Fair Value Accounting for Financial Instruments – Conceptual Approach and Implications

This study complements the growing literature on the value relevance of fair value by examining the validity of the hypothesis that fair value is more informative than historical cost as a financial reporting standard for financial instruments. We therefore compare the relative explanatory power of fair value and historical cost in explaining equity values. In order to reflect fair values’ role in offering the fair view where financial instruments are concerned we briefly reviewed capital market studies that examine the usefulness of fair value accounting to investors, and discuss marking-to-market implementation issues of determining financial instruments’ fair values. In doing so, we identified several key issues, which need to be analyzed. More importantly, our results suggest that simply requiring fair value, as the reported measure for financial instruments may not improve the quality of information unless appropriate estimation methods or guidance for financial instruments that are not traded in active markets can be established. In contrast, fair value of available-for-sale securities, which are more actively traded in well-established markets, explains equity values more than historical cost. Taken together, our results are consistent with the notion that fair value is more (less) value relevant when objective market- determined fair value measures are (not) available.

AN ACCOUNTING PERSPECTIVE ON A CRISIS PERPETUATED THORUGH THE CAPITAL MARKET

Our paper analyzes the current financial crisis starting with some recent developments and reactions in the field of accounting. We find that involved parties within the financial system naturally look for a “scapegoat” instead of dealing with reality. Moreover, they try to avoid regulations that would reflect their current financial position and performance. Meanwhile, what reality reveals us is that we are dealing with a crisis of value, or better said valuation, framed by significant changes of paradigms. Starting with thoughts and reactions within trade literature and financial environment, we analyze some mechanisms of credit derivatives that propagated the crisis within the global financial system. Finally, we prove our point in defending fair value accounting and identify key aspects that allow future improvements. The need for informational transparency is emphasized through the whole paper.Financial crisis, fair value, derivatives, mortgages, informational transparency, capital markets

AN ACCOUNTING PERSPECTIVE ON A CRISIS PERPETUATED THORUGH THE CAPITAL MARKET

Abstract: Our paper analyzes the current financial crisis starting with some recent developments and reactions in the field of accounting. We find that involved parties within the financial system naturally look for a "scapegoat" instead of dealing with reality. Moreover, they try to avoid regulations that would reflect their current financial position and performance. Meanwhile, what reality reveals us is that we are dealing with a crisis of value, or better said valuation, framed by significant changes of paradigms. Starting with thoughts and reactions within trade literature and financial environment, we analyze some mechanisms of credit derivatives that propagated the crisis within the global financial system. Finally, we prove our point in defending fair value accounting and identify key aspects that allow future improvements. The need for informational transparency is emphasized through the whole paper. Keywords: Financial crisis, fair value, derivatives, mortgages, informational transparency, capital markets. JEL Classification: A12, G01, M40, M41 * Carmen G. Bonaci earned her Master Degree at the Babeş-Bolyai University, Cluj-Napoca, Romania. Currently she is a Ph.D. Candidate and assistant within the Babeş-Bolyai University, the Faculty of economics and Business Administration and is teaching Basic Accounting, Financial Accounting, Advanced Accounting and Controlling. E-mail: [email protected] Dumitru Matiş earned his Ph.D. at the Babeş-Bolyai University, Cluj-Napoca, Romania. Currently he is a professor of different accounting disciplines, among which Basic Accounting, Financial Accounting, Advanced Accounting and International Accounting within the Babeş-Bolyai University, and Dean of the Faculty of Economics and Business Administration within the same University. He is member of the Chamber of Financial Auditors from Romania and of the Superior Council of the Accounting and Financial Reporting Council of Romania. E-mail: [email protected] The authors' research activities for this paper have been funded by the research projects CNCSIS 2571/2009 "Developing a conceptual integrated and self sustainable model regarding financial reporting within Romanian private sector entities" and CNMP 92-085/2008 "Developing a functional model for optimizing the national strategy regarding financial reporting within Romanian private sector entities"

Motivating Accounting Professionals in Romania. Analysis after Five Decades of Communist Ideology and Two Decades of Accounting Harmonization

Our paper focuses on accounting professionals in Romania as being a significant element when considering a national accounting system that went through complex accounting reforms of more than two decades. Since accounting policy represents an area of social and economic policy we must also consider the five decades of communist regime leaving their fingerprint on the Romanian society. It is our objective to capture the perception of the Romanian accounting profession that actually witnessed all these processes of transformation. More precisely we focus on exploring the motivational pattern of Romanian accounting professionals, arguing that our results could offer useful insights when it comes to accountants’ drivers to participate in the international accounting arena and therefore in the international accounting harmonization process. Our theoretical framework is based on Herzberg’s motivation-hygiene theory. Since Herzberg in his studies used the interview method, for more consistency, we found an interview-based qualitative approach to be the most appropriate to our research. One of our conclusions is that Herzberg’s theory can identify and explain reasonably well the motivational factors of today’s Romanian accounting professionals. However, the theory must be adjusted for higher relevance: (1) salary is not seen hygiene but a motivator, (2) advancement is not a motivator but hygiene, and (3) team/staff with strong motivational effect must be added to the model. Motivators and Hygiene factors were directly related to the level of hierarchy and redrafted a different pattern within the structure of an entity. By analyzing the information being obtained through the interview process, our paper offers an overview on the particular work environment that characterizes the accounting professional of late Romanian modernity, after five decades of an ideology based system. The results of the performed analysis document the fact that alienation and dependence have not become characteristics of the modern accounting professional. Furthermore, dehumanization and exploitation prove to be, in the case of the Romanian accounting system, inevitable consequences of the division of labor and the development of private property.Drivers, Motivators, Hygiene Factors, Job Satisfaction, Labor Behavior, Organizational Culture, Human Resource Accounting

Pengaruh Pendekatan Concrete – Pictorial – Abstract (CPA) Terhadap Kemampuan Pemahaman Konsep Matematis Siswa Kelas VII SMP Negeri 1 Ujungbatu Provinsi Riau

Penelitian ini dilatarbelakangi oleh adanya permasalahan yang ditemukan di kelas VII SMP Negeri 1 Ujungbatu. Berdasarkan hasil Ulangan Harian 1 ditemukan bahwa permasalahan dalam penelitian ini adalah rendahnya pemahaman konsep matematis peserta didik, hal tersebut dipengaruhi oleh penggunaan pendekatan yang kurang tepat. Melihat permasalahan tersebut peneliti memberikan soluasi melalui penerapan pendekatan Concrete-Pictorial-Abstract (CPA) dalam materi segiempat dan segitiga. Penelitian ini merupakan penelitian kuasi eksperimen dengan rancangan penelitian Posttest Only Control Group Design. Populasi dalam penelitian ini adalah kelas VII SMP Negeri 1 Ujungbatu. Berdasarkan penelitian dan uji pemahaman konsep matematis pada kelas eksperimen dan kontrol diperoleh data berdistribusi normal dan homogen. Hasil perhitungan yang diperoleh dalam pembahasan melalui uji-t diperoleh bahwa ??????? = 4,05 dan ?????? = 1,67022. Hasil perhitungan menunjukkan bahwa ??????? > ??????. Hal ini berarti bahwa keputusan ujinya H0 ditolak dan H1 diterima. Sehingga dapat disimpulkan bahwa terdapat pengaruh yang signifikan Pendekatan Concrete-Pictorial-Abstract (CPA) Terhadap Pemahaman Konsep Matematis Siswa Kelas VII SMP Negeri I Ujungbatu Tahun Pelajaran 2021/2022

Improving Students’ Concept with POE2WE Learning Model Assisted by PhET Android Simulation

The purpose of this study is to determine the influence of the POE2WE learning model assisted by the Android Lab Virtual PhET application on students' understanding of the Equilibrium of Rigid Objects. The type used in this study was quasi-experiment with research subjects of SMA Negeri 2 Medan students class XI MIPA 7 as an experimental class and XI MIPA 8 as a control class. The data analysis technique used is quantitative. The results of the research obtained were the influence of the POE2WE learning model assisted by the Android Lab Virtual PhET application on students' understanding of concepts on the equilibrium material of rigid objects in the medium category with an n-Gain test of 58.6%. Based on the results of the study, the application of the POE2WE learning model assisted by the PhET virtual android lab application can increase students' understanding of concepts on the equilibrium rigid body material.Tujuan dari penelitian ini adalah mengetahui pengaruh model pembelajaran POE2WE berbantuan aplikasi Android Lab Virtual PhET terhadap pemahaman kondep siswa pada materi Kesetimbangan Benda Tegar Jenis yang digunakan dalam penelitian ini adalah quasi eksperimen dengan subjek penelitian siswa SMA Negeri 2 Medan kelas XI MIPA 7 sebagai kelas eksperimen dan XI MIPA 8 sebagai kelas kontrol. Teknik analisi data yang digunakan adalah kuantitatif. Hasil penelitian yang diperoleh yaitu adanya pengaruh model pembelajaran POE2WE berbantuan aplikasi Android Lab Virtual PhET terhadap pemahaman konsep siswa pada materi kesetimbangan benda tegar yang berada pada kategori sedang dengan uji n-Gain sebesar 58,6 %. Berdasarkan hasil penelitian maka penerapan model pembelajaran POE2WE berbantuan aplikasi android lab virtual PhET dapat meningkatkan pemahaman konsep siswa pada materi kesetimbangan benda tegar

Accounting historians notebook, 2009, Vol. 32, no. 2 (October) [whole issue]

Copyright held by: Academy of Accounting Historian

Trade union strategy in Sydney's construction union: a Roman Catholic perspective

Rudd Government ministers have talked tough towards the more militant Australian trade unions since coming to office in November 2007. However, despite this, it is still fair to say that the removal of the Howard-Costello Government reduced neo-liberal hegemony by altering the invisible balance of power between capital and labour in the construction industry. Using a set of case studies, based on data obtained from fieldwork at the New South Wales, Australia branch of the Construction Forestry Mining and Energy Union (CFMEU), we document key elements of union strategy at the branch level in the year immediately after the removal of the Howard-Costello Government. A key aspect of branch level strategy was building site visits by a team of organisers, led by the divisional state secretary, designed to rebuild influence on site and reconnect with workers. Furthermore, the CFMEU’s hiring of foreign language speaking organisers and production of foreign language publications is a praiseworthy attempt to reach out to ethnic minority workers and bring them under the ‘mainstream’ union umbrella. We use a theory framework of Roman Catholic social teaching to frame our discussions