Abstract:The major objective of this paper is to stress a role of environmental accounting in developing management's strategic initiatives in the field of environmental protection. The socially responsible behavior of a company implies undertaking various activities for prevention, removal and minimizing the harmful effects on the environment. Such a responsible strategic approach ultimately leads to numerous cost savings, improvement in profitability and reputation and finally enables corporate sustainable development. In order to achieve its goal, this research will be methodologically based on the qualitative approach of published articles' content analysis and the analysis of corporate practice in designing environmental accounting systems that allow better identification and control of costs and benefits related to environmental protection activities. Analysis of different accounting practices in producing financial and nonfinancial environmental information requires distinction between environmental financial and management accounting, given the fact that they create different types of information intended for internal and external users. Management needs such information for the purposes of identification and control of environmental protection costs, making decisions about the more efficient use of resources, projecting costs and benefits of further activities and attempts to increase company's value through a socially responsible behavior. The expected results of this research should confirm the premise that increased awareness of the need of environmental protection and achieving sustainable development motivates companies for more frequently producing obligatory and voluntary external and internal reports about their environmental activities. At the same time, environmental accounting is supporting these initiatives, but we expect that in future new tools will be developed that will improve the quality and scope of its informational offer, which may be the area of potential for further research.
Developing countries are faced with a lot of challenges in providing high-quality financial reports based on modern accounting regulations and practices. With its specific colonial and postcolonial history of socioeconomic relations, Sudan is one of a few countries that has not adopted the International Financial Reporting Standards (IFRS) either as a mandatory or as a voluntary financial reporting framework. Focusing on a sample of 142 respondents, the attitudes towards the obstacles and possible benefits of introducing the IFRS in Sudan expressed by accountants working in the industry sector are examined in the paper. This research study has shown that Sudanese accountants are highly aware of the needs and benefits of the IFRS adoption. The respondents predominantly agree that the IFRS adoption would increase the FDI inflow, reduce frauds and other unlawful activities, and improve the comparability, reliability and transparency of financial information, which currently is not the case. However, the research shows that accountants in Sudan also express a high degree of skepticism, given the numerous restrictions that they believe would make the introduction of the IFRS more difficult.
Prices applied to internal transactions between the business segments or divisions of a company in transactions between related entities within a group (transfer pricing) can have a significant impact on a company’s competitive advantage. Transfer pricing policy influences the profits of operating segments, resource allocation and the need for segment reporting. The two main approaches to transfer pricing are the tax and managerial approaches. The aim of this research was to test whether multidivisional companies operating in Serbia give more importance to the tax or the managerial aspect of transfer pricing policy. Another research aim was to determine whether segment reporting is more developed in companies in Serbia that have the legal obligation to prepare consolidated financial statements. Both research hypotheses were confirmed using the questionnaire method on a final sample of 52 large and medium-sized companies (out of 1912 large and medium-sized companies operating in Serbia). First, our findings show that tax compliance is more dominant in transfer pricing than the managerial perspective in the Serbian companies analyzed. Second, we found that mandatory consolidated financial reporting and related segment reporting can influence the managerial approach to transfer pricing in Serbian multidivisional companies and groups. Other factors (production orientation of companies, developed responsibility accounting and managers’ bonuses, for example) also encourage this approach.
The equity investments in other entities may result in different level of control over their activities and different consequential relationships between the investors and investees. For the purposes of valuation of the investments in associates and joint ventures, which are followed by significant influence or joint control of the investor, it is necessary to use the equity method. Its application is connected with the number of specific issues that result in a completely different accounting treatment of some business transactions in relation to the acquisition method and consolidation of subsidiaries. The aim of this paper is to analyze the key features and area of application of the equity method, which will be accompanied by the reference to some of its most obvious advantages and disadvantages
As a set of globally accepted financial reporting rules, IFRSs are primarily intended for economically developed countries with adequate legislation, developed capital markets and quality financial reporting practices. Developing countries are motivated to use IFRS to improve the quality and reliability of the financial reporting procedures in order to attract foreign investments, enable unhindered international financial flows and stimulate economic growth. The key problem in this regard is the inconsistency of their local economic, legal and social infrastructure with the requirements of the successful implementation of IFRS, which requires numerous preparations and adjustments. The purpose of this paper is to consider the possibilities and preconditions for the application of IFRS in Sudan, as a country with an underdeveloped economy, inadequate legislation, weak accounting profession and numerous cultural specificities. The key question that arose during the survey of academics' perceptions on this topic was not whether Sudan should apply IFRS, but whether it is currently possible to apply IFRS in this country at all, given the numerous difficulties preventing that. Therefore, this process should be approached very carefully, with the necessary thorough preparation of the local economic and legal environment and with constant analysis of the costs and benefits of such an endeavor. The potential benefits of applying IFRS in Sudan are undeniable, but it is important that they outweigh the required high initial investment and possible negative effects from possible inadequate implementation.
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