Disclosure of Contingent Liabilities during the Covid-19 Pandemic: Analysis of Compliance with Circular Letter Cvm/Snc/Sep 02/2020

The coronations pandemic created a new world economic scenario. Social isolation measures in order to stop the spread of the virus, and the lack of prospects for improvement, have brought organizations an increase in risks and uncertainties about the business. Knowing the dependence on future events for the realization of contingent liabilities, this article, within the scope of the Prospectus Theory, aimed to assess whether, with the beginning of the pandemic in 2020, there was an increase in the amounts of contingent liabilities disclosed, and whether there was any change in the quality of their disclosure. In this way, data were collected from the financial statements of companies belonging to the sectors most affected by the pandemic, as published in the Official Gazette of the Union, and analyzed using quantitative methods. The results of the study showed that both before and after the beginning of the pandemic, the most representative liability contingencies among the companies studied were those of a Tax, Civil and Labor nature;and that no entity complied with all the disclosure requirements of CPC 25. Furthermore, the results obtained through the statistical analyzes did not identify a significant variation in the quality of disclosure or in the amount disclosed of contingencies after the beginning of the pandemic. These results contradict the recommendation of Circular Letter CVM/SNC/SEP 02/2020, which requires improvement in the disclosure of contingent liabilities as a result of the health crisis, which indicates possible failures regarding the disclosure of potential risks, and consequently interference in the decision-making process of users of accounting information.

COVID-19 and the accounting impact during pandemic times

The objective of the current article is to present some of the main effects that the COVID-19 pandemic, between 2019 - 2021, had on the accounting records of entities and, that they should be recognized. either as an adjustment or as disclosures with the goal to comply with transparent accounting information and present its users with an adequate financial situation and its true performance. This essay is a result of investigations being conducted on different IFRS texts (issued by the IASB), as well as an analysis by the author regarding the norms and their expected account impact. It's important to mention that, the judgment or professional criteria from the entity's accountant, plays an important role at the moment to evaluate the present (and future) impact as it pertains to the application of the financial norms into this new reality produced by the pandemic. Therefore, COVID-19 affected not only people's health, but the world economy and-therefore- the economy of the companies' financial reflections, thus originating several changes in the accounting tasks and the closing of the financial statements, both in the accounting calculation, taxes and even in the labor fields. This article then seeks to measure such accounting impacts on the company's financial situation and its performance.

Liquidity, Risk and Performance Measurement: An Analytical Study in Steel Industry

The paper showcases the analysis of the financial statements on Jindal Steel & Power Ltd which gives the inputs about the performance of the company. To support the study, Ratio analysis is used to focus on the financials of the company. As the financial analysis of any firm helps to understand the health of the company for this accounting ratios are studied to demonstrate the changes in the financials of the company because it is the useful tool for management, shareholders, financiers etc. Data was collected and used from Annual Reports of Jindal Steel & Power Ltd from the period of 2016-17 to 2020-21. The findings of the paper's financial study of Jindal Steel & Power Ltd. show that the company's financial performance increased after 2016-17 without taking the COVID-19 pandemic condition into account.

The Relation between CEO Reputation, Financial Distress, Internal Control, and Earnings Management

Purpose: The purpose of this research is to analyze the effect of internal control and financial distress on earnings management and add the CEO's reputation as a moderating variable. The object of this study is to determine the companies that listed on Indonesia Stock Exchanges between 2019 and 2020. The research data were tested and analyzed using panel regression analysis on SmartPLS software. Methodology: The research sample is chosen using the purposive sampling technique. Data analysis for the study employed the SmartPLS program. This research used accrual earnings management to measure the earnings management, springate model to measure financial distress, internal control index to measure internal control and CEO's reputation index is used to measure CEO's reputation. Findings: The research results found that financial distress and internal control positively affect earnings management. In addition, this research results also found that a CEO's reputation can have a moderately significant and positive effect on the relationship between financial distress and earnings management. Originality/Value: This research finding is helpful for corporate governance in maximizing investment strategies. The consideration of the value of internal control is also a reference when investing. As such, it tends to assist company management in executing investment strategies to see the value of the CEO's reputation and internal controls. The novelty research provides new insight into how CEO's reputation moderates the relationship between financial distress and earning management.

Valuation And Quantification Of Assets, Liabilities, And Income In Pharmaceutical Company In Indonesia

This study aims to analyze the valuation and quantification of assets, liabilities and income in pharmaceutical companies in Indonesia. This research is qualitative in nature, namely research that holistically intends to understand the phenomenon of what is the subject of research, be it events, perceptions, or actions, and in a descriptive way the approach used uses a conceptual approach, and literature studies The results of the study show that valuation and asset quantification use three approaches, namely the market data comparison approach, the revenue capitalization approach and the cost approach, where pharmaceutical companies in Indonesia tend to use these three approaches in assessing assets, then the debt policy of pharmaceutical companies in Indonesia when viewed from the the debt to equity ratio shows a fluctuating value where the risk of debt is still high for the company due to the high value of this ratio, furthermore the income of pharmaceutical companies in Indonesia tends to fluctuate where during the covid 19 pandemic pharmaceutical companies experienced significant revenue growth. Copyright © 2023 Wolters Kluwer Medknow Publications. All rights reserved.

Credit Risk Assessment of Small and Medium-Sized Enterprises under the Financial Model of Online Supply Chain

The rapid development of Internet technology meant that online supply chain finance has become an important source of small- and medium-sized enterprise (SME) finance. From a review of associated studies, this study constructed an online supply chain financial credit risk evaluation index system that had eleven level 2 indicators and 28 level 3 indicators for the four dimensions of financing enterprise qualification, core enterprise qualification, supply chain operations, and the macroenvironment. To assess the viability of this indicator system, data on 368 SMEs in four industries, clothing, home appliances, pharmaceutical, and construction, were selected as research samples. An online supply chain financial credit risk evaluation model for the different industries was then constructed using principal component analysis (PCA) and logistic regression methods. It was concluded that when evaluating online supply chain financial credit risk, it is necessary to focus on the solvency, profitability, and asset structure efficiencies of the financing enterprises. Due to the different production and operating characteristics of industries, significant variations in the degree and direction of the credit risk factors between industries were found;therefore, evaluating credit risks by industry significantly improved the accuracy of the model's credit risk predictions. For example, home appliance SMEs need to pay greater attention to their inventory turnover and construction industry SMEs should pay greater attention to their sales growth rate, return on common stockholders' equity, and GDP growth rate. Based on these results, some suggestions for commercial banks, supply chain core enterprises, and SMEs are given to improve supply chain financing. The conclusion of this study enriches the related research on credit risk assessment of SMEs and also provides decision support for improving SMEs to prevent credit risk.

Financial Liquidity Management During Crisis

Purpose: The aim of the article is to verify a hypothesis stating that financial security of companies has been significantly violated in the scope of economic crisis caused by COVID19 pandemics. It has been assumed that traditional indicators of financial liquidity have declined and establishing the scale of the phenomenon constitutes a scientific problem. Design/Methodology/Approach: The research has been conducted as exemplified by a given sector: consumer goods and retail trade on the basis of data adapted from EMIS database. The research has regarded years 2018-2021. Statistical characteristics of two features have been used: current ratio indicator and quick ratio indicator, determining the location, spread, asymmetry and flattening characteristics. The analysis constructed in such a multidimension way was to enable a proper verification of the hypothesis stated. Findings: The results of the research has not verified the research hypothesis positively: the companies of a given sector had not compounded, and even improved their financial security measured with the use of traditional liquidity indicators. Practical implications: The conducted research regarding the liquidity management in companies in a extraordinary time od crisis emphasizes the multifaceted nature and complexity of issues connected with financial security;simultaneously discussing the statement that the entrepreneurs' concern over the extending period of uncertainty, lead them to a certain mobilization to secure from lack of liquidity and forced more awareness in the topic of liquidity. Originality/value: In the process of data analysis certain characteristic features were observed: the average indicators in the sector are much higher than middle indicators which indicates the need to have a closer look at average data. In a researched sector most of the enterprises does not achieve the results suggested for liquidity indicators.

The Impacts of Social Media on Accounting and Auditing: Evidence from Greek Listed Firms

Companies are increasingly using social media to communicate with stakeholders. During the last decade, social media started to become part and parcel of contemporary lifestyles. Thus, the main purpose of this research was the investigation of the impacts of social media on accounting and auditing by using companies’ social media posts. We performed quantitative research on an initial population of 183 companies being traded on the Athens Stock Exchange (ATHEX) for one fiscal year. We gathered data from corporate social media accounts and social media posts for the 2018 fiscal year (Twitter, Facebook and LinkedIn). We analyzed social media posts’ strategies, and we used the Kruskal–Wallis model and OLS regression model in order to analyze the relationships between social media accounts and posts and accounting and auditing. The findings from our research show that firms with active social media accounts and active impression management techniques on Twitter, Facebook and LinkedIn tend to achieve higher profits compared to companies that have inactive social media accounts. Additionally, the firm’s total liabilities are mainly positively related to its posts on specific social media accounts. In addition, cash, total assets and earnings before taxes affect social media posts to different degrees, depending on the post’s content and the category of social media as well. Taking into account the auditing variables, it is suggested that there is no relation among the given auditor’s opinion, the going concern assumption and the reviewed posts.

A Giant Falls: The Impact of Evergrande on Asian Stock Indexes

The economic growth of China has been driven by the development of its real estate market, especially after the 2008 crisis. This growth is mostly related to the huge housing bubble and growing amounts of sovereign debt that have been redirected to corporations in the sector. Evergrande is one of those corporations;it is a Chinese company in the construction and real estate sector, a global giant with investments in many parts of the world. Its bond default in September 2021 sounded alerts in financial markets. Several news outlets spoke of the “next Lehman Brothers”, and apprehension was very high, especially in Asian markets. This research work aims to evaluate the impact of Evergrande’s bond default on six Asian stock markets, using an event study approach. The results show a strong reaction from the markets towards the event in study, even anticipating it. Furthermore, it is worth mentioning a quick reversion to “normal” behavior, indicating the rapid absorption of information by the markets.

Which Determinants Matter for Working Capital Management in Energy Industry? The Case of European Union Economy

The main purpose of the paper is to identify firm,- industry- and country-specific determinants of working capital management (WCM) in energy industry. The empirical research is based on 6122 EU companies operating in the years 2011–2018. The influence of internal factors on variables describing WCM (cash conversion cycle—CCC, financial liquidity—LIQ and level of working capital—WC) were identified. The factors included: size of the company (positive effect), its growth, tangibility and indebtedness (negative effect). Cash flow had a positive effect on CCC and a negative effect on LIQ and WC. The influence of industry-specific factors were also found. Companies applied similar strategies in CCC and LIQ management, following their industry averages. Measures of WCM decreased under the influence of an increase in average trade payables in the industry. Following country-specific factors were found to be significant: (i) growth of GDP and strength of legal rights had negative influence on all measures of WCM, (ii) unemployment positively affects LIQ and WC and negatively CCC, (iii) an increase in the share of renewable energy sources caused a decrease in all WCM measures, while (iv) with an increase in energy consumption, CCC and WC increased.

The effect of working capital management and credit management policy on Jordanian banks’ financial performance

This study investigated the impact of Working Capital Management (WCM) and Credit Management Policy (CMP) on the Financial Performance (FP) of Jordanian banks (JB). The study data were obtained from 16 Jordanian banks listed on the Amman Stock Exchange (ASE) between 2017 and 2020. The study used panel data to investigate the relationship between the two independent variables, WCM and CMP, and the dependent variable FP;64 financial reports to Jordanian banks were analyzed to measure this relationship. To test hypotheses, multiple regression was used. The study found a statistically significant relationship between WCM and FP, and the independent variable was able to explain 34.1% of the changes that occur in the dependent variable. In addition, the outcome approved that there is a statistically significant relationship between CMP and FP. Furthermore, CMP explained about 41.8% of changes in the dependent variable. The findings of this study indicate support for the banks’ performance;a bank may need to lengthen client credit terms, prolong the cash transfer cycle, and require a more extended payment period when judging on WCM. Acknowledgment The publication of this research has been supported by the Deanship of Scientific Research and Graduate Studies at Philadelphia University – Jordan.

Impact of Working Capital Management on Business Performance: Case Study of Listed Companies in the Food and Beverage Industry in Vietnam

This study examines the impact of working capital management on firm performance, particular in Food and Beverage Industry in Vietnam from 2012 to 2019. The research mainly used secondary data from financial statements of 30 listed companies in the Industry. The result of this study shows that working capital management plays an important to role on firm performance. Each components of working capital would affect differently in firms' business performance.

The Negotiated Settlement of the Crisis and the Cash Flows of Large Unlisted Italian Companies

Purpose: The recent introduction in Italy of the negotiated settlement of the crisis represents further progress towards the creation of useful tools to counter the failure of illiquid or close to insolvency companies. Access to the negotiated settlement of the crisis and the outcome that can result from it are strongly connected to the financial situation of the company. The purpose of this research is to analyze the financial situation of large unlisted Italian companies, in order to verify the advisability of using the new institute and the depth of the consequent management interventions. Design/Methodology/Approach: The research used the methodological scheme referred to in the Decree of the Ministry of Justice of 28 September 2021 to identify which variables were relevant for the purposes of accessing the procedure of crisis' negotiated settlement. The variables thus identified were analyzed according to the statistical method both in the year 2020, which experienced the exceptional nature of the pandemic shock, and, for comparison purposes, in the previous four years. Findings: The research has highlighted how the majority (53%) of the companies observed showed substantial economic stability and considerable financial resistance to the crisis. Furthermore, based on data for the financial year 2020, it was estimated that the number of large Italian companies potentially interested in the new institute of crisis' settlement is around 400, out of a total of over 900 companies. Practical Implications: The analysis scheme developed by the research can represent a useful tool for verifying the potential of the new procedure of crisis' negotiated settlement and can also be applied to the study of specific sectors or to small and medium-sized enterprises. Originality/Value: The originality of the research consists in having adapted the individual practical test provided for by the Law Decree of 24 August 2021, no. 118, to obtain an analysis tool applicable at an aggregate level.

Analysis and recommendations regarding surgeons' liabilities during an acute health crisis.

The SARS-CoV-2 pandemic has highlighted discrepancies between surgeons' professional duties and legal protections when acting outside their specialities during the pandemic. These discrepancies between legal and professional standards leave surgeons and the NHS vulnerable to litigation. In the following article, we explore the liabilities that have arisen for surgeons during this period in the United Kingdom and Canada. We recommend, upon review of the literature, that a two-pronged approach be taken to address these discrepancies; (a) a change in policy at the national level to accurately reflect the constraints and demands placed upon the profession in this acute health crisis and (b) the provision of clearer, more stringent legal protection. In the interim, we suggest that individual surgeons utilise a decision-making framework where they consider their personal and professional obligations in regard to resource stewardship, innovation in practice, patient-specific contexts, and patient advocacy while acting outside of their speciality.