Grundsätze ordnungsmäßiger Buchführung, Bilanztheorie, Globalisierung, GAAP (Generally Accepted Accounting Principles), Accounting theory, Globalization

Brognard, John

Newton, Alexandra C.

Niederst, Matthew

Reyes, Gloria

Warfel, Noel

English

PubMed

PHLPP2 (PH domain leucine-rich repeat protein phosphatase 2) terminates Akt and protein kinase C (PKC) activity by specifically dephosphorylating these kinases at a key regulatory site, the hydrophobic motif (Ser-473 in Akt1). Here we identify a polymorphism that results in an amino acid change from a Leu to Ser at codon 1016 in the phosphatase domain of PHLPP2, which reduces phosphatase activity toward Akt both in vitro and in cells, in turn resulting in reduced apoptosis. Depletion of endogenous PHLPP2 variants in breast cancer cells revealed the Ser-1016 variant is less functional toward both Akt and PKC. In pair-matched high grade breast cancer samples we observed retention of only the Ser allele from heterozygous patients (identical results were observed in a pair-matched normal and tumor cell line). Thus, we have identified a functional polymorphism that impairs the activity of PHLPP2 and correlates with elevated Akt phosphorylation and increased PKC levels. © 2009 by The American Society for Biochemistry and Molecular Biology, Inc

The University of Manchester - Institutional Repository

Common polymorphism in the phosphatase PHLPP2 results in reduced regulation of Akt and protein kinase C

Hanno Merkt

Research Papers in Economics

CESifo Forum 3/2002 31
Pro and Contra
CONTRA:T HE BEST OF BOTH
WORLDS – A GERMAN VIEW
HANNO MERKT*
In recent years, a steadily growing number of
German companies have been reporting consoli-
dated financial statements under US GAAP or
IAS, driven by the need for fresh equity capital
which cannot be raised to a sufficient extent on the
domestic market. This development benefits all
those involved. It provides German companies
with access to a deep and liquid source of capital –
including a “currency” in the form of listed stock
available for acquisitions in the U.S. It provides
U.S. investors with increased opportunities for the
allocation of their investments. At the same time
market observers, researchers and regulators point
to the fact that financial statements prepared
under the shareholder (or investor) model, such as
US GAAP or IAS,provide better information than
financial statements prepared under the stakehold-
er model (German GAAP). What is the economic
and legal rationale behind these differences? 
In common-law economies (US and IAS models),
accounting rules are determined largely by the dis-
closure needs of actual and prospective sharehold-
ers. Capital is generally raised in public stock and
bond markets. The problem of asymmetric infor-
mation between managers and shareholders is
addressed through financial reporting and other
means of timely public disclosure.Thus, the prima-
ry focus of US GAAP and IAS is the need of cur-
rent and prospective shareholders for relevant and
reliable information. In a common-law environ-
ment, accounting standards evolve by becoming
commonly accepted in practice and are generally
separate from tax laws. In other words, accounting
standards arise in an accounting market and are
not determined by government.
In clear contrast to this rather monistic concept of
accounting, German accounting standards were
developed in a highly politicised environment serv-
ing a number of stakeholders as well as taxation
requirements. Under the German code-law model
of accounting, governments, debt holders, share-
holders, employees, suppliers, and managers are
viewed as stakeholders of a firm.Net income is dis-
tributed amongst stakeholders, as pay increase to
employees, bonuses to managers, tax to govern-
ment, and dividends to shareholders. In Germany,
banks traditionally play a key role in providing
finance and representing investors. Agents of
stakeholders tend to be informed by private and
inside access to information.This reduces the need
for timely public disclosure of income. Also, the
incentives (e.g., minimising taxes) and opportuni-
ties (e.g. reserve accounting) to reduce earnings
volatility are comparably high. Specifically, with
financial reporting the same as tax reporting and
with progressive income tax rates, smoothing earn-
ings results in a reduction of distribution of
income. The German approach has been labelled
quite aptly as paternalistic, in that accounting
under traditional German standards operates as a
guardian in favour of all of the firm’s stakeholders.
This makes the firm more reliable for debtors but
at the same time less attractive for investors.
Moreover, the accounting concept is deeply rooted
in the corporate legal system serving as shield
against looting the firm’s legal capital and as a
pretty effective substitute for what in common law
jurisdictions is known as financial covenants, i.e.
contractual safeguards against the risk of default.
Hence, the German accounting system as such is
definitely not up for consideration.
Therefore,it appears to be quite a challenge to rec-
oncile the stakeholder oriented German account-
ing model with the investor oriented common law
If you want to comment on this topic or react to the opinion expressed here, please visit the CESifo
Internet Forum on our web site: www.cesifo.de
* Professor of German, Foreign and International Private and
Business Law at the Bucerius Law School, Hamburg.accounting philosophy in order to facilitate the
raising of equity capital on international markets.
Various concepts are discussed among experts, one
alternative being a careful and gradual modifica-
tion and adaptation of German accounting princi-
ples to IAS, another and quite promising one the
implementation of a system of two separated sets
of rules for information purposes and for the
determination of distributable earnings.This latter
approach would permit preserving the traditional
German system without keeping German corpora-
tions locked out of international capital markets.
Market participants would have to learn that a cor-
poration and its performance can be looked at eas-
ily through different sets of glasses. However, only
the future will tell whether it is possible to combine
the best of both worlds.
CESifo Forum 3/2002 32
Pro and Contra