Activity Based Costing Model for Cost Calculation In Gas Companies: Empirical Evidence of Iran

Abstract: With the reduction of public funding and the government's emphasis on accountability, output control and cost-effectiveness in the delivery of services, organizations need information to measure their activities, link their inputs with outputs, correct their pricing, and measure their performance in order to facilitate accomplishing their goals. This research is to explain the steps and the benefits of implementing Activity Based Costing (ABC) for the Iranian Gas Company. Using ABC the cost of one cub meter of consuming gas in all regions of capital was determined and compared with the results of the Traditional Costing System (TCS). Implementing ABC strongly changed company managers' prospective towards the company cost of services, provided a more effective system for company internal decision-making, improved the effectiveness of the costing system and cost management, and helped the managers to correct company pricing of services and the accomplishment of strategic goals by giving more correct cost information

Presenting the utility of consolidated financial reporting using structural equations

Improving the level of usefulness of financial reporting of companies plays an important role in the decision-making of users of financial reports. One of the ways to improve the usefulness of financial reporting is to pay attention to the factors affecting it. In current research, the researcher seeks to present the usefulness of consolidated financial reporting using structural equations. The current research is descriptive-correlational in the field of applied research. The tool used in this research is a researcher-made questionnaire with 48 items. A sample of 125 people was selected from the auditor community, members of the Iranian Certified Accountant Society. In line with the aim of the research, the influencing factors on the usefulness of consolidated financial reporting were identified and tested. Research hypotheses have been analyzed using PLS and SPSS software. The results show that the factors of companies' behavior, legal barriers, financial dimensions, industry and business, capital market rules, corporate governance, auditor's knowledge and training, special standards, accounting demand, synergy, economic conditions, environmental conditions, intrinsic and executive limitations have a positive and significant effect on the usefulness of consolidated financial reporting. IntroductionThe trend towards consolidated financial reporting has been subject to change with the globalization of the issue of improving the management of financial resources and accountability in the public sector. In this regard, studies have been conducted about the literature on the public sector. The quality of financial reporting is defined as the level of honesty of managers in providing fair and true information for decision-makers. Requiring managers to observe neutrality and objectivity in the items included in the financial statements leads to the improvement of the quality of financial reporting (Al‐Shaer, 2020). The quality of financial reporting improves the usefulness of financial information. Regulators and investors agree to have financial reporting with higher quality. Although the quality of financial reporting cannot be measured directly, prominent commentators consider it important as a major factor in the capital market; because the quality of financial reporting is a prerequisite for the proper functioning of the capital market and the economy, and has become an essential resource for market participants. Also, it reduces information asymmetry between managers, investors, regulatory agencies, society, and other stakeholders (Abbott et al, 2016).The accurate process of the usefulness of accounting information leads to the interpretation of stock returns, which is still a current issue and is a very necessary issue in accounting and finance so that this issue provides evidence about the usefulness of financial information related to each company that exists in the capital market. The greatest pioneers and authors of this field are those who have done a lot of work in this field and have provided a lot of evidence that supports the relevance of accounting profit value in explaining stock returns (Bentley et al, 2017).Consolidated financial reporting plays a major role in fulfilling the duty of accountability in a democratic society. Financial reporting should, on the one hand, help the government to fulfill its public accountability responsibility, and on the other hand, enable users to identify issues, obstacles, and challenges affecting the usefulness of consolidated financial reporting in different sectors. It seems that conducting research in Iran to discover and identify the external factors and mechanisms governing the usefulness of consolidated reporting by using the foundational context theory, in addition to opening a new perspective on financial reporting research, provides the necessary ground for promoting the usefulness of consolidated reporting. In general, a better understanding of the companies with consolidated reporting due to their volume discontinuity will help to better understand the market to increase efficiency and will lead to the creation of better financial markets, which is why this research is valuable. It seems that conducting research in Iran to provide an optimal model of the usefulness of consolidated financial reporting using the structural equations of the new perspective on financial reporting research provides the necessary ground for improving the quality of financial reporting. Therefore, in line with the goal of the research, the researcher seeks to identify the factors and dimensions influencing the usefulness of consolidated financial reporting. MethodsThis research is practical in terms of purpose and descriptive-surveying in terms of data collection. To collect information, a mixture of library and field methods has been used. Using library studies, subject literature, and research history were examined and components were extracted. This research was done in 1401. In this research, the structural equation model will be used to confirm or disconfirm the research hypotheses and the regression test will be used to investigate the effect of the intervention variable. Inferential statistics methods have been used to answer the research hypotheses and questions.The statistical population of the research is people working as certified accountants, members of the certified accountant's society of Iran. It should be noted that the participants in this research were 125 experts. The raw data obtained from the statistical population were analyzed using appropriate statistical techniques and SPSS and Smart PLS software, and after processing, they were presented in the form of information. In current research, structural equation modeling methods, namely the Partial Least Squares (PLS) method, were used to test the measurement model and research hypotheses. FindingsThe results show that the factors of companies' behavior, legal barriers, financial dimensions, industry and business, capital market rules, corporate governance, auditor's knowledge and training, special standards, accounting demand, synergy, economic conditions, environmental conditions, intrinsic and executive limitations have a positive and significant effect on the usefulness of consolidated financial reporting.    Conclusion The relationships obtained from research hypotheses show that this relationship is stronger in the case of consolidated accounts than in non-consolidated accounts. Consolidated financial statements provide a clear picture of the financial information of the combined companies as a single company. Also, financial dimensions. laws and capital market and corporate governance provide more useful information than other factors and have more information content. The findings show that in Iran's capital market, investors pay special attention to the economic and environmental conditions in their decisions in evaluating the usefulness of the main companies. And causal conditions including behavioral, knowledge and ethical, structural and managerial, legal, and financial dimensions can have positive effects on the usefulness of financial information. Also, the components used in this research have not been tested in any of the previous research; therefore, the findings of the present study were not consistent with any of the previous studies * Corresponding autho

The Comparison Between Market Value Added (MVA) and Economic Value Added (EVA) with the Accounting Standards in Tehran Stock Exchange (TSE)

Maximizing shareholder’s wealth is the goal of a business enterprise. Today economic value added (EVA) is known as the best performance evaluative measure which is a measure for shareholder’s wealth increase. This measure has the greatest influence on the external measure of performance market value added (MVA). This research investigates the relation between these two measures in Tehran’s stock exchange in medium size from 1996 to 2003. 70 companies are selected from 13 different industries as investigation samples. The results show that the most correlation is between the standardized MVA and standardized EVA. This research shows that %61 of changes in standardized MVA can be explained by changes in standardized EVA .But the explanatory power of the criteria of ROE, ROI and EPS growth is %45, %43 and %6 respectively. Hence EVA is the best measure for evaluating the internal performance and has the most correlation with the market values

Management Science Letters An investigation on the effects of conservatism on reducing risk of stock market investment: A case study of Tehran Stock Exchange

Accounting conservatism limits managerial incentive and ability to overstate performance and hide bad news from investors, which, in turn, reduces stock price crash risk. This study examines relationship between conservatism on financial reports and risk of stock price crash. 132-150.], reduces the likelihood of a firm experiencing stock price crashes. The finding holds after controlling other variables such as: negative skewness of firm-specific-weekly return, standard deviation of firm-specific-weekly return, the mean of firm-specific-weekly return, detrend share turnover, size, market to book value of equity ratio, total debt ratio and return on asset ratio, but we did not observe any relationship between these variables during stock price crash

The Impact of Enterprise Resource Planning (ERP) Systems on the Effectiveness of Internal Controls over Financial Reporting

Today there is a rapidly changing business world. Therefore most of the growing Enterprises are moving towards Enterprise Resource Planning (ERP) systems in order to integrate their business units. Implementing this systems have a great impact on the performance of that Enterprises.The objective of this paper is investigating the impact of Enterprise Resource Planning (ERP) Systems on the effectiveness of internal controls over financial reporting. The sample include 120 Firm-yaer observations during 2008 to 2012. The hyposis tested using probit regression model. The result suggest that ERP - implementing firms are less likely to report internal control weaknesses (ICW) than a matched control sample of non – implementing firm. Furthermore firms with M&A activity, losses, lower market value, lower ERP age are less likely to relate to lower level of internal control weaknesses

Survey adoption of fair value accounting standards and its impact on accounting profit

Despite the general acceptance of fair value accounting standards setting, the specific characteristics of this method results in the formation of an interesting debate among academics, businessmen, legislators and invested. One of the key elements in the debate, the emergence of different situations that fair value accounting is considered by supporters or opponents. Despite the recent financial crisis also contributed to this debate and put the opposition in a state Hjvmytry. So Congress Securities and Exchange Commission recently forced America to study and report on the role of fair value accounting in the recent financial crisis. Under this article, the adoption of fair value accounting standards and the impact on earnings from the perspective of financial managers of manufacturing companies in Tehran, academics and internal auditors, standard setters and measured. for this purpose, 48 academics, 47 members of the Institute of internal auditors, 38 financial managers of manufacturing companies and 20 individuals were studied accounting standard setting ..br According to this study, there are differences between the views of financial executives with the insights of others but there is no difference between the views of academics and internal auditors and standard setters and academics of view there is no difference, however, there are differences between the views of internal auditors and standard setter

Examining the equilibrium between agriculture crops insurance sources and consummations

Abstrac

Studying the Impact of Market, Liquidity and Momentum on Large Changes in Stock Prices Using Cox Regression

The main aim of this research is investigating the determinants of large changes in stock prices. This study investigates the impact of market, size, book-to-market value ratio, liquidity and momentum on large stock price increases of listed companies on Tehran Stock Exchange during the period 2007-2012 (i.e. 1449 working days on the Stock Exchange). Estimation of model was conducted using Cox regression and the base of recurrent event data. The results indicate that among studied factors, value factor is the most important variable for explaining the probability of the stock price increase more than 5% and 10% and size is the most effective variable for the likely increase in the stock price over 20% and 30% respectively (considering frailty effect). Moreover, the results showed no significant relationship between the momentum and the large increases in stock pric

Extraction of Environmental Indicators from the Board of Directors' Report, Using Qualitative Content Analysis

Understanding firms' attitude towards environmental issues is the first and perhaps the most important step in the environmental reporting research area. This is achieved through the content analysis of listed firms' board of directors' reports of environmental activities. The current study is aimed to extract key words and indicators and investigate the difference of disclosure in different industries. To do this, the environmental section of listed firms' board of directors' reports of environmental activities from 2011 to 2015 is examined using the induction approach in qualitative content analysis method and by MAXQDA 12 Analytical Pro software.The results represent 15 parent codes and 55 subcodes indicating the scenarios ruling on these reports. Also, results from evaluating impacts of industry on providing environmental reports confirm the research hypothesis, which indicates a significant difference in disclosures of different industries. In order to understand and compare more deeply, different interpretations of the software outcomes are represented and also the characteristics of the firms with similar reports, have been analyze

Examining motorcyclists' postcrash impressions: A qualitative study

Objective: Motorcycle-related crashes and injuries continue to be of great concern in Iran. This study seeks to explore how motorcyclists' perspectives and impressions of a crash are shaped and influence their future riding behaviors. Methods: This was a qualitative study conducted in 3 major cities in Iran between March 2011 and February 2012. Participants included 31 male motorcyclists, of whom 22 participated in 4 focus groups and 9 in in-depth interviews. Findings were derived through the thematic method of analysis. Results: Six delineated themes suggest different factors that influence riders' postcrash impressions. These include (1) opposing reactions from family and peers postcrash; (2) the motorcyclist's perception of his or her ability to handle risky road situations; (3) risk-taking attributes; (4) perceived responsibility in meeting family needs; (5) the severity of the crash-related injury; and (6) elapsed time from the crash experience. Conclusions: Riders' postcrash impressions were formed by the opposing reactions of their family and peers to the crash experience (i.e., the index crash); the personality of riders, including being overconfident and a risk taker; familial obligations; feeling traumatized by the crash; and passage of time. These formed their perceptions, feelings, attitudes, and thoughts about the index crash. These findings are an important step in understanding how perception and attitudes of motorcyclists are shaped and how these influence their future riding behavior. The needs for interventional studies to assess the effectiveness of road safety risk reduction programs aligned with the riders' degree of postcrash impressions are discusse