482 research outputs found
Bridging the gap between academia and standard setters
Purpose This commissioned paper reviews literature outlining reasons for a perceived gap between academics and standard setters as policy makers. The aim of this paper is to emphasise how academics and standard setters can collaborate on accounting and audit research and assist standard setters to act in the public interest. Design/methodology/approach The approach is primarily a literature and document review of relevant issues, summarising New Zealandâs standard setting arrangements, providing examples of successful policy-changing research, and making recommendations on future research topics. Findings Despite the long-held views of a gap between academic researchers and standard setters, increasingly standard setters utilise research and request input from academics in their deliberations. Standard setters can increase the likelihood of relevant research by promoting critical issues for research and connecting their practitioner networks with academics. Academics can bridge the gap by selecting topics..
Does accounting treatment of share-based payments impact performance measures for banks?
This paper identifies, evaluates and analyses the resulting impact of mandatory expensing of shareâbased compensation (SBC) under IFRS2/FASB123R on a set of widely used performance measures in the EU and US banking industry. The paper shows that the accounting treatment of SBC schemes, following the mandatory adoption of IFRS2/FAS123R, has a statistically significant negative impact on the selected performance measures over the period 2004â11. The impact also seems to be material, yet modest, for US banks and only for large and highâgrowth EU banks, indicating that earlier public concerns and criticisms of the implementation of IFRS2/FAS123R are largely unsubstantiated. The findings also show that banks continue to use SBC, but there is a reduction, albeit insignificant, in the recognised SBC expense over the period 2009â11. That is, earlier public concerns that firms would curtail employing SBC in their employeesâ compensation schemes to avoid the effect of SBC expense recognition on their financial ratios came to light after the first option lifeâcycle in the postâadoption period was over. The findings also show a marked movement towards using cashâsettledâbased payments, possibly due to their manipulative accounting treatment, a potentially interesting issue for related accounting research and accounting standard setters
Stock Market Sensitivity to UK firms? pension discounting assumptions
Article; an earlier version appeared as University of Exeter, Department of Accounting working paper 06-07/04New U.K. pension accounting regulations significantly increase the exposure of the balance sheets of U.K. firms to volatilities in pension fund valuations. We examine whether the abnormal returns of firms that voluntarily used market-based pension discount rates are significantly different from the abnormal returns of industry-matched pair samples of firms that retained traditional cost-based valuation assumptions during the period surrounding the release of the related exposure draft. We also examine the interest rate sensitivity of stock price returns over the 4-year period before and after the announcement date. Consistent with our hypotheses, U.K. stock price returns incorporate the effect of unexpected interest rate changes on sources of pension earnings for firms that voluntarily switched to market-based assumptions but do not incorporate these effects for firms that did not switch. These results suggest that unexpected changes in interest rates have a differential effect on a firm's sources of pension, financial, and core earnings
Do Harmonised Accounting Standards Lead to Harmonised
The objective of this paper is to investigate the level of
harmonisation for IAS 39 Financial Instruments:
Recognition and Measurement and to identify if
different levels of harmonisation are associated with
company-specific factors. Based on Rahman et al. (2002),
we used the Jaccard (JACC) index to determine the level
of harmonisation between IAS 39 and the financial
reporting practice of a broad-based sample of
European-listed companies in 2005.We applied regression
analysis to identify companiesâ specific characteristics that
affect the level of convergence of the reporting practice of
financial instruments. The results of this study show a
high level of harmonisation between accounting practices
of European companies included in our sample and IAS
39
Accountability and not-for-profit organisations: implications for developing international financial reporting standards
This paper provides empirical evidence which informs contemporary debates on developing international financial reporting standards for not-for-profit organisations (NPOs) (CCAB, 2013a,b; IFRS Foundation, 2015). Drawing on a global survey with respondents showing experience of NPO reporting in 179 countries, we explore: practice and beliefs about NPO financial reporting internationally; perceptions of accountability between NPOs and stakeholders; and implications for developing international financial reporting standards. Interpreting our research in the context of accountability, we find considerable support for developing international financial reporting standards for NPOs, recognising broad stewardship accountability to all stakeholders as important, but prioritising accountability upwards to external funders and regulators
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