Conceptual transformation of “de facto” control in preparing consolidated financial statements: the experience of Russian companies

DOI

10.2991/ies-18.2019.28How to use a DOI?

Keywords

consolidated financial statements, judgement in determining de facto control, IFRS, creative accounting

Abstract

The paper serves as a continuation of a previously conducted research in the area of consolidated financial statements. The research focuses on two aspects: the concept of “control” and accountant’s judgement. The authors’ analysis focuses on the impact of the transition from the previous standard texts to an amended (improved) wording of the standard in the absence of changes to the original (formulated as the basis) concept by the example of transition from IAS 27 to IFRS 10. The research was carried out and based on a dynamic quantitative and qualitative analysis of 250 consolidated financial statements in accordance with IFRS for 2015 and 2012. The paper presents the results of the confirmation of hypothesis regarding the substantial influence of the judgement on determining the scope of consolidation within the concept of "de facto" control: 41.54% of Russian companies declared their application of the judgment in determining the scope of consolidation in consolidated financial statements for 2015 (37.50% in consolidated financial statements for 2012, respectively). The paper also reveals factors which have had the greatest impact on accountant’s decision-making regarding to the forming the scope of consolidation (the scale and an industry of the company).

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Natalia Generalova
AU  - Ekaterina Gorlovaya
PY  - 2019/11
DA  - 2019/11
TI  - Conceptual transformation of “de facto” control in preparing consolidated financial statements: the experience of Russian companies
BT  - Proceedings of the Third International Economic Symposium (IES 2018)
PB  - Atlantis Press
SP  - 264
EP  - 272
SN  - 2352-5428
UR  - https://doi.org/10.2991/ies-18.2019.28
DO  - 10.2991/ies-18.2019.28
ID  - Generalova2019/11
ER  -