Globalisation of accounting standards: the usefulness of U.S. GAAP reconciliation information

Considerable progress has been made in the past decade converging national Generally Accepted Accounting Principles (GAAP), including United States (U.S.) GAAP, with International Financial Reporting Standards (IFRSs). Furthermore, many countries have adopted, or partially adopted, IFRSs as their national GAAP. The globalisation of accounting standards motivates this study to examine the usefulness of U.S. GAAP reconciliation information over time. With the expectation that converged accounting standards decrease the usefulness of reconciliation information over time, this study examines the market reactions around the release of reconciliation information during 2002–2007. Decreasing usefulness of reconciliation information is expected because of accounting standards becoming increasingly similar to U.S. GAAP. This study shows that market reactions (abnormal returns and abnormal trading volume) to the release of reconciliation information are greater in the earlier period (2002–2004) than in the later period (2005–2007). This study also investigates how the usefulness of reconciliation information is affected by country-level attributes, namely, investor protection, earnings quality, and earnings and the book value of equity differences between U.S. and domestic GAAP. With the exception of earnings differences, results indicate support for the country-level attributes being associated with market reactions to the release of U.S. GAAP reconciliation information, when measured by abnormal trading volume. When market reactions are assessed using abnormal returns, no associations are found. The results of sensitivity analysis generally support the main results. Therefore, this study finds that the convergence of accounting standards leads to the decreasing usefulness of reconciliation information, indicating that the similarity of accounting standards is priced by the market over time. This study also finds some support for country-level factors impacting the usefulness of reconciliation information, as indicated by a positive association between abnormal trading volume and foreign registrants’ home country investor protection, earnings quality, and book value of equity differences. These results support the claims of the Securities and Exchange Commission (SEC) that the usefulness of reconciliation information has decreased. This was a factor considered by the SEC when removing the requirement for reconciliation statements for foreign registrants preparing financial reports using IFRSs as issued by the International Accounting Standards Board (IASB). The results also inform the SEC’s deliberations on continuing the reconciliation requirement for companies preparing financial reports using GAAP other than IFRSs as issued by the IASB

Globalisation of accounting standards: the usefulness of U.S. GAAP reconciliation information

Considerable progress has been made in the past decade converging national Generally Accepted Accounting Principles (GAAP), including United States (U.S.) GAAP, with International Financial Reporting Standards (IFRSs). Furthermore, many countries have adopted, or partially adopted, IFRSs as their national GAAP. The globalisation of accounting standards motivates this study to examine the usefulness of U.S. GAAP reconciliation information over time. With the expectation that converged accounting standards decrease the usefulness of reconciliation information over time, this study examines the market reactions around the release of reconciliation information during 2002–2007. Decreasing usefulness of reconciliation information is expected because of accounting standards becoming increasingly similar to U.S. GAAP. This study shows that market reactions (abnormal returns and abnormal trading volume) to the release of reconciliation information are greater in the earlier period (2002–2004) than in the later period (2005–2007). This study also investigates how the usefulness of reconciliation information is affected by country-level attributes, namely, investor protection, earnings quality, and earnings and the book value of equity differences between U.S. and domestic GAAP. With the exception of earnings differences, results indicate support for the country-level attributes being associated with market reactions to the release of U.S. GAAP reconciliation information, when measured by abnormal trading volume. When market reactions are assessed using abnormal returns, no associations are found. The results of sensitivity analysis generally support the main results. Therefore, this study finds that the convergence of accounting standards leads to the decreasing usefulness of reconciliation information, indicating that the similarity of accounting standards is priced by the market over time. This study also finds some support for country-level factors impacting the usefulness of reconciliation information, as indicated by a positive association between abnormal trading volume and foreign registrants’ home country investor protection, earnings quality, and book value of equity differences. These results support the claims of the Securities and Exchange Commission (SEC) that the usefulness of reconciliation information has decreased. This was a factor considered by the SEC when removing the requirement for reconciliation statements for foreign registrants preparing financial reports using IFRSs as issued by the International Accounting Standards Board (IASB). The results also inform the SEC’s deliberations on continuing the reconciliation requirement for companies preparing financial reports using GAAP other than IFRSs as issued by the IASB

ANALISIS PERTUMBUHAN PAJAK KENDARAAN BERMOTOR, BEA BALIK NAMA KENDARAAN BERMOTOR, DAN PAJAK BAHAN BAKAR KENDARAAN BERMOTOR, SERTA PENGARUHNYA PADA PENDAPATAN DAERAH DI KABUPATEN BANTUL PERIODE TAHUN 2006-2012

The growth of motor vehicle in Daerah Istimewa Yogyakarta (DIY) is increasing every year, and the existance of this motor vehicle has become very important part for the people. The increase of motor vehicle will be followed by an increase of the amount of fuel consumption. This increase of amount of motor vehicle and the increase of amount of fuel consumption will affect the local tax, that is Motor Vehicle Tax (PKB), Excise for Transferring Ownership of Motor Vehicle (BBNKB), and Motor Vehicle Fuel Tax (PBBKB). This research use the growth analysis, effectivity analysis, contribution analysis, and trend analysis to show and inform the growth and prediction of the PKB, BBNKB, and PBBKB, and also to calculate the percentage of the effect from this taxes to the regional income at one of the district in DIY, that is Bantul. The result of the analysis show that the PKB, BBNKB, and PBBKB are increasing or have a positive growth, where the ratio of that growth in the end of 2012 respectively reach 152%, 214%, and 53% from 2006, with the rate of growth respectively are 16.77%, 21.76% and 8.12%. Effectivity ratio show an average value above 100% which means that the performance of tax collection has been very effective. From the proceeds of receipt of that taxes, a portions shall be submitted to the relevant district/town as profit sharing of provincial taxes. But that profit sharing of provincial taxes from the PKB, BBNKB, and PBBKB have not a big contribution to the regional income in Bantul

PERSEPSI MANFAAT MANAJERIAL ATAS PEMENUHAN KEWAJIBAN PERPAJAKAN: Studi Kasus pada Usaha Mikro, Kecil dan Menengah di Kota Yogyakarta

As a profit organization, Small and Medium Enterprise faced several tax rules such as income tax and Government Service Tax (GST). It becomes a problem when most of SME in Indonesia don�t have good accounting records so they don�t know how much profit they had or how much goods they sold. Lignier (2009) showed that most of small business only kept their accounting records to pay tax obligations. So it can be concluded that tax regulation can give managerial benefit by pushing small business owner to keep their transaction records. Good accounting records refers to better decision making process on their management. Perception about managerial benefit influenced by personal characteristic of SME owner such as level of education, business experience and knowledge of accounting (Lignier, 2009). Understanding the managerial benefit can raise intention of SME owner to obey tax rules and lead them to tax compliance action. The purpose of this research is to discover factors that influence perception of SME owner about managerial benefit. Independent variables used in this research is personal characteristics of SME owner including level of education, business experience and knowledge of accounting This research conducted using primary data from SME owner in Yogyakarta City and analyzed using Structural Equation Modelling (SEM). From this research, it can be concluded that level of education, business experience and knowledge of accounting have positive impact on perception of managerial benefit. Keywords: tax, tax compliance, small and medium enterprise (SME), managerial benefit, business experience, knowledge of accountin

THE INFORMATION CONTENT OF FINANCIAL INFORMATION UNDER PSAK 24 (2010) (Evidence from Manufacturing Firms Listed on Indonesian Stock Exchange)

\" \" This study examines the information content of financial information in the initial adoption of PSAK 24 year 2010. Using the sample of 35 manufacturing firms with the fiscal year ending on December 31, 2011 and 2012, this study performs a simple event study to measures the information content of new financial information. Metric explanation using cross section linear regression examines the extent of financial information under PSAK 24 (2010) influence cumulative abnormal return. The results indicate that there is a significant abnormal return during the event window of the financial information announcement date. This study finds the financial information under PSAK 24 (2010) have greater information content than financial information under PSAK 24 (2004). The cross sectional analysis finds evidence that the abnormal return is associated with financial information under PSAK 24 (2010)