federal regulators and sold to JPMorgan Chase for $1.9 billion in a transaction facilitated by the Federal Deposit Insurance Corporation (FDIC). During the worst recession since the Great Depression, WaMu became the largest U.S. bank failure in history. This case illustrates how a financial institution's business strategy affects risk and how these characteristics are revealed in the financial statements. Students assume the role of a financial analyst examining WaMu's 2007 10-K after its release in March 2008. In particular, they evaluate the quality of WaMu's loans and the adequacy of WaMu's estimates for loan losses, one of the most important discretionary accruals for financial institutions. Students gain insights into the consequences ...

Both mechanistic and positive accounting theories were postulated to explain the drivers of earnings management. Scholars postulated the theories perhaps under the belief that market would always be sensitive to firm performance reports. Since the emergence of these theories, many empirical researches have been based on such a framework. They found that positive relationship exists between capital market and earnings management. The key questions we want to address in this present study is whether the direction will remain unaltered if market goes insensitive. In addition, if it has altered, what key factors could determine earnings management in the turn of the market? Given that some developing economies capital markets are now insensitive to performance stimuli for over a long period, the reality of metrics constituting the real drivers of earnings management needs rethinking for avoidance of investors’ resource misallocation. In this study, we examined variables that could reall...

The purpose of earnings management practice is to reach the profit goals the company wants to achieve. Therefore, this study aims to determine the relationship between related party transactions and earnings management in Indonesia by balanced panel data from consumer goods companies listed on the Indonesia Stock Exchange (IDX) from 2017 to 2019. The number of samples used in this study was 102 firm-year observations. The results showed that related party transactions positively and significantly improved corporate earnings management, with discretionary accrual as a proxy. The presence of family ownership strengthens the relationship between related party transactions and earnings management. Also, it shows that the control variable: public accountant from BIG4, company size, company losses, and ROA affect accrual earnings management. The leverage does not affect accrual earnings management. The study result indicates that family business ownership encourages an entrenchment effect...

Purpose -To verify the effects of the mandatory nature of the new rule on revenue recognition on the quality of accruals and earnings management in publicly held Brazilian companies listed on the B3. Theoretical framework -By requiring greater judgment and discretion in assessing companies' performance obligations, IFRS 15 can provide greater scope for managerial influence on earnings quality. Design/methodology/approach -A total of 305 Brazilian companies were used with annual data covering 2011 to 2021. As proxies for quality, the accruals quality model by and the earnings management model by Pae (2005) were used. In addition, two models were estimated using quantile regressions to verify whether the new standard affects earnings quality. Findings -After the adoption of the standard, there is evidence of a reduction in the quality of accruals of companies in the technology sector and an increase in earnings management in general, especially in the industrialized products sector. From the research, it is possible to verify that there is evidence that IFRS 15 did not bring improvements in earnings quality in Brazilian public companies. Practical & social implications of research -Due to the failure to achieve the initial objectives expected by the implementation of IFRS 15 in Brazil, standard setters should monitor the evolution of the implications of the use of this standard, eventually seeking to improve it in the search to align the exercise of manager judgment to practices that improve the quality of accounting information. Originality/value -This study provides evidence that a new accounting standard resulted in a reduction in the quality of reported earnings, contributing to the formulation of mechanisms to improve the application of the standard, especially in the most affected sectors.

This paper provides a new approach to test for accrual‐based earnings management. Our approach exploits the inherent property of accrual accounting that any accrual‐based earnings management in one period must reverse in another period. If the researcher has priors concerning the timing of the reversal, incorporating these priors can significantly improve the power and specification of tests for earnings management. Our results indicate that tests incorporating reversals increase test power by around 40% and provide a robust solution for mitigating model misspecification arising from correlated omitted variables.

The implementation of international accounting standards in Indonesia has significantly affected financial reporting. It increases information relevance for the investors because a fair value comprehensively represents assets and liabilities of an entity as of the balance sheet date. However, this triggers polemics over the value relevance of International Financial Reporting Standard (IFRS). This can be seen from stock price decline. This study aims to find out the effect of net income and other comprehensive income on stock price and to observe the effect of other comprehensive income moderated by audit quality. Furthermore this study also aims to find out the effect of the subjectivity of OCI components. Using a sample of 79 companies, the writer analyzes 2014 financial statements derived from Indonesia Stock Exchange. Based on the result, the predetermined hypotheses are unable to prove. Net income is the only variable that affects stock return. Thus it can be concluded that net income has a value relevance for the investors in making economic decisions.

This study aims at comparing accounting and finance perspective to predict earnings persistence. Accounting perspective predicts that current earning components affect the future earnings, while finance perspective predicts that current dividends affect the future earnings. The results show that component of earnings more persistence rather than total earning, and persistence of earnings are also showed by changes of dividend. The results of this study that changes in dividend policy have information contents about future earnings. Increase in dividend payment show that firm believe that firm have better prospect in the future thus able to achieve better future performance. This result confirm prospect theory. This research also find manager use dividend policy to convey relevant information to investor. Managers believe that firms have good opportunity in the future and achieve higher performance. In this case, managers pays higher dividend to give signal to investor that firm will achieve better performance. Firms using dividend policy to give signal to investor to convey relevant information. This result confirm dividend signalling theory. The results also confirm agency theory studying the relationship between management (agent) and shareholder (principal) and assuming the more unite the shareholder, the more powerful shareholders' position rather management's position. The principal interested to both earnings distribution and increasing in future earnings, whereas management prefer increasing permanent earnings with increasing investment on prospective project rather than dividing dividend. The findings of the study show that increase in current earnings and dividend indicates increase in future earnings and dividends. The results of the study show that accrual-cash flow perspective better indicating quality of earnings than dividend signaling perspective.

Income Tax Act current in Indonesia is marked by the issuance of Law No. 36 of 2008. These laws regulate some fundamental changes in the calculation of corporate income tax for companies in Indonesia. One of the most fundamental changes is the change in the rate used in calculating the tax for the company, which was originally using progressive rates (maximum rate of 30%) to 28 % in 2009, and will be 25 % in 2010. This study is a descriptive study with a quantitative approach. Based on predefined criteria sample, then the total number of samples studied is 193 samples. The variables of study include the discretionary accrual earnings management use with Jones model are current asset changes, cash changes, changes in current liabilities, changes in short-term debt, and changes to the income tax paid. Methods of data collection with secondary data are obtained through documentation of ICMD years 2007-2010. Analysis use parametric statistical with t -test and the non-parametric with Wilcoxon test. The results showed all the company showed indications of earnings management before and after the tax law No. 36 in 2008. State-owned companies showed no difference in earnings management prior to the year after adoption of Law No. 36 in 2008, meanwhile the non-SOE companies show indication of earnings management.

This study aims at comparing accounting and finance perspective to predict earnings persistence. Accounting perspective predicts that current earning components affect the future earnings, while finance perspective predicts that current dividends affect the future earnings. The results show that component of earnings more persistence rather than total earning, and persistence of earnings are also showed by changes of dividend. The results of this study that changes in dividend policy have information contents about future earnings. Increase in dividend payment show that firm believe that firm have better prospect in the future thus able to achieve better future performance. This result confirm prospect theory. This research also find manager use dividend policy to convey relevant information to investor. Managers believe that firms have good opportunity in the future and achieve higher performance. In this case, managers pays higher dividend to give signal to investor that firm will achieve better performance. Firms using dividend policy to give signal to investor to convey relevant information. This result confirm dividend signalling theory. The results also confirm agency theory studying the relationship between management (agent) and shareholder (principal) and assuming the more unite the shareholder, the more powerful shareholders' position rather management's position. The principal interested to both earnings distribution and increasing in future earnings, whereas management prefer increasing permanent earnings with increasing investment on prospective project rather than dividing dividend. The findings of the study show that increase in current earnings and dividend indicates increase in future earnings and dividends. The results of the study show that accrual-cash flow perspective better indicating quality of earnings than dividend signaling perspective.

Purpose: This study investigates whether tax litigation influences voluntary changes in audit firms among Brazilian publicly listed companies operating within a highly litigious tax environment. Design/methodology/approach: Using panel data on B3 firms from 2014 to 2023, the study estimates logistic models. Tax litigation is proxied by tax-related provisions plus contingent liabilities scaled by total assets. Control variables include firm size, Big Four engagement, and a COVID-19 crisis dummy (2020-2021). Findings: The results indicate that greater tax litigation is positively associated with the likelihood of a voluntary audit firm change. Each 1 p.p. rise in tax contingencies relative to assets raises the change probability by about 2.58 p.p. Larger firms change more often. At the same time, Big Four audits and the COVID-19 crisis period are associated with a lower probability of change. Research limitations/implications: The use of provisions and disclosed contingencies as proxies may not capture all disputes; the sample covers only listed firms. Results highlight the governance role of audit-firm choice under tax risk. Practical implications: The findings inform audit committees' retention and rotation policies and guide auditors' client-risk assessments in litigious contexts. Social implications: Clearer auditor-client alignment in the context of tax risk can reduce information asymmetry and support investor confidence. Originality/value: The study identifies a direct link between tax litigation intensity and voluntary audit firm change in Brazil, advancing evidence on how corporate governance adapts in high-litigation settings.

This research is aimed to examine the association of human resources’ competencies and information technology on the implementation of government accrual based accounting on the state assets management. As mandated by Government Regulation No. 71 of 2010 concerning Government Accounting Standard, the Government of the Republic  of  Indonesia  should  prepare  its  financial  reports  based  on  accrual  accounting  by  2015.  This  study examines the practice of implementation of accrual  accounting in the management and administration of state asset. The examination conducted in this study is different from previous studies which gave more highlight on the preparation and the implementation of accrual accounting in general, while this stud y gives more focus on one specific object in accrual accounting, that is state assets.  This study conducts survey by using questionnaires which are then distributed to units in line ministries and government that responsible in managing state as...

In South Africa's rapidly digitizing financial landscape, the fragmented treatment of digital assets-such as NFTs, stablecoins, and tokenized instruments-has created significant disparities in classification, valuation, and revenue recognition, threatening audit comparability and investor confidence. This study investigates how accounting integration challenges-namely classification inconsistency, valuation variability, and revenue recognition disputes-influence the adoption of a unified IFRS-based framework in South African fintech firms between 2020 and 2024, moderated by regulatory infrastructure and enforcement. Based exclusively on secondary data from 60 firms, the research applied descriptive and inferential statistics, including regression diagnostics (ADF, VIF, DW, Breusch-Pagan), correlation matrix, and multiple regression analysis. Findings indicate that classification consistency (β = 0.389), valuation standardization (β = 0.371), revenue recognition rules (β = 0.344), and regulatory infrastructure (β = 0.297) all significantly predicted unified framework adoption, with the model explaining 86% of the variation (R² = 0.86). The strongest correlation was between classification consistency and framework adoption (r = 0.87). These results underscore the urgent need for enforceable accounting policies, automated valuation tools, and smart contract-linked revenue models. The study recommends mandatory IFRS-aligned classification and revenue rules, stronger audit enforcement mechanisms, and the integration of blockchain APIs to ensure transparent, consistent, and globally comparable digital asset disclosures.

The internship was conducted at PT Quantum Total Solusi with positions in finance department as accounting staff. During the internship, the tasks that have been done were transaction, check and input data transaction including cash-in, cash-out, bank-out, journal, ledger, into Microsoft Excel, and also make income statement and SPT 1111 with e-Faktur . The constraints faced during the internship were difficulty to find some supporting documents as evidence; messy and unorganized document; unresponding computer.

The research mainly aims to find out the extent to which there is an effect on the income and budget elements of the research sample company through the decline in business results and financial position due to its exposure to the risks of Covid 19 and the results of uncertainty resulting from those risks. Modern clothing is one of the industrial sector companies listed in the Iraqi Stock Exchange, and the research concluded that the risks of Covid 19 greatly affected the income and budget components of the modern clothing company between the decrease represented by the loss and the increase represented by incurring other additional costs to reduce these risks, and the researcher recommends that a Activate the risk management and analysis policy in each company to limit or reduce the effects of any future risks

SUMMARY OBJECTIVE Children with renal tumors included in clinical trials have significantly better outcomes. In Brasil, the enrollment of patients in clinical trials remains challenging. Here we aimed to describe participation accrual in the Brazilian Wilms Tumor Study Group (BWTSG) and to identify barriers to trial registration of children with renal tumors. METHODS We determined the numbers of renal tumor diagnoses in 105 hospital-based cancer registries from 2001-2009. We then compared these totals with the numbers of renal tumor cases registered in the BWTSG from the same hospitals during the same time period. We also invited members of the Brazilian Pediatric Oncology Society to complete a 5-point Likert-type scale questionnaire regarding their opinions of the importance of participation in cooperative group trials. RESULTS The accrual rate of patient participation per hospital varied from 25% to 76%, and was highest in the South region. The accrual rate of hospital participati...

Using a large sample of US firms, we show that high audit quality is associated with a higher proportion of public debt and correspondingly a lower proportion of bank debt in firms' debt financing. The findings are robust to endogeneity issues, alternative measures of audit quality, and alternative model specifications. We also find that the effect of audit quality on the debt mix is stronger in firms with high information asymmetry and poor governance. The results suggest that high audit quality improves firms' transparency, alleviating the concerns of public lenders and thereby enabling firms to borrow more information-sensitive public debt. Particularly, the results suggest that high audit quality mitigates the post-contract moral hazard between public debtholders and managers, which in turn reduces the advantage of bank loans arising from bank monitoring. Last, we show that audit quality is incrementally effective and has a substitutive effect over accruals quality (i.e. audit quality is more effective in shifting the debt preference towards public debt when accruals quality is lower).

This research aimed to examine the influence of internal factors on firm value. In this study the internal factors that profitability, dividend policy, and funding decisions. This study used six companies as a sample from a population of 14 manufacturing companies listed on Indonesian stock exchange in period of 2011-2015. The sample was determined by using purposive sampling. The results showed that profitability and funding decisions had positive effect on firm value, while dividend policy had a negative effect on firm value. The profitability, dividend policy, and funding decisions simultaneously had a positive effect on firm value. The value of the adjusted R2 of  0,798 indicated that the contribution of all the independent variables to account for the dependent variables was 79,8%.

Este trabalho analisa o efeito da tenure da firma e sócio de auditoria no gerenciamento de resultados por accruals e por atividades operacionais reais das empresas abertas do mercado brasileiro. Compuseram a amostra 147 empresas, totalizando 1.138 observações para o período 2011-2019. O gerenciamento de resultados utiliza modelos por accruals discricionários e por atividades operacionais reais que constam nos trabalhos de Dechow, Sloan e Sweeny (1995) e Dechow, Kothari e Watts (1998), respectivamente. As regressões em painel por efeito fixo revelam que a tenure da firma de auditoria influência positivamente o gerenciamento de resultados por accruals discricionários. Já no nível da pessoa física, o resultado foi diferente, uma vez que a tenure do sócio de auditoria não se mostrou relacionada com o gerenciamento de resultados por accruals. Os achados também indicam que a tenure da firma e sócio de auditoria não estão relacionadas com o gerenciamento de resultados por atividades operac...

Equity valuation using P/E multiples is widely used globally across all investment banks primarily to assist their clients, advising them whether to purchase or sell a business or to raise capital for growing a business. The success of any business deal critically depends on valuation. Accurate valuation, thus, interests most of the analysts/investment bankers. Despite such wide and critical usage there is limited research around the topic. Literature suggests that researchers have estimated the accuracy of this technique but their work is limited to a few markets and some specified intervals of time. The results they come up with should not be generalized to all markets that exist around the globe rather should be empirically tested on other markets as well. With a little empirical evidence on the effectiveness of P/E equity valuation method as far as international equity markets are concerned, this report adds to its empirical evidence for UK buyouts. This report estimates accurac...

This study fills critical research in understanding working capital management dynamics within Indian Public Sector Enterprises (PSEs), specifically examining the relationship between investment and dividend decisions. While existing literature recognizes the influence of cash flow on these financial choices, the direct impact of working capital allocation remains underexplored. Drawing on ten years of financial data from top-performing Maharatnas, this research employs descriptive statistics, correlation analysis, and multiple regressions to assess key financial metrics-including Capital Expenditure, Dividend per Share, and Net Working Capital. The findings indicate that while Total Assets and Net Income significantly shape dividend decisions, Net Working Capital has a limited role in influencing investment or dividend policies. Additionally, the study highlights the potential impact of high leverage ratios on investment strategies, underscoring the importance of prudent capital management. These insights provide valuable guidance for optimizing financial strategies in Indian PSEs, strengthening corporate governance, and promoting economic stability. The study concludes with recommendations for further research, advocating for more nuanced models to capture the complexities of working capital management and its broader implications for financial performance in the public sector.

We investigate the extent to which a client’s innovative effort affects the level of audit effort and whether the innovative-effort efficiency can attenuate the demand for greater audit effort associated with a client’s risky research-and-development (R&D) investments. We find that a client firm’s strategic emphasis on corporate innovations may require greater audit effort, but the efficiency of a firm’s innovative effort can attenuate the demand for heightened audit effort against risky, innovative efforts. Findings suggest that the external auditor does not always discourage corporate innovation as the efficiency of a firm’s innovation may lower the client business risk perceived by an auditor.

We examine the effect of qualified audit opinions on private debt contracts. Consistent with the monitoring role of audit opinion on accounting quality, we find that a qualified audit opinion is associated with an average increase of 18 basis points in the interest rate of loan facilities issued in the year following a QAO. We find that this effect persists for at least three years with an average increase of 8 basis points in the interest rate for these loans. Furthermore, we find evidence that lenders replace financial covenants with non-financial covenants following a qualified audit opinion of the borrower's financial statements. We also find that qualified audit opinions are associated with decreases in loan size and increases in the requirement of collateral from the borrower, but we find no evidence that qualified audit opinions are associated with change in the length of loan maturity. Finally, we find that qualified audit opinions are associated with decreased use of performance pricing provisions in debt contracts. A variety of additional tests demonstrate that the effects of a qualified audit opinion on contractual terms are robust after controlling for other indicators of accounting quality such as abnormal accruals, volatility of accounting accruals and disclosure of internal control weakness. These results are not obvious given that private lenders have access to private information unavailable to most market participants and suggest that auditors play a unique role in debt contracting through monitoring borrowers' accounting quality.

The purpose of this study was to determine the effect of managerial ownership, institutional ownership and capital adequacy ratio on discretionary accruals. Discretionary accruals as a proxy for measuring earnings management. This study uses 16 samples of banking sector companies listed on the Indonesia Stock Exchange for the period 2014-2019 with the acquisition of samples using purposive sampling technique. The analysis technique uses multiple linear regression with the Eviews 10 data processing application. The hypothesis is accepted if the probability value is below 0.05. The results showed that: (1) managerial ownership had no effect on discretionary accruals, (2) institutional ownership had no effect on discretionary accruals and (3) capital adequacy ratios had no effect on discretionary accruals.

The discussion in this article is about changes in government accounting, a significant change from government accounting in Indonesia is from cash-based accounting to cash-based accounting towards accruals (cash toward accruals), to full accruals. The writing method used is a literature study with a qualitative approach . The research method used is a literature study with a qualitative approach. Sources of data were obtained through searching articles related to accounting policies carried out by the government. The purpose of this study is to identify and analyze the challenges in reforming government accounting policies in Indonesia. The finding of the study that state that the government needs to prepare financial statements in accordance with Law No. 17 of 2003 which refers to Government Accounting Standards (SAP/standar akuntansi pemerintahan). As a derivative of this regulation, the government has issued Government Regulation Number 24 of 2005 which was updated with Governme...

تهدف هذه الدراسة إلى تحليل دور المعلومات المحاسبية في دعم هيكل صنع القرار داخل المؤسسات العراقية، من خلال تقييم مدى ملاءمة ودقة وتوقيت هذه المعلومات في سياق بيئة أعمال معقدة. اعتمدت منهجًا وصفيًا تحليليًا مدعومًا بمسح ميداني شمل عينة من المديرين والمحاسبين، وركزت على أدوات التحليل الكمي والربط بين البيانات المالية والتخطيط الاستراتيجي وتخصيص الموارد. توصلت النتائج إلى أن جودة القرارات الإدارية ترتبط ارتباطًا وثيقًا بفعالية نظم المعلومات المحاسبية، وأن القصور في وعي القيادات الإدارية بكيفية استثمار هذه المعلومات يمثل عائقًا رئيسيًا. أوصت الدراسة بضرورة تطوير البنية التقنية وتدريب الكوادر وتعزيز استقلالية التدقيق الداخلي لتحويل المحاسبة الإدارية من وظيفة تسجيلية إلى أداة استشرافية قادرة على تحسين الأداء المؤسسي وتعزيز القدرة التنافسية.

ABSTRACT
This study set out to examine audit quality and earnings management in Nigeria listed oil and gas companies. The specific focus of the study was to investigate the relationship between audit firm tenure and audit quality; assess the effect of audit committee on audit quality; and examine the relationship between audit quality and earnings management. This research work is hinged on agency and stakeholders theories. The data for this study were collected from the financial statements of the companies studied, journal articles, reports, periodicals, websites and magazines. The research study nine (9) oil and gas companies and covered a 20 (2000-2019) year period. The study adopted Ordinary Least Square method of data analysis to analyse the data collected and decisions were made from the statistical result. Conclusions of this study were made from the empirical findings. From the empirical result of this research this study concludes that there is significant negative relationship between audit quality and audit committee meeting. This means that as the audit committee meeting increase, audit quality tend to decreases. This study concludes among others that significant positive relationship exists between audit quality (AUQTY) and firm age (AGE); there is significant positive relationship between board size and audit quality; there is significant negative relationship between audit fee (FEE) and audit quality (AUQTY); there is significant negative relationship between earnings management (EMGT) and audit quality (AUQTY); there is significant positive relationship between cash flow from operation and audit quality; and  that there is significant negative relationship between liquidity ratio and audit quality. Therefore, this study recommends that firms should find a better way to monitor statutory audit rather than increasing meetings of audit committee; that firms should have on its board members a reasonably enough numbers that will help to monitor preparation and presentation of financial statements; government also should ensure that all firms comply with minimum number of board members; and that firms should work towards ensuring audit quality to minimize earnings management. Government should not relent in ensuring that financial statements of companies comply with all relevant laws and regulations.

Dr. Ratna Wardhani Affiliation : Postgraduate Program in Accounting, Faculty of Economics, University of Indonesia Depok 16424, Indonesia Postal Address : Gedung Pascasarjana Fakultas Ekonomi Universitas Indonesia, Kampus UI Depok 16424, Indonesia Email Address : ratnawardhani@yahoo.com Telephone Number : (+62-21) 78880745/47, (+62-21) 7270164 Mobile Phone Number : (+62-81) 79865683 Fax Number : (+62-21) 78880745

This study aims to analyze the impact of modernization of taxation system and amendment of income tax law on the components of the book-tax conformity accruals, whether there are any differences in the earnings persistence of book-tax conformity accruals (which have higher tax conformity) and book-only accruals (which have lower tax conformity). This study also demonstrates whether the market anomalies occur on those accruals component in the context of taxation in Indonesia. By using 1.729 observations over the years of 2002-2014, this study shows that strategy in book-tax conformity accruals is generally income increasing, while strategy in book-only accruals is income decreasing. The company's policy on accrual components has different characteristics before and after the implementation of this phase. Governance improvement of taxation authority can increase corporate book-tax conformity accruals. However, when corporate is facing changes in tax laws such as simplification and lower tax rate, they decrease book-tax conformity accruals. Therefore, discretionary book-tax conformity accruals are mispriced by market.

This study aims to analyze the implementation of public sector accounting in increasing financial transparency and accountability in local governments. The research method used is qualitative descriptive with data collection techniques through interviews, observations, and documentation. The results show that the effective implementation of public sector accounting can increase financial transparency and accountability, although there are still several obstacles such as the lack of competent human resources and adequate technological infrastructure.

Clinical trials in cancer treatment are imperative in enhancing patients’ survival and quality of life outcomes. The lack of communication among professionals may produce a non-optimization of patients’ accrual in clinical trials. We developed a specific platform, called “Digital Research Assistant” (DRA), to report real-time every available clinical trial and support clinician. Healthcare professionals involved in breast cancer working group agreed nine minimal fields of interest to preliminarily classify the characteristics of patients’ records (including omic data, such as genomic mutations). A progressive web app (PWA) was developed to implement a cross-platform software that was scalable on several electronic devices to share the patients’ records and clinical trials. A specialist is able to use and populate the platform. An AI algorithm helps in the matchmaking between patient’s data and clinical trial’s inclusion criteria to personalize patient enrollment. At the same time, a...