The challenges faced by reporting entities on their transition to international financial reporting standards:a qualitative study

This study explores the challenges of implementing International Financial Reporting Standards (IFRS) at the organisational level. Based on interviews with experts with aggregated experience relating to the transition projects of over 170 reporting entities, this paper highlights the main challenges in delivering a successful implementation of IFRS. The findings show that the problems faced in implementation include lack of education and training, securing executive-level support, identifying and responding to the wider business-related implications of the transition, and issues with capturing the necessary information for reporting under IFRS.This paper complements the existing literature and offers a qualitative alternative to considering the transition to IFRS, offering insight into the organisational context of IFRS implementation. These insights are useful not only from a historic perspective, but also for organisations and regulators in the many jurisdictions where IFRS is permitted but not required, where more reporting entities will voluntarily move to IFRS-based reporting in the future. More broadly, they are also applicable to the challenges faced in implementing new and significantly revised IFRSs

The evaluation criteria used by venture capitalists: evidence from a UK venture fund

Grahame Boocock and Margaret Woods are Lecturers in Banking and Finance, and Financial Management, respectively at Loughborough University Business School, England. The paper examines how venture fund managers select their investee companies, by exploring the evaluation criteria and the decision making process adopted at one UK Regional Venture Fund (henceforth referred to as the Fund). The analysis confirms that relatively consistent evaluation criteria are applied across the industry and corroborates previous models which suggest that venture capitalists’ decision making consists of several stages. With the benefit of access to the Fund’s internal records, however, this paper adds to the current literature by differentiating the evaluation criteria used at each successive stage of the decision-making process. The paper presents a model of the Fund’s activities which demonstrates that the relative importance attached to the evaluation criteria changes as applications are systematically processed. Proposals have to satisfy different criteria at each stage of the decision-making process before they receive funding. In the vast majority of cases, applications are rejected by the fund managers. In addition, the length of time taken by the fund managers in appraising propositions can lead to the withdrawal of applications at an advanced stage

Linking comprehensive performance assessment to the balanced scorecard

Over the course of the last twenty years there has been a growing academic interest in performance management, particularly in respect of the evolution of new techniques and their resulting impact. One important theoretical development has been the emergence of multidimensional performance measurement models that are potentially applicable within the public sector. Empirically, academic researchers are increasingly supporting the use of such models as a way of improving public sector management and the effectiveness of service provision (Mayston, 1985; Pollitt, 1986; Bates and Brignall, 1993; and Massey, 1999). This paper seeks to add to the literature by using both theoretical and empirical evidence to argue that CPA, the external inspection tool used by the Audit Commission to evaluate local authority performance management, is a version of the Balanced Scorecard which, when adapted for internal use, may have beneficial effects. After demonstrating the parallels between the CPA framework and Kaplan and Norton's public sector Balanced Scorecard (BSC), we use a case study of the BSC based performance management system in Hertfordshire County Council to demonstrate the empirical linkages between a local scorecard and CPA. We conclude that CPA is based upon the BSC and has the potential to serve as a springboard for the evolution of local authority performance management systems

Market risk reporting by the world's top banks:evidence on the diversity of reporting practice and the implications for international accounting harmonisation

The increasing adoption of international accounting standards and global convergence of accounting regulations is frequently heralded as serving to reduce diversity in financial reporting practice. In a process said to be driven in large part by the interests of international business and global financial markets, one might expect the greatest degree of convergence to be found amongst the world’s largest multinational financial corporations. This paper challenges such claims and presumptions. Its content analysis of longitudinal data for the period 2000-2006 reveals substantial, on going diversity in the market risk disclosure practices, both numerical and narrative, of the world’s top-25 banks. The significance of such findings is reinforced by the sheer scale of the banking sector’s risk exposures that have been subsequently revealed in the current global financial crisis. The variations in disclosure practices documented in the paper apply both across and within national boundaries, leading to a firm conclusion that, at least in terms of market risk reporting, progress towards international harmonisation remains rather more apparent than real

Accounting and risk special issue: editorial

Editoria

Tidally Triggered Star Formation in Close Pairs of Galaxies: Major and Minor Interactions

We study star formation in a sample of 345 galaxies in 167 pairs and compact groups drawn from the original CfA2 Redshift Survey and from a follow-up search for companions. We construct our sample with attention to including pairs with luminosity contrast |\Delta m_R| >= 2. These 57 galaxies with |\Delta m_R| >= 2 provide a set of nearby representative cases of minor interactions, a central feature of the hierarchical galaxy formation model. Here we report the redshifts and positions of the 345 galaxies in our sample, and of 136 galaxies in apparent pairs that are superpositions. In the pairs sample as a whole, there are strong correlations between the equivalent width of the H\alpha emission line and the projected spatial and the line-of-sight velocity separation of the pair. For pairs of small luminosity contrast, |\Delta m_R| < 2, the member galaxies show a correlation between the equivalent width of H\alpha and the projected spatial separation of the pair. However, for pairs with large luminosity contrast, |\Delta m_R| >= 2, we detect no correlation between the equivalent width of H\alpha and the projected spatial separation. The relative luminosity of the companion galaxy is more important in a gravitational tidal interaction than the intrinsic luminosity of the galaxy. Central star formation across the entire pairs sample depends strongly on the luminosity ratio, |\Delta m_R|, a reasonable proxy for the mass ratio of the pair; pairs composed of similarly luminous galaxies produce the strongest bursts of star formation. Pairs with |\Delta m_R| >= 2 rarely have EW(H\alpha) >~ 70 Ang.Comment: Minor revisions following journal proof

About the Editors

This back matter to Reflections on Experiences Abroad, a collection of essays authored by Ouachita Baptist University faculty and staff who have lived outside the U.S., introduces the student editors who helped create this issue