Universal Journal of Accounting and Finance Vol. 2(3), pp. 64 - 68
DOI: 10.13189/ujaf.2014.020303
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Missing Requirements on Disclosure Discipline Concerning Liquidity


Nadia Cipullo 1,*, Rosa Vinciguerra 2
1 Link Campus University – Rome, Italy
2 University of Naples II – Capua, Italy

ABSTRACT

Accounting standards can have a significant impact on the liquidity of an entity: both management decisions and the control exercised by supervisory Authorities are influenced by accounting information. Nevertheless the objective of the IASB is to provide users of financial statements with “relevant and useful information […] for their assessment of the amounts, timing and uncertainty of the entity’s future cash flows”, there are some critical points associated with those requirements, in particular for the banking sector. Indeed, it lacks to define the concept of liquidity and to pay attention to the economic maturity of certain items, which is important as well as their amounts. Moreover, given that the information contained in the statement of financial position and the statement of cash flows serves some limitations for the assessment of the liquidity profile of an entity, it is expected that these gaps are filled by the disclosure. Nevertheless, even IFRS 7 presents some deficiencies that will be underlined in this paper. It is believed that current requirements could be profitably complemented.

KEYWORDS
Liquidity, Risk, Disclosure, Maturity, Cash Flow, Value, IASB, Bank

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Nadia Cipullo , Rosa Vinciguerra , "Missing Requirements on Disclosure Discipline Concerning Liquidity," Universal Journal of Accounting and Finance, Vol. 2, No. 3, pp. 64 - 68, 2014. DOI: 10.13189/ujaf.2014.020303.

(b). APA Format:
Nadia Cipullo , Rosa Vinciguerra (2014). Missing Requirements on Disclosure Discipline Concerning Liquidity. Universal Journal of Accounting and Finance, 2(3), 64 - 68. DOI: 10.13189/ujaf.2014.020303.