Accounting and Financial Control
Latest articles in this journal
Accounting and Financial Control, Volume 3, pp 1-10; doi:10.21511/afc.03(1).2020.01
The research is devoted to the analysis of the European and Ukrainian experience of banks’ management report audit assurance, the disclosure of the national features of such assurance using the case study of 75 state-owned banks, banks with private and foreign capital in Ukraine, and the specific features of audit verification of this report in the current crisis conditions. It was discovered that the requirements of national regulatory documents and guidelines for preparing a management report for banking institutions generally comply with the European approaches, particularly with Directive 2014/95/EU, Directive 2013/34/EU, and Directive 2014/56/EU (Legislation of EU, 2013, 2014). However, specific national requirements for the content of the report and the procedure for its audit are duplicated, intersect, and create inaccuracies in the disclosure of non-financial information by banks. Besides, the requirements for the reflection of the information on the management report in the independent auditors’ report of the studied banks of Ukraine are partially met. The common challenges for accounting and audit support for the management report for Ukrainian and European banks are disclosed in terms of the current crisis caused by global health risks and their economic consequences for banks.
Accounting and Financial Control, Volume 3, pp 11-22; doi:10.21511/afc.03(1).2020.02
This article highlights the transformation of views on the understanding of accounting as a science in the new conditions for the functioning of enterprises operating in globalized markets in a dynamic competitive environment. The necessity of considering external factors (corporate scandals, financial crisis, etc.) in the development of accounting as a science is emphasized. The reasons for the need to confirm the scientific status of accounting are considered, the hypotheses concerning the gradual crowding out and replacement of accounting by information systems with artificial intelligence are refuted. Accordingly, the study aims to confirm the scientific significance of accounting and justify the need for its further development as a social science aimed at solving social issues and having a deeper social context. Various accounting models and identification of factors affecting their construction, as a result of which the goals of accounting are transformed, make the theoretical basis of this study. It is concluded that accounting is a social science that studies the features of the functioning of the accounting system as a social and institutional practice. Such an understanding of accounting science is considered one of the ways out of the existing crisis. The reasons for the lack of understanding among Ukrainian researchers of accounting as a social science are highlighted, and the ways to overcome them are suggested. It is proved that accounting, on the one hand, is a product of the social environment, an instrument for reflecting the economic reality of an enterprise. On the other hand, it influences the formation of social reality, being an instrument for shaping social processes and relations arising from the functioning of accounting as a separate socio-economic institute.
Accounting and Financial Control, Volume 2, pp 47-53; doi:10.21511/afc.02(1).2018.05
Development of an effective logistics infrastructure for companies contributes to ensuring their effective work, directly affects financial performance and requires the establishment of a management and accounting system for logistics costs. Classifying and registering logistics costs becomes more important in this regard. At this stage of Ukrainian accounting practice, there are challenges for logistics costs accounting such as their identification and registration. Methodological basis of study among different logistics concepts (concept of general logistics costs, concept of reengineering business processes in logistics, concept of an integrated logistics strategy, concept of supply chain management) was total logistics costs concept or the concept of full value as well as process-oriented approach. In the work, the generalization and formalization of existing approaches to the logistics costs accounting was made. Feasibility of using a process-oriented approach among other approaches (absorption costing, direct costing target costing, kaizen costing, etc.) were substantiated. The algorithm of identification and registration of logistics costs for Ukrainian enterprises was proposed. It is based on such inclusion in the relevant economic process (supply, production, sales and administration of logistics processes) and the use of a new consolidated account 29 “Logistics costs”. This authors’ approach to solving the problem of identification and registration of logistics costs for accounting purposes allows to optimize and increase the informativeness of accounting logistics costs reflection in Ukrainian accounting practice.
Accounting and Financial Control, Volume 2, pp 37-46; doi:10.21511/afc.02(1).2018.04
The dissemination of sustainability reporting and integrated reporting is a key trend in the development of accounting systems under the influence of the concept of sustainable development. This statement is fair not only for developed countries, but also for developing countries. On the example of Ghana and Ukraine, a comparative study of regulatory requirements and conceptual frameworks for the compilation of sustainability reporting and integrated reporting has been conducted; the dynamics, size of reporting companies, their sectoral affiliation and the standards used are researched. It was proved that the basis for the promotion sustainability reporting and integrated reporting in these countries are regulatory requirements, as well as increasing the perception of CSR, the transparency and accountability of business, the practices of stakeholder participation and assurance the reliability of reporting for stakeholders.
Accounting and Financial Control, Volume 2, pp 27-36; doi:10.21511/afc.02(1).2018.03
Accounting information presented in financial statements is likened to a set of symbols. These symbols are expected to represent certain realities, which are called semantic meanings. One of the symbols presented in the financial statements is profit. As a communication medium, the presentation of profits must be interpreted exactly the same as the intended meaning, so that accounting information becomes unbiased. The purpose of this study is to reveal the understanding of the concept of profit based on semantic meaning from the point of view of the accounting accountant. This study uses an interpretive qualitative approach. Data were obtained from structured interviews with informants, namely educator accountants in Indonesia with “mainstream and anti-mainstream” schools of thought. The results of the study reveal that the tendency has been a shift in thinking from educator accountants that originated from idealism to being pragmatic. The meaning of profit at the semantic level is not only materially interpreted. Although profit is used as an indicator of the success of the company, profit is interpreted as a representation of changes in the company’s economic reality. That, the meaning of profit reflects the company’s efforts to improve its economic capacity and its usefulness to the wider community. In other words, that profit is an economic information instrument that is expected to provide value-added to its users.
Accounting and Financial Control, Volume 2, pp 15-26; doi:10.21511/afc.02(1).2018.02
An upper-level intermediate accounting course taught at two large mid-west universities in the United States provides a natural experimental setting to examine whether teaching debits/credits in the introductory financial accounting course matters. Students in the upper-level course fall into two groups: those who learned debits/credits in the introductory course and those who weren’t. The performance of both groups is evaluated during the semester while they take the upper level accounting course. Regression results show that the prior knowledge of debits/credits offers only a mild advantage in the first mid-term exam, but not thereafter. Results also indicate that grade point average (standardized tests like ACT scores) are a good (not a good) predictor of the performance in the upper-level accounting class. These results suggest that teaching debits and credits in the introductory accounting course does not provide any advantage in learning the material of upper-level accounting course.
Accounting and Financial Control, Volume 2, pp 1-14; doi:10.21511/afc.02(1).2018.01
The article is dedicated to the solution of the relevant issue, concerning management of enterprise`s financial sustainability. Financial sustainability assessment is one of the most important principles of enterprise`s activity, which provides information about financial capabilities of the company at the time of its evaluation and for the future. It is a requirement for the enterprise activity, which provides a high level of competitiveness, efficiency and intensity. Thus, the restoration and strengthening of financial sustainability is a priority task for the enterprise, a basic precondition for its effective functioning. The purpose of the research is to analyze financial sustainability and to improve the methods and approaches of its evaluation. The following methods were used in this research: financial and economic analysis, economic and mathematical modeling, analysis and synthesis, comparison. The main results of the study are following: the theoretical and essential characteristics of enterprise financial sustainability has been determined; the financial status of PJSC “Turboatom” has been analyzed; the taxonomic index of financial sustainability has been calculated and the forecast of its significance has been made, the approaches to increase enterprise financial sustainability have been proposed.
Accounting and Financial Control, Volume 1, pp 29-37; doi:10.21511/afc.01(2).2017.04
For the last 20 years fair value accounting has considerably extended its domain. Fair value is a probabilistic market value, which is expected to be obtained on the basis of forecasting of future events, connected with an asset sale or transfer of liabilities. The purpose of fair value is to define a price of an ordinary operation of an asset sale or transfer of liabilities between the market participants, which would have taken place by the date of measurement in the present market conditions. Market value is fair only with an active market, at which prices are determined by demand and supply. This is the reason of a discussion about the use of fair value. The opponents of fair value accounting state that exactly fair value has become a cause of financial crisis and had a negative influence on companies. However, there are many supporters of fair value accounting, who state that fair value is the indicator of financial system significant difficulties and it helps in warning financial crises. The purpose of the article is to validate the economic characteristics of fair value and to analyze its` role in a financial crisis
Accounting and Financial Control, Volume 1, pp 38-45; doi:10.21511/afc.01(2).2017.05
The use of financial ratios as the necessary information is considered as one of the noticeable issues for researchers to apply quantitative models for evaluating the performance of institutions. The reason for introducing these new approaches is that the financial ratios cannot individually provide a correct and adequate understanding of an institution’s performance. This study sought to propose a model for evaluating and ranking 14 companies which are considered as the largest companies in Iran’s food industry according to the recent report of Industrial Management institute (IMI). To accomplish this, an integrated model composed of Best-Worst method and PROMETHEE II was used. Results of data analysis revealed that in final evaluation, some companies such as NOOSH MAZAN Co., PYAZR AI Co. and PEGAH ESF Co had higher positions compared to the others.
Accounting and Financial Control, Volume 1, pp 19-28; doi:10.21511/afc.01(2).2017.03
The article is devoted to the study of fiscal and monetary components of state`s financial policy and their coordination after the completion of hostilities. The urgency of the topic is determined by the need to find an optimal (in terms of economic system) strategy of interaction between the government and the central bank in the conditions of post-conflict recovery. The purpose of the article is to summarize the world experience of formation of fiscal and monetary policy as well as their coordination in order to effectively overcome the consequences of military conflicts. The author analyzes the data on the post-war development of 12 countries that succeeded in restoring their national economies during the first decade after the end of hostilities (Angola, Cambodia, the Republic of Congo, Croatia, Georgia, Indonesia, Liberia, Macedonia, Serbia, Sierra Leone, Solomon Islands, Tajikistan) As a result, the author discovers a gradual transition from the fixed and regulated exchange rate regime to the floating exchange rate in the long-term perspective, reduction of inflation and interest rates on loans, as well as a gradual increase of GDP and the net inflow of foreign direct investments, while the share of tax revenues and public expenditures in GDP remained stable. On the basis of generalization of the world experience the conclusion was made about the key role of central banks in ensuring economic growth in the context of post-conflict recovery by ensuring price stability and stimulating lending. In addition, the importance of geographic location and availability of natural resources in the restoration of the national economy of some countries was emphasized.