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Analysis of the Benefits of SAP S/4 HANA Cloud IT/Is Investment in the Case of PT XYZ
13-24Views:368PT XYZ is one of the largest telecommunication companies in Indonesia. In 2020, PT XYZ implemented a digital transformation to increase its excellence by investing in industry telecommunication and information systems (IT/IS) enterprise resource planning software called SAP (System Application and Processing) S/4 HANA Cloud. The study aims to analyze the benefits of these IT investments made in PT XYZ. The results are carried out using the Comparative Analysis of Financial Statements followed by Business Value and Financial Feasibility Analysis and the Cost Benefit Analysis (CBA) method between 2018 and 2021. It can be revealed that the SAP S/4 Hana Cloud investment benefits the company's operations, which are identified in the form of 5 sub-categories that fall into required categories based on Ranti's Generic IT/IS Business Value.
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The Propensity for Mandatory Audit Rotation and its Impact on Earnings Management in Europe
222-233Views:274The doubt of investors for the accuracy of financial reporting statements and the credibility of external audit functions has becoming more and more severe in the recent years due to a variety of booming accounting scandals related to earnings management occurring around the world. To cope with these serious frauds in the world of financial market, many countries have adopted Mandatory Audit Rotation (MAR) rules. Although the MAR rule has been valid around European Union (EU) members since 2016, the effectiveness of this rule has not been examined in any academic papers yet. As a result, the aim of this study is to investigate the effectiveness and the necessity of the latest MAR rule in the EU by testing the influence of audit rotation activities and audit tenure on earnings management of companies in the STOXX Europe 600 Index. Practical implications of this study will not also prove whether companies in STOXX Europe 600 Index should be required to shorten their audit tenure by rotating their audit engagement more often in order to decline the degree of earnings management, but they will also help to strengthen support for the essentiality of MAR legislations in the EU if the result indicates that longer audit tenure actually leads to more earnings management of STOXX Europe 600 Index companies.
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Comparison of the information content of the notes on the accounts between information technology services and sports activities
689-700Views:189Annual accounting statements are an important source of information within business relations amongst companies. However, it should be noted that due to their aggregate nature, the necessary information and through that the necessary knowledge can only be obtained from the two fundamental parts of the annual statements (balance sheet and profit and loss account) if the notes on the account contains the information that contributes to the more comprehensive interpretation of the other part of the annual statement. Beyond that, the notes to the financial statement have to help the presentation of a reliable and realistic overall image. In the notes to the financial statement, depth and detail of the disclosed information are not specifically stated, therefore their professional evaluation is left to the given enterprise. My basic purpose is to illustrate a comparison of the information content of the notes on the accounts between information technology services and sports activities. By means of text mining, we analyse the extent to which the notes on the accounts are in conformity with the Accounting Act.
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Changes in the Disclosure Obligations of the Notes to the Balance Sheet and Income Statement between 2000 and 2018
270-279Views:296The aim of the study is to present by different types of companies the information content of the supplementary annex. We can say about the economic organizations, that they must to constitute real image in financial statements about the situation of –assets, -finance and income. To appreciate the businesses is necessary the information system, which is integrated company to company. The data of financial statement prepared by accounting act are historical, concern the past. The conduct of numerous economic operators is influenced by the globalization accelerated nowadays. In this connection, it can be certainly said that the globalization affects the accounting regulation as well. In our country, the business entities falling within the scope of the aforementioned regulation are subject to Act C of 2000 on Accounting, according to which the prepared reports shall provide the external and internal stakeholders with information ensuring a true and fair overall picture of the business entities’ property, financial and profitability situation as well as future plans. In my treatise, I will highlight a part of the report i.e. the Notes providing text information in addition to the numerical data. Within this, I will present those mandatory disclosure obligations related to the balance sheet and income statement which are indispensable tools of informing the external and internal operators adequately.
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Comparative Analysis of the Notes on the Accounts Of Information-Technology Servicing Companies in Hungary
186-194Views:242In the globalized and accelerated world of our time, challenges can only be met by companies that possess the necessary information and are able to convert it rapidly into organizational knowledge. Annual accounting statements are an important source of information within business relations among companies. The necessary information can only be obtained from the two fundamental parts of the annual statements (balance sheet and profit and loss account) if the notes on the account contains the information that contribute to the more comprehensive interpretation of the other parts of the annual statement. Decision-making based on inadequate knowledge further increases economic risks that are already high. In our research, we examine whether the notes on the accounts of companies include the information, which could help obtain necessary financial knowledge concerning the partner companies. For the analyses, we used the notes on the accounts of companies, which have information-technology services (Hungarian NACE No. 62) as their main line of business. By means of text mining, we analyse the extent to which the notes on the accounts are in conformity with the Accounting Act.
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Examination of the Solvency of a Company in an International Accounting Environment
332-342Views:376It is highly important for every business to be solvent for both short and long term. Solvency is a prerequisite for the operation of a company, especially short term solvency, also known as liquidity. Liquidity plays a prominent role in the life of a given business. For this it is important for a business to strive to avoid liquidity problems. In the present article we examine the short term solvency of an American corporation, which prepares its financial statements according to the US GAAP (The United States Generally Accepted Accounting Principles). We present the fundamental short term solvency ratios, and the subsequent conclusions. Since for the calculation of the ratios the data of the examined company’s financial statement is needed, which shows differences from the yearly report of a Hungarian company, in the article we will also discuss the differences between the two accounting systems with regard to those items, which have an effect on the liquidity ratios, in particular current assets and short-term liabilities.
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Investments and Their Financing Risks and Risk Management Trends in the Last 10 Years
184-203Views:220The purpose of our literature review was to understand the state of research related to management of risk of corporation’s investments and their finance within the past 10 years. Nowadays the risk management and problem solving are characterized by holistic approach and complexity - and these tendencies we can see clearly. We need to examine the likvidity, financing and investment questions together, because of the interactions between them. They can influenced the corporate value together. The role of risk management in the investments is the cash-flow smoothing (we mean: cash-flow generated by investment). The field of corporate finance is noticeably inseparable from other areas of business science (at least in the empirical analyses), and even technical issues, like risk management, have long been considered suitable appropriate in an integrated form. The financial and operational hedging has become indispensable elements of the managerial toolbar. The consequence of crisis (from 2007) promotes the birth of many studies that justify it. The researchers are paying close attention the transaction costs, such as costs of contracts or agent costs, and the losses due to information assimetry. The statements of behavioral finance connection with managerial decisions mean important additives in this field.
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Examination of the Informative Part of the Notes to the Financial Statement Amongst Hungarian Companies Engaged in Sports Activities
108-116Views:203Currently, the role of sports has intensified and changed; by now, it has become a separate area of interest from an originally civil, exercise-based, private leisure activity. In the case of sports-related economic research, both macro- and microeconomic research can be mentioned. Its economic significance, its contribution to employment, national economic income, and consumer spending is involved in macro-level research, while the examination of the functioning of sports services and organizations, and the characteristics of demand and supply are micro-level research activities. One of the reasons for the development of sports activities was the increase in their economic significance, which created a need for their economic analysis. The necessary information can only be obtained from the two fundamental parts of the annual statements (balance sheet and profit and loss account) if the notes on the account contains the information that contribute to the more comprehensive interpretation of the other parts of the annual statement. In our research, we examine whether the notes on the accounts of companies include the information, which could help obtain necessary financial knowledge concerning the partner companies. For the analyses, we used the notes on the accounts of companies, which have sports activity (Hungarian NACE No. 931) as their main line of business. By means of text mining, we analyse the extent to which the notes on the accounts are in conformity with the Accounting Act.
