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Electricity is currently one of the most popular sources of energy. Considering such widespread use of electric energy, we may ask, what is the economic cost of producing and supplying it? The climate crisis and the social pressure associated with it have triggered the necessity to make further investments in renewable and low-emission energy sources, while the COVID-19 pandemic has abruptly limited electricity consumption in industry. All these factors can have an impact on disruptions or loss in the liquidity of companies responsible for supplying electricity to end users. Guaranteeing cash flow for energy sector entities is a prerequisite for energy supply continuity. In this context, the selection and application of reliable sources of information are vital for the management of the financial liquidity of energy sector entities. The aim of this article is to prove the value of the financial information of individual (IFR) and consolidated financial statements (CFR) essential for the indicative liquidity assessment of Polish energy groups in 2018–2021. The hypothesis of this study is that individual and consolidated statements do not offer coincident analytical data due to the diversified role of their parent undertakings. We have applied indicative liquidity assessment analysis from a static and dynamic perspective to 2018–2021, on the basis of individual and consolidated financial statements. The results clearly show high dysfunction in the application of indicative liquidity assessment in the case of the individual financial statement of the parent company. This is mainly due to the role parent companies play in Polish energy sector groups, as they are mainly responsible for support processes.

We investigate which factors determine the use of a special purpose company (SPC) by a sponsoring company and whether those determinants differ before and after IFRS (International Financial Reporting Standards) adoption. Using financial data from Korean listed companies, our results indicate that use of an SPC is associated with financial reporting incentives (e.g., lowering leverage) and economic benefits (e.g., fundraising). However, the effect of leverage on the use of SPCs is not significant after the adoption of the IFRS. These results suggest that, although companies are generally motivated to use SPCs for both financial reporting and economic purposes, only economic motivation influences the use of SPCs after IFRS adoption. This implies that the regulation for reporting an SPC’s consolidated financial statement under IFRS plays a role in decreasing the use of SPCs for financial reporting discretion. We extend the prior literature on SPCs by documenting the effects of IFRS adoption on the determinants of the use of SPCs.

A professional perspective to implementing IFRS 10, 11, and 12 The new International Financial Reporting Standards (IFRS) 10, 11, and 12 are changing group accounting for many businesses. As business becomes increasingly global, more and more firms will need to transition using the codes and techniques described in Principles of Group Accounting under IFRS. This book is a practical guide and reference to the standards related to consolidated financial statements, joint arrangements, and disclosure of interests. Fully illustrated with a step-by-step case study, Principles of Group Accounting under IFRS is equally valuable as an introductory text and as a reference for addressing specific issues that may arise in the process of consolidating group accounts. The new international standards will bring about significant changes in group reporting, and it is essential for accountants, auditors, and business leaders to understand their implications. Author Andreas Krimpmann is an internationally recognized authority on the transition from GAAP to IFRS, and this new text comes packaged with GAAP/IFRS comparison resources that will help make the changes clear. Other bonus resources include an Excel-based consolidation tool, checklists, and a companion website with the latest information. Learn about: * Definitions, requirements, processes, and transition techniques for IFRS 10, 11, and 12 covering group level accounting * Practical implementation strategies demonstrated through a clear case study of a midsize group * Key concepts related to consolidated financial statements, joint ventures, management consolidation, and disclosure of interests * Comparisons between GAAP and IFRS to clarify the required changes for international firms Whatever stage of the consolidation process you are in, you will appreciate the professional perspective in Principles of Group Accounting under IFRS.

Using a large sample of business groups from more than 100 countries around the world, we show that group information matters for parent and subsidiary default prediction. Group firms may support each other when in financial distress. Potential group support represents an off-balance sheet asset for the receiving firm and an off-balance sheet liability for the firm offering support. We find that subsidiary information improves parent default prediction over and above group-level consolidated information possibly because intragroup exposures are netted out upon consolidation. Moreover, we document that improvements in parent default prediction decrease in the extent of parent-country financial reporting transparency, a finding that suggests that within-group information matters most when consolidated financial statements are expected to be of lower quality. We also show that parent and other group-firms’ default risk exhibits predictive power for subsidiary default. Lastly, we find that within-group information explains cross-sectional variation in CDS spreads. Taken together, our findings contribute to the prior literature on default prediction and have direct relevance to investors, credit-rating agencies, and accounting regulators. This paper was accepted by Suraj Srinivasan, accounting.

Green credit is one of the important activities that commercial banks show their responsibility to the environment. In Vietnam, the Government and the State Bank of Vietnam have implemented numerous regulations pertaining to green credit in order to encourage and support environmentally-friendly financial activity. Against a backdrop of diverse and often conflicting perspectives on the economic implications of sustainable development and EGS principles, empirical analysis of green finance policies is critically important. The article examines the effects of the Green Credit Policy on commercial banks’ operations in Vietnam using panel data from financial statements and annual reports of commercial banks from 2012 to 2022. Specifically, the study focuses on changes in profits, cost management, non-performing loan and capital adequacy ratio. The analysis is conducted using difference in differences (DID) model, with the sample divided into groups that implemented the policy and groups that did not. The study’s findings indicate the following impacts: (1) there is no empirical evidence supporting the notion that the green credit policy increases the profitability of commercial banks, (2) there is no empirical evidence suggesting that the green credit policy reduces the cost-to-income ratio, (3) the implementation of the green credit policy does have a negative impact on non-performing loan ratio of banks. The research findings serve as the foundation for the authors to propose several suggestions for commercial banks and the State Bank of Vietnam.

We have been observing large fluctuations and price increases in electricity markets in recent years. The COVID-19 pandemic, rising energy costs, political instability and increasing demand for electricity have been the factors intensifying the problems. This causes uncertainty related to maintaining energy security. Energy security is an element of the national security system. In this context, the question arises whether Polish energy companies are able to adapt to the growing demand for electricity while meeting the growing environmental requirements. Moreover, it remains to be seen how the current energy crisis will affect the financial condition of energy companies in Poland and whether companies from the energy sector will benefit from this crisis. Another issue is the impact of the current crisis on the sense of energy security of consumers. There are many factors affecting energy security. This study focuses on economic and financial factors. The article aims to assess the energy security of consumers from the perspective of the stability of energy prices and the financial condition of companies from the energy industry in Poland in the context of the global energy crisis.

Electricity is one of the most widely used energy sources. The climate crisis, public pressure to invest in renewable and low-carbon energy sources, and the reduction in industrial electricity consumption caused by the COVID-19 pandemic have a significant impact on the energy sector. In addition, military action in Europe is affecting energy generation capacity and availability, which raises the question of economic calculus, particularly regarding the cost of generation and supply. These factors affect the cost structure of those responsible for supplying energy and, in extreme cases, can lead to energy exclusion. The article aimed to identify differences in the presentation and interpretation of operating cost data from the individual and consolidated financial statements of Polish energy groups, which is of key importance for investors, analysts and decision-makers in the energy sector. The analysis uses data for 2018–2022 from the income statement. The research hypothesis is that the complexity of Polish energy groups in the Polish energy sector leads to ambiguity in the interpretation of cost data included in stand-alone and consolidated financial statements.

The primary goals of financial reporting for U.S. state and local governments are to provide useful information for assessing governments' fiscal performance over the short term (fiscal accountability) and the operational effectiveness of governmental activities from a longer-term perspective (operational accountability). To achieve these dual objectives, the Governmental Accounting Standards Board (GASB) requires governments to prepare two sets of financial statements: one using full-accrual-basis accounting and the other employing modified-accrual-basis accounting. Amid controversies regarding the complexity of information resulting from maintaining dual reporting models, the GASB argues that providing both sets of statements enhances the overall informativeness of governmental reports. This study discusses the conceptual basis of the GASB's perspective on the role of financial reporting in fulfilling accountability. Furthermore, it proposes hypotheses and research designs to test whether both reporting models provide relevant information for users to evaluate fiscal and operational accountability, as the GASB conjectures. This research offers valuable insights for accounting standard-setters, practitioners, and users by highlighting the differential and incremental relevance of GAAP-based governmental financial information derived from dual reporting models in evaluating governmental accountability.

PurposeA goal of integrated reporting (IR) under the International Integrated Reporting Council (IIRC)’s leadership is to provide clearly written, comprehensible and accessible information. In light of this objective, the purpose of this paper is to explore the readability and accessibility of integrated reports, an issue magnified by the IIRC’s continual commitment to clear and readable report language, and its intention for IR to become the corporate reporting norm.Design/methodology/approachIn a whole text software facilitated analysis, the study utilises readability measures and supplementary measures of reader accessibility in a multi-year analysis of a large sample of global integrated reports sourced from the IIRC examples database.FindingsThe findings highlight the low readability of analysed integrated reports and indicate that readability is not improving. The supplementary measures suggest sub-optimal use of visual communication forms and overuse of structural presentation techniques which may contribute to reader accessibility of the analysed reports.Research limitations/implicationsThe study extends readability analysis to an emerging corporate reporting phenomenon and its findings contribute to the growing IR literature. The study applies supplementary measures of reader accessibility which advance the methods available to assess the communication efficacy of integrated and other corporate reports.Practical implicationsThe analysis of the readability and accessibility of integrated reports in the study indicates that the IIRC’s goal of clear, comprehensible and accessible reporting is not reflected by reporters’ practices. This has implications for the IIRC, reporting organisations, report readers and regulators.Originality/valueThe study represents the first large-scale analysis of the readability and accessibility of global integrated reports.