The impact of valuation rules for intangible assets in Japanese and German accounts of listed companies : [Version April 2003]

Intangible assets as goodwill, licenses, research and development or customer relations become in high technology and service orientated economies more and more important. But comparing the book values of listed companies and their market capitalization the financial reports seems to fail the information needs of market participants regarding the estimate of the proper firm value. Moreover, with the introduction of Anglo-American accounting systems in Europe and Asia we can observe even in the accounts of companies sited in the same jurisdiction diverging accounting practices for intangible assets caused by different accounting standards. To assess the relevance of intangible assets in Japanese and German accounts of listed companies we therefore measure certain balance sheet and profit and loss relations according to goodwill and self-developed software. We compare and analyze valuation rules for goodwill and software costs according to German GAAP, Japanese GAAP, US GAAP and IAS to determine the possible impact of diverging rules in the comparability of the accounts. Our results show that the comparability of the accounts is impaired because of different accounting practices. The recognition and valuation of goodwill and self-developed software varies significantly according to the accounting regime applied. However, for the recognition of self-developed software, the effect on the average impact on asset coefficients or profit is not that high. Moreover, an industry bias can only be found for the financial industry. In contrast, for goodwill accounting we found major differences especially between German and Japanese Blue Chips. The introduction of the new goodwill impairment only approach and the prohibition of the pooling method may have a major impact especially for Japanese companies’ accounts

Location decisions and the liability of foreignness: Spillover effects between factor market and capital market strategies

In this paper we build on the liability of foreignness concept and the institutional perspective to show how an equity listing and subsidiary formations in the host market are interlinked. Using a matched sample of foreign equity-listed and domestic equity-listed European firms on EU-regulated capital markets, we find that (1) the number of prior host-market subsidiary formations increases the probability of a host-market equity listing, and (2) a prior host-market equity listing increases the number of host-market subsidiary formations. Hence, we identify spillover effects between factor market and capital market strategies. However, the extent of these spillover effects depends on institutional characteristics of the host market, where companies on smaller markets gain higher spillover effects. We contribute to international management and finance research by providing factor market strategies as a valuable source to overcome capital market liabilities of foreignness and capital market strategies as a valuable source to overcome factor market liabilities of foreignness

Coordination challenges in implementing the three lines of defense model

The three lines of defense model (TLoD) aims to provide a simple and effective way to improve coordination and enhance communications on risk management and control by clarifying the essential roles and duties of different governance functions. Without effective coordination of these governance functions, work can be duplicated or key risks may be missed or misjudged. To address these challenges, professional standards recommend that the chief audit executive (CAE) coordinates activities with other internal and external governance stakeholders (assurance providers). We consider survey responses from 415 CAEs from Austria, Germany, and Switzerland to analyze determinants that help to implement the TLoD without any challenges and to explore the extent of (coordination) challenges between the internal audit function and the respective governance stakeholders. Our results show a great variance in the extent of coordination challenges dependent on different determinants and the respective governance stakeholder

Book Reviews

Book Reviews: Overthrow: America's Century of Regime Change From Hawaii to Iraq by Stephen Kinzer ; Longitude and Empire: How Captain Cook's Voyages Changed the World by Brian W. Richardson ; Pacific Encounters: Art & Diversity in Polynesia 1760-1860 by Steven Hooper ; All Men Are Brothers: The Life & Times of Francis Williams Damon by Paul Berry ; Broken Trust: Greed, Mismanagement, & Political Manipulation at America's Largest Charitable Trust by Samuel P. King and Randall W. Roth ; Crowning the Nice Girl: Gender, Ethnicity, and Culture in Hawai'i's Cherry Blossom Festival by Christine R. Yano ; Combat Chaplain: The Personal Story of the World War II Chaplain of the Japanese American 100th Battalion by Israel A. S. Yost ; Hawaiian Volcanoes by Clarence Edward Dutton ; Reworking Race: The Making of Hawaii's Interracial Labor Movement by Moon-Kie Jung ; Islands in a Far Sea: The Fate of Nature in Hawai'i by John L. Culliney

The 13th Southern Hemisphere Conference on the Teaching and Learning of Undergraduate Mathematics and Statistics

Ngā mihi aroha ki ngā tangata katoa and warm greetings to you all. Welcome to Herenga Delta 2021, the Thirteenth Southern Hemisphere Conference on the Teaching and Learning of Undergraduate Mathematics and Statistics. It has been ten years since the Volcanic Delta Conference in Rotorua, and we are excited to have the Delta community return to Aotearoa New Zealand, if not in person, then by virtual means. Although the limits imposed by the pandemic mean that most of this year’s 2021 participants are unable to set foot in Tāmaki Makaurau Auckland, this has certainly not stopped interest in this event. Participants have been invited to draw on the concept of herenga, in Te Reo Māori usually a mooring place where people from afar come to share their knowledge and experiences. Although many of the participants are still some distance away, the submissions that have been sent in will continue to stimulate discussion on mathematics and statistics undergraduate education in the Delta tradition. The conference invited papers, abstracts and posters, working within the initial themes of Values and Variables. The range of submissions is diverse, and will provide participants with many opportunities to engage, discuss, and network with colleagues across the Delta community. The publications for this thirteenth Delta Conference include publications in the International Journal of Mathematical Education in Science and Technology, iJMEST, (available at https://www.tandfonline.com/journals/tmes20/collections/Herenga-Delta-2021), the Conference Proceedings, and the Programme (which has created some interesting challenges around time-zones), by the Local Organizing Committee. Papers in the iJMEST issue and the Proceedings were peer reviewed by at least two reviewers per paper. Of the ten submissions to the Proceedings, three were accepted. We are pleased to now be at the business end of the conference and hope that this event will carry on the special atmosphere of the many Deltas which have preceded this one. We hope that you will enjoy this conference, the virtual and social experiences that accompany it, and take the opportunity to contribute to further enhancing mathematics and statistics undergraduate education. Ngā manaakitanga, Phil Kane (The University of Auckland | Waipapa Taumata Rau) on behalf of the Local Organising Committ

The degree of determination of national accounting systems : an empirical investigation

In international accounting literature there are various approaches to assess the quality of national accounting systems with respect to specific key functions, e.g. the intensity of capital market information. An empirical approach often used measures the quality of disclosure by ranking the national systems with the so-called "disclosure index" (e.g. Choi 1973, Barret 1975, Cooke 1992, Taylor/ Zarzeski 1996). Concentrating on disclosure regulation in contrast to accounting practices, Cooke/ Wallace 1990 construct an index which measures the "degree of financial regulation". They identify groups of countries which can be clearly classified in highly regulated, regulated and moderately regulated national accounting systems. In our analysis, we want to enrich the idea of the degree of financial disclosure regulation to a concept for evaluating the degree of determination of financial measurement. Assuming that a high degree of determination of a national accounting system leads to more comparable accounts than a low degree, the index can be interpreted as a quality measure of national accounting systems according to the intensity of capital market information. The following hypothesis is to be proved: the degree of disclosure regulation equals the degree of measurement regulation in order to serve the information needs of the national capital markets. Three groups of different degrees of determination for national accounting systems can be easily identified which are compared to the results of Cooke/ Wallace. For some of the national systems the above hypothesis seems to be appropriate whereas some opposing results can be shown. Possible explanations are presented which can be causally related to these diverging results. They are based on historical developments, the differentiation between rules for individual and group accounts, and on conditions where different degrees seem plausible

'Columban Texts and Joyce’s ‘book of kills’ (FW 482.33): the Limits of a Palaeographer’s View in Finnegans Wake'

Joyce regarded the Insular period – from the advent of Patrician Christianity to the Coming of the Normans – as a golden age during which the Irish exerted intellectual influence over Britain and across the Continent. This was due principally to the custom of peregrinatio (spiritual exile) in the manner of Colum Cille, a prince of the Uí Néill dynasty who would become Columba of Iona, founding a monastery on this remote island of the Inner Hebrides in 566 ad, according to the dating accepted in Joyce’s lifetime. Yet, Colum Cille’s spiritual exile was driven by a phosphorescent thirst for knowledge, an assured sense of his superiority in terms of intellect and ancestry, and the first copyright case in recorded history. These are just some of the parallels Joyce consciously fashions between his various personas in Finnegans Wake and Colum Cille. This chapter examines the Columban legacy in Finnegans Wake, especially the “calligraphy expertise” chapter, providing a codicological analysis of the letter unearthed by Biddy the Hen. This analysis is illuminated by Joyce’s engagement with the Book of Kells, traditionally attributed to Colum Cille, though this is a historical impossibility, but also examines his fascination with the first book ascribed to Colum Cille: the “Cathach battler” (vi.B.6.184; vi.C.3.47).</div