scholarly journals Banks and Climate-Related Information: The Case of Portugal

2021 ◽  
Vol 13 (21) ◽  
pp. 12215
Author(s):  
Aldina Lopes Santos ◽  
Lúcia Lima Rodrigues
Keyword(s):  
Climate Change ◽  
Financial Reporting ◽  
Financial Information ◽  
Financial Risks ◽  
Economic Activities ◽  
Related Information ◽  
Eu Directive ◽  
Policies And Procedures ◽  
Sustainable Investment ◽  
New Guidelines

In 2014, a European Union (EU) Directive required certain large undertakings and groups to disclose non-financial information from 2017 onwards. In 2017, the EU guidelines on non-financial reporting established that reporting climate-related information is part of the non-financial information. Later, in 2019, the guidelines were reinforced to include a supplement that envisages improving climate-related information reporting. Banks can contribute to reducing climate-related risks by supporting investments in economic activities that aim to mitigate the risk of climate change. Capital needs should be reoriented towards sustainable investment. Banks shall manage financial risks arising from climate change; therefore, they must integrate climate change into their policies and procedures, assessing the potential impact of projects and financing on climate change. This study aimed to evaluate how banks in Portugal have been reporting climate-related information and whether the level of information has increased since 2017. Using content analysis, findings indicated that banks are already including climate-related information; however, they are still far from approaching what the new guidelines require. Results suggested that there is still a long way to go in this area concerning banks and regulators.

scholarly journals Sustainability Performance Indicators and Non-Financial Information Reporting. Evidence from the Italian Case

2020 ◽  
Vol 10 (1) ◽  
pp. 13 ◽  
Author(s):  
Domenico Raucci ◽  
Lara Tarquinio
Keyword(s):  
Financial Reporting ◽  
Performance Indicators ◽  
Value Added ◽  
Financial Information ◽  
Reporting Practices ◽  
Sustainability Performance ◽  
Italian Case ◽  
Eu Directive ◽  
Before And After ◽  
Guidelines And Standards

Non-financial reporting is a growing topic, and the adoption of the EU Directive 2014/95/EU on non-financial information (NFI) is increasing the use of this reporting. One of the most distinctive elements of guidelines and standards that are widely used to draw-up reports on NFI is sustainability performance indicators (SPIs). SPIs can provide a significant value-added to non-financial corporate communication, and they are useful tools to support internal decision-making processes. The purpose of this study is to examine the effects produced on SPIs disclosure by the entry into force of the Italian Decree implementing the Directive on NFI. Content analysis method is used to analyze indicators disclosed by Italian companies before and after the adoption of the Decree. Findings show that each category of SPIs was largely used by the companies of our 2012 sample, but a reduction of the quantity of indicators disclosed was documented in 2017. Therefore, after the introduction of mandatory disclosure of NFI, companies seem to focus only on indicators considered more “relevant” according to the Directive. This research represents one of the preliminary analysis on the adoption of the Directive in Italy and on its first effects on NFI reporting practices.

scholarly journals Non-financial reporting in Spain. The effects of the adoption of the 2014 EU Directive

2022 ◽  
Vol 25 (1) ◽  
pp. 3-15
Author(s):  
María-Antonia García-Benau ◽  
Helena-María Bollas-Araya ◽  
Laura Sierra-García
Keyword(s):  
Financial Reporting ◽  
Listed Companies ◽  
Financial Information ◽  
First Year ◽  
Eu Directive ◽  
Sustainability Reports ◽  
Sustainability Report ◽  
Management Report ◽  
Do So

The Directive 2014/95/EU imposes new requirements regarding the disclosure of non-financial information (NFI). The aim of this paper is to analyse the NFI disclosed by Spanish listed companies. This is a pioneering study in Spain, since it was conducted during the first year in which NFI disclosure was mandatory, according to the requirements of the Spanish adaptation of Directive. We determine whether decisions on NFI reporting adopted in this respect (i.e. to do so within the management report or as a separate sustainability report) depend on the company’s characteristics. In addition, we consider whether the content of such reports differs significantly. Findings show that some Spanish companies do not disclose mandatory NFI. Larger and more profitable companies, which belong to specific sectors and have a sustainability committee, are more likely to disclose this information in a sustainability report. The contents of management and sustainability reports present significant differences. La Directiva 2014/95/UE impone nuevos requisitos en cuanto a la divulgación de información no financiera (IFN). El objetivo de este trabajo es analizar la IFN divulgada por las empresas cotizadas españolas. Se trata de un estudio pionero en España, ya que se realizó durante el primer año en el que la divulgación de IFN era obligatoria, según los requisitos de la adaptación española a la mencionada Directiva. Determinamos si las decisiones sobre la presentación de la información no financiera adoptadas al respecto (es decir, hacerlo dentro del informe de gestión o como un informe de sostenibilidad independiente) dependen de las características de la empresa. Además, estudiamos si el contenido de dichos informes difiere significativamente. Los resultados muestran que algunas empresas españolas no divulgan la información no financiera obligatoria. Las empresas más grandes y rentables, que pertenecen a sectores específicos y que tienen un comité de sostenibilidad, son más propensas a divulgar esta información en un informe de sostenibilidad. Los contenidos de las memorias de gestión y de sostenibilidad presentan diferencias significativas.

scholarly journals Public companies non-financial reporting and audit in Ukraine: challenges and prospects

2017 ◽  
Vol 1 (1) ◽  
pp. 32-38 ◽  
Author(s):  
Inna Makarenko
Keyword(s):  
Sustainable Development ◽  
Development Strategy ◽  
Financial Reporting ◽  
Financial Information ◽  
System Reform ◽  
Accounting System ◽  
Integrated Reporting ◽  
Public Companies ◽  
Association Agreement ◽  
Eu Directive

Public interest entities and public companies as their representatives should be an example in implementing of sustainable development initiatives (sustainable development goals of the United Nations, development strategy «Europe-2020», «Sustainable Development Strategy»Ukraine-2020») in the light of Association agreement. Main challenges for Ukrainian public companies are non-financial information disclosure and assurance of both financial and non-financial reporting through statutory audit. Key prospects of public companies accounting system reform were outlined in this regard. This research may contribute to the existing literature in regard of identifying key areas of improving financial and non-financial information PIEs disclosure as well as its independent verification through statutory audit. This improvement should incorporate European experience and provision of Directive 2014/95 / EU, Directive 2013/34 / EU, Directive 2014/56 / EU and Regulation (EU) no. 537/2014. Among the promising areas of research, introduction of integrated reporting for Ukrainian PIEs is worth noting.

scholarly journals Empirical Analysis of Non-Financial Reporting by Spanish Companies

2018 ◽  
Vol 8 (3) ◽  
pp. 29 ◽  
Author(s):  
Laura Sierra-Garcia ◽  
Maria Garcia-Benau ◽  
Helena Bollas-Araya
Keyword(s):  
Financial Reporting ◽  
Information Disclosure ◽  
Listed Companies ◽  
Regulatory Compliance ◽  
Financial Information ◽  
The European Union ◽  
Royal Decree ◽  
Additional Information ◽  
Eu Directive ◽  
The Impact

Spain is one of the European countries that is the most strongly committed to the presentation of non-financial information. In 2017, Spain adapted its legislation to Directive 2014/95/EU through Royal Decree-Law 18/2017, which required Public Interest Entities (PIEs) to provide information in accordance with the requirements of the European Union (EU) Directive, with respect to financial years from 1 January 2017. Our research is focused on Spanish IBEX-351 listed companies and seeks to identify current trends in non-financial reporting. To our knowledge, the present paper is the first study to examine the impact made in Spain by the legislative changes. Our aim is to analyse the publication of non-financial information by Spanish listed companies whose first reports in this regard were made from early 2018. Specifically, we consider the impact of this information disclosure, determining whether the companies in question restrict themselves to meeting regulatory requirements or whether they go further and voluntarily supply additional information. Our findings show that the level of regulatory compliance produced is associated with the business sector in which the company operates. We also show that the highest rates of disclosure of non-financial information correspond to companies that provide this information in the sustainability report.

scholarly journals Comparison of Financial Reporting in the Visegrad Four Countries in a Global Environment

2021 ◽  
Vol 92 ◽  
pp. 02039
Author(s):  
Enikő Lőrinczová
Keyword(s):  
Czech Republic ◽  
Financial Reporting ◽  
Financial Analysis ◽  
Slovak Republic ◽  
Balance Sheet ◽  
Financial Statements ◽  
Financial Information ◽  
The Czech Republic ◽  
National Accounting ◽  
Eu Directive

Research background: The Visegrad Four (V4) countries are the Czech Republic, Slovakia, Hungary and Poland. As members of EU they had to incorporate into their national legal accounting framework the European Directives related to annual accounts, valid at the time, where various choices were possible to adopt. Some principles of the international financial reporting standards IFRS also affected the national accounting frameworks more or less, depending on the country. These various influences may affect the external user´s ability to read the published financial statements and compare them. Purpose of the article: The aim of this paper is to compare the relevant national legal framework of accounting in selected areas and the content of financial statements required in the V4 countries and to point out the influence of the chosen presentation of some financial information on selected indicators of financial analysis. Methods: Methods of description, analysis, comparison and synthesis are used to achieve the set aims of the paper. The financial analysis is demonstrated on an illustrative example of reported financial information which is based on the different national accounting legislation. Findings & Value added: The comparison showed some similarities and differences. The main differences amongst the V4 countries are related to the reporting of leased assets and the variation of own production and work-in-progress. Czech Republic does not report the leased assets in the balance sheet of the user of the asset but in the owner´s while the Slovak republic, Hungary and Poland report the asset in the user´s balance sheet which is in accordance with the international accounting standards IFRS (in case of Poland it depends on the lease contract). The Czech Republic reports the changes in own production and capitalization of own work as part of expenses which is in line with IFRS. The Slovak Republic, Hungary and Poland report these items as part of revenues which is in line with the EU Directive but in contrast with IFRS. Also, the Slovak republic and Poland have definitions of the elements of financial statements in their accounting legislation while the Czech Republic and Hungary do not have these definitions. These differences influence the results of ROA, ROE and cost efficiency when comparing the same situation in these countries as it is evidenced on the illustrative example in the paper.

scholarly journals Analysis on Sustainability Reporting and Earnings Management Practices. Evidence from an Emerging Economy

2021 ◽  
Author(s):  
Elena Nechita
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Management Practices ◽  
Stock Exchange ◽  
Sustainability Reporting ◽  
Income Smoothing ◽  
Financial Information ◽  
Linear Regression Models ◽  
The Sustainable Development ◽  
Eu Directive

In light of the worldwide spreading requirements related to the disclosure of non-financial information, which are aligning to the Sustainable Development Goals (SDGs) developed by the United Nations (UN) in 2015, the study aims to analyse the influence of sustainability and other non-financial reporting on companies’ engagement in earnings management practices, through a pre-post adoption of European Directive 2014/95/EU comparative analysis for firms listed on the Bucharest Stock Exchange (BSE) in the period 2015-2019. To conduct the investigation, the research involves the assessment and analysis of three earnings management metrics resulted by running multiple linear regression models on a sample of 31 companies listed on BSE. Research findings emphasise a decrease in the use of income smoothing practices by sampled companies in the post-adoption period 2017-2019, compared to the period preceding the implementation of the EU directive related to mandatory disclosure of non-financial information, 2015-2016. Thus, firms characterised by a higher transparency in terms of sustainability reporting are less inclined to engage in earnings management practices. This research complements the literature in the field of sustainability reporting and earnings management, providing empirical evidence on the significance and impact of publishing non-financial information.

scholarly journals Non-financial reporting in selected European countries

2021 ◽  
pp. 73-90
Author(s):  
Nikolina Dečman ◽  
Petr Petera ◽  
Marzena Remlein ◽  
Ana Rep
Keyword(s):  
Financial Reporting ◽  
Financial Information ◽  
Annual Reports ◽  
Professional Background ◽  
Financial Reports ◽  
The Czech Republic ◽  
Eu Member States ◽  
Eu Directive ◽  
The Republic ◽  
The Eu

Directive 2014/95/EU gave the EU Member States a certain flexibility when transposing it into national law. Each Member State could, therefore, decide to introduce regulations of varying degrees of stringency. According to Directive 2014/95/EU, large companies have to publish reports on the policies they implement in relation to environmental protection, social responsibility and treatment of employees, respect for human rights, anti-corruption and bribery, diversity on company boards (in terms of age, gender, educational and professional background).In order to satisfy the EU rules, the Republic of Croatia has implemented into its legislation the provisions of the Directive 2014/95/EU regarding the disclosure of certain non-financial reporting, by amending the Accounting Act. Some companies registered in Croatia have been disclosing some of the required non-financial information in their reports even before the effective date of the Direc-tive, but conducted studies conclude that there is still a room for improvements.This chapter provides a short overview of regulation of non-financial reporting in the Czech Republic as well as overview of previous research on non-financial reporting in this country. The results of the research present that few Czech companies publish standalone corporate responsi-bility report. More popular is the disclosure of non-financial information within annual financial reports but even this approach is pursued by less than half of respondents. The amount of disclosed information in annual reports is mostly up to 5 pages. 11 companies (10.38%) provide more than 5 pages of environmental information and only 7 companies (6.60%) provide more than 5 pages of social information.In Poland, the requirement to present non-financial information relating to CSR was introduced by the Accounting Act. Public trust entities are required to present in the report on the activities a separate part called “Statement on non-financial information”. In 2017, the Polish Standard of Non-Financial Information (SIN, 2017) was published to help enterprises fulfil their obligations under the EU Directive.

scholarly journals ANALYSING THE LINK BETWEEN CSR REPORTING AND FINANCIAL PERFORMANCE VARIABLES OF BELGRADE STOCK EXCHANGE COMPANIES

TEME ◽  
2021 ◽  
pp. 1369
Author(s):  
Mirjana Mijoković ◽  
Goranka Knežević ◽  
Vule Mizdrakovic
Keyword(s):  
Financial Performance ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Information ◽  
Performance Variables ◽  
Csr Reporting ◽  
Eu Directive ◽  
Big 4 ◽  
The Eu

Corporate Social Responsibility (CSR) reporting has been subject of various discussions of academicians and accounting practitioners. Although the importance of CRS reporting is not under question, the quality of disclosed non-financial information is still under review. In the light of the new Serbian Law on Accounting (Official Gazette of the Republic of Serbia 73/2019) and EU Directive 2014/95 requirements regarding non-financial information, this article investigates the state of non-financial reporting development in Serbian companies in the pre-EU Directive period in order to give suggestions to policymakers how to establish and structure the implementation of the EU Directive and expected challenges on this path. The current state of development of non-financial activities is measured by using content analysis and by creating a non-financial reporting index, namely the CSR index for the Serbian companies listed at Belgrade Stock Exchange. CSR index has been corelated with accounting variables (size of the company, auditor type (non/Big 4), revenue and financial results) in order to get deeper understanding of its value drivers.  Serbian companies, listed as large, audited by Big 4 and with better financial performance variables, are companies with the higher value of the CSR index and have a higher quality of non -financial reporting. Big companies can serve as a benchmark for the rest of the companies in the economy, but also those companies will have fewer challenges in the EU non-financial Directive implementation in the post-Directive period. Therefore, Serbian policymakers should focus their attention and implementation procedures on the rest of the economy struggling with the non-financial reporting.

“Sustainability of Information” as a New Subject in University Degrees in Business Management and Administration: Reporting of Non-financial Information — Spanish Case

2019 ◽  
Vol 10 (6) ◽  
pp. 501-516
Author(s):  
María Ángela Jiménez Montañés ◽  
◽  
Susana Villaluenga de Gracia
Keyword(s):  
Higher Education ◽  
Business Management ◽  
Real Life ◽  
Business Administration ◽  
Financial Information ◽  
Learning Theories ◽  
National Agency ◽  
Royal Decree ◽  
Eu Directive ◽  
Knowledge Competencies

The implementation of curricula of degree, within the framework of the European space of higher education (EEES) has been a substantial change in University learning. The student spent acquire knowledge, competencies, being considered as “an identifiable and measurable set of knowledge, attitudes, values and skills related that allow satisfactory performance in real-life situations of work, according to the standards used in the occupational area” (Van-der Hofstadt & Gómez, 2013, p. 30). More specifically, we talk about generic skills, which are the cognitive, social, emotional and ethical (initiative, effort with the quality, liability, etc.) of transferable character that constitute “knowledge be” in vocational training of the University; and specific competencies in the various degrees and disciplines, allowing to specify functions and professional profiles to form. The degree of management and business administration, general objective is to train professionals and experts in the knowledge and use of processes, procedures, and practices employed in organizations. This overall objective implies to consider the interrelationships between the different parts of the Organization and its relationship with the environment. Studies administration and business management are aimed at learning theories, models and tools applicable to the processes of decision and management organizations. According to the book white of the title of the degree in economics and business, published by the national agency of evaluation and quality, distinguish between specific objectives in the field of knowledge and specific objectives in the field of competences and skills. Focusing on the latter, and in accordance with the Subject Benchmark Statements of General Business and Management, published by the Quality Assurance Agency for Higher Education in the United Kingdom, the specific objectives in the field of skills and abilities that we focus the work would empower the student to it raise the ethical exercise of the profession, assuming social responsibility in decision-making. In this environment, it is necessary to consider the implementation of the 2014/95/EU Directive on disclosure of non-financial information and information on diversity of certain large companies and certain groups resulted in the publication of the Royal Decree 18/2017, of 24 November, whereby amending the commercial code, the consolidated text of the Capital Companies Act approved by Royal Legislative Decree 1/2010 of 2 July and the law 22/2015, 20 July audit of accounts , in the field of non-financial information and diversity. This new disclosure requirement for companies leads us to consider the need to introduce a transversal subject in the curricula of students in economics and management and business administration studies, in order to acquire the skills necessary in the European Higher Education Area (EHEA), to produce the new business reports.

IFRS IMPLEMENTATION AS ONE OF THE FACTORS FOR IMPROVING THE INVESTMENT CLIMATE IN UKRAINE

2017 ◽  
Author(s):  
Kateryna Sova ◽  
◽  
Natalia Yatsenko ◽  
Denys Zagirniak ◽  
◽  
...  
Keyword(s):  
Financial Reporting ◽  
Direct Investment ◽  
Financial Statements ◽  
International Standards ◽  
Investment Climate ◽  
The European Union ◽  
Economic Activities ◽  
Financial Reporting Standards ◽  
Almost All ◽  
The Impact

The article is devoted to the study of the impact of the introduction of International Financial Reporting Standards (IFRS) on changes in the investment climate in Ukraine. The relevance of the topic is that improving the practice of applying IFRS as a tool for exchanging financial information is one of the key conditions for improving the investment climate in Ukraine. The authors have created the generalized scheme that illustrates the chronological list of enterprises that are required by law to prepare financial statements in accordance with IFRS. It was noted that in 2018, in accordance with Part 2 of Article 12 of the law on accounting and financial reporting in Ukraine and resolution of the Cabinet of Ministers of Ukraine No. 547 from 11.07.2018, the criteria of enterprises that are required to prepare financial statements in accordance with IFRS were updated. This step significantly increased the level of application of international standards due to the adoption of such a decision at the legislative level. The dynamics of the number of IFRS enterprises in Ukraine was analyzed. The analysis showed that over the past three years, the number of almost all enterprises that must apply international standards has been growing. The advantages of using IFRS for different users of financial statements were determined. It was determined that the priority users of IFRS financial statements are investors. At the same time, it was noted that the main advantage for other users of financial statements prepared in accordance with international standards is the improvement of the investment climate. The dynamics of the Investment Attractiveness Index of Ukraine based on the Likert scale in the period from 2016 to 2020 was analyzed. The direct investment receipts to Ukraine from the European Union countries were studied. The dynamics of direct investment in the Ukrainian economy was analyzed for two types of economic activities that should form financial statements in accordance with IFRS, namely, the extractive industry and quarrying, as well as financial and insurance activities.

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