The Impact of Accounting Estimates on Financial Position and Business Performance – Case of Non-Current Intangible and Tangible Assets

Sačer, Ivana Mamić; Mališ, Sanja Sever; Pavić, Ivana

doi:10.1016/s2212-5671(16)30341-0

Cited by 12 publications

(13 citation statements)

References 3 publications

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“…The activities involved in the financial reporting and auditing process place demands on the mental capacity of practitioners. In recent research on the complexity of the process of gathering, processing and presenting accounting information, Sacer et al (2016) explain that the preparer is expected to understand the consequences of the various alternatives provided by the standards and to identify the need for their own judgements to be reassessed in response to changes in circumstances. Any assumptions that information producers accurately engage in this extent of analysis are challenged by Tversky and Kahneman (1974) who find that even statistically sophisticated researchers employ intuitive judgements that are prone to irrational bias.…”

Section: Cognitive Loadmentioning

confidence: 99%

Two minds and double entries: an application of cognitive psychology to corporate reporting

Sebastian

2023

MEDAR

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Purpose An understanding of the role of decision-making has been emphasised since the seminal works on human information processing and professional judgements by accountants. The interest in these topics has been reignited by the increasing digitisation of the financial reporting and auditing processes. Whilst the behavioural research on accounting is well-established, the application of seminal works in cognitive psychology and behavioural finance is lacking, especially from recent research endeavours. The purpose of this paper is to provide a synthesis of theories relating to accounting behavioural research by evaluating them against the theories of cognitive psychology. Design/methodology/approach Using theory synthesis, this research draws seemingly isolated strands of research into a coherent framework, underpinned by cognitive psychology. Findings Evidence from accounting and auditing behavioural research is largely consistent with the psychology and finance research on cognitive limitations and errors. There remains a lacuna in accounting behavioural research on debiasing techniques. Such research, if underpinned by a single, cohesive theoretical framework, is likely to have practical relevance. Research limitations/implications The current research has theoretical implications for the accounting decision-making and uncertainty research. Areas for future research, based on identified gaps in the current accounting behavioural research, are also proposed.

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Section: Cognitive Loadmentioning

confidence: 99%

Two minds and double entries: an application of cognitive psychology to corporate reporting

Sebastian

2023

MEDAR

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“…Making estimates implies a certain level of subjectivity; two different estimates for an item can result in presenting a different accounting picture regarding the financial health and performance of a company. Taking this fact as a study problem, Sacer, Malis and Pavic [5] sought to assess critical areas for management judgments relating to non-current intangible and tangible assets. In order to do this, they designed and applied research models for empirically testing accounting estimates' influence on financial statements.…”

Section: Introductionmentioning

confidence: 99%

Disclosure of Critical Accounting Judgments and Key Sources of Estimation Uncertainty in the Financial Statements of Companies in Nigeria

Ajekwe¹

2019

JFA

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This paper performs a thematic survey of published financial statements of 17 consumer goods companies listed on the Nigerian Stock Exchange (NSE) to investigate their level of compliance with regulatory requirements regarding disclosure of critical accounting judgments and major sources of estimation uncertainties in their financial statements. High quality disclosures in this area enable users to assess the quality of managements accounting policy decisions and the likelihood of future changes in the amounts appearing in the financial statements in a way that generic disclosures do not. Data was collected from the annual reports and accounts of the sampled companies in the financial reporting year ended in 2017. Using descriptive statistics and content analysis, it was found that firms provide some disclosures, but the information is not sufficiently informative to give users meaningful insights. Overall, the level of disclosure fell short of the intentions of the relevant regulatory requirements. The findings suggest that in addition to the guidance in the IFRS illustrative examples, it may be necessary to train accountants and auditors in Nigeria on disclosing accounting critical judgments and key sources of estimation uncertainties in compliance with regulatory intentions and requirements thereby increasing the informational value of these disclosures in financial reports.

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“…Натепер відомо значну кількість праць як вітчизняних, так і в зарубіжних науковців стосовно окресленої тематики. До прикладу, на важливості й значущості необоротних матеріальних активів у структурі активів підприємств, установ, організацій наголошували відомі вчені: Л. Духновська, С. Скоморохова, С. Горбунова [2], I. Sacer, S. Malis та I. Pavic [13]; дослідженнями у сфері теоретичної визначності тлумачення терміна «необоротні матеріальні активи» переймалися вчені Л. Коритник, О. Клименко [5], Г. Курило [6], M. Manea [12], І. Гур'єва [1]; проблемними питаннями класифікації M. Glebocka, E. Mackowiak [11], В. Семйон [10] та ін. вчені.…”

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“…При здійсненні своїх досліджень I. Sacer, S. Malis та I. Pavic (2016) зазначали що необоротні матеріальні та нематеріальні активи становлять значну частку активів багатьох компаній, що слугує достатньою базою для застосування бухгалтерських досліджень з метою визнання та оцінки таких активів [13].…”

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Theoretical essence and classification of non-current tangible assets

Zdyrko¹,

Chereshnevyi²

2020

Ekonomika APK

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The purpose of the article is to investigate and determine the theoretical essence of non-current tangible assets and improve their classification in order to develop accounting science. Research methods. The research uses dialectical methods of cognition of processes and phenomena, analysis and synthesis - to substantiate and determine the theoretical and methodological principles of non-current tangible assets and their classification, monographic method - to analyze the evolution of domestic and foreign scientists on the problems of classification and definition of non-current tangible assets, empirical method is for a comprehensive assessment of the current state of the object of study, scientific abstraction - to summarize the results, draw conclusions and their own vision of the essence of non-current tangible assets and their classification. Research results. As a result of research on the nature and classification of non-current tangible assets revealed a modern approach to their interpretation and classification. The need to improve the existing classification of non-current tangible assets in the public sector of the economy on the example of budgetary institutions is identified. Scientific novelty: Theoretical provisions on the essence of non-current tangible assets, which are based on the experience and research of domestic and foreign scientists, as well as their own vision, have been further developed. An updated classification structure of non-current tangible assets for the public sector is proposed, based on the needs of managers and employees of the public sector of the economy. Practical significance. On the way to bringing the national accounting system to international standards, special attention should be paid to determining the theoretical nature of non-current tangible assets and bringing the classification of these assets to accounting needs not only at the national level but also at the level of international standards and requirements. Proposals for the classification of non-current tangible assets are proposed. Tabl.: 1. Figs.: 4. Refs.: 13.

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The Impact of Accounting Estimates on Financial Position and Business Performance – Case of Non-Current Intangible and Tangible Assets

Cited by 12 publications

References 3 publications

Two minds and double entries: an application of cognitive psychology to corporate reporting

Two minds and double entries: an application of cognitive psychology to corporate reporting

Disclosure of Critical Accounting Judgments and Key Sources of Estimation Uncertainty in the Financial Statements of Companies in Nigeria

Theoretical essence and classification of non-current tangible assets

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