Ensuring the "true and fair view principle" of banks’ financial statements after the introduction of the application of IFRS : the case of Greece

In a highly volatile economic environment, like the one we are facing nowadays, there is a need, increasing day by day, for adequate and reliable information from companies of all economic sectors, in a way that everyone would be able to extract the maximum true and fair conclusions. However, emphasis is given to the banking sector, and that’s because banks are considered as the cornerstone of the financial support system especially in periods that economies collapsing. The present survey examines IFRS requirements, on how significant disclosures should appear adequately in financial reporting. The survey based on the analysis of financial figures combined with: the application of the Standards and requirements of the basic accounting principle of "true and fair view". Specifically: • Transactions effects and events, that are treated based on specific IFRS , are isolated and approximated using an analysis that starts from the overall picture and conclude in analysis of specific transactions. • Findings and effects of transactions that led to banks financial figures, are collected and evaluated based on specific order (major influence on Bank’s net position). • In order to try to assess the financial information’s level provided, compared with the disclosure requirements of IFRS for certain transactions and events, the financial statements of Athens Stock Exchange publicly listed Banks for the year 2009 are studied. The survey mainly focusing on events that have significant impact on the assets shown in the Financial Statements of Banks (Balance Sheet, P&L, changes in equity, cash flow) and data taken by key financial indicators as conditions. Survey’s main conclusion is that the level of information provided in the published financial statements is constantly improving and tends to reflect adequately Bank’s "true and fair view" without yet having reached the desired level. Also the survey showed that the incomplete quote mandatory disclosures set by IFRS tend to be bound by a limited number of banks. The weaknesses which have been properly identified classified and analyzed their impact on quality information, while emphasizing the decisive role of regulators in the development of quality of information that will contribute decisively to the emergence of financial position and operations results, as dictated the basic accounting principle and the needs of today's world economy.peer-reviewe

Shadow economy worsens income distribution

Shadow economy has many repercussions affecting most sectors of the economy. Our research question is how shadow economy affects income distribution. The contribution of the present paper is that if is found that shadow economy worsens income distribution. Our sample includes the following countries Austria, Belgium, Cyprus, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal, Spain, Sweden and UK. It becomes evident that, international accounting standards and international standards of auditing should be adopted by EU members to eliminate shadow economy, and thus promote not only economic growth but also political stability. The structure of this paper has as follows. Literature review will be presented in sector 1. In sector 2 the econometric model will be analyzed and finally conclusions will be discussed in sector 3.peer-reviewe

Earnings management in Greece : a case study in construction sector using Jones model

Shadow economy is harmful to the whole official economy. It distorts competition and stock prices, it worsens income distribution and is an obstacle for entrepreneurship and economic growth. There are many reasons causing shadow economy. One of them is earnings management. A lot of research has been made on earnings management. In this paper Jones (1991) model will be used to examine the phenomenon of earnings management in the Greek construction industry. The findings are: first in the Greek construction sector discretionary accruals in practice affect negligibly the percentage of shadow economy in GDP, second in the Greek construction sector discretionary accruals (showing lower profits) increase in periods of higher capital tax rate, third in the Greek construction sector usually large companies resort to earnings management more than the small ones. Hence, Jones (1991) model shows the way for further investigation on tax avoidance. It should be noted however that shadow economy is a very complicated topic and is not only a matter of just earnings management. The contribution of this paper is that it uses Jones (1991) model to spot tax evading companies and triggers further research. Besides, the findings of this paper indicate the need for the global adoption of the international accounting and auditing standards. Cultural differentials across countries, which hinder this adoption, must be overcome.peer-reviewe

Risk based internal auditing within Greek banks: a case study approach

Audit cycle approach, Audit planning, Bank of Greece, Basel requirements, Compliance, COSO, Enterprise risk management (ERM), Greek banks, Internal auditing, Internal controls, Risk assessment, Risk based internal audit (RBIA), Standards for the professional practice of internal auditing (standards),