Administrative Accounting Information to Control Profitability Under Certainty and Uncertainty of a Universal Bank

Trigkas, Sotirios J.; Liapis, Konstantinos; Thalassinos, Eleftherios

doi:10.1007/978-3-030-67020-7_4

Cited by 10 publications

(9 citation statements)

References 46 publications

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“…Many governments have implemented New Public Management (NPM), which has changed the public sector by introducing the principles of business-like management and the market terms typically applied by the private sector (Hood, 1991;Broadbent and Guthrie, 1992), as well as tools, including, audit or management control (Cwiakala-Malys et al, 2020;Trigkas, Liapis, and Thalassinos, 2019). This was motivated by the perceived weaknesses of the static, ineffective, inefficient and non-responsive public sector (Grossi and Steccolini, 2014;Tramblay, 2012) and the tendency of NPM to measure financial results and control whether public resources are used effectively and economically (Broadbent and Guthrie, 1992;Guthrie, 1998;Eriotis et al, 2021).…”

Section: Literature Reviewmentioning

confidence: 99%

Cost Accounting as a Set of Instruments for Performance Budgeting in Local Government Units

Szolno

2024

ERSJ

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Purpose:The article aims to demonstrate the notion of cost accounting for performance budgeting and the need for applying it. The article also evaluates the possibility of implementing the concept in question. Moreover, the imperfections of traditional budgeting and budget accounting were pointed out, while the need to implement performance budgeting in the local government sector was argued. Design/Methodology/Approach: The objective was achieved as a result of conducting a focused literature review, analysis of internal documentation of local government units related to budgeting and accounting system, objective observations of selected LGUs and interviews with their representatives, in addition to applying a general deductive method. The empirical studies conducted focused on updating the author's own study conducted so far in 23 cities with county rights. Particular emphasis was placed on units that implemented performance budgeting. Mainly larger local government units showed interest in performance budgeting (only two cities with a population of over 300,000, which means that performance budgeting was not implemented in 20% of the cases). Approximately 30% of the remaining entities implemented performance budgeting. Findings: The currently prevailing traditional budgeting procedure, in local government units, mainly consists of dividing public funds, which must be at disposal, without paying attention to how effectively they are disbursed. Accounting adopted for the purposes of traditional budgeting is also characterised by a great number of flaws; in particular, it does not provide information that can be used to precisely calculate the required expenditure on specific tasks accepted for implementation. One of the best solutions that can guarantee that the resources owned are managed rationally and effectively at the same time is modern performance budgeting based on modified (according to the needs) tools for effective accounting. The multi-stage procedure of calculating the costs of the tasks implemented makes it possible to measurably increase the effectiveness and efficiency while disbursing public funds and improving the quality of the activities taken by the local government unit simultaneously. Practical Implications: The proposed concept of cost accounting has potential practical applications.Knowing the total costs of tasks and their structure is crucial for the management. This knowledge makes it easier to consciously decide whether to continue a given task or stop doing it if it is expensive or ineffective, and thus allows for effective expense management. Moreover, costs of tasks can also be compared within a given unit, between different organisational units or different cities and over time.

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Section: Literature Reviewmentioning

confidence: 99%

Cost Accounting as a Set of Instruments for Performance Budgeting in Local Government Units

Szolno

2024

ERSJ

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“…For the sake of test procedure and credit risk modelling, for instance, [16] outlines a scenario where the bad loans (NPL) percentage is modeled against with the nominal rate, the rate of inflation, the changes in gross Domestic product, and the variation in the the trade terms. [17] Suggest an alternate approach that takes into consideration simultaneous shifts in the macroeconomic variables as well as the interactions between those variables, much as is customarily the case in the macroeconomic scenarios that are created from systemic macro models. [18] Apply a shock of three standard deviations to the variables of GDP and interest rate; similarly, [19] employ a shock of five standard deviations for one of the macroeconomic variables of the GVAR model.…”

Section: Ebeecmentioning

confidence: 99%

Assessing the Volume of Changes to Banking Assets and Liabilities Using Genetic Algorithms in Additional Funds Needed Model

Trigkas

2023

KSS

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This paper investigates Small-Medium Banks’ (SMBs) business plans in accordance with the structure of Additional Funds Needed (AFN) model. The Key Profitability Variables (KPVs) are the size and structure of deposits, loans, and their interest rates. This study employs a Genetic Algorithm (GA) problem with hard constraints, to point out the limits to changes in the structure of deposits and loans and the effects of those changes on the P&L of a banking institution. After examining 10,000 iterations with Evolver, an innovative optimization software that uses GA, OptQuest, and linear programming, the alternations, have been narrowed down to 3700 which satisfy both, a) constraints and b) maximization of profits. Having also the distributions, this paper concludes that it is a useful methodology that must be further exploited by applying risk weights, mainly for credit risk, to the structural components of the Balance Sheet, and to other competitive institutions. Keywords: banking institutions, genetic algorithms, additional funds needed, operational research

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“…The growing interest of organizations in financial processes automation is influenced, on the one hand, by staffing problems and the search for increased work efficiency in financial departments, as well as by a rapid development of business and growing information needs of managers (Korhonen et al, 2021;Wadan et al, 2019). Both phenomena force organizations to look for ways to optimally use the competencies and working time of financial specialists, minimize errors in analyses and reports, and improve the speed of their delivery to managers (Deloitte, 2019;CGMA, 2018;EY, 2018;Thalassinos et al, 2021a;2021b).…”

Section: Introductionmentioning

confidence: 99%

Financial Processes Automations’ Impact on the Work of Management Accountants

Kielanowicz,

Wnuk-Pel

2023

ERSJ

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Purpose:A small number of studies on financial processes automation impact on the work of management accountants is a research gap. The analysis of the research gap was the subject of this study. The aim of the study was to examine the prevalence of financial processes automation in organizations in Poland and to analyze the advantages and disadvantages of automation perceived by management accountants and the impact of automation on their work. Design: In order to achieve the objectives of the study, the quantitative research method was used. The questionnaires were distributed among management accountants participating in postgraduate studies and courses of management accounting. The choice of this particular group was dictated by the belief that these respondents would have appropriate knowledge of the researched subject. 133 properly filled questionnaires were obtained. Findings: The research showed that most of the surveyed organizations use tools that automate financial processes. The use of such tools is actively supported by employers from the moment of recruiting new employees through training in the field of automation as well as motivating employees to increasingly use such tools. Management accountants positively perceive financial processes automation and argue that having skills in this area facilitates their work and allows professional promotion and self-development. The study showed that management accountants are aware of the advantages of financial processes automation, pointing out two key, in their opinion, potential benefits, i.e. time savings and a reduction of errors. Practical Implications: The use of tools that automate financial processes currently has an undoubted impact on the work of management accountants and in the future this impact may be even stronger. The results of this study indicate that management accountants are not afraid of losing their jobs, but rather expect that it's nature will change, allowing them to perform their routine tasks more efficiently and focus more on their role as business partners. Originality/Value: According to our knowledge, such a broad and comprehensive overview of the impact of financial processes automation on the work of management accountants has never been made in Polish organizations before. The study is therefore unique.

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Administrative Accounting Information to Control Profitability Under Certainty and Uncertainty of a Universal Bank

Cited by 10 publications

References 46 publications

Cost Accounting as a Set of Instruments for Performance Budgeting in Local Government Units

Cost Accounting as a Set of Instruments for Performance Budgeting in Local Government Units

Assessing the Volume of Changes to Banking Assets and Liabilities Using Genetic Algorithms in Additional Funds Needed Model

Financial Processes Automations’ Impact on the Work of Management Accountants

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