161 research outputs found
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
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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Accounting for information: Information and knowledge in the annual reports of FTSE 100 companies
The purpose of this study was to assess the ways in which a sample group of companies discuss information and knowledge.
Quantitative and qualitative content analyses were used to survey the way that companies present and value information and knowledge, based on the annual reports of the FTSE 100, the United Kingdom's largest publicly-listed companies. A novel content analysis approach is used, based on a set of categories proposed by Oppenheim, Stenson and Wilson.
Many of the companies analysed made explicit the importance of information and knowledge, through either discussion in the text of the annual report or through an attempt to assign a monetary value to information assets. Where the importance of information and knowledge was not made explicit, the study revealed links between successful performance and effective use of information assets. Different categories of information assets were identified within the annual reports.
Conclusions drawn from the analysis include that information and knowledge are demonstrably important to FTSE 100 companies, although the specific term âknowledgeâ does not appear to have a special significance in the companiesâ lexicon; and that certain sectors, such as General Financial, General Retail, Travel & Leisure, Mining, Aerospace & Defence and Software & Computer Services, mention information and knowledge more than others
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