Issue #1 (Volume 3 2020-2021)
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ReleasedDecember 13, 2021
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Articles5
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12 Authors
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22 Tables
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11 Figures
- accounting as a social and institutional practice
- accounting science
- accounting theory
- audit
- audit effectiveness
- bank sustainability reporting
- capital structure
- Electronic Fiscal Devices
- fairness
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Auditor’s verification of a management report: implementation of European experience in Ukrainian banks in crisis conditions
Accounting and Financial Control Volume 3, 2020-2021 Issue #1 pp. 1-10
Views: 856 Downloads: 222 TO CITE АНОТАЦІЯThe 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.
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Understanding accounting as a social and institutional practice: possible exit of accounting science from crisis
Accounting and Financial Control Volume 3, 2020-2021 Issue #1 pp. 11-22
Views: 2448 Downloads: 272 TO CITE АНОТАЦІЯThis 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.
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Sustainability reporting: An overview of the recent development
Inten Meutia , Zulnaidi Yaacob , Shelly F. Kartasari doi: http://dx.doi.org/10.21511/afc.03(1).2020.03Accounting and Financial Control Volume 3, 2020-2021 Issue #1 pp. 23-39
Views: 2368 Downloads: 813 TO CITE АНОТАЦІЯThis study aims to provide an extensive overview of the current state of sustainability reporting through the review studies on sustainability reports (SR) in the accounting literature for the period 2015–2020. A structured literature review (SLR) methodology is used to investigate how the SR literature develops and focuses. The study uses keywords such as “sustainability report” and “sustainability reporting” to identify studies that are relevant to a given topic. A total of 44 published studies were found. This study identifies the main directions of SR research in the 2015–2020 period and discusses several important aspects of research, namely methodology, research methods, and the theory used. To enrich the results, this study defines the scope, country of research, topics and sectors studied. The study provides insight into future SR research used by researchers to develop SR research. Several things are proposed that can be used as a guide for future SR research, such as sustainability in SMEs and the public sector. Ensuring sustainability is one of the research topics that can be a direction for researchers in the future. Theories such as contingency and source credibility can be an alternative to explaining the reality of sustainability reporting.
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Determinants of debt financing in South African state-owned entities
Accounting and Financial Control Volume 3, 2020-2021 Issue #1 pp. 40-52
Views: 705 Downloads: 181 TO CITEUsing debt to finance investments is a common feature in the balance sheets of state-owned entities (SOEs). The greater the degree of financial leverage, the higher the proportion of debt resulting in greater interest payments that negatively affect the earnings attributable to shareholders. This paper considers the determinants of debt financing in light of the debt crisis that the South African economy faces and, more so, the public sector and its validity under capital structure theories. The data set was analyzed for the financial period from 1995 to 2020 of thirty-three commercial SOEs in South Africa. Multiple regression models were tested using the Generalized Method of Moments estimator. The results highlighted that significant variables affecting state-owned entities’ debt levels are profitability, age, growth opportunities, liquidity, probability of bankruptcy, and non-debt tax shield. The policy recommendations are that the government prioritizes reducing debt levels for South Africa to develop and achieve sustainable development. The changes in firm-specific factors that affect the optimal capital structure and the entity’s value must be considered.
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Tax compliance in an EFD-enabled environment: Evidence from a developing economy
Agnes Elson Malima , Surendran Pillay , Adefemi A. Obalade doi: http://dx.doi.org/10.21511/afc.03(1).2020.05Accounting and Financial Control Volume 3, 2020-2021 Issue #1 pp. 53-68
Views: 772 Downloads: 472 TO CITE АНОТАЦІЯThe focus of this study was to assess the contribution of Electronic Fiscal Devices (EFDs) to ensuring tax compliance among small business owners in the Arusha Region in Tanzania. The study was motivated by the fact that the government of Tanzania has invested effort and funds to ensure that revenue adequately supports development projects. Regardless of effort, there is continued reliance on external sources of funds to support development projects. This poses a question on how the introduction of EFDs would increase tax compliance and eventually impact the government income for development projects. The main objective of the study was to determine whether the rate of using EFDs, the level of transparency, fairness in tax procedures, and the perceived audit effectiveness affect the level of tax compliance. Data was analyzed using descriptive procedures, One Way ANOVA, Chi-Square, and ordinal regression. Findings of the study are as follows: First, fairness in tax procedures, the perceived level of transparency and the rate of EFD use had no impact on the level of tax compliance; second, business and EFD use experience, audit effectiveness, and the use of EFDs in tax audits have impacted tax compliance. The study recommends other government departments to consider adopting relevant technology in operational areas where transparency, fairness and compliance are required. The inclusion of other sectors not currently captured by EFD use will be a step in the right direction.