Convergence of IFRS and Ind AS – A Descriptive and Exploratory Insight

IFRS are designed to bring consistency to accounting language, practices and statements, and to help businesses and investors make educated financial analyses and decisions. The Ind AS are named and numbered in the same way as the corresponding International Financial Reporting Standards (IFRS). National Advisory Committee on Accounting Standards (NACAS) recommends these standards to the Ministry of Corporate Affairs (MCA). Indian viewpoints do not receive adequate attention at International Accounting Standard Board (IASB). Those are not debated adequately at the IASB before rejection. The present paper will discuss the reasons behind convergence of IFRs, rather than adoption. It also shows the Carve Outs of Ind AS from IFRS by providing valid reasons.

Financial Analyses and Corporate Evaluation on Sustainable Ability to Generate Excess Profit

This study empirically examined financial analyses and a market assessment on goodwill. Goodwill is not an individually identifiable asset but is recognized as an intangible asset because it is viewed as having future economic benefits from a business combination. The verification period for this study was from 2011 to 2019. The sample companies were 13,522 firms-years satisfying the selection criteria among listed companies in the Korean stock market. As a result of empirical analysis, it was found that goodwill is related to stock prices. Goodwill was shown to serve as useful accounting information by reflecting the economic realities of intangible assets called creating excess profitability and sustainable profit. For analysis, regression analysis was conducted by separating the companies listed on the KOSPI stock market and those listed on the KOSDAQ stock market. The results of the analysis were as follows. In the case of listed companies in the KOSPI stock market, goodwill was found to have a positive (+) stock price relationship as useful accounting information. These results suggested that goodwill is an asset that represents the ability to generate excess profit as a sustainable profit. The contributions of this study are as follows. First, this study verified that goodwill is related to stock prices even after the adoption of International Financial Reporting Standards (IFRSs). Second, it will be possible to induce rational decision-making regarding goodwill to accounting standards setters, supervisors, and users of financial information. Third, it recognized that the value of the financial market can be recognized only by providing reliable accounting information to the managers who prepare financial statements. This can lead managers to provide capital markets with more useful information.

Profitability and Efficiency of Forest Contractors in Slovakia—Comparison of Mountain and Lowland Regions

The paper deals with analysis of the forest business sector in Slovakia and the evaluation of profitability and efficiency of forest contractors, with special focus on mountain and lowland regions. Evaluation of profitability was done by using selected indicators of financial analyses for a period of five years. Data envelopment analyses (DEA) was used as non-parametric approach for the assessment of efficiency. The sample size was 153 forest contractors. Data for 2012–2016 were processed. Results of the evaluation show that the profitability of Slovak forest contractors in the mountain regions is higher than the profitability of forest contractors in lowland regions. The results of the efficiency analysis were different due to the nature of the method; where relative efficiency was evaluated, the efficiency of single contractors was compared with the most efficient contractors from the lowland regions. Most of the evaluated units were, according to results of the efficiency analysis scale, ineffective, which implies that it may be beneficial for most contractors to reduce their turnover and thereby increase their relative efficiency. The results of the financial analysis also suggests that contractors have obsolete technical and technological equipment.

Integrated Economic and Spatial Planning for the Food-Energy-Water Nexus

Infrastructure projects are being planned and implemented around the world. These projects lead to economic growth and social development, but often unexpected side effects emerge. The problem is that financial analyses for infrastructure projects do not incorporate quantified economic assessments of social and environmental impacts. Equally, social and environmental assessments for infrastructure projects rarely qualify or quantify socioeconomic outcomes for investments in mitigation practices. Our analysis builds on a review of existing methodologies and tools to propose a method for jointly applying three modeling approaches for integrated economic and spatial planning. The results of case study of the Mekong Flooded Forest landscape shows the capability of the models to anticipate desired and undesired outcomes across social, economic and environmental indicators. This shows promising potential for better informing decision making for sustainability.

Usefulness of Sectoral Means in Financial Analyses of Enterprises

Aim: The aim of the paper is to assess the usefulness of sectoral means in financial analyses of enterprises.Research methods: The article uses a deductive approach to assess the suitability of sectoral means used in analyses of t financial standing of enterprises. The method of analysis and logical construction was used for literature review. The methods of descriptive statistics such as arithmetic means, standard deviation and coefficient of variation were used in order to analyze the data and draw conclusions based on the results.Contribution: The assessment of the usefulness of sectoral means in the context of their variability seems to be a crucial aspect for the analysis of a company’s financial situation. When assessing the financial standing of an enterprise, it is necessary to use a comparative analysis method, based on, inter alia, a comparison in space. This type of comparison requires the use of sectoral means, whose assessment is extremely important to drawing reliable and correct conclusions regarding the financial situation of a company.

Financial Analysisof Rain Water Harvesting Tools in Pamor Hamlet, Banjardowo Village, Kradenan Sub District, Grobogan District

The drought that occurs in the dry season is one of the hydrometeorological disasters. A total of 82 villages of 12 districts in Grobogan, Central Java, experience a clean water crisis due to drought because the well, as their main source of water, is likely to go dry. Therefore, a solution is needed to anticipate the water shortage. The aims of this paper is to analyze financially the water harvesting building which can be used as a reference for the community. The research was conducted in Pamor Hamlet, Banjardowo Village, Kradenan District, Grobogan Regency. The method used was to build the rainwater harvesting engineering models, namely (a) recycling tools for washing and bathing, (b) dirt filter wells, (c) three meters depth infiltration wells (1 well and 2 wells), and (d) five meters deep infiltration wells (1 well and 2 wells). Data collection was done by conducting a survey of the community. The data collected were the costs required for the construction of the rainwater harvesting equipment, maintenance, electricity, supporting materials, etc. The income was approached with replacement costs if the community buys water during the dry season. The financial analyses of NPV, IRR, BCR, and PP were employed. The results showed several feasible models to be applied, namely recycling equipment for washing and bathing, dirt filtering equipment, three meters deep infiltration wells (1 piece) and a depth of 5 meters (1 piece). This model is very good to be adopted by the community because it is easy and has minimal costs.