Management OA Books Collection
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Browsing Management OA Books Collection by Subject "Financial"
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Item Accounting Choices in Corporate Financial Reporting: A Literature Review of Positive Accounting Theory(IntechOpen, 2023) İdil KayaThis chapter aims to put light on the positive accounting theory and related empirical studies and identify its broad contributions to the accounting research. Our objective is to provide a review of positive accounting literature in order to synthesize findings, identify areas of controversy in the literature, and evaluate critiques. Positive research in accounting started coming to prominence around the mid-1960s and had been a vector of paradigm shift within the financial accounting research in the 1970s and 1980s. The positive accounting theory is developed by Watts and Zimmerman and is based on work undertaken in economics and is heavily dependent on the efficient market hypothesis, the capital assets pricing model, and agency theory. The three key hypotheses are bonus plan hypothesis, debt hypothesis, and political cost hypothesis. Nevertheless, PAT has been subjected to severe and numerous criticisms from different perspectives, which are critiques on research methods, its theoretical foundations, its logic on economics' basis, and its reference to philosophy of science. PAT and its hypotheses will continue to be a rich field of empirical research and the basic questions that it raises are still relevant today.Item Adaptation of International Accounting Standards: Case of Portugal(IntechOpen, 2023) Helena Isabel BarrosoThis chapter aims to present the results of a broad analysis about the process of accounting standardization in Portugal in order to frame the current situation and the different levels of standardization that characterize it. The methodology followed involves a broad revision of the literature and content analysis on various papers and texts as well on documents directly related with the study topic. It concludes with the identification and characterization of the current levels of accounting standardization and makes reference to the likely scenario of this regulatory framework in the short term. The objective is to understand how the evolution of accounting standards in Portugal has evolved, what the current situation is and its likely evolution in the near future. The chapter is also aimed at contributing to the understanding of the process of adaptation of international accounting standards to the Portuguese reality.Item Associativism of Accounting Professionals(IntechOpen, 2023) Osmar Antonio BonzaniniThis chapter aims to discuss the role of professional accounting associations and orders in relation to the current context of accounting training. It is intended, with this, to broaden the discussion about the performance of these professional entities, since they are placed as of public interest. Its work with the universities, aiming to interfere in the training process of future professionals, whether by the application of evidence of access to the profession or by direct and indirect influence in the construction of the curricular contents intended to form the accountants, must be thought openly and free of ideological load. Thus, it is considered important to analyze the aspects of the relationship between universities and such class entities, in order to know if there is a disinterested relationship or if, on the contrary, the university is influenced by professional accounting associations and orders, in percussion of their selfish interests.Item Behavioral Accounting and its Interactions(IntechOpen, 2023) Filiz Angay KutlukBehavioral accounting is a branch of accounting that is related to behavior besides the accounting knowledge. It deals with the attitude and behavior of people when they are encountered with an accounting phenomenon which determines the behavior that they will show in decision?making. This special area of accounting addresses such aspects as human information?processing behavior, judgment quality, accounting problems that are created by users and providers of accounting information, and accounting information users' and producers' decision?making skills. Behavioral research tries to find out how individuals make decisions and interact and influence other individuals, organizations, markets, and society. Behavioral accounting concept is examined under the topics of the influence of accounting information on behavior, managerial control (budget participation, nonfinancial measures, leadership, and balanced scorecard), auditing (auditor?client negotiations, auditor's judgment, and decision?making), and ethics (ethical decision?making, ethical orientation, and rationalizations on unethical behavior) in this chapter.Item Graphical and Textual Presentations in Financial Reports(IntechOpen, 2023) Seedwell T.M. SitholeThe use of separate graphs and texts to disclose information is a frequent occurrence in corporate annual reports. Multiple sources of information does not enhance understanding of users of financial statements. This chapter compares spatially separated text and graphs with integrated presentations that aim at bringing text and graphs as close as possible to each other. The chapter begins by illustrating the concept of split attention. Cognitive load arises when disparate sources of accounting information need to be mentally integrated by users. An experiment using separate text and diagrams is then presented to demonstrate how participants can deal with cognitive overload when reading split-attention material. Using two instructional design formats, the split-attention format and the integrated format, first-year accounting students were used as surrogates for financial report user groups such as employees and shareholders. The presence of the split-attention effect in the financial accounting material was established. Effective use of text and diagrams in integrated reporting helps integrated thinking and assists the interconnectedness of information. The findings suggest that redesigning financial reports by integrating text and diagrams may make effective use of the available cognitive resources and possibly enhance investors and other stakeholders' decision-making process.Item Greening Accounting(IntechOpen, 2023) Somnath DebnathThe last decade has seen developments challenging the abilities of managerial accounting theories in supporting firms with environmental conscious decision-making that are grounded in the expanded accountability of firms toward nature and society. Critical theorists have argued that the shortcomings of the accounting theories to interpret the impacts of business activities on nature have its origin in the missing accounting standards, under-defined contractual boundaries, and the absence of a valid numeraire (monetary equivalency). In this chapter, the author posits that these shortcomings are a legacy of the economic paradigm within which the accounting frameworks operate and would remain so, unless a paradigm change evolves to handle environmental-related considerations on its own, even if it means rewriting rules to generate accounting interpretations of business activities. Instead of offering a methodological solution, this chapter ideates how having "environment" as integral to the accounting paradigm would enable firms in evaluating, accounting, and reporting environmental performance transparently and improve flow of information to help management face sustainability-related challenges better.Item Greening Accounting II(IntechOpen, 2023) Somnath DebnathExploring the theme of greening accounting in the previous chapter led us to examine the challenges of managerial accounting in supporting firms with the environmentally conscious decision-making and ideate how integrating environmental viewpoint within accounting can be achieved through a new construct that would support firms in integrating 'environmental well-being' as a core concern. In this chapter, the argument is validated by experimenting with a real-life case study and exploring challenges to enact the proposed construct. This not only tests the feasibility of the construct from an accounting perspective, including how information generated through it could be leveraged to meet corresponding information needs of firms without sacrificing transparency and auditability, but also advances the argument of greening accounting to redefine how the concerned information needs of firms and stakeholders can be identified and perceived in relation to the micro-level application of sustainability.Item Historical Development of Government Accounting(IntechOpen, 2023) Mihriban Coskun ArslanGovernment accounting aims at preventing waste in government services and establishing a balance between optimal expenditure and services by managing government assets and government sources in the most efficient way. This balance can be established only by obtaining complete and accurate information from government accounting system on time. Since the users have a low level of knowledge needs in government accounting system, it has been recorded for long years in a cash basis manner. However, as the government's area of operation expanded and the needs increased, it became obvious that cash basis system had lacking parts. So it started to focus on recording financial transactions and financial reporting. These lacking parts in the accounting system tried to be overcome through a new regulation by focusing on the areas where cash basis accounting system was insufficient; and a change was experienced with regard to applying the accrual basis in the areas of government accounting and financial reporting. This study aims to explain the historical development of government accounting by applications in countries and especially by detailed expressions for Turkey. As a result of the literature review and the examination of countries' government accounting practices, it has been determined that the government accounting practice has made the correct transition from cash basis to accrual basis.Item integrated Reporting: a Template For Energy Companies(IntechOpen, 2023) Gulcin YildirimIntegrated reporting (IR) is an accelerated corporate reporting approach over the last few years. The idea underlying integrated reporting is to report not only on the company's strategy, management, and financial performance, but also on its social, environmental, and economic impacts. Integrated reporting can also be defined as a holistic report aiming to present annual reports and sustainability reports in a single report, as well as short-, medium-, and long-term goals and strategies of the institution. In the integrated reporting framework prepared by the International Integrated Reporting Council (IIRC), companies aim to make company value measurable and therefore more understandable and comparable by quantifying the environmental and social implications, as well as the financial statements. In this study, firstly the conceptual framework of integrated reporting and the process of extending to integrated reporting, and then the work done in this area in Turkey were given. In the last part of this study, energy companies which are very important in the world trade and which are coming to the agenda due to environmental problems are considered. In this section, integrated reports of seven companies operating in the energy sector and publishing integrated reports are examined. Lastly, it proposes an integrated report template for the Turkish energy sector to contribute to future work.Item M2M-Fair Value Accounting(IntechOpen, 2023) Yildiz ozerhanSince the past 20 years, the value relevance of financial information based on the historical cost method has been widely criticized among the academics and the preparers of financial information. The ongoing debate over the shortcomings of historical cost for ascertaining the worth of assets and liabilities and the rapid spread of fair value measurement for financial reporting has first led to the issuance of Financial Accounting Standard No. 157 Fair Value Measurements in September 2006 and then the initialization of fair value measurement project by the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board in 2006 within the convergence project. On May 12, 2011, when the IASB issued IFRS 13 Fair Value Measurement, it appears that there has been substantial convergence between IFRS 13 and FASB 157. The purpose of this paper is to comprehensively explain the fair value accounting in accordance with IFRS 13 and describe the types of assets and liabilities that are subject to fair value accounting and their accompanying measurement principles with reference to other IFRSs and the Exposure Draft Conceptual Framework for Financial Reporting.Item Paradigm Shift in Corporate Reporting(IntechOpen, 2023) Pinar Okan GoktenIn this paper, we present the evolution of integrated reporting and organizations playing an active role in this process. As a result of the changes, corporate reports including only historical financial information have become insufficient. It has started to be important for the firms to be sensitive towards environment, social capital and governance. For these reasons, authorities started to search for new reporting types. Their aim was to form a report giving detailed (prospective and retrospective) information about the total performance of the firm. Sustainability reports, the starting point of integrated reporting, were established and Global Reporting Initiative (GRI) standards were formed to increase the popularization. Integrated reports aim to supply full disclosure about the firms' strategies, goals and performances. They also respond to the demands and needs of key stakeholders. In order to actualize the financial stability and sustainability, they are necessary. Integrated reports also put related groups into play. So, decision makers become a participant instead of watching the system from outside. In addition, integrated thinking philosophy provides systematic disclosure of value creation, namely how organizations made resource allocations in the past and how they will create value in the future according to their business models.Item Public Accounting Reform from Institutional Theory Perspectives: Case of Turkey(IntechOpen, 2023) Ceray AldemirIn the literature, it is often found that institutional theory is used as the theoretical framework to explain the development and application of accounting. By means of these studies, it becomes easier to understand accounting as a social and political activity within itself and thus to be able to understand the economic, institutional, political and social environment of the turnover of the practices. In this regard, the main aim of this study is to explain the development of the public accounting system in Turkey with the help of institutional theory. Thus, it is aimed to explain all the dynamics that provide the institutionalization of state account in the national sense, together with the economic, political and social processes of the period in question. It is revealed that the regulatory arrangements directly contribute to the institutionalization of a field, and as a result, how the public organizations directly contribute to the institutionalization process.Item Reporting for Carbon Trading and International Accounting Standards(IntechOpen, 2023) Figen okerDuring the first commitment period of the Kyoto Protocol, many developed countries were forced to restrict carbon emissions. Flexible mechanisms were initiated to reduce carbon emissions and support clean energy projects. Regulated carbon markets were established to trade carbon premiums produced by these projects by signatory countries, while carbon premiums produced by nonsignatory countries were traded in voluntary markets. Following limited participation in the Kyoto Protocol, by the leadership of European Union, 195 countries presented contributive ideas in Paris Agreement, which is the first-ever universal, legally binding global climate deal. Kyoto Protocol sets commitment targets that have legal force, while the Paris Agreement emphases on consensus building and allows for voluntary and nationally determined targets. Another key difference between Paris Agreement and the Kyoto Protocol is its scope. It does not provide a specific division between developed and developing nations. By means of these changes, trading in voluntary carbon markets is expected to increase due to the higher demand to offset unavoidable carbon emissions. There has been no authoritative guidance published on carbon accounting by the International Accounting Standards Board or the Financial Accounting Standards Board. This study proposes how to measure and report the carbon allowances and carbon credits.Item The Factors Used To Create Performance-Based Budgeting(IntechOpen, 2023) Hakan Vahit ErkutluPerformance-based budgeting (PBB) is the practice of developing flexible financial management tools to increase the efficiency and productivity of public institutions both in developed and developing countries such as Turkey. It can be seen from international literature gathered as a result of researches that developing countries have come a long way in developing performance-based budgeting activities. In developed economies, successful international institutions such as Organization for Economic Cooperation and Development (OECD) and International Monetary Fund (IMF) promote the implementation of performance-based budgeting for a developing world. Fiscal transparency, medium-term expenditure framework, and other institutional arrangements are factors effective in developing performance-based budgeting. Budget experts regard these factors as important factors, and the view that it is difficult to implement these prevails. Within the context of this theory, the main purpose of this study is to determine the preparation and implementation of performance-based budgeting in public institutions of developing countries such as Turkey, which has an important economy in the world, and to measure the perception levels of employees working in these institutions. As a result of the confirmatory factor analysis (CFA) based on the main findings of the study, goodness-of-fit values of the measurement model were found to be sufficient. Independent t test and one-way ANOVA analyses were conducted to find out the perception levels of the participants in the study. As a result of the analyses, significant differences were found between demographic features and perception levels.Item The Future of Accounting Profession in an Era of Start-Ups(IntechOpen, 2023) Burak ozdoganWith the help of the advancements in the field of communication and information technologies, the number of IT-based software has rapidly increased and the capabilities of high-budget enterprise resource planning (ERP) software widely used by large enterprises have begun to be offered to small and medium-sized enterprises (SMEs). In this chapter, cloud computing and other information technologies based accounting start-ups are covered, and the effects of these highly increasing start-ups on the profession of accounting have been addressed. In conclusion, it has been predicted that technology-based accounting start-ups with both accounting professionals and entrepreneurs having an expertise on information technologies will come together and will increase in the future, and cloud-based accounting initiatives will shape the future of the profession.Item The Managerial Perspective and Systems of Accountability in Judicial Offices(IntechOpen, 2023) Ubaldo ComiteIn Italy, the machinery of justice has been, on more than one occasion, the subject of criticism. For the most part, the criticism has been relative to the slowness of trials and the inadequacy of the judicial system, deemed not capable of confronting the request for continuously evolving justice in an exhaustive manner, whose characteristics change in time based on the emerging needs of society. The analysis of the justice system was, in fact, generally not subject to enquiries on offices' productivity and to evaluation of the management of resources invested in the sector. The same centres of data elaboration and the related departments at the Ministry of Justice, for example, have not gone much further than collecting the statistical data and creating the generic indicators of service quality. Such parameters, though, are often revealed to be too bureaucratic and of little use in proposing ameliorative solutions of the service offered to citizens, who desire levels of protection that are more responsive to their expectations. In this sense, the application of the system of accountability within the judicial system can contribute to the managerialization of the service.