PL EN


Preferencje help
Widoczny [Schowaj] Abstrakt
Liczba wyników
2022 | 46 | nr 4 | 51--68
Tytuł artykułu

Applying Benfordʼs Law on Assessing the Reliability of Financial Information in European Companies from the Rental and Leasing Sector before and after the Adoption of IFRS 16

Warianty tytułu
Zastosowanie prawa Benforda do oceny wiarygodności informacji finansowych w europejskich spółkach z sektora wynajmu i leasingu przed i po przyjęciu MSSF 16
Języki publikacji
EN
Abstrakty
EN
Purpose: The purpose of the manuscript is to ascertain whether the introduction of IFRS 16 changed the reliability of financial information in companies in the NACE 77 sector. Benfordʼs Law was applied to identify errors within a selected sample of European leasing and rental companies (NACE code 77).
Methodology/approach: The study examines accounting manipulations in positive profit and loss (P&L) before tax in 2015 and 2019; Part 2 explores manipulation within negative P&L before tax in 2015 and 2019; Part 3 discovers manipulations in operating revenue in 2015 and 2019. In the empirical part of the study, MAD and Kolmogorov-Smirnov tests were applied.
Findings: The study confirmed that the reliability of financial information did not change even though the small differences in the distribution of digits appeared, before and after IFRS adoption.
Research limitations: Limitations from this research refers to the sample size; only companies from the leasing and rental industries are included in the study.
Originality/value: The study adopts Benford's Law in accounting for IFRS leasing adjustments. (original abstract)
Cel: Celem artykułu jest zbadanie porównywalności informacji finansowej przed i po przyjęciu MSSF 16 Leasing dla spółek z sektora NACE 77. W celu oceny występowania anomalii w wynikach spółek, w próbie europejskich firm leasingowych (kod NACE 77) wykorzystaliśmy prawo Benforda.
Metodyka/podejście badawcze: W badaniu poszukujemy potencjalnych anomalii w wartości wyniku finansowego przed opodatkowaniem w 2015 i 2019 roku, a także w przychodach operacyjnych w latach 2015 i 2019. Dopasowanie rozkładów empirycznych i teoretycznych jest mierzone za pomocą MAD i testem Kołmogorowa-Smirnowa.
Wyniki: Badanie potwierdziło, że w teście pierwszej cyfry Benforda nie zauważono istotnych zmian w kształtowaniu się informacji finansowych, mimo że pojawiły się drobne anomalie w rozkładzie cyfr przed i po przyjęciu MSSF 16.
Ograniczenia badawcze: Podstawowym ograniczeniem badania jest wielkości próby, a więc firmy z branży leasingowej. W kolejnych badaniach planujemy rozszerzenie badania o spółki korzystające z leasingu.
Oryginalność/wartość: W badaniu przyjęto prawo Benforda do ujawniania występowania anomalii w rozkładach cyfr danych finansowych spółek przed i po wdrożeniu MSSF 16. (abstrakt oryginalny)
Rocznik
Tom
46
Numer
Strony
51--68
Opis fizyczny
Twórcy
autor
  • Wrocław University of Economics and Business, Poland
  • Singidunum University, Belgrade, Serbia
autor
  • VŠB - Technical University of Ostrava, Czech Republic
Bibliografia
  • Adahali L.M., Hall M. (2020), Application of the Benford's law to Social bots and Information Operations activities, 2020 International Conference on Cyber Situational Awareness, Data Analytics and Assessment, Cyber SA, 15-19 June, Dublin, Ireland.
  • Adhikari A., Bansal M., Kumar A. (2021), IFRS convergence and accounting quality: India a case study, "Journal of International Accounting, Auditing and Taxation", 45, article number 100430.
  • Aggarwal V., Dharni K. (2020), Deshelling the Shell Companies Using Benford's Law: An Emerging Market Study, "Vikalpa", 45 (3), pp. 160-169.
  • Ahmed A.S., Neel M., Wang D. (2013), Does mandatory adoption of IFRS improve accounting quality? Preliminary evidence, "Contemporary Accounting Research", 30 (4), pp. 1344-1372.
  • Armstrong C.S., Barth M.E., Jagolinzer A.D., Riedl E. J. (2010), Market reaction to the adoption of IFRS in Europe, "Accounting Review", 85 (1), pp. 31-61.
  • Badal-Valero E., Alvarez-Jareño J.A., Pavía J. M. (2018), Combining Benford's Law and machine learning to detect money laundering. An actual Spanish court case "Forensic Science International", 282, pp. 24-34.
  • Bazargan M., Hartman J. (2012), Aircraft replacement strategy: Model and analysis, "Journal of Air Transport Management", 25, pp. 26-29.
  • Bohusova H., Svoboda P., Veverkova A. (2022), Impact of New Lease Reporting on Retailing and Wholesale Companies, "Montenegrin Journal of Economics", 18 (3), pp. 89-98.
  • Bradshaw M.T., Miller G.S. (2008), Will Harmonizing Accounting Standards Really Harmonize Accounting? Evidence from Non-U.S. Firms Adopting U.S. GAAP, "Journal of Accounting, Auditing & Finance", 23 (2), pp. 233-264.
  • Bülbül D., Noth F., Tyrell M. (2014), Why Do Banks Provide Leasing? "Journal of Financial Services Research", 46 (2), pp. 137-175.
  • Callao S., Jarne J. I., Laínez J. A. (2007), Adoption of IFRS in Spain: Effect on the comparability and relevance of financial reporting, "Journal of International Accounting, Auditing and Taxation", 16 (2), pp. 148-178.
  • Carmona S., Trombetta M. (2008), On the global acceptance of IAS/IFRS accounting standards: The logic and implications of the principles-based system, "Journal of Accounting and Public Policy", 27 (6), pp. 455-461.
  • Chen W.-T., Huang K., Ardiansyah M.N. (2018), A mathematical programming model for aircraft leasing decisions, "Journal of Air Transport Management", 69, pp. 15-25.
  • Dang L., He D., Sun Y. (2017), Does mandatory IFRS convergence constrain rounding manipulations in accounting? Evidence from Chinese firms, "International Journal of Managerial and Financial Accounting", 9 (1), pp. 1-18.
  • Daske H., Hail L., Leuz C., Verdi R. (2008), Mandatory IFRS reporting around the world: Early evidence on the economic consequences, "Journal of Accounting Research", 46 (5), pp. 1085-1142.
  • Davydov D., Swidler S. (2016), Reading Russian tea leaves: Assessing the quality of bank financial statements with the Benford distribution, "Review of Pacific Basin Financial Markets and Policies", 19 (4), pp. 1-20.
  • Delvaille P., Ebbers G., Saccon C. (2005), International Financial Reporting Convergence: Evidence from Three Continental European Countries, "Accounting in Europe", 2 (1), pp. 137-164.
  • Djatej A., Gao G., Sarikas R. H. S., Senteney D. L. (2009), An investigation of the comparative impact of degree of implementation of IFRS upon the public and private information quality of East and West European firms, "Advances in Accounting", 25 (2), pp. 208-215.
  • Epstein B.J., Mirza A.A. (2004), Interpretation and application of International Accounting and Financial Reporting Standards, Wiley, Hoboken, NJ.
  • Górowski I., Kurek B., Szarucki M. (2022), The Impact of a New Accounting Standard on Assets, Liabilities and Leverage of Companies: Evidence from Energy Industry, "Energies", 15 (4), article number 1293.
  • Gruber T., Hartmann T. (2021), Lessee responses to the new lease accounting standard IFRS 16, "Betriebswirtschaftliche Forschung Und Praxis", April (2), pp. 113-133.
  • Guan L., Daoping, Yang D. (2006), Auditing, integral approach to quarterly reporting, and cosmetic earnings management, "Managerial Auditing Journal", 21 (6), pp. 569-581.
  • Guerreiro M.S., Rodrigues L.L., Craig R. (2008), The preparedness of companies to adopt International Financial Reporting Standards: Portuguese evidence, "Accounting Forum", 32(1), pp. 75-88.
  • Haverals J. (2007), IAS/IFRS in Belgium: Quantitative analysis of the impact on the tax burden of companies, "Journal of International Accounting, Auditing and Taxation", 16 (1), pp. 69-89.
  • He D., Guan L. (2014), Rounding phenomenon in reported earnings and revenues: Evidence from Japan, "International Journal of Accounting and Information Management", 22 (1), pp. 68-79.
  • Herteliu C., Jianu I., Dragan I.M., Apostu S., Luchian I. (2021), Testing Benford's Laws (non)conformity within disclosed companies' financial statements among hospitality industry in Romania, "Physica A: Statistical Mechanics and Its Applications", 582, article number 015803.
  • Heywood C. (2020), Australian corporate real estate lease reporting ahead of IFRS 16, "Pacific Rim Property Research Journal", 26 (2), pp. 131-148.
  • Hill T. P. (1995), A statistical derivation of the significant-digit law, "Statistical Science", 10 (4), pp. 354-363.
  • Hull B., Long A., Hughes I.G. (2022), Using residual heat maps to visualise Benford's multi-digit law, "European Journal of Physics", 43 (1), article number 015803.
  • Isaković-Kaplan Š., Demirović L., Proho M. (2021), Benford's law in forensic analysis of income statements of economic entities in Bosnia and Herzegovina, "Croatian Economic Survey", 23 (1), pp. 31-61.
  • Jermakowicz E.K. (2004), Effects of Adoption of International Financial Reporting Standards in Belgium: The Evidence from BEL-20 Companies, "Accounting in Europe", 1 (1), pp. 51-70.
  • Jianu I., Jianu I. (2021), Reliability of financial information from the perspective of Benfordʼs law, "Entropy", 23 (5), article number 557.
  • Jordan C. E., Clark S. J., Hames C. (2009), Manipulating sales revenue to achieve cognitive reference points: An examination of large U.S. public companies, "Journal of Applied Business Research", 25 (2), pp. 95-103.
  • Kumar S.B., Goyal V., Mitra S.K. (2021), The relationship between earnings round up/down and global financial crisis: Evidence from BRICS markets, "Asia-Pacific Journal of Accounting and Economics", 28 (6), pp. 746-769.
  • Lacina M., Lee B.B., Kim D.W. (2018), Management of Revenue and Earnings in Korean Firms Influenced by Cognitive Reference Points, "Review of Pacific Basin Financial Markets and Policies", 21 (2), article number 1850012.
  • Lee W.J. (2019), Toward sustainable accounting information: Evidence from IFRS adoption in Korea, "Sustainability", 11 (4), article number 1154.
  • Leventis S., Dimitropoulos P. E., Anandarajan A. (2011), Loan Loss Provisions, Earnings Management and Capital Management under IFRS: The Case of EU Commercial Banks, "Journal of Financial Services Research", 40 (1), pp. 103-122.
  • Lin F., Guan L., Fang W. (2011), Heaping in reported earnings: Evidence from monthly financial reports of Taiwanese firms, "Emerging Markets Finance and Trade", 47 (2), pp. 62-73.
  • Martinez-Sanchez F. (2021), Tracking the Price of Almonds in Spain, "Journal of Competition Law and Economics", 17 (3), pp. 750-763.
  • Melita M. D., Miraglia J. E. (2021), On the applicability of Benford law to exoplanetary and asteroid data, "New Astronomy", 89, article number 101654.
  • Meshram V.V., Arora J. (2021), Accounting constructs and economic consequences of IFRS adoption in India, "Journal of International Accounting, Auditing and Taxation", 45 (C).
  • Morillas-Jurado F.G., Caballer-Tarazona M., Caballer-Tarazona V. (2022), Applying Benford's law to monitor death registration data: A management tool for the COVID-19 pandemic, "Mathematics", 10 (1), pp. 472-484.
  • Nigrini M. J. (2012), Benford's law: Applications for forensic accounting, auditing, and fraud detection, Wiley, Hoboken, NJ.
  • Nobes C., Parker R.H. (eds.) (2004), Comparative international accounting, FT/Prentice Hall, Hoboken, NJ.
  • Öztürk C. (2022), Some observations on IFRS 15 and IFRS 16 in the airline industry: The case of Air France-KLM, "Studies in Managerial and Financial Accounting", 35, pp. 51-80.
  • Puček M., Plaček M., Ochrana F. (2016), Do the data on municipal expenditures in the Czech Republic imply incorrectness in their management? "Ekonomic a Management", 19 (4), pp. 89-103, DOI: 10.15240/tul/001/2016-4-007.
  • Rauch B., Göttsche M., Brähler G., Engel S. (2011), Fact and Fiction in EU-Governmental Economic Data, "German Economic Review", 12 (3), pp. 243-255.
  • Rey A., Maglio R., Rapone V. (2020), Lobbying during IASB and FASB convergence due processes: Evidence from the IFRS 16 project on leases, "Journal of International Accounting, Auditing and Taxation", 41 (C).
  • Schleicher T., Tahoun A., Walker M. (2010), IFRS adoption in Europe and investment-cash flow sensitivity: Outsider versus insider economies, "The International Journal of Accounting", 45 (2), pp. 143-168.
  • Soderstrom N. S., Sun K. J. (2007), IFRS adoption and accounting quality: A review, "European Accounting Review", 16 (4), pp. 675-702.
  • Van Caneghem T. (2016), NPO Financial Statement Quality: An Empirical Analysis Based on Benfordʼs Law, "Voluntas", 27 (6), pp. 2685-2708.
  • Wang J.-L., Hsiung H.-H., Jhu Y.-W. (2020), The Study on Accounting Information Value Relevance in the Practice of IFRS 16 - An Empirical Study of Taiwan, Association for Computing Machinery, New York, pp. 146-152.
  • Yang Z., Dong X. (2015), Earnings roundup in private and public bank holding companies, "Advances in Accounting", 31 (1), pp. 96-99.
  • Zeghal D., Mhedhbi K. (2006). An analysis of the factors affecting the adoption of international accounting standards by developing countries, "The International Journal of Accounting", 41 (4), pp. 373-386.
Typ dokumentu
Bibliografia
Identyfikatory
Identyfikator YADDA
bwmeta1.element.ekon-element-000171658660

Zgłoszenie zostało wysłane

Zgłoszenie zostało wysłane

Musisz być zalogowany aby pisać komentarze.
JavaScript jest wyłączony w Twojej przeglądarce internetowej. Włącz go, a następnie odśwież stronę, aby móc w pełni z niej korzystać.