Understanding the concept of profit as an economic information instrument: disclosure of semantic meanings
-
Author(s)Zarah PuspitaningtyasLink to ORCID Index: http://orcid.org/0000-0002-1616-4822
,
Akhmad Toha
,
Aryo Prakoso
-
DOIhttp://dx.doi.org/10.21511/afc.02(1).2018.03
-
Article InfoVolume 2 2018-2019, Issue #1, pp. 27-36
- Cited by
- 1926 Views
-
402 Downloads
This work is licensed under a
Creative Commons Attribution-NonCommercial 4.0 International License
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.
- Keywords
-
JEL Classification (Paper profile tab)M21, M41
-
References71
-
Tables1
-
Figures1
-
- Figure 1. Understanding the meaning of profit at the semantic level
-
- Table 1. List of Informants
-
- Ali, A. (1994). The Incremental Information Content of Earnings, Working Capital from Operations, and Cash Flows. Journal of Accounting Research, 32(1), 61-74.
- Ansari, S., & Euske, K. J. (1987). Rational, Rationalizing and Reifying Uses of Accounting Data in Organizations. Accounting, Organization and Society, 12(5), 549-570.
- Asiyah, Atmaja, A. W. T., & Herawati, N. T. (2017). Analisis Makna Keuntungan Menurut Pedagang Kaki Lima di Sepanjang Jalan Ahmad Yani Singaraja. e-Journal S1 Ak Universitas Pendidikan Ganesha, 7(1).
- Ball, R. (2008). What is the Actual Economic Role of Financial Reporting? Accounting Horizons, 22(4), 427.
- Ball, R., & Brown, P. (1968). An Empirical Evaluation of Accounting Income Numbers. Journal of Accounting Research, 6(2), 159-178.
- Bamber, l., Barron, O., & Stober, T. (1997). Trading Volume and Different Aspects of Disagreement Coincident with Earnings Announcements. The Accounting Review, 71(4), 575-597.
- Bradshaw, M. T., & Sloan, R. G. (2002). GAAP versus the Street: An Empirical Assessment of Two Alternative Definitions of Earnings. Journal of Accounting Research, 40(1), 41-66.
- Barth, M. E., Beaver, W. H., & Landsman, W. R. (2001). The Relevance of The Value Relevance for Accounting Policy Makers: Another View. Journal of Accounting and Economics, 31(77-104), 1-38.
- Beaver, W. H. (1968). The Information Content of Annual Earnings Announcements. Journal of Accounting Research, 6(Empirical Research in Accounting: Selected Studies), 67-92.
- Beaver, W. H. (1989). Financial Reporting: An Accounting Revolution. Second Edition. New Jersey: Prentice Hall.
- Beaver, W. H. (2002). Perspective on Recent Capital Market Research. The Accounting Review, 77(2), 453-474.
- Belkaoui, A. (1978). Accounting Determinants of Systematic Risk in Canadian Common Stocks: a Multivariate Approach. Accounting and Business Research, 9(33), 3-10.
- Belkaoui, A. R. (1980). The Interprofessional Linguistic Communication of Accounting Concepts: An Experiment in Sociolinguistic. Journal of Accounting Research, 18(2), 362-374.
- Belkaoui, A. R. (2000). Accounting Theory (4th ed.) (516 p.). Australia: Thomson Learning.
- Belkaoui A, & Karpik, P. G. (1989). Determinants of the Corporate Decision to Disclose Social Information. Accounting, Auditing & Accountability Journal, 2(1).
- Bungin, B. (2003). Analisis Data Penelitian Kualitatif: Pemahaman Filosofis dan Metodologis ke Arah Penguasaan Model Aplikasi. Jakarta: PT Raja Grafindo Persada.
- Cao, Y. (2005). An Exploratory on Value Relevance of Sustainable Growth Rate. Journal of Modern Accounting and Auditing, 1(5), 61-65.
- Darmaji, A. (2013). DasarDasar Ontologis Pemahaman Hermeneutik Hans-Georg Gadamer. Refleksi, 13(4), 469- 494.
- Day, J. (1986). The Use of Annual Reports by UK Investment Analysis. Accounting and Business Research, 16(64), 295-307.
- Easton, P. D., & Harris, T. S. (1991). Earnings as an Explanatory Variable for Returns. Journal of Accounting Research, 29(1), 19-35.
- Fischer, P. E., & Stocken, P. C. (2001). Imperfect Information and Credible Communication. Journal of Accounting Research, 39(1), 119- 134.
- Gallizo, J. L. & Salvador, M. (2006). Shares Prices and Accounting Variables: a Hierarchical Bayesian Analysis. Review of Accounting and Finance, 5(3), 268-278.
- Hand, J. R. M. (2005). The Value Relevance of Financial Statements in the Venture Capital Market. The Accounting Review, 80(2), 613-648.
- Hanif, M. (2017). Hermeneutika Hans-Georg Gadamer dan Signifikansinya terhadap Penafsiran Al-Qur’an. Maghza, 2(1), 93-109.
- Haried, A. A. (1972). Semantic Dimensions of Financial Statements. Journal of Accounting Research, 10(2), 376-391.
- Haried, A. A. (1973). Measurement of Meaning in Financial Reports. Journal of Accounting Research, 11(1), 117-145.
- Hasanah, H. (2017). Hermeneutik Ontologis_Dialektis Hans-Georg Gadamer (Produksi Makna Wayang sebagai Metode Dakwah Sunan Kalijogo). Jurnal AtTaqaddum, 9(1), 1-33.
- Heath, L. C. (1987). Accounting, Communication, and the Pygmalion Syndrome. Accounting Horizons, 1-8.
- Ijiri, Y. (1975). Theory of Accounting Measurement (210 p.). Sarasota: American Accounting Association.
- Jones, M. J. (1996). Readability of Annual Reports: Western versus Asian Evidence – A Comment to Contextualize. Accounting, Auditing and Accountability Journal, 9(2), 86-91.
- Kau, S. A. P. (2014). Hermeneutika Gadamer dan Relevansinya dengan Tafsir. Jurnal Farabi, 11(1), 141-159.
- Kim, O., & Verrecchia, R. E. (1997). Pre-announcements and Event Period Private Information. Journal of Accounting and Economics, 24, 395-419.
- Landsman, W. R., & Maydew, E. L. (2002). Has the Information Contents of Quarterly Earnings Announcements Declined in the Past Three Decades? Journal of Accounting Research, 40(3), 797- 808.
- Lee, T. A. (1982). Chambers and Accounting Communication. Abacus, 18(2), 152-165.
- Li, D. H. (1972). The Semantic Aspect of Communication Theory and Accountancy. Journal of Accounting Research, 10(2), 102- 107.
- Liu, J., & Liu, C. (2007). Value Relevance of Accounting Information in Different Stock Market Segments: the Case of Chinese A-, B-, and H- Shares. Journal of International Accounting Research, 6(2), 55-81.
- Moleong, L. J. (2010). Metodologi Penelitian Kualitatif. Bandung: Remaja Rosdakarya.
- Mursy, A. L., & Rosidi. (2013). Sentuhan Rasa di Balik Makna Laba. Jurnal Akuntansi Multiparadigma, 4(2), 165-176.
- Nurhayati (2017). Melukiskan Akuntansi dengan Kuas Interpretif. BISNIS: Jurnal Bisnis dan Manajemen Islam, 3(1), 174-193.
- Oyerinde, D. T. (2009). Analisis Laporan Keuangan. Yogyakarta: Liberty.
- Piliang, Y. A. (2004). Semiotika Teks: Sebuah Pendekatan Analisis Teks. MEDIATOR, 5(2), 189-198.
- Pradopo, R. D. (1998). Semiotika: Teori, Metode, dan Penerapannya. Humaniora, 10(1), 42-48.
- Preston, A. M., Wright, C., & Young, J. J. (1996). Imaging Annual Reports. Accounting, Organization and Society, 21(1), 113-137.
- Prihananto. (2014). Aplikasi Hermeneutika Gadamer sebagai Teknik Analisi Pesan Dakwah. Jurnal Komunikasi Islam, 4(1), 143-168.
- Puspitaningtyas, Z. (2010). Manfaat Informasi Akuntanso untuk Memprediksi Risiko Investasi Saham Berdasarkan Pendekatan Decision Usefulness. Jurnal Akuntansi Multiparadigma, 1(3), 467-488.
- Puspitaningtyas, Z. (2011). Pembentukan Model Prediksi Risiko Investasi Saham Berdasarkan Decision Usefulness Approach of Accounting Information. Prosiding Seminar Nasional dan Call for Paper 2011: Kajian Penelitian Aktual Guna Pengembangan Teori Baru Bidang Ekonomi dan Bisnis, 43-58.
- Puspitaningtyas, Z. (2012). Relevansi Nilai Informasi Akuntansi dan Manfaatnya Bagi Investor. Ekuitas: Jurnal Ekonomi dan Keuangan, 16(2), 164-183.
- Puspitaningtyas, Z. (2013). Perilaku Investor dalam Pengambilan Keputusan Investasi di Pasar Modal. Prosiding Seminar Nasional & Call for Paper Forum Manajemen Indonesia (FMI) ke-5, Pontianak.
- Puspitaningtyas, Z. (2015). Prediksi Risiko Investasi Saham: Decision Usefulness Approach. Yogyakarta: Griya Pandiva.
- Puspitaningtyas, Z. (2017a). Estimating Systematic Risk for the Best Investment Decisions on Manufacturing Company in Indonesia. Investment Management and Financial Innovations, 14(1), 46-54
- Puspitaningtyas, Z. (2017b). Is Financial Performance Reflected in Stock Prices? Advances in Economics, Business and Managemenr Research, 40, 17- 28.
- Qimyatussa’adah. (2017). Perspektif Interpretif Hermeneutik. Jurnal AKSI (Akuntansi dan Sistem Informasi), 1(1), 18-28.
- Ragab, A. A., & Omran, M. M. (2006). Accounting Information, Value Relevance, and Investors’ Behavior in the Egyptian Equity Market. Review of Accounting and Finance, 5(3), 279-297.
- Rahmawati. (2005). Relevansi Nilai Informasi Akuntansi dengan Pendekatan Terintegrasi: Hubungan Nonlinier. Simposium Nasional Akuntansi 8 Solo, 308- 324.
- Rahmawati, & Suryani, T. (2005). Over Reaksi Pasar terhadap Harga Saham Perusahaan Manufaktur di Bursa Efek Jakarta. Simposium Nasional Akuntansi 8 Solo, 64-74.
- Riduwan, A., Triyuwono, I., Irianto, G., & Ludigdo, U. (2010). Semiotika Laba Akuntansi: Studi Kritikal-Posmodernis Derridean. Jurnal Akuntansi dan Keuangan Indonesia, 7(1), 38-60.
- Sari, D. P. (2010). Tafsir “Keuntungan” bagi Profesi Dokter dengan Pendekatan Hermeneutika Intensionalisme. Simposium Nasional Akuntansi XIII, Purwokerto 2010.
- Sari, D .P. (2014). Apa Makna “Keuntungan” Bagi Profesi Dokter? Jurnal Akuntansi Multiparadigma: JAMAL, 5(1), 130-138.
- Schmidt, D. J. (2007). Speaking of Language: On the Future of Hermeneutics. Research in Phenomenology, 37(2), 271-284.
- Scott, W. R. (2015). Financial Accounting Theory. Seventh Edition. Toronto, Ohio: Pearson Education Canada, Inc.
- So, S. H. H., & Smith, M. (2009). Value-Relevance of Presenting Changes in Fair Value of Investment Properties in the Income Statement: Evidence from Hong Kong. Accounting and Business Research, 39(2), 103-118.
- Standar Akuntansi Keuangan (2017). Kerangka Dasar Penyusunan dan Penyajian Laporan Keuangan. Jakarta: Penerbit Salemba Empat.
- Suwardjono. (2005). Teori Akuntansi: Perekayasaan Pelaporan Keuangan. Edisi Ketiga, Cetakan Pertama, Yogyakarta: BPFE.
- Sylvia, S. (2014). Membawakan Cinta Untuk Akuntansi. Jurnal Akuntansi Multiparadigma: JAMAL, 5(1), 139-148.
- Tan, P. M. S., & Lim, C. Y. (2007). The Value Relevance of Accounting Variables and Analysts’ Forecasts: The Case of Biotechnology Firms. Review of Accounting and Finance, 6(3), 233-253.
- Triyuwono, I. (2003). Konsekuensi Penggunaan Entity Theory sebagai Konsep Dasar Standar Akuntansi Perbankan Syari’ah. Jurnal Akuntansi & Auditing Indonesia, 7(1), 37-51.
- Triyuwono, I. (2006). Perspektif, Metodologi, dan Teori Akuntansi Syariah. Jakarta: Raja Grafindo Persada.
- Ubaidillah, A., Mulyani, S., & Effendi, D. E. (2013). Makna Keuntungan Bagi Pedagang Kaki Lima (Studi pada Pedagang Kaki Lima di Bangsri Jepara). Jurnal Akuntansi & Investasi, 14(1), 65-77.
- Uwuigbe, O. R., Uwuigbe, U., Jafaru, J., Igbinoba, E. E., & Oladipo, O. A. (2016). Value Relevance of Financial Statements and Share Price: a Study of Listed Banks in Nigeria. Banks and Bank Systems, 11(4), 135-143.
- Vishnani, S., & Shah, B. K. (2008). Value Relevance of Published Financial Statements – with Special Emphasis on Impact of Cash Flow Reporting. International Research of Finance and Economics, 17(1), 84-90.
- Wafirotin, K. H., & Marsiwi, D. (2015). Persepsi Keuntungan Menurut Pedagang Kaki Lima di Jalan Baru Ponorogo. Jurnal Ekuilibrium, 13(2), 24-36.
-
Improving the profit generation management of a motor transport enterprise
Olena Velyka ,
Hanna Zasukha
doi: http://dx.doi.org/10.21511/dm.17(3).2019.01
Profit is the main purpose and the key result of any enterprise operation. Profit management involves two stages, namely, generation and distribution. Profit generation is the main stage in the overall process of profit management and not only the basis for its distribution, but also a source of the production assets renewal and the new self-financing of the further development of the enterprise. Based on the analysis of approaches to the essence and classification of company profits, an advanced complex classification is proposed. In order to improve the profit generation management of a motor transport enterprise and to identify the main factors affecting its profits, an analysis of technical and economic indicators, analysis of profitability indicators and SWOT analysis were carried out. Given the results obtained, a questionnaire was created and a survey was carried out among managers and specialists of the enterprise, which allowed to identify the factors that have the greatest impact on the activity of the motor transport enterprise. The factors are classified into external and internal. Also, a factor analysis of the company’s profit was carried out, which made it possible to determine key indicators that require priority attention in managing the profit generation at a motor transport enterprise. It was concluded that the most important external factors include the Ministry of Infrastructure’s activities aiming at adapting the world tendencies to the Ukrainian automotive industry. The internal factors in controlling the profit generation of the enterprises are in paying greatest attention to the volume of services rendered, their cost and the size of transportation tariffs.
-
Control and cost analysis in the process of management decision making for the commodities assortment
Vladimir Osipov
doi: http://dx.doi.org/10.21511/ppm.16(2).2018.19
Problems and Perspectives in Management Volume 16, 2018 Issue #2 pp. 209-219 Views: 1296 Downloads: 179 TO CITE АНОТАЦІЯThe relevance of this work is determined by the further development of the management system and its information support that improve the economic entity’s activity and increase the competitiveness.
The goal of this research is to develop a method for the most optimal commodities assortment formation, which makes it possible to increase the efficiency of the enterprise in the existing production conditions. Previously applied methods were oriented only to one of the methods of determining the commodities assortment, which prevented managers from choosing the most optimal option. The method of the optimal commodities assortment formation was proposed for the first time in this article while comparing the methods of its determination on products profitability and the limiting factor.
The object of research is resource consumption in relation to certain commodities assortment manufactured by the enterprise operating in the measuring devices production sector. The article is focused on the methods of the integrated management cost analysis aimed at implementing the concept of the most complete and timely information support for the resource consumption control and regulation. General scientific and special research methods are used for the purpose of its implementation. The use of special methods of economic analysis made it possible to develop the economic model of costs estimation in the process of the most optimal commodities assortment formation.
Conclusions and results of the research show that the efficiency of the industrial enterprise largely depends on rational resource consumption. The successful solution of this task largely depends on the correct commodities assortment formation. In view of this, methods for determining the commodities assortment based on the analysis of its profitability and assessing the impact of the limiting factor, taking into account the full load capacity, are proposed to be used. -
Assessment of bank lending diversification in Ukraine
Svitlana Khalatur 
,
Kateryna Zhylenko ,
Yuliia Masiuk ,
Liudmyla Velychko ,
Mykola Kravchenko
doi: http://dx.doi.org/10.21511/bbs.13(3).2018.14
Banks and Bank Systems Volume 13, 2018 Issue #3 pp. 141-150 Views: 1154 Downloads: 151 TO CITE АНОТАЦІЯAt the present stage, commercial banks conduct their activities under constantly changing general economic, social and political conditions, which influence the reliability and efficiency of banking institutions performance. Nowadays, the problems of comprehensive assessment of the efficiency of main banking operations as well as the reliability of the Ukrainian banking system became relevant.
The purpose of the paper is to study the current state and diversification of bank lending in Ukraine, the problems that arise in the national economy due to the deteriorating performance of the banking system of Ukraine. The analysis has shown that a certain stable but not effective loan activity of Ukrainian banks for a long period of time was observed. Also, there is a demand for credit resources, which is currently not completely fulfilled.
The recommendations provided in this article contribute to the development of bank lending and the related increase in entrepreneurship and successful lucrative enterprises in Ukraine. Also, the analysis has revealed the direct correlation of the domestic credit provided by the financial sector with 14 relevant indicators and inverse dependence with 6 indicators.
