scholarly journals The disclosure of enterprise risk management (ERM) information: An overview of Canadian regulations for risk disclosure

2013 ◽  
Vol 2 (4) ◽  
pp. 13-21 ◽  
Author(s):  
Michael Maingot ◽  
Tony Quon ◽  
Daniel Zeghal
Keyword(s):  
Financial Reporting ◽  
Annual Report ◽  
Risk Disclosure ◽  
International Regulation ◽  
Financial Reporting Standards ◽  
Accounting Disclosures ◽  
Enterprise Risk ◽  
The Us ◽  
Risk Disclosures ◽  
Disclosure Obligations

This paper discusses the mandatory risk disclosures in Canada under International Financial Reporting Standards (IFRS). U.S. mandatory accounting disclosures of risk are also briefly examined, since some Canadian companies are cross-listed in the US. Mandatory disclosures of risk under the Basel II and Basel III Accords for the international regulation of banks are discussed as well as the assessment of ERM by Standard & Poor’s. The risk disclosures in the Management Discussion & Analysis (MD&A) section of the annual report prescribed by the Canadian Securities Administrators (CSA) in National Instrument 51-102 Continuous Disclosure Obligations are examined. Since these risk disclosures are voluntary, the actual disclosures in the MD&A section of the annual report are entirely at the discretion of management subject to effective board oversight.

scholarly journals The Strategy for Harmonizing Financial and Non-financial Reporting on Climate Risk Disclosures. Part 2

2020 ◽  
Vol 7 (4) ◽  
pp. 6-17
Author(s):  
O. V. Efimova ◽  
O. V. Rozhnova
Keyword(s):  
Climate Change ◽  
Financial Reporting ◽  
Financial Statements ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Climate Risks ◽  
Change Impact ◽  
Internal Accounting ◽  
Risk Disclosures ◽  
The Impact

The article is devoted to the harmonization of financial and non-financial reporting of the organization and the development of a strategy in the field of climate risks. In the first part of the article the main attention is paid to the analysis of the impact of these risks on the indicators of financial statements, the requirements for the disclosure of information, the relevance of reflecting the impact of climate change on the business, financial performance and the strategy. The second part formulates the recommendations for developing a strategy of harmonizing financial and non-financial reporting in the field of climate risks and for preparing disclosures regarding the interdependence of climate change impact and the company’s activities. The study is intended for government agencies of the Russian Federation, professional international organizations involved in the development of financial and non-financial reporting standards, interested users, as well as economic entities that develop internal accounting and reporting standards.

scholarly journals Investigating risk disclosures in Italian integrated reports

2020 ◽  
Vol 28 (6) ◽  
pp. 1149-1178 ◽  
Author(s):  
James Guthrie ◽  
Francesca Manes Rossi ◽  
Rebecca Levy Orelli ◽  
Giuseppe Nicolò
Keyword(s):  
Content Analysis ◽  
Financial Reporting ◽  
Design Methodology ◽  
Alternative Form ◽  
Risk Disclosure ◽  
Integrated Reporting ◽  
Content Type ◽  
Risk Disclosures ◽  
Do So

Purpose The paper identifies the types of risks disclosed by Italian organisations using integrated reporting (IR). This paper aims to understand the level and features of risk disclosure with the adoption of IR. Design/methodology/approach The authors use risk classifications already provided in the literature to develop a content analysis of Italian organisations’ integrated reports published. Findings The content analysis reveals that most of the Italian organisations incorporate many types of risk disclosure into their integrated reports. Organisations use this alternative form of reporting to communicate risk differently from how they disclose risks in traditional annual financial reporting. That is, the study finds that the organisations use their integrated reports to disclose a broader group of risks, related to the environment and society, and do so using narrative and visual representation. Originality/value The paper contributes to a narrow stream of research investigating risk disclosure provided through IR, contributing to the understanding of the role of IR in representing an organisational risk.

2. The international evolution of accounting

2014 ◽  
Author(s):  
Christopher Nobes
Keyword(s):  
Financial Reporting ◽  
Accounting Information ◽  
Accounting Standards ◽  
Financial Accounting ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards ◽  
Financial Position ◽  
The Us ◽  
Company Directors ◽  
Double Entry

What are the purposes of accounting? How do these purposes affect how accounting works? What is double-entry bookkeeping? ‘The international evolution of accounting’ considers these questions and outlines some examples of how different countries have contributed to the development of accounting. Double-entry bookkeeping, conceived in thirteenth-century Italy, balances the debits and credits. It enables the calculation of profit and the presentation of a business's financial position. Publication of accounting information is required to protect shareholders and creditors from potential malpractice by company directors. The globalization of world business has resulted in International Financial Reporting Standards, now used by around 90 countries. The US use their Financial Accounting Standards Board's ‘generally accepted accounting principles’.

The readability impact of international financial reporting standards

2015 ◽  
Vol 27 (3) ◽  
pp. 282-303 ◽  
Author(s):  
Glenn Richards ◽  
Chris van Staden
Keyword(s):  
Computational Linguistics ◽  
Financial Reporting ◽  
Annual Report ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Content Type ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Financial Disclosures ◽  
Negative Impacts

Purpose – This paper aims to compare the readability of narrative annual report disclosure pre- and post-International Financial Reporting Standards (IFRS) adoption using a computational linguistics programme to determine if annual report disclosures have become more difficult or easier to read following the adoption of IFRS. Design/methodology/approach – This paper empirically measures narrative annual report disclosure readability pre- and post-IFRS adoption using a computational linguistics programme. In this analysis, the authors control for variables that have been identified as relevant to the understanding of financial disclosures, such as size, business volatility, financial leverage and industry. Findings – Significant relationships have been identified between IFRS adoption and reduced readability indicators using readability formulas, and also using other factors such as increased length of annual report disclosures and increased use of tables. Findings suggest that the adoption of IFRS has added complexity and resulted in reduced readability of annual report disclosures. Practical implications – Academic backing to claims of IFRS’s negative implications for financial statements and their ultimate users should encourage action on the part of standard setters and report preparers to address the negative impacts of IFRS adoption. Originality/value – This paper is the first to provide evidence that New Zealand equivalents to IFRS adoption have resulted in not only longer disclosures but also more complicated disclosures.

scholarly journals The Impact Of International Financial Reporting Standards On Accounting Curriculum In The United States

2011 ◽  
Vol 4 (1) ◽  
Author(s):  
JeRamMohan R. Yallapragadarry ◽  
Alfred G. Toma ◽  
C. William Roe
Keyword(s):  
United States ◽  
Financial Reporting ◽  
Business Schools ◽  
The United States ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Accounting Curriculum ◽  
The Us ◽  
The Impact

According to the time line presently specified by the Securities and Exchange Commission (SEC), business firms in the United States (US) should switch from the existing US accounting reporting guidelines of the Generally Accepted Accounting Principles (GAAP) to International Financial Reporting Standards (IFRS) by the year 2014.  The US business school graduates and accounting professionals have less than four years to understand the differences between the two accounting systems, and to learn how to implement the new International Accounting Standards.  But many of the business schools in the US are not yet ready to include the new IFRS standards in their accounting curriculum. In many schools, administrators do not have any understanding of how to incorporate the new standards in their curriculum. Many European countries shifted to IFRS as early as 2005.  They are ahead of the US in teaching IFRS to their students. The main problems in incorporating IFRS in the curriculum include lack of good textbooks and providing training for professors to learn IFRS procedures so that they can teach them to their students. This paper makes an effort in presenting the historical background of IFRS, and the impact of the adapting of IFRS on US business schools.

scholarly journals The role of enterprise risk management on disclosure transparency in the international financial reporting standards period

Accounting ◽  
2021 ◽  
Vol 7 (6) ◽  
pp. 1241-1250 ◽  
Author(s):  
Bisan Almasri
Keyword(s):  
Risk Management ◽  
Financial Reporting ◽  
Enterprise Risk Management ◽  
International Financial Reporting Standards ◽  
Future Research ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Enterprise Risk ◽  
Study Results

This research empirically investigates the role of the enterprise risk management system implementation level in capturing firm managerial incentives. The system plays an important role in understanding the association between international financial reporting standards and the capital market. Listed firms in the Australian market were used for the period 2000-2010 for this purpose. The study results imply that implementing higher levels of ERM by Australian firms during the mandatory IFRS adoption period does not capture firm incentives in IFRS period. Consequently, these results suggest that the implementation of ERM by Australian firms does not reduce the contractual costs between investors and management, whilst adopting IFRS does. Future research may use other techniques and/or strategies other than ERM, to capture the firm incentives, and as a result, may have economic consequences.

Comparing the Cybersecurity Risk Disclosures of US and Foreign Firms

2021 ◽  
Author(s):  
Thomas Calderon ◽  
Lei Gao
Keyword(s):  
Key Words ◽  
Textual Analysis ◽  
Home Bias ◽  
Foreign Firms ◽  
Risk Disclosure ◽  
Disclosure Regulation ◽  
The Us ◽  
Risk Disclosures

This study explores the cybersecurity risk disclosure differences between foreign firms listed in the US and US firms. We first extract cybersecurity risks disclosures text with a Python program based on a list of cybersecurity key words. We then perform textual analysis of the cybersecurity risk disclosures in foreign firms’ 20-F filings and US firms’ 10-K filings. During our study period, we observe that foreign firms disclose more about their cybersecurity risks and their disclosures are more readable than US firms. Foreign firms also use more numbers, fewer uncertainty words and fewer litigious language than their US counterparts.  In general, our study suggests that cybersecurity risk disclosures made by foreign firms are clearer and more specific than those made by US firms. This finding could have implications for disclosure regulation and home bias research.

scholarly journals Accounting For Agricultural Products: US Versus IFRS GAAP

2013 ◽  
Vol 11 (2) ◽  
pp. 79 ◽  
Author(s):  
Treba Marsh ◽  
Mary Fischer
Keyword(s):  
Financial Reporting ◽  
Fair Value ◽  
Financial Statement ◽  
International Accounting ◽  
Accounting Standard ◽  
Historical Cost ◽  
Financial Reporting Standards ◽  
The Us ◽  
Accounting Recognition ◽  
International Accounting Standard

Currently there is a mix of accounting guidance for agriculture producers in the US that is both GAAP including Accounting Statement Codification 905 and non-GAAP financial guidelines. Should the US adopt International Financial Reporting Standards (IFRS), this guidance would be replaced with International Accounting Standard (IAS) 41 Agriculture. This study identifies systematic differences between the US and International accounting and reporting for agricultural assets and products. The study also finds that international and US agricultural accounting recognition and reporting guidance result in dissimilar reporting due to guidance interpretation. Valuation variances and definition differences including the requirement to change the agricultural asset recognition method from historical cost to fair value continue to be the basis of major reporting differences. Current US guidance on recognizing and reporting agricultural assets is more conservative than the international guidance. Overall, the US agricultural recognition and reporting guidance contains less information and is therefore less beneficial to financial statement users.

scholarly journals Firm’s size, mandatory adoption of IFRS and corporate risk disclosure among listed non-financial firms in Saudi Arabia

2021 ◽  
Vol 17 (2) ◽  
pp. 1-28
Author(s):  
Awatif Alsheikh ◽  
Mohamat Sabri Hassan ◽  
Norman Mohd-Saleh ◽  
Mohd Hafizuddin-Syah bin Abdullah ◽  
Warda Alsheikh
Keyword(s):  
Saudi Arabia ◽  
Financial Reporting ◽  
Small Firms ◽  
Ordinary Least Squares ◽  
Risk Disclosure ◽  
Financial Firms ◽  
Mandatory Adoption ◽  
Risk Disclosures ◽  
Corporate Risk ◽  
The Relationship

This study examines the relationship between the mandatory adoption of International Financial Reporting Standards (IFRS) and the disclosures of corporate risk among non-financial firms in Saudi Arabia. Based on the observation of 320 firm-year from 2015 until 2017, this study reveals a positive relationship between the mandatory adoption of IFRS and the corporate risk disclosures. The relationship holds when we decompose corporate risk disclosures into financial and non-financial risk disclosures. The results are consistent for both the pooled Ordinary Least Squares (OLS) and random effects estimations. Additionally, the result is steady with all primary categories except risk management. We also provide evidence that large firms are more likely to adopt IFRS and reveal more risk information than small firms. This study’s findings are relevant for market regulators in their attempt to improve corporate risk disclosures among listed firms in Saudi Arabia.

scholarly journals The value and accounting premium for South African-listed shares

2008 ◽  
Vol 2 (2) ◽  
pp. 187-202
Author(s):  
Jürgen Ernstberger ◽  
Christian Heinze ◽  
Oliver Vogler
Keyword(s):  
South African ◽  
Financial Reporting ◽  
The United States ◽  
High Ratio ◽  
Value Premium ◽  
Accounting Standard ◽  
Value Stocks ◽  
Financial Reporting Standards ◽  
The Us ◽  
Growth Stocks

In the last decade, empirical research has found strong evidence that value stocks provide higher returns than growth stocks (value premium). Firms with a high ratio of book value of equity to market value of equity are regarded as value stocks; a low ratio identifies growth stocks. Most research is tailored to the market in the United States of America. Only a few studies consider country-specific distinctions. This research analyses the value premium for the South African market and compares its magnitude to the findings for the US market. Moreover, the effects of the introduction of International Financial Reporting Standards (IFRS) for companies listed at the JSE Limited are examined. The adoption of IFRS is used to demonstrate that investors award an accounting premium for voluntary compliance with this new accounting standard.

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