Apr'19

Welcome to The IUP Journal of Accounting Research and Audit Practices

Focus

Worldwide, regulators emphasize the need for improving corporate reporting disclosures. It is important that corporate communication should be transparent, simple and easy to understand. From balance sheet and income statement, corporate reporting extends to a wide range of narrative disclosures relating to the unconventional assets, value drivers and issues of competitive advantages of the new economy business, catering to the needs of various stakeholders. Thus, narrative disclosure of annual reports gains huge importance among the users. However, due to the absence of any specific format or any agreed conceptual framework or any common policy as to what to include and what not, the reports are becoming longer and richer in content and context with multidimensional growth, making the narrative parts of the reports uncomparable for the general users. Considering these facts, the authors of the first paper, “Narrative Disclosures in Corporate Annual Report: A Critical Review of Literature”, Lokanath Mishra and P K Haldar, have undertaken a review of the available studies on various dimensions of narrative accounting practices in India and abroad to identify the valuable research gap and help augment future studies in this area.

Human Resource (HR) accounting strives to quantify the intangible qualities that individuals bring to a business. As businesses become increasingly dependent on the knowledge and capabilities of employees in the information age, measuring the value of HR can assist organizations in accurately documenting their assets as well as communicating this information to the interested parties. As disclosing the worth of such HR in the corporate reports is voluntary in India, it creates inconsistency in the information provided in the reports across companies and industries. The authors of the second paper, “Human Resource Disclosure Practices in Public Sector Companies in India”, Anju Verma and Kirti, have studied the effect of company characteristics on HR disclosures in the annual report with special reference to public sector companies in India. They have constructed an 86-item HR disclosure index for 500 companies listed on the NSE. Using correlation and multivariate analyses, the authors have found that out of all the parameters tested, the total number of pages of the annual report, the company size and profitability are associated with the HR disclosure practices.

The socioeconomic function performed by Small and Medium-Scale Enterprises (SMEs) is widely known in the developing and emerging countries. But in recent times, these nations have become more concerned about the financial literacy of the entrepreneurs due to the intensified challenges faced by the SMEs in the financial context. The author of the third paper, “The Influence of Financial Literacy on the Performance of Small and Medium-Scale Enterprises”, Asha Sharma, has examined the impact of financial literacy of entrepreneurs on the performance of SMEs. Using a structured questionnaire to obtain data on the level of financial literacy of entrepreneurs, the author concludes that the entrepreneurs of SMEs have a low level of adoption of financial literacy and the utilization of accounting records has no significant influence on the performance and success rate of SMEs.

The authors of the fourth paper, “Determinants of Audit Fee in the Manufacturing Sector in Nigeria”, Sagin O Super and Nikhil Chandra Shil, have examined the need for regulation in audit fee in the Nigerian environment. Using the data of 10 companies listed on Nigeria Stock Exchange, the authors find the determinants of audit fees in the manufacturing sector, and highlight the urgent need for regulating the audit fee in Nigeria.

The authors of the last paper, “Consumer Awareness and Perception towards Goods and Service Tax implementation in India: A Study in National Capital Region”, Taru Maheshwari and Mukta Mani, have examined the level of consumer awareness and the perception they have towards GST implementation in India. The authors have obtained data through a questionnaire and implemented nonparametric tests for data analysis. The authors find that the demographic factors are not significantly correlated with the level of awareness. However, they find that the consumers have a high level of basic awareness and have accepted the implementation of GST in India.

- P Bhanu Sireesha
Consulting Editor

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Article   Price (₹) Buy
Narrative Disclosures in Corporate Annual Report: A Critical Review of Literature
50
Human Resource Disclosure Practices in Public Sector Companies in India
50
The Influence of Financial Literacy on the Performance of Small and Medium-Scale Enterprises
50
Determinants of Audit Fee in the Manufacturing Sector in Nigeria
50
Consumer Awareness and Perception Towards Goods and Service Tax Implementation in India: A Study in National Capital Region
50
       
Contents : (Apr'19)

Narrative Disclosures in Corporate Annual Report: A Critical Review of Literature
Lokanath Mishra and P K Haldar

Narrative disclosure in corporate annual report is perhaps more useful to the users who lack the tools, expertise and resources needed to garner and interpret exceedingly complex quantitative corporate information. Corporate reporting is no longer limited to only balance sheet and income statement, but also includes a wide range of narrative disclosures relating to the unconventional assets, value drivers and issues of competitive advantages of the new economy business for catering to the needs of various stakeholders. As a result, corporate reports have now become longer and richer in content and context. However, in the absence of any specific format or any agreed conceptual framework or any common policy of what to include and what not, the growth is becoming multidimensional and even seems unbounded, making the narrative parts uncomparable with each other even for technical experts. The present study hence aims to review all the available studies conducted on the various dimensions of narrative accounting practices in India and abroad and find the valuable research gap, which may help to augment future studies in this area.


© 2018 IUP. All Rights Reserved.

Article Price : Rs.50

Human Resource Disclosure Practices in Public Sector Companies in India
Anju Verma and Kirti

The Human Resource (HR) disclosure in annual report is voluntary in nature in India. Therefore, it creates inconsistency in the HR disclosure practices across companies as well as industries. The purpose of the present paper is to look at the nature and level of HR disclosure and study the effect of company characteristics on HR disclosure in annual reports of public sector companies in India. This research is motivated by the dearth of studies on HR disclosure among companies in developing countries. Initially, an 86-item Human Resource Disclosure Index (HRDI) has been constructed for a set of 500 companies listed on National Stock Exchange. From that point onward, the effect of various explanatory variables on HRDI is analyzed. Finally, HRDI has been regressed against the independent variables to find the important elements of HRDI. The outcomes of the descriptive statistics, correlation analysis and multivariate analysis reveal that the total number of pages of annual report is positively associated with HR disclosure. Company size and profitability are partly associated, while other variables like leverage, ownership concentration, liquidity and globalization have no association with HR disclosure.


© 2018 IUP. All Rights Reserved.

Article Price : Rs.50

The Influence of Financial Literacy on the Performance of Small and Medium-Scale Enterprises
Asha Sharma

The Small and Medium-Scale Enterprises (SMEs) sector has been recognized worldwide for its role in economic advancement through various ways like wealth generation, employment creation and poverty reduction. Accounting techniques serve as a critical tool for recording, analyzing, monitoring and evaluating the financial condition of organizations, preparation of documents necessary for tax purposes, and providing information support to many other organizational functions. In the context of SMEs, accounting techniques are important as it can help the firms manage their short-term problems in critical areas like costing, cash flow and budgeting by providing information to support monitoring and control. The present paper examines the impact of financial literacy of entrepreneurs on the performance of SMEs. An inquiry into their level of adoption of financial literacy is also studied. A review of related literature is carried out to examine the extent of work done in this field. A structured questionnaire is used to collect data on the level of adoption of financial literacy. The results show that the level of adoption of financial literacy by entrepreneurs of SMEs is low and that the utilization of accounting records does not influence their performance and success rate.


© 2018 IUP. All Rights Reserved.

Article Price : Rs.50

Determinants of Audit Fee in the Manufacturing Sector in Nigeria
Sagin O Super and Nikhil Chandra Shil

This study attempts to examine the determinants of audit fee in the manufacturing sector in Nigeria using data of 10 companies listed on the Nigeria Stock Exchange (as on December 31, 2017) for six years from 2012 to 2017. Using the Ordinary Least Square (OLS) regression technique, the study reveals that there exists a negative significant relationship between audited-firm size, audited-firm net income and audit fee, and a positive significant relationship between audited-firm profitability and audit fee. The findings also reveal that there is no significant relationship between audit firm size, audited-firm tangibility, audited-firm turnover and audit fee in Nigeria. The study thus highlights the urgent need for regulation of audit fee in the Nigerian environment. The market framework for determining the audit fee may not readily suffice for fostering auditors’ independence.


© 2018 IUP. All Rights Reserved.

Article Price : Rs.50

Consumer Awareness and Perception Towards Goods and Service Tax Implementation in India: A Study in National Capital Region
Taru Maheshwari and Mukta Mani

The much-hyped tax structure, Goods and Service Tax (GST) was recently introduced. The Government of India took the decision to implement GST on July 1, 2017. This affects every citizen and raises various concerns amongst consumers towards GST implementation. The present paper aims to examine the level of consumer awareness and the perception they have towards GST implementation in India. Additionally, the study attempts to suggest some measures to the government for effective GST implementation. Questionnaire method has been used for primary data collection. The consumers of National Capital Region (NCR) region are the sample audience. The level of awareness for GST implementation has been examined based on Mann-Whitney U test, Kruskal-Wallis test, descriptive analysis and Spearman’s correlation. The perception towards its acceptance is examined based on descriptive analysis. The findings reveal that demographic factors are not significantly correlated to the level of awareness. Consumers have a high level of basic awareness. Promotional activities are not insufficient, but awareness programs should be increased which is moderately accepted. Overall, the implementation of GST is highly accepted by the consumers.


© 2018 IUP. All Rights Reserved.

Article Price : Rs.50

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