An Exploratory Study of the Valuation Properties of Cross-Listed Firms' IAS and U.S. GAAP Earnings and Book Values

2002 ◽  
Vol 77 (1) ◽  
pp. 107-126 ◽  
Author(s):  
Hollis Ashbaugh ◽  
Per Olsson
Keyword(s):  
Exploratory Study ◽  
Accounting Standards ◽  
Equity Market ◽  
Residual Income ◽  
International Accounting Standards ◽  
Generally Accepted Accounting Principles ◽  
Listed Firms ◽  
Valuation Model ◽  
Accounting Principles ◽  
Book Values

Despite the increasing integration of global capital markets, there is little evidence on the valuation properties of cross-listed, non-U.S. firms' accounting variables. We use the relative performance of the earnings capitalization, the book value, and the residual income valuation models to explore the valuation properties of International Accounting Standards and U.S. Generally Accepted Accounting Principles earnings and book values reported by non-U.S., cross-listed firms trading in a common equity market. Using non-U.S./non-U.K. firms whose shares trade on the International Stock Exchange Automated Quotation system in London, we find that the earnings capitalization model is the dominant accounting-based valuation model when crosslisted firms report under International Accounting Standards. In contrast, we find that when cross-listed firms report under U.S. Generally Accepted Accounting Principles, the residual income model is the dominant accountingbased valuation model. Our exploratory study provides insights into the valuation implications of allowing a dual reporting system for foreign registrants trading in a common equity market.

scholarly journals De toekomst van IFRS in Europa: gaat de bom vallen?

2015 ◽  
Vol 89 (4) ◽  
pp. 120-121
Author(s):  
Ralph ter Hoeven
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
International Financial Reporting Standards ◽  
International Accounting ◽  
International Accounting Standards ◽  
Reporting Standards ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards ◽  
Accounting Principles ◽  
Jaar Geleden

Het is inmiddels 20 jaar geleden dat de Europese Unie een beslissende keuze maakte in het ontwikkelen van een eigen GAAP (Generally Accepted Accounting Principles; dus stelsel van accountingregels). De keuze luidde: no, non, nein, não, nej, nee: er zou geen eigen EUGAAP worden ontwikkeld. Wel werd er voorzichtig gewezen op de toenmalige International Accounting Standards (IAS); inmiddels omgedoopt tot International Financial Reporting Standards (IFRS). Kortom Lidstaten werden vrijgelaten in de keuze van een GAAP voor beursgenoteerde ondernemingen en een beetje aangemoedigd om daarbij aan IAS te denken. Vijf jaar later, rond de millenniumwisseling dus, volgde er een update van de Europese accountingstrategie waarin niet geheel verrassend werd geconstateerd dat jaarrekeningen op de EU-kapitaalmarkt niet vergelijkbaar waren.

Improving transfer pricing in Ukraine using American Experience

2021 ◽  
Vol 12 (3) ◽  
pp. s205-s231
Author(s):  
Julia Grinenko ◽  
Dmytro Melnychuk ◽  
Larysa Mykhalchyshyna ◽  
Svitlana Belei ◽  
Nataliia Yevtushenko
Keyword(s):  
United Nations ◽  
Transfer Pricing ◽  
Accounting Standards ◽  
International Accounting Standards ◽  
Key Factors ◽  
Market Prices ◽  
Generally Accepted Accounting Principles ◽  
American Experience ◽  
Accounting Principles ◽  
Geographical Environment

The purpose of the present research is to determine the characteristics of transfer pricing and proposals for its improvement, identifying key factors applying transfer pricing and the development of organizational and economic measures for the implementation of the mechanism of transfer pricing in Ukrainian enterprises based on US experience. Due to significant growth of the number of multinationals since 1950, and expanding the geographical environment of their activities caused the increase in the number of studies on transfer pricing. Strengthening external instability greatly affected the formation and increased use of transfer pricing, as well as the use of market prices for the companies is risky. The research is based on the requirements of the fundamental documents of the Organization for Economic Cooperation and Development (OECD) and by the United Nations Tax Committee (UN), International Accounting Standards Board (IASB), Generally Accepted Accounting Principles (GAAP), as well as on empirical data obtained in the process of analysis of reporting of Ukrainian companies.

OVERVIEW OF ACCOUNTING METHODS OF LEASING COVERAGE

2005 ◽  
Vol 11 (1) ◽  
pp. 101-119
Author(s):  
Dubravka Vlašić
Keyword(s):  
United States ◽  
Accounting Standards ◽  
International Accounting ◽  
International Accounting Standards ◽  
Generally Accepted Accounting Principles ◽  
Accounting Principles

Lizing se javlja kao oblik financiranja kojim davatelj lizinga prenosi na korisnika lizinga pravo na korištenje određene imovine u određenom vremenskom razdoblju. Računovodstveno obuhvaćanje lizinga, od vrlo mnogo vrsta lizinga koje postoje u praksi koristi podjelu na financijski i operativni lizing, Njihove karakteristike definirane su prvenstveno nacionalnim zakonima, općim postavkama civilnog i trgovačkog prava, međunarodnim standardima od kojih su u Europskim zemljama prihvaćeni Međunarodni računovodstveni standardi MRS (International Accounting Standards - IAS), a u SAD USGAAP (United States - Generally Accepted Accounting Principles). Različita klasifikacija lizinga koja proizlazi iz ovih propisa ima utjecaj na temeljne financijske izvještaje.

scholarly journals ЕКОНОМІЧНА ІНТЕГРАЦІЯ КРАЇН ТА ЇЇ ВПЛИВ НА ГАРМОНІЗАЦІЮ СИСТЕМИ ОБЛІКУ ТА ФІНАНСОВОЇ ЗВІТНОСТІ: ДОСВІД ІЗРАЇЛЮ

2021 ◽  
pp. 172-180
Author(s):  
Olena Akymenko ◽  
Vladyslava Ponomarenko
Keyword(s):  
Accounting Standards ◽  
International Accounting ◽  
International Accounting Standards ◽  
Generally Accepted Accounting Principles ◽  
Accounting Principles

Досліджено питання економічного піднесення Ізраїлю – країни високих технологій, що продукує сучасну конкурентоспроможну продукцію оборонного призначення, програмне забезпечення, засоби цифрового зв’язку, біотехнології, фармацевтичні препарати і вироби з використанням надсучасних інноваційних нанотехнологій. З’ясовано особливості прогресивної системи оподаткування Ізраїлю, серед яких відсутність стягнення податку на доходи з мінімальної заробітної плати (близько 1000 $ США). Відстежено процес формування Ради з міжнародних стандартів бухгалтерського обліку, головним завданням якої є розробка та впровадження єдиної системи зрозумілих та прийнятних міжнародних стандартів фінансової звітності. Встановлено основні базиси в справі стандартизації бухгалтерського обліку у світі, серед яких International Accounting Standards (МСФЗ) та Generally Accepted Accounting Principles. Досліджено процес впровадження МСФЗ та подальшої адаптації їхніх положень до Ізраїльських стандартів бухгалтерського обліку. Наведено варіанти впровадження МСФЗ в Ізраїлі.

scholarly journals Impact of Changes in Accounting Standards on Earnings Management

2020 ◽  
Vol 2 (2) ◽  
pp. 166-175
Author(s):  
Kawa W. Muhamad ◽  
Subhi M. Saleh ◽  
Kees van Paridon
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Accounting Standards ◽  
Reporting Quality ◽  
Quality Standards ◽  
Financial Reporting Quality ◽  
High Quality ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards ◽  
Accounting Principles

This study considers the question whether the changes in Accounting Standards has led to companies making less use of earnings management. The paper is an attempt to investigate whether the application of high quality standards like International Financial Reporting Standards (IFRS) is related to high financial reporting quality. This study addresses this issue empirically. Furthermore, this research examines whether German companies that have applied IFRS have less earnings management compared to German companies that report according to the German Generally Accepted Accounting Principles (GGAAP). The sample, consisting of two equally large listed companies in Germany (Südzucker Group and Henkel Group) from 2003-2014. The study suggests that IFRS-adopters show different earnings management performance compared to companies reporting under German GAAP. This finding contributes to the discussion on whether high quality standards are appropriate and operational in countries with weak investor protection rights. The result shows that adopters of IFRS in Germany can be related with less use of earnings management as a result of changes in accounting standards. This result is contradictory with previous research that was done by Van Tendeloo and Vanstraelen, (2005), and consistent with the previous research conducted by Ball et al. (2003).

Using arguments and myths to lobby over controversial accounting issues: evidence from Japan

2020 ◽  
Vol 32 (3) ◽  
pp. 355-390
Author(s):  
Noriyuki Tsunogaya ◽  
Andreas Hellmann
Keyword(s):  
Financial Reporting ◽  
Financial Services ◽  
Accounting Standards ◽  
Fair Value ◽  
Network Effect ◽  
International Accounting Standards ◽  
Content Type ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards ◽  
Stakeholder Groups

Purpose This study aims to examine the (overt) arguments and (covert) myths the Business Accounting Council (BAC) members have used to lobby over controversial accounting issues, such as the application of fair value accounting (FVA) and the adoption of International Financial Reporting Standards (IFRS) in Japan. Design/methodology/approach The authors used a content analysis to examine 85 statements included in multiperiod BAC meeting minutes and 68 articles prepared by International Accounting Standards Board (IASB) representatives from Japan. Findings The results reveal that together with the arguments, myths were created and amplified by opponents of FVA and the Financial Services Agency to hide the latter’s strong regulatory power. They created these myths, using covert stories of the importance of manufacturing activities and tax accounting (for small- and medium-sized enterprises [SMEs]), to oppose mandatory IFRS adoption in Japan and, thus, to maintain vested rights in preparing the Japanese generally accepted accounting principles and Japanese accounting standards for SMEs. Originality/value First, this study contributes to the lobbying literature by focusing on the coalition (network) effect of influential stakeholder groups. Second, although lobbying activities have been investigated mostly using comment letters, this study reviews multiperiod BAC meeting minutes and articles prepared by IASB representatives from Japan. Third, the study examines both overt arguments and covert myths, both of which are important in unmasking the fundamental structures of power within influential organizations, such as government agencies and standard-setters.

An investigation of the level of compliance with international accounting standards (IAS 1) by listed firms in Bahrain Bourse

2016 ◽  
Vol 9 (2) ◽  
pp. 254-276 ◽  
Author(s):  
Fatema Ebrahim Alrawahi ◽  
Adel Mohammed Sarea
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Annual Reports ◽  
International Accounting ◽  
International Accounting Standards ◽  
Content Type ◽  
Listed Firms ◽  
Financial Reporting Standards ◽  
Industry Type ◽  
Regulatory Bodies

Purpose This study aims to investigate the association between seven firm-specific characteristics and the level of mandatory compliance with International Accounting Standards (IAS) 1 by firms listed on Bahrain Bourse. Design/methodology/approach A disclosure index is used to measure the extent of compliance with IAS 1. Each of the 36 sampled firms’ annual reports were examined against the index for the financial year ending December 31, 2013. Findings The results reveal an overall compliance of 83 per cent. Regression results report that only audit firm size, profitability and industry type have a positive and significant association with IAS 1 disclosure requirements. Practical implications This study should be particularly relevant to regulatory bodies in Bahrain for strategizing and encouraging compliance with IAS 1 by listed firms. Originality/value Additionally, the study contributes to financial reporting literature relating to the Gulf Cooperation Council countries, mainly Bahrain. Bahrain is a financial hub, and it is interesting to examine how it presents its financial statements to investors and the degree of its compliance with International Financial Reporting Standards since its adoption in 2007.

scholarly journals On Narrowing The Credibility GAAP: Has The Financial Accounting Standards Board (FASB) Enhanced The Credibility Of Generally Accepted Accounting Principles (GAAP)?

2011 ◽  
Vol 9 (2) ◽  
pp. 76 ◽  
Author(s):  
Douglas K. Schneider ◽  
Gordon S. May ◽  
David R. Shaffer
Keyword(s):  
Accounting Standards ◽  
Psychological Research ◽  
Financial Accounting ◽  
Future Research ◽  
Financial Accounting Standards Board ◽  
Financial Reports ◽  
Generally Accepted Accounting Principles ◽  
Perceived Credibility ◽  
Accounting Principles ◽  
Social Psychological Research

The purpose of this study was to apply social-psychological research methods to address an issue of widespread concern in the accounting profession. One of the primary motives underlying the creation of the Financial Accounting Standards Board (FASB) was to increase the credibility of Generally Accepted Accounting Principles (GAAP). Our main objective was to assess any differences in the perceived credibility of FASB GAAP and pre-FASB GAAP, as indicated by three groups of FASB constituents familiar with these procedures: corporate preparers of financial statements (preparers), CPAs who audit financial reports to ensure their adherence to GAAP (auditors), and accountants who use financial reports to make lending and investment decisions (users). The results indicated that (a) the credibility of accounting principles can be assessed, (b) not all dimensions that have been touted as contributors to the credibility of accounting practices predict accountants perceptions of credibility, and (c) examples of FASB GAAP were perceived as less credible than corresponding examples of pre-FASB GAAP by each of the above three groups of FASB constituents. Some implications of these results and suggestions for future research are discussed.

Comments on Canadian Accounting Standards Board Exposure Draft on Generally Accepted Accounting Principles for Private Enterprises

2009 ◽  
Author(s):  
Karim Jamal ◽  
Robert J. Bloomfield ◽  
Theodore E. Christensen ◽  
Robert H. Colson ◽  
Stephen R. Moehrle ◽  
...  
Keyword(s):  
Accounting Standards ◽  
Private Enterprises ◽  
Generally Accepted Accounting Principles ◽  
Accounting Principles
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