Search

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Financial reporting in extractive industries (EIs) is a crucial function that warrants further attention in the literature. Previous studies have identified several issues related to financial reporting quality, its impact on stock prices, and the relationship between financial reporting and corporate governance. However, significant gaps remain in understanding the impact of the extractive industry's unique characteristics and the role of regulators in enhancing financial reporting practices. This study aims to illuminate the research trajectory affecting extractive firms by describing the state‐of‐the‐art regarding related accounting standards through a mapping of currently accessible studies. To achieve this, we applied a bibliometric analysis methodology. Bibliometric techniques provide a quantitative approach for objectively assessing literature, offering a comprehensive overview of influential authors, journals, themes, and countries within a specific research field. This approach also facilitates the identification of research trends and the prediction of future developments. The study highlights the growing demand for sustainability reports as the primary formalized means for companies to disclose their sustainable development efforts. Research on sustainability reporting in the mining sector underscores the importance of integrated sustainability reporting, with a focus on understanding the evolution and advancement of reporting methodologies across all dimensions of corporate social responsibility. [ABSTRACT FROM AUTHOR]

Deferred taxes emerge from timing differences in recognizing income and expenses between commercial and tax financial statements. However, the capitalization of deferred tax assets remains contentious, with questions raised about their value relevance to investors. This study aims to investigate the informational value and economic significance of deferred tax assets in financial statements prepared in accordance with both German commercial law (HGB) and International Financial Reporting Standards (IFRS). The analysis is based on financial data from 1,066 firm-year observations of HDAX-listed companies from 2000 to 2022. Using an Ordinary Least Squares (OLS) regression model, the study examines the relationship between deferred tax assets and the market value of equity. Key financial variables, including research and development expenses, deferred tax liabilities, net income, and the market-to-book ratio, are incorporated to provide a comprehensive assessment of deferred tax asset relevance in capital markets. The results demonstrate that deferred tax assets have a negligible impact on the market value of companies, with no statistically significant effect detected. Conversely, research and development costs, as well as net income, exhibit a strong positive influence on firm valuation. These findings suggest that deferred tax assets serve largely as an accounting mechanism, lacking informational value for investors.

The authors analyze the trends in the application of IFRS in Russia in the post-Soviet period between 1991 and 2021. The research relies on Russian regulatory legal acts, scientific and professional publications, and the data describing the development of accounting practices in Russia. The study reviews the scale of proactive adoption of IFRS by Russian companies in the 1990s and 2000s. It also evaluates the legal support of the transition to IFRS in Russia, including the legal requirement of IFRS filing for the consolidated financial statements of Russian companies. The article reviews the Russian accounting standards in terms of their compliance with the IFRS. The authors analyze the adoption of IFRS by the public sector as well as by small and medium-size enterprises. The transition to IFRS was a natural response to the key macroeconomic processes that have changed Russia over the past 30 years of its post-Soviet reality. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: M40; M41; M48. [ABSTRACT FROM AUTHOR]

The FASB continues to debate useful format and disaggregation choices of financial performance information as part of its disaggregation of income statement expenses project. Using a survey of 235 investment professionals, this study provides insight into their preferences regarding income statement presentation and standardization. Overall, we find that investment professionals are generally satisfied with the level of disclosure firms currently provide in the income statement. However, the investment professionals surveyed generally think that companies should be required to use the same labels for common lines on the income statement and that operating and nonoperating activities should be formally defined. They also generally think that GAAP should allow managers flexibility to present non-GAAP measures or subtotals on the income statement. Our study provides insights for the FASB on the views of investment professionals and for academics and financial statement users regarding the information preferences of key information intermediaries in financial markets. Data Availability: Data are available upon request. JEL Classifications: M41; M44; M45; G29. [ABSTRACT FROM AUTHOR]

Copyright of Environmental & Social Management Journal / Revista de Gestão Social e Ambiental is the property of Environmental & Social Management Journal and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The complexity and interconnection within the financial ecosystem demand innovative solutions to improve transparency, security, and efficiency in financial reporting and liquidity management, while also reducing accounting fraud. This paper presents Blockchain Financial Statements (BFS), an innovative accounting system designed to address accounting fraud, reduce data manipulation, and misrepresentation of company financial claims, by enhancing availability of the real-time and tamper-proof accounting data, underpinned by a verifiable approach to financial transactions and reporting. The primary goal of this research is to design, develop, and validate a blockchain-based accounting prototype—the BFS system—that can automate transformation of transactional data, generated by traditional business activity into comprehensive financial statements. Incorporating a Design Science Research Methodology with Domain-Driven Design, this study constructs a BFS artefact that harmonises accounting standards with blockchain technology and business orchestration. The resulting Java implementation of the BFS system demonstrates successful integration of blockchain technology into accounting practices, showing potential in real-time validation of transactions, immutable record-keeping, and enhancement of transparency and efficiency of financial reporting. The BFS framework and implementation signify an advancement in the application of blockchain technology in accounting. It offers a functional solution that enhances transparency, accuracy, and efficiency of financial transactions between banks and businesses. This research underlines the necessity for further exploration into blockchain's potential within accounting systems, suggesting a promising direction for future innovations in tamper-evident financial reporting and liquidity management. [ABSTRACT FROM AUTHOR]

This study compares and contrasts US and international accounting and financial reporting practices for cryptocurrency. We analyze the financial statements of 40 global companies that have exposure to cryptocurrencies, including cryptocurrency purchases, mining, payments, trading, and investments in ICOs and early-stage blockchain ventures. We document inconsistency between Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS), as well as distortions that can mislead users in assessing asset value, liquidity, profitability, and cash-generating abilities across firms. In particular, firms receiving cryptocurrencies in revenue-generating activities account for cryptocurrencies as intangibles using different measurement bases and classify the associated cash inflows differently. Some firms place cryptocurrencies in the usual long-term location of intangibles, while others consider intangibles as liquid, short-term assets. Limited guidance about crypto-assets from both IFRS and GAAP lets companies choose which existing standard to apply and how to apply it. Understanding the financial and valuation implications of these new virtual assets is vital for future accounting research and professional practice. [ABSTRACT FROM AUTHOR]

Due to the need to provide a framework to motivate consistency, comparability and simplification of financial reporting arose a new standard IFRS 15, which intrigued the academic environment, challenged researchers to explore its implications in depth and raised the interest of the international financial community for a better understanding of how it influences accounting practices and reporting processes. Through a meticulous analysis of research available in the Web of Science database, this article discusses significant developments in the interpretation and application of IFRS 15, thus providing a comprehensive perspective on the subject. The interpretation of the data in the field was carried out using the bibliometric analysis tool Biblioshiny, thus obtaining relevant information about the current state of IFRS 15 research. This study is a useful guide for accounting professionals, researchers and practitioners in the financial and accountanting field, providing an up-to-date understanding of IFRS 15 trends and the challenges associated with applying it in an ever-changing environment.

Copyright of European Journal of Applied Economics is the property of Singidunum University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose: This study aims to examine the implementation of International Financial Reporting Standards (IFRS) in Saudi Arabia. It investigates how the adoption of IFRS has affected four critical areas in the financial statements of publicly listed companies: profit and loss statement, balance sheet, cash flow statement and retained equity statement in Saudi Arabia. The paper also explores the essential factors/drivers that influence the adoption of IFRS and its implication in Saudi Arabia. Design/methodology/approach: Data was obtained from Saudi Stock Exchange (Tadawul) listed companies from eleven industries in Saudi Arabia. This cross-sectional study analyses critical financial data across eleven distinctive industries. To identify the impact of adopting IFRS, the researchers use a paired t-test to evaluate seven key elements of financial statements underlying the critical areas: non-current asset, current asset, total assets, shareholders equity, non-current liability, current liability and total liability. The sample captures cross-sectional data from well-developed global industries in Saudi Arabia, pre- and post-implementation of IFRS. Thus, the analysis of the sample data gives a representative picture of the population of the Saudi Arabian industry. Findings: The results reveal significant differences between GAAP and IFRS reporting standards in the measurement, recognition and classification of non-current assets and liabilities. The differences are expressed in the variance between the GAAP and IFRS. Specifically, the differences between GAAP and IFRS demonstrated by the t-value are significant and reliable (respectively, 5.3 and 4.1). Additionally, the t-value is validated by the p-value, which in both was significant. Research limitations/implications: The outcomes of this research will benefit accounting information users, practitioners, researchers and regulators. Since Saudi Arabia's policymakers have mandated the full adoption of IFRS in financial reporting, the study contributes to the adoption of IFRS practices throughout the Saudi industry. Adopting full IFRS standards requires widespread IFRS expertise to cope with the transition. Originality/value: This study advances research into the perennial issues associated with changes in reporting towards IFRS standards, especially in Saudi Arabia. The contribution to theory and practice enters new and fruitful areas. [ABSTRACT FROM AUTHOR]

Based on the analysis of the dynamics of implementation of public-private partnership (PPP) projects in Ukraine, key problems have been identified and its priorities in financial support for the recovery of the native energy sector have been determined. It is appointed that PPP concession agreements are the main mechanisms for attracting investment in the global electric power industry. The expediency of using the concession model on BOT terms for the implementation of large projects in the energy sector is substantiated, which will contribute to the intensification of investment attraction and will allow to distribute risks between the state and business. Recommendations on the formation of an information platform for participants in the implementation of PPP projects on the basis of disclosure of information on the effectiveness of concession operations in accounting and financial statements have been developed. The tools for the formation of the financial mechanism of public-private partnership, where the priority is budget and venture financing, are substantiated. To make decisions on the implementation of PPP investment projects, an approach to assessing the financial support of project initiatives is recommended, the basis of which is the proposed criteria for compliance with financial security, the choice of funding sources, indicators of scenario analysis and efficiency. The proposed methodical approach to assessing the effectiveness of PPP allows us to assess the synergistic effect, which reflects the totality of economic, social and environmental effects. The formulated recommendations for improving the relationship between the state and business will contribute to the intensification of the attraction of private investment resources on the basis of PPPs for the restoration of the energy sector in Ukraine. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examine the perceptions of owners and accountants of small- and medium-sized entities (SMEs) on the users and their financial information needs of SME financial reporting. Design/methodology/approach: Postal questionnaire surveys with owners and accountants of SMEs were used to identify users and their financial information needs. In total, 1,498 questionnaires were sent to SME owners and accountants. A total of 358 questionnaires were returned, generating 323 useable questionnaires. The management branch of stakeholder theory is used for the study which asserts that company management is expected to meet the expectations of those stakeholders who are more powerful than others. Findings: The users of Sri Lanka SME financial information were limited to owners, banks and Department of Inland Revenue. Users and financial information needs of owners varied in relation to the size of the SME. Financial information are useful for making capital investment and planning decisions for owners regardless of the size of the SME. By sharing information with outside parties, disclosures can diminish information asymmetries between the firms and its stakeholders. The top three reasons for which owners use SME financial information are for planning purposes, estimating income tax liabilities, and taking marketing and pricing decisions. Research limitations/implications: Since the study focuses only on the views of owner-managers and accountants of SMEs, the holistic understanding of uses of SME financial information by other user groups cannot be achieved. Practical implications: The results of this study provide international and local standard setters with an indication of future direction for SME financial reporting. Social implications: This paper extends existing knowledge on users and their financial information needs of SMEs in developing countries. Consequently, the findings of this paper make a valuable contribution to the work of practitioners such as local and international standards-setters and regulators who may be considering developing/revising financial reporting framework for SMEs either worldwide or in developing countries. Originality/value: Although SME financial reporting has attracted enormous attention in the recent accounting literature, academic research into SME financial reporting is scant. This paper extends existing knowledge on users and their financial information needs of SMEs in developing countries. The general purpose financial reporting model and the accounting standard IFRS for SMEs in particular would not be applicable to Sri Lankan SMEs unless it modifies to reflect the financial information needs of users of Sri Lankan SME financial information. [ABSTRACT FROM AUTHOR]

Competitors often pay close attention to rivals' financial reports. For firms with high levels of proprietary information, competition may increase the costs of public disclosure. Theory suggests that such costs, which we refer to as the proprietary costs of financial reporting, may lead to strategic financial reporting. We find that financial statement comparability is decreasing in the proprietary costs of financial reporting. Our results are robust to the use of alternative measures of comparability and alternative measures of proprietary costs of financial reporting. In addition, theory suggests that financial reports will contain stronger signals of managers' private information when information asymmetry is high. We show that the negative relation between the proprietary costs of financial reporting and financial statement comparability is stronger for firms with poorer information environments. Together, our findings suggest that through the discretion afforded in Generally Accepted Accounting Principles (GAAP), managers of firms with high levels of proprietary information report in a way that reduces the comparability of their financial statements, particularly when information asymmetry is high. [ABSTRACT FROM AUTHOR]

SMEs are renowned all over the world for being informal, therefore, following accounting standards, is something unique for SMEs. Jordan being the heaven for SMEs is becoming more and more formal for SMEs, yet the government has not imposed any restrictions on SMEs to follow accounting standards. However, several SMEs in Jordan are following accounting standards because of the advantages that SMEs can avail by adopting accounting standards. Hence, it is vital to understand the factors which influence the adoption of accounting standards, as well as it is equally important to understand the advantages which SMEs can gain by adopting accounting standards. Thus, this study has two core aims, initially to identify the factors which influence the implementation of accounting standards and secondly the identification of the significant advantages which SMEs can achieve by the implementation of the same. For conducting the analysis the data has been collected from 100 SMEs operating in Jordan. Purposefully those SMEs were chosen with the help of a filter question that were adopting accounting standards. For evaluating the hypothesis, structural equation modelling has been applied. The results revealed that the adoption of accounting standards have benefits for the SMEs, whereas only demand for quality reporting and financial information external users have shown insignificant impact over usage of accounting standards, perhaps since it is not mandatory by the government. The study also opened horizons for future research, because there is yet a lot that need to be explored that why SMEs are reluctant in adopting accounting standards or what are the major hurdles in the adoption of financial accounting standards. [ABSTRACT FROM AUTHOR]

The IFRS implementation has marked an important milestone in the history of accounting. Since the beginning, there have been both advocates and critics, debating whether the initial objectives were, in fact, met in practice. The present article examines whether comparability of financial statements increased between Eastern and Western European countries after IFRS adoption. The research is empirical, analysing companies before and post adoption, while bringing forward up to date concepts, beneficial for future research. Policymakers proclaim their policies are rooted in evidence and often turn to academic researchers for impartial and reliable evidence. In view of the fact that a significant number of studies have been conducted thus far, the present paper attempts to further emphasize the positive impact of IFRS implementation. [ABSTRACT FROM AUTHOR]

According to the International Public Sector Accounting Standards Board (IPSASB), public sector entities should apply the IPSAS when they fulfill certain criteria, such as the delivery of public services or financing by taxes. Size is currently not a matter for the application of IPSAS and smaller public sector entities have to apply the full suite of IPSAS. Based on an empirical study, this article shows that differential reporting is a suitable approach to overcome the accounting challenges that small- and medium-sized public sector entities (SMPSEs) are facing. The authors explain the potential advantages and disadvantages of differential reporting in the context of SMPSEs' accounting challenges. With the growing number of standards, the requirements of the accrual basis International Public Sector Accounting Standards (IPSAS) have significantly increased in the past 10 to 15 years. Small- and medium-sized public sector entities (SMPSEs) often do not have the necessary capacities and skills to cope with the requirements of the full suite of the accrual basis IPSAS. This article presents a systematic overview of the design of the accounting frameworks for SMPSEs in a number of OECD countries, as well as selected developing/emerging countries, and identifies possible approaches that will be helpful in addressing those challenges. [ABSTRACT FROM AUTHOR]

The COVID-19 pandemic has had a significant and enduring effect on the tourism industry, specifically impacting travel agencies. To respond effectively, it is essential to comprehend the financial repercussions and challenges that these agencies confront. This study seeks to address existing gaps in knowledge by conducting a comprehensive examination of the tourism industry's financial performance in the post-COVID-19 era. Our methodology utilizes a Difference-In-Difference (D-I-D) approach, considering multiple investigations to establish a causal connection between the pandemic and the financial stability of tourism service providers. We analyse changes in the overall financial health of the tourism industry relative to other sectors both before and after the COVID-19 outbreak using Altman Z scores. Furthermore, we assess accounting harmonization across diverse jurisdictions and financial frameworks (IFRS, US GAAP, Czech GAAP, German HGB). Data is sourced from 11 multinational corporations in the tourism sector, supplemented with financial data from sectors such as Automotive, Manufacturing, Food and beverage, and Real Estate. Our empirical findings indicate that non-tourism entities experienced a 19% lower likelihood of bankruptcy post-COVID-19. This finding underscores the uniqueness of the tourism industry's challenges during the pandemic. In addition to these findings, we provide practical recommendations designed to assist companies in the tourism industry as they navigate the recovery phase following the pandemic. These insights are pivotal in enabling the industry to build resilient strategies and ensure its sustainability in a post-pandemic landscape. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to investigate the effect of institutional structures on the strength of auditing and financial reporting standards. Design/methodology/approach: This paper employs a panel data of 36 African countries over the period 2000–2018. System generalised method of moments (SGMM) was employed to estimate the relationship between institutional structures and the strength of auditing and financial reporting standards in Africa. Findings: The findings of this paper indicate a positive and statistically significant relationship between institutional structures and the strength of auditing and financial reporting standards. As a further analysis, the study finds that the relationship between institutional structures and the strength of auditing and financial reporting standards is stronger for economies with common-law accounting traditions than those with civil-law origin. Practical implications: The paper has important implications for countries striving to adopt and implement auditing and financial reporting standards fully. Such efforts must begin with establishing strong institutional structures in those countries. Originality/value: This study presents the first empirical panel data evidence on the effect of institutional structures on the strength of auditing and financial reporting standards in Africa. Further, the methodology employed in this study can be regarded as effective in testing the phenomenon in other regions, or it can be employed as a guiding model for future research in the area. [ABSTRACT FROM AUTHOR]

Copyright of European Journal of Applied Economics is the property of Singidunum University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

At the time of introducing legally required disclosure of financial statements (FS) among Belgian nonprofit organizations (NPOs) in 2006, NPOs are found to increase their share of long-term and financial credit in total credit, relative to a control group of for-profits with unchanged disclosure requirements. Regarding FS format, NPOs filing the complete, audited FS format were able to increase their share of long-term and financial credit in the post-disclosure period, relative to a control group of NPOs filing the abbreviated, unaudited format. Rather than impacting total credit financing, expanded FS disclosure regulation seems to cause a shift in debt structure toward greater long-term and financial credit. This may increase NPOs' financial stability and may alleviate their financing constraints. The results support the relevance of FS disclosure in the nonprofit sector. [ABSTRACT FROM AUTHOR]

This study examines the impact of International Financial Reporting Standards (IFRS) adoption on bilateral trade of accounting services. Applying the gravity model to a sample of 13 exporting and 33 importing countries for five years (2001, 2002, 2007, 2008, and 2017), we find that accounting services exports are unaffected by whether both trade partners have jointly adopted IFRS. As a secondary analysis, accounting services exports are found to decrease when trade partners are more dissimilar in their per capita income, with weak evidence that this effect may be muted if both countries adopt IFRS. [ABSTRACT FROM AUTHOR]

The growth in the use of financial derivatives for a variety of purposes has caused increased complexity in derivative reporting standards. As such, financial statement users have asked the Financial Accounting Standards Board to update guidance to increase transparency while preparers seek clearer guidance on the application of standards and a broadened scope of hedge accounting. The most recent derivative accounting guidance update, ASU 2017‐12 (Topic 815), broadens instruments that qualify for hedge accounting, expands allowable hedge accounting techniques, and reduces reporting requirements by omitting the reporting of hedge ineffectiveness. While these changes might simplify reporting requirements, there is the risk that the omitted disclosure would have been relevant to investors' decision‐making. In this paper, we examine how derivative disclosure practices changed following the implementation of ASU 2017‐12. Using a hand‐collected sample of twenty S&P 500 firms, we calculate a derivative disclosure compliance (DDC) score and find that, on average, DDC scores decreased following firm adoption of ASU 2017‐12. This decline was realized for firms regardless of the notional amounts of derivative instruments held. However, the decline was not significant for early adopting firms suggesting a motivation for completeness by select firms. Our initial findings indicate that the update on derivative disclosures is not being uniformly applied potentially lessening its value to users. As a result, further updates may be necessary. [ABSTRACT FROM AUTHOR]

Due to the need to provide a framework to motivate consistency, comparability and simplification of financial reporting arose a new standard IFRS 15, which intrigued the academic environment, challenged researchers to explore its implications in depth and raised the interest of the international financial community for a better understanding of how it influences accounting practices and reporting processes. Through a meticulous analysis of research available in the Web of Science database, this article discusses significant developments in the interpretation and application of IFRS 15, thus providing a comprehensive perspective on the subject. The interpretation of the data in the field was carried out using the bibliometric analysis tool Biblioshiny, thus obtaining relevant information about the current state of IFRS 15 research. This study is a useful guide for accounting professionals, researchers and practitioners in the financial and accountanting field, providing an up-to-date understanding of IFRS 15 trends and the challenges associated with applying it in an ever-changing environment. [ABSTRACT FROM AUTHOR]

Copyright of Accounting & Finance / Oblìk ì Fìnansi is the property of Institute of Accounting & Finance and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The move towards the widespread adoption of international financial reporting standards (IFRS) opened the field for extensive research into the consequences of the voluntary and mandatory IFRS adoption. This paper attempts to provide a broad picture regarding these consequences in the context of the European Union by reviewing the extant empirical literature on earnings conservatism. The review reveals that mixed evidence exists regarding the effect of IFRS adoption, whether voluntary or mandatory, on earnings conservatism. The reasons behind these mixed results are likely multi-factorial but may include a greater flexibility of IFRS relative to domestic generally accepted accounting principles. In doing so, this study provides opportunities for future research. [ABSTRACT FROM AUTHOR]

This study aims to analyze the implementation of Statement of Indonesia Financial Accounting Standards (PSAK) No. 71 regarding impairment loss reserves in state-owned pharmaceutical companies listed on the Indonesia Stock Exchange (BEI). PSAK No. 71 is a convergence of International Financial Reporting Standard (IFRS) 9 and provides guidelines for financial instruments. The research adopts a descriptive-analytical approach, utilizing data from financial statements and conducting interviews with relevant stakeholders. The qualitative analysis explores the application of PSAK No. 71 and evaluates the impairment loss reserves in these companies. The findings contribute to a better understanding of the implementation of PSAK No. 71 in state-owned pharmaceutical companies and its impact on financial reporting. The research also provides insights for companies, regulators, and supervisory authorities in the pharmaceutical sector regarding the application of PSAK No. 71. [ABSTRACT FROM AUTHOR]

Recent comments on the FASB preference for the asset-liability focus in its conceptual framework motivate this historical perspective on the early accounting tension between it and the alternative revenue-expense focus. The commentary identifies and reviews significant pre-1980s studies indicative of focus preference and finds pre-FASB lack of consensus on the issue. The commentary concludes that this lack of consensus will continue in the absence of a coherent body of abstract knowledge that is capable of giving professional authority to mandated accounting standards. [ABSTRACT FROM AUTHOR]

This paper presents the results of research conducted to identify the factors that influence the decisions of company management to outsource accounting services. A transaction cost economics (TCE) model was used to analyse factors that influence high levels of outsourcing of accounting tasks in the case of Montenegro, where, based on our sample, 75.4% of companies enter outsourcing arrangements with bookkeeping agencies or with external accountants. With an adaptation of International Accounting Standards (IAS) and legal requirements for submission of standardised year-end reports, there is evident growth of bookkeeping and financial service providers on the market and an evident trend of companies entering accounting service outsourcing with those agencies. A survey was developed to investigate 12 variables that, according to the TCE model, influence outsourcing decisions. The selection of variables was based on previous research in the field using the TCE or Resource-Based View model (the most common models used for this analysis). In contrast, new variables were introduced that measure the effects of the introduction of IAS through legal reporting obligations in Montenegro. By developing the model this way, it became possible to predict 47% of the variance of the dependent variable and to identify the main factors (other than price) that influence the decision of managers to outsource accounting services. [ABSTRACT FROM AUTHOR]

Copyright of Zeszyty Teoretyczne Rachunkowości is the property of Stowarzyszenie Ksiegowych w Polsce Rada Naukowa and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

SYNOPSIS: Diversity in views about the existence, nature, and extent of the "intangibles problem" in financial reporting and various proposed solutions is well represented among national accounting standard setters. This paper summarizes the varying perspectives on these issues by a group of national accounting standard setters from Canada, Germany, Japan, the U.K., and the U.S. The paper strives to deliver a balanced discussion of the alternative perspectives to provide fodder for further consideration by the accounting community and to stimulate additional academic research relevant to these issues. JEL Classifications: M410. [ABSTRACT FROM AUTHOR]

The mainstream theoretical and empirical research presented in the study is a comparative analysis of comprehensive income reporting by groups listed in the Polish and German capital markets. The theoretical part of the article is dedicated to a scientific discussion on the determinants of the capital market and corporate governance in continental Europe and the so‑called ‘new governance’, related to the convergence of financial reporting standards, including IFRSs, that oblige groups of entities to prepare consolidated statements of comprehensive income. It also assesses the relevance of comprehensive income to capital market players. The empirical part contains the results of comparative research on the format and structure of consolidated statements and the nomenclature of their components, as well as the findings from studies of the value relevance of comprehensive income for the WIG30 and DAX groups in 2009–2019.

Cash acquires an important position in a business entity as liquidity position of a company is vital for financial decision making. Acceptability of cash has a higher degree in comparison any other form of current assets. Further the cash is converted into various other assets necessary for business operations in the form of working capital. The operations of a business are depending upon the ability of the management to deal with cash and cash equivalents. It is the chief source of input that is required to run the business in long run. The importance of cash lies in its ability to deal with disbursement of payments and other obligations without any restrictions. Availability of cash makes a business deal better at the time of procurement of goods and services. Business can attract higher discount by making real time cash payments. It results in higher profitability of a firm. The accounting for cash transactions also becomes easy in comparison to accrual base accounting but at the same time the limitation of cash-based accounting system is the origin of accrual-based accounting. It is also aggregable that the principle of matching revenues with cost is justified only in the presence of accrual- based accounting. The accrual-based accounting concept is a well settled and adopted concept all across the globe as it clearly signifies the rules of journalizing the accounting transaction. It has become the necessity of the business to provide credit on sales and purchase as well along with deferred payments and income receivables. As far as the taxation policy is concern it’s easy for the state to levy and collect tax on accounting profits with accrual-based system. Investors holds fundamental analysis as a major criterion for their investment decisions where profitability ingredient plays an important role. Fundamental analysis is a method used by investors to identify the real value of a share. The market price may not reflect the actual value of the stock. The stock may be overvalued or undervalued in the market. Fundamental analysts study the underlying health of the company in order to find the intrinsic value. This is done by using various qualitative and quantitative factors such as the company’s revenues, profit margins, return on equity, future growth potential and other metrics. The main purpose of this method is to identify companies that that are fundamentally strong in order to invest in them for the long term. The present study attempts to investigate the opinion of investors regarding their decisions with reference to fundamental analysis. It studies their perception on investment where the financial reporting is based on accrual or cash-based system of accounting. [ABSTRACT FROM AUTHOR]

The mandatory adoption of IFRS represents an exogenous change in information asymmetry. As IFRS adoption is determined at the individual country level, it is less likely to reflect the endogenous preferences of a single entity. The asymmetry information redundance arises from three potential causes: for some countries, the IFRS increases accounting awareness substantially by providing additional reporting guidelines, such as segment reporting; it considerably increases comparability between countries, which facilitates monitoring and benchmarking between entities and produces a number of contemporary changes related to the implementation of new standards that have helped to reduce information asymmetry in their adoption. The IFRS' conceptual content confirms that there is a convergence between the objectives and guidance of accounting standards, on the one hand, and the objectives and guidance of corporate governance requirements, on the other hand. [ABSTRACT FROM AUTHOR]

Purpose: Financial shenanigans are the omissions or actions undertaken with the purpose of misrepresenting an organisation's financial statements. Many examples now exist of such behaviour emerging in the context of a desire to deceive the users of financial reports. In this context, research has illustrated how investors can find themselves impacted by such behaviour, with incorrect decision-making around investment decisions being a major issue. However, auditors' perspectives, of obvious importance in such scenarios, given these individuals' role in attesting to the veracity of financial disclosures, have not been investigated. The aim of this study is to address this gap by seeking the experiences of auditors in the developing nation of Pakistan, an environment in which the significant impact of financial improprieties is well-documented. Design/methodology/approach: Interviews with 50 Pakistani-based auditors were conducted to gather perceptions about the nature and prevalence of financial shenanigans. The questions posed were structured to address issues relating to both the drivers of and methods used to operationalise financial malfeasance. Findings: The views expressed by the participants suggest that this type of malpractice is common, with a variety of forms employed and a level of audacity and shamelessness is striking. The results indicate the absence of the three institutional pillars conventionally associated with motivating organisational attempts to legitimise behaviour and maintain social contracts. When considered alongside recent findings that the audit profession in Pakistan may not always play an effective monitoring role, we argue that the evidence suggests the existence of motivations for legitimising strategies are not yet fully understood. Research limitations/implications: This contention helps address recent calls for investigation of issues around legitimising tendencies where theoretical understanding is incomplete. A full understanding of the embedded practices will provide capital providers with the opportunity to make more informed decisions regarding their investments in Pakistani firms by highlighting the financial shenanigans involved, including the sheer audacity apparently associated with the observed behaviour. Originality/value: Earnings management and auditing have not been studied widely in Pakistan despite the abundant and persistent nature of corporate scandals across the nation for many decades. Whilst implementation (and enforcement) of some accounting and auditing standards have taken place recently, the financial collapses continue, and understanding regarding the on-going fraud is urgently needed. The extent and shameless nature of the perceived behaviour are striking, suggesting that those closest to financial reporting in Pakistan see fraudulent financial reporting as being close to, if not yet fully representative of, normal practice. [ABSTRACT FROM AUTHOR]

This article uses the leading firms of the German chemical industry as a case study to provide a detailed example of how companies in the late nineteenth and early twentieth century used internal financing as an instrument of corporate finance. It traces the at first diverse significance of internal financing for the industry and identifies two moments of market concentration that triggered a convergence of corporate finance by a harmonisation of accounting standards that were not predefined by legal frameworks. The article argues that secret reserves and further ways of internal financing were key components of this harmonisation. The industry-wide creation of secret reserves cloaked the companies' actual financial strength from outsiders who were merely left with an image of the respective firms that was carefully drafted by companies' managers. [ABSTRACT FROM AUTHOR]

Copyright of Paradigma: Journal of Economics & Management Research / İktisadi ve İdari Araştırmalar Dergisi is the property of Gumushane University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The coexistence of IFRS and non-IFRS standards has proven challenging at the national level. We utilise a multi-mode standardisation perspective that recognises the interplay of committees, market players, and the government to examine multi-standard financial reporting in Norway and focus on two parallel efforts that introduced proposals to base the national accounting standards on the IFRS for SMEs. In our case, the jurisdictional tensions stem from the broad remit of the government to regulate financial reporting and the ambiguous legal standing of the national standards and of the standard setter. Comparability is often cited as one of the central aims of standardisation in financial reporting. Consequently, how different players utilise the concept is of interest. We find that the scope of comparability that the standards aim to achieve is not given sufficient consideration. The feedback provided with regard to the proposals underscores that the scope of comparability is important for the users of the standards. They focus on the most likely comparisons that are made and want to maintain a national focus and comparability across similar types of companies and industries. They do not regard the standardisation efforts and proposed elimination of standards and options as necessarily beneficial for comparability. [ABSTRACT FROM AUTHOR]

Copyright of Business Consultant / Poslovni Konsultant is the property of FINconsult Ltd. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Research on the harmonization of financial reporting of SMEs worldwide is currently focusing on the global application of IFRS for SMEs as an alternative for the financial reporting of entities whose securities are not listed on a regulated market. Several principles of recognition and valuation of assets have been simplified as a result of revisions made to the entire set of IFRS standards in order to meet the specific demands of small and medium-sized entities (SMEs) in meeting the information needs of readers of financial statements. The proposed goal was reached through the application of the historical research methodology, which involved an examination of the background and development of the IASB's project on the financial reporting of small and medium-sized enterprises, as well as subsequent events following the first and second revisions of the standard. Starting in 2000, when the first discussions about the need for a distinct standard for small and medium-sized entities emerged, to March 2021, when the feedback received following the second Request for Information for revision, the time period studied covered a number of significant events, taking into account that this provides a better understanding of the evolution of the IFRS standard for SMEs. Hence, three time periods were examined: the standard's pre-publication period (2000-2009), its first revision (2009-2015), and its second revision (2019-2021). [ABSTRACT FROM AUTHOR]

Accounting standards allow the application of two models for subsequent measurement of property, plant, and equipment, and those are the cost model and the revaluation model. The application of a certain model depends on the manager’s choice of accounting policy. The main goal of this paper is to investigate the application of the revaluation model for subsequent measurement of property, plant, and equipment in Croatian companies. Further goals are to examine how the fair value for revalued assets is determined, and what the level is of disclosed information about the determined fair value and the revaluation. The theoretical part of the paper analyzes different models for measurement of property, plant, and equipment, the issue of determining fair value, and disclosure requirements according to national and international accounting standards. The empirical part of the paper is conducted on 500 large and medium-sized Croatian companies from the service (utilities), production, and tourism sectors. Particular attention is placed on the notes to the financial statements of these companies. The research covers the period from 2014 to 2018. Collected data are analyzed by using descriptive statistics methods, point-biserial correlation, and Pearson correlation coefficient.

Purpose: This paper purpose is to report the differences between U.S. GAAP and IFRS by presenting a review of literature available on the topic. Methodology: This paper is based on review of 27 research papers. This paper is divided into two parts. First part presents the previous studies focused on business aspects (companies can ill afford the cost of an increasing number of GAAP standards and impact on investors) and second part presents the previous studies focused on fundamental differences between U.S. GAAP and IFRS. Findings: This paper is based on review of literature that present the differences between U.S. GAAP and International Financial Reporting Standards (IFRS). As per the studies done, U.S. GAAP contains more detailed, specific requirements than IFRS. In some instances, IFRS does not contain any corresponding guidance and, in others, IFRS contains higher-level or general guidance that is not directly comparable to the U.S. GAAP requirement. Originality/Value: This paper findings are based on 27 research papers only. As accounting standards are changing due to change in current economic situations, there is a large scope for the future studies based on U.S. GAAP and IFRS differences and impact of those difference on the investors. [ABSTRACT FROM AUTHOR]

Copyright of Comparative Economic Research is the property of Wydawnictwo Uniwersytetu Lodzkiego and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper examines the consequences of the paycheck protection program (PPP) for bank risk-taking and whether the shift to the current expected credit loss (CECL) model moderates this effect. We find that the extent of a bank's PPP participation is associated with relatively greater changes in risk-taking outside of the PPP. We also show that this effect is concentrated in banks that have not early adopted the CECL model and banks with timelier pre-PPP loan loss provisions, suggesting that timelier loan loss recognition constrains risk-taking incentives. Overall, our findings provide insight into the indirect consequences of government stimulus programs administered through banks and the role of accounting in constraining bank risk-taking. This paper was accepted by Suraj Srinivasan, accounting. [ABSTRACT FROM AUTHOR]