Journal of Ecohumanism

The forces of revenue recognition standard changes in a telecommunication company: A qualitative approach

Syazwani Izzati Mohd Fauzi — 2024-04-05

Revenue recognition is one of the crucial key performance indicators for each organisation. The forces of the revenue recognition standard change may cause different experiences for organisations in many ways. Currently, the revenue recognition implementation method is different from what it was in the past. As a result, an organisation that goes through changes may have different experiences and approach problems differently. Organisational change may be triggered by external factors, such as government policies that specifically target a certain sector. Moreover, alterations in the criteria and protocols of regulatory entities might potentially initiate organisational change, in line with the coercive isomorphism of institutional theory. The objective of this study was to enhance comprehension of the forces influencing changes in revenue recognition standards within a telecommunications company by conducting an explanatory case study on a Malaysian telecommunications company. The semi-structured interviews were conducted to get better and more in-depth information on how the company handled the situation. This study found that external factors and regulatory regulations may significantly influence only a small part of an organisation, leading to changes in its operational structure and activities. These changes aim to improve performance, strengthen organisational stability, and promote improved financial reporting. The focus on the telecommunications industry may add to the body of knowledge concerning complex product-based industries. This study provides a foundation for further research into how such industries navigate regulatory changes and adapt their practices accordingly.

Examining determinants of book-tax difference: Insights from Malaysian multinational corporations

Nurliyana Nordin — 2024-04-05

This research investigates the factors affecting the book-tax differences of multinational corporations (MNCs) operating in Malaysia. The sample for this study consists of MNCs with subsidiaries in tax haven countries listed on the Financial Times Stock Exchange (FTSE) Bursa Malaysia Kuala Lumpur Composite Index (KLCI) and FTSE Bursa Malaysia Mid 70 Index. About 67 MNCs were selected after eliminating 32 companies with inadequate data and one with extreme outliers. A secondary data approach was employed, utilising multiple regression analysis. Selected corporate characteristics, including deferred tax liabilities and assets, taxable income, interest coverage ratio, return on assets, and effective tax rate, were used as independent variables. Descriptive analysis revealed evidence that corporations with a high return on assets (ROA) typically benefit from very high levels of book-tax differences (BTDs). Furthermore, the results indicate that a high interest coverage ratio may partly explain the outcomes leading to an increase in differences recorded between book income and taxable income. Thus, this supports the idea that a positive relationship exists between the interest coverage ratio and BTD. Hence, this study contributes to the tax literature and informs policymakers on factors influencing BTD, especially MNCs with subsidiaries in tax haven countries. The study aims to contribute to the existing body of knowledge by offering insights into the factors influencing MNCs' strategic tax planning decisions in the Malaysian context. Policymakers should address the unfair allocation of the worldwide tax base, where a reasonable portion of the earnings made by MNCs doing business in a nation should be subject to taxation in that nation.

Development of an integrative flipped classroom model to improve students’ critical thinking skills and learning responsibility

Benedecta Indah Nugraheni — 2024-04-05

Higher education, including accounting learning, often employs conventional learning models that do not optimally involve active learning. This model is unable to facilitate students developing critical thinking skills (CTS) and learning responsibility (LR), so these two abilities are not yet possessed by students adequately. The learning model that is believed to be able to develop CTS and LR is the flipped classroom. This research aims to produce an integrative flipped classroom model (IFCM) that is valid, practical, and effective for improving CTS and LR students, especially in Introductory Accounting learning. IFCM was developed with research and development using four D models, which consist of four development stages: define, design, develop, and disseminate. This paper presents the IFCM, development process in detail and the results at each stage of development, as well as the final product in the form of IFCM which has been proven valid, practical, and effective for improving CTS and LR students in Introductory Accounting learning.