Did Embraer Succeed in Adopting the International Financial Reporting Standards (IFRS) in Brazil (Published)
This article investigates the challenges that the Brazilian Aeronautics Company Embraer (Empresa Brasileira de Aeronáutica), faced to adapt its accounting system to the IFRS standards, adopted in Brazil in 2010. International Financial Reporting Standards (IFRS) were created by the International Accounting Standards Board (IASB), and IFRS Foundation in 2001, with the objective of unifying different business accountability standards in European Union (EU). From 1973 to 2001, the International Accounting System (IAS) was issued by the Board of the International Accounting Standards Committee (IASC). On April 1st 2001, the International Accounting Standards Board (IASB) created the International Accounting Standards (IAS), through the adoption of the existing IAS and the Standing Interpretations Committee standards (SICs). The IASB, then gave birth to International Financial Reporting Standards (IFRS), which spread very fast through European Union, and then to the rest of the world. Brazilian Federal Government adopted its standards nine years later, in 2010. Since then, the major Brazilian and multinational companies are facing challenges to harmonize their accountability system to the IFRS standards. This article investigates how Embraer, the first company in the Brazilian aeronautics segment, adapted to the IFRS standards, since its implementation in 2010. We analyzed Embraer’s IFRS demonstratives, in comparison to a European equivalent competitor, Airbus, throughout 2010-2015 periods. Finally, we brought managerial recommendations, as well as future research implications.
The Extent of Corporate Disclosure of Information by the Companies in CARs and Its Regulations: Implications in Bangladesh (Published)
The relative weight of developing countries regulations in CARs disclosures have been growing hurriedly over recent years. The study is an attempt to examine of disclosure of financial information upon adoption of International Accounting Standards (IASs) in Bangladesh. In international accounting arena disclosure is the key to understanding one country’s accounting system. As they continue integrating into the global trading and financial systems, they need to strengthen their respective national accounting infrastructures, essential to attract and provide services to international investments and institutional and technical capacities to be able to comply with international requirements, standards and codes. The accounting system of each country is affected by different influential factors. Issues concerning developing countries in relation to accounting, and in particular international accounting, have generated considerable interest among accounting scholars and practitioners in both developed and emerging countries. In this paper, the researcher has examined the impact of British colonial influence, regulation, and mandatory IASs/IFRSs on disclosure of Corporate Annual Reports (CARs) of Bangladesh. This study showed that the British colonial influence through the adopted the former British Laws is prevalent on the accounting systems of Bangladesh and has a greater impact on the financial reporting practices of the companies’ financial reporting practices. The Securities and Exchange Ordinance 1969, Bangladesh Bank Order 1972, Securities and Exchange Rules 1987, Bank Companies Act 1991, Financial Institutions Act 1993, Securities and Exchange Commission Act 1993, Companies Act 1994 and Bankruptcy Act 1997 are the most important legislations to govern the corporate financial reporting environment in Bangladesh. Since 1983, Bangladesh is trying to adopt the International Accounting Standards (IASs/IFRS) which has become mandatory from 2000 for the listed companies for preparation and auditing of financial statements. It has found that the Companies Act 1994 does not contain any provision for mandatory observance of the adopted IFRSs and ISAs in practice which has made the unlisted companies to follow IASss/IFRSs compulsorily. In addition, to ensure more transparency in accounting system and disclosure of important accounting policies of banks and financial institutions in Bangladesh, the Central Bank (Bangladesh Bank) issued a circular (BRPD) Circular No. 3/2000 dated 18/04/2000) for mandatory adoption of IAS-30. As a result, since 2000, all banks in Bangladesh are required to use the IAS-30 in the preparation of their corporate annual reports. Further, the Securities Exchange Commission (SEC) of Bangladesh has passed Corporate Governance Guidelines in February 2006 that expect to increase the level of disclosure made the listed companies in Bangladesh.
Efficiency and Accountability of Public Sector Revenue and Expenditure in Nigeria (1970-2014) (Published)
Nigeria is the sixth largest producer of oil and gas in the world, but the average Nigerian on the street is poor and there is poor infrastructure like power supply, roads, hospitals etc. This study examines the efficiency and accountability of public sector revenue and expenditure in Nigeria (1970-2014). Data on total federal government revenue and expenditure, state governments’ revenue and expenditure were collected from Statistical bulletin from the Central Bank of Nigeria from 1970-2014. The results were analysed using relevant statistical tools. The findings reveals that the level of accountability is very poor in Nigeria because the attributes of accessibility, comprehensiveness, relevance, quality, reliability and timely disclosure of financial information, social and political information about government activities are completely non available or partially available for the citizens to assess the performance of public officers mostly the political office holders. Conclusively and evidently the study has revealed that there is significant relationship between efficiency of public sector expenditure, recurrent expenditure and capital expenditure in Nigeria from 1970-2014. On the basis of these, the paper recommends among others that for accountability to be successful in the management of public funds in Nigeria there must be a reduction in the level of corruption, improving public sector accounting and auditing standards, legislators as champions of accountability and restructure the public accounts committees and the value of money must be applied in the conduct of government business.
CONTENTIOUS ISSUES IN FINANCIAL STATEMENTS’ CONSOLIDATION: NON-CONTROLLING INTERESTS’ SHARE OF EXCESS LOSSES (Published)
The main objective of introducing International Accounting Standard 27 (IAS 27) among others is to streamline the complexities inherent in consolidation of financial statements. Contrary to its main objective, IAS 27 is flawed with contentious provisions. This research sets out the metamorphoses of IAS 27 to International Financial Reporting Standard 10 (IFRS 10) and its contentious nature, specifically as it pertains to treatments and presentations of Non-Controlling Interests’ share of Excess Losses. The research methodology adopted is review of relevant literatures, professional and technical assertions prior to and provisions of IFRS 10, thus contrasting and comparing the provisions of the two standards. A section is devoted to Contentious issues of interest raised during IAS 27 metamorphoses and efforts of IFRS 10 in containing such concerns. Precise recommendations to the treatments and presentations of Non-Controlling Interests’ share of excess losses are made in very simple terms.
This paper attempts to compare the financial reporting of two Islamic insurance companies “takaful” in two different countries; Bahrain and Sudan. Where Sudan is the first country to host takaful insurance in the year 1979. A case study methodology is applied where the financial reports of these two companies are studied over the years 2009 to 2012. The points under investigations are: Internal organizational structure, financial statements, financial policies, disclosure and notes to the financial statements, and management expenses. The results highlight that takaful companies in Bahrain are using mudharabah and wakalah models and their financial reports are prepared in accordance with IFRS are more informative and clearly understood. On the other hand takaful companies in Sudan use wakalah model and that their financial statements lacked elaborate disclosures rendering some of the information as not up to the standard. A closer look is taken by this study to investigate what could be the underlying factor for differences between these two companies in two countries
This article examined development and challenges of cashless policy in Nigerian economy and determined its effect on business transactions and financial reporting. Sample size was drawn from the population in South East of Nigeria. Questionnaire and oral interview were main research instruments; analysis of data and test of hypotheses were carried out using Z – test statistics and Chi-square. Main findings in the study include; Stakeholders in the financial statements of corporate entities place more credence on financial statements emanating from cashless-based economies because of its effect on reduced tax evasion, inflation and revenue leakages, easier to comply with auditing standards and effective performance of business transactions. Challenges on adequate and standard infrastructure, low level of literacy and poor banking habits were revealed. There was also this perceived increased cost on the part of vendors while disposing of their wares which would have been avoided if the transaction was by cash.
Accounting Policies and Financial Reporting – A case study (Review Completed - Accepted)
This paper attempts to compare the financial reporting of two Islamic insurance companies “takaful” in two different countries; Bahrain and Sudan. Where Sudan is the first country to host takaful insurance in the year 1979. A case study methodology is applied where the financial reports of these two companies are studied over the years 2009 to 2012. The points under investigations are: Internal organizational structure, financial statements, financial policies, disclosure and notes to the financial statements, and management expenses. The results highlight that takaful companies in Bahrain are using mudharaba and wakala models and their financial reports are prepared in accordance with IFRS are more informative and clearly understood. On the other hand takaful companies in Sudan use wakala model and that their financial statements lacked elaborate disclosures rendering some of the information as not up to the standard. A closer look is taken by this study to investigate what could be the underlying factor for differences between these two companies in these two countries