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Key research themes
1. How is the quality and useful information of income statements ensured and measured for decision-making purposes?
This research theme explores factors influencing the quality, reliability, and usefulness of income statements and associated financial disclosures. It is crucial because financial statements underpin investment decisions, company valuation, and stakeholder trust. The focus includes compliance with accounting standards, internal controls, accounting information systems, and regulatory frameworks that impact financial report quality and their resulting influence on user decisions.
Key finding: The study empirically demonstrates that adherence to accounting standards and robust internal control systems significantly improve the quality of financial reports, which directly enhances the reliability and... Read more
Key finding: Using survey data from investors in northern Bangladesh, this study finds that financial statements—including income statements—significantly influence investment decisions, despite some skepticism in developing markets. This... Read more
Evaluation of the Organization's Performance in Connection with the Creation of Financial Statements
Key finding: This paper outlines the interlinked role of the income statement, balance sheet, and cash flow statement as an integrated system to evaluate company performance and financial health, emphasizing that performance measurement... Read more
Key finding: Though broad, this comprehensive source details mechanisms in accrual accounting, the recognition of income and expenses, and the procedural and ethical standards that are central to preparing reliable income statements in... Read more
Key finding: IAS 1 standard sets critical guidelines including presentation, structure, minimum content, and classification requirements for financial statements, including the income statement. It mandates the separation of profit or... Read more
2. What are the impacts of accounting policies and disclosure formats on the informational value and investor perceptions of income statements?
This research theme investigates how specific accounting choices—such as fair value measurement, earnings management, disclosure tone, and the format of income statements—affect the information conveyed, its value relevance to investors, and the detection of earnings manipulation. Understanding this is essential for evaluating the credibility, interpretability, and comparability of income statement information under international standards.
Key finding: The study finds that firms relying more on fair-value accounting, particularly financial firms with high financial assets, show higher value relevance of the balance sheet compared to the income statement. Conversely,... Read more
Key finding: The paper reveals that Chinese firms listed in the US use more positive, uncertain, or modal words in financial disclosures to mask earnings management, confirming that linguistic tone in income statement narrative components... Read more
Key finding: Empirical analysis shows Italian publicly traded companies exhibit substantial uniformity in presenting comprehensive income following IAS 1 (2007) revisions, but choose between formats (single vs separate statements)... Read more
Key finding: The study finds that companies engaging in earnings management practices tend to disclose higher quality sustainability reports, suggesting a complex relationship where income statement manipulation interacts with... Read more
Key finding: Through content analysis of Nigerian companies, the research demonstrates that reported profits often lack corresponding cash flows due to credit sales and purchases. This finding leads to the proposal of a Two Column Profit... Read more
3. How can technological and methodological innovations improve the accuracy, consistency, and analysis of income statement data in financial reporting?
This theme concerns the adoption of advanced technologies and new analytical approaches—such as automated consistency checks and practical guidelines for MSMEs—to enhance the accuracy, transparency, and usability of income statements. It is of academic and practical interest as it addresses challenges in maintaining high-quality reporting in a complex and evolving financial environment.
Key finding: The KPI-Check system combines financial named entity recognition with BERT-based classification to automatically identify and cross-check semantically equivalent KPIs, including income statement items, across German financial... Read more
Key finding: This qualitative study provides a practical framework for MSMEs to prepare financial statements, including income statements, by identifying business activities, financial transactions, and classifying elements such as income... Read more
Key finding: This paper critically evaluates current accounting practices that expense many intangible investments directly to the income statement, confusing earnings with investments. It proposes solutions centered on accounting under... Read more
Key finding: Although focusing on bank balance sheets, this study incorporates income statement parameters into an optimization model seeking feasible adjustments that maximize profit and reduce risk. Its methodological innovation shows... Read more
Key finding: While centered on MSMEs in a niche business, this study underscores the role of integrating technological solutions (e.g., IoT systems) for operational improvements with indirect benefits on financial outcomes. It implies... Read more