Should Government Assistance be Reflected in Financial Reports?

2019 ◽  
Vol 34 (1) ◽  
pp. 93-110
Author(s):  
Rosemond Desir ◽  
Ray J. Pfeiffer ◽  
Francesca Roberts
Keyword(s):  
Financial Reporting ◽  
Data Availability ◽  
Professional Service ◽  
Service Firms ◽  
Government Assistance ◽  
Professional Service Firms ◽  
Financial Reports ◽  
Generally Accepted Accounting Principles ◽  
Implementation Challenges ◽  
Significant Phenomenon

SYNOPSIS Government assistance provided to U.S. companies is a large and economically significant phenomenon. Although the Financial Accounting Standards Board (FASB) has a current project concerning government assistance, U.S. Generally Accepted Accounting Principles (GAAP) do not yet provide guidance about financial reporting for assistance. We explore whether recipients of government assistance should reflect it in financial reports. Specifically, we synthesize arguments and evidence from several sources, including conceptual framework element definitions and recognition criteria, current practice, IFRS guidance and practice, written arguments from FASB constituents, and guidance from professional service firms. We conclude that U.S. GAAP should require both the recognition of assets, liabilities, and changes in equity stemming from assistance agreements with government entities and the disclosure of relevant details to help users understand the measurement, timing, and uncertainty of the benefits and costs of agreements. We discuss implementation challenges and suggest avenues to improve financial reporting for government assistance. JEL Classifications: M41; M48; H81. Data Availability: All data are from public sources identified in the manuscript.

Interim Reporting Frequency and the Mispricing of Accruals

2018 ◽  
Vol 32 (3) ◽  
pp. 29-47
Author(s):  
Shou-Min Tsao ◽  
Hsueh-Tien Lu ◽  
Edmund C. Keung
Keyword(s):  
Financial Reporting ◽  
Stock Prices ◽  
Data Availability ◽  
Financial Reports ◽  
Regulatory Changes ◽  
Sample Composition ◽  
Reporting Frequency ◽  
Over Time ◽  
Jel Classifications ◽  
Accrual Mispricing

SYNOPSIS This study examines the association between mandatory financial reporting frequency and the accrual anomaly. Based on regulatory changes in reporting frequency requirements in Taiwan, we divide our sample period into three reporting regimes: a semiannual reporting regime from 1982 to 1985, a quarterly reporting regime from 1986 to 1987, and a monthly reporting regime (both quarterly financial reports and monthly revenue disclosure) from 1988 to 1993. We find that although both switches (from the semiannual reporting regime to the quarterly reporting regime and from the quarterly reporting regime to the monthly reporting regime) hasten the dissemination of the information contained in annual accruals into stock prices and reduce annual accrual mispricing, the switch to monthly reporting has a lesser effect. Our results are robust to controlling for risk factors, transaction costs, and potential changes in accrual, cash flow persistence, and sample composition over time. These results imply that more frequent reporting is one possible mechanism to reduce accrual mispricing. JEL Classifications: G14; L51; M41; M48. Data Availability: Data are available from sources identified in the paper.

scholarly journals Segmentation of quantity surveying professional services for focus strategy and diversification

2019 ◽  
Vol 24 (3) ◽  
pp. 294-308
Author(s):  
Michael Adesi ◽  
De-Graft Owusu-Manu ◽  
Frank Boateng
Keyword(s):  
Oil And Gas ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
Professional Services ◽  
Professional Service ◽  
Service Firms ◽  
Professional Service Firms ◽  
Content Type ◽  
Quantity Surveying ◽  
Focus Strategy

Purpose Notwithstanding that numerous studies have focused on strategy in quantity surveying (QS) professional service firms, there is a paucity of investigation on the segmentation of QS professional services. The purpose of this study is to investigate the segmentation of QS services for diversification and a focus strategy formation. Design/methodology/approach This study adopts the positivist stance and quantitative approach in which a simple random sampling technique was used to select participants. In total, 110 survey questionnaires were administered to registered professional QS, out of which 79 completed questionnaires were returned for analysis. Findings The paper identifies three main QS service segments characterised by low, moderate and high competition. In addition, this study found that the concentration of traditional QS services in the building construction sector is due to the unwillingness of QS professional service firms to diversify into the non-construction sectors such as oil and gas. The diversification of QS services in the low competitive segment requires the adoption of agile approaches. Research limitations/implications The study was limited to numeric analyses and so would be complemented by qualitative research in the future. Practical implications This paper is useful to QS professional service firms interested in diversifying their services into the non-construction sectors to enhance the pricing of their services. Originality/value Segmentation of QS services is fundamental to the formulation of focus strategy for non-construction sectors such as oil and gas and mining to enhance the pricing of QS professional services.

scholarly journals Fragmented fields: Professionalisms and work settings in Italian management consultancy

2019 ◽  
Author(s):  
Lara Maestripieri
Keyword(s):  
Professional Service ◽  
Specific Work ◽  
Service Firms ◽  
Structured Interviews ◽  
Professional Service Firms ◽  
Work Settings ◽  
Management Consultants ◽  
Self Employment ◽  
Management Consultancy ◽  
Professional Service Firm

Abstract Management consultancy has long been a contested terrain in the sociology of the professions. Although the professionalism of management consultants has always been emphasized by practitioners themselves, the lack of a strong community of peers has been an impediment to their professionalization. In this article, I argue that professionalism is not the outcome of a process of regulation and institutionalization but that it has to be conceived a discourse comprising norms, worldviews, and values that define what is appropriate for an individual to be considered a competent and recognized member of this community. Given the diversity characterizing the field, there are multiple discourses surrounding professionalism of management consultants, and these discourses are shaped by work settings. Work settings are a combination of the type of organization professional partnership or professional service firm and the employment status (employee or self-employed). Drawing on the empirical evidence from various work settings (professional service firms, professional partnership, and self-employment), I investigate four clusters of practitioners identified in 55 biographical and semi-structured interviews conducted with management consultants in Italy. Four types of professionalism emerge from the clusters. Organizing professionalism is the sole professionalism that appears in all work settings. Other discourses (corporate, commercialized, and hybrid professionalism) are context-dependent and more likely to be found in specific work settings.

How do non-innovative firms start innovation and build legitimacy? The case of professional service firms

2021 ◽  
Vol 137 ◽  
pp. 614-625
Author(s):  
Elisa Villani ◽  
Christian Linder ◽  
Christian Lechner ◽  
Lina Muller
Keyword(s):  
Professional Service ◽  
Service Firms ◽  
Professional Service Firms ◽  
Innovative Firms
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