Does Mandatory Retrospective Hedge Effectiveness Assessment under ASC 815 Provide Risk-Relevant Information?

2020 ◽  
Vol 34 (3) ◽  
pp. 61-85
Author(s):  
Zhihong Chen ◽  
Alfred Zhu Liu ◽  
Gim S. Seow ◽  
Hong Xie
Keyword(s):  
Empirical Evidence ◽  
Potential Benefit ◽  
Risk Measures ◽  
Accounting Standards ◽  
Relevant Information ◽  
Potential Usefulness ◽  
Compliance Costs ◽  
Current Accounting ◽  
Effectiveness Assessment ◽  
Shed Light

SYNOPSIS Current accounting standards permit special accounting treatment of derivatives used for hedging purposes. However, the requirement to perform periodic, retrospective assessments of hedge effectiveness and to disclose a quantitative accounting measure of hedge ineffectiveness (AMHI) for such derivatives has been controversial. In response to concerns over the compliance costs of this requirement, the FASB removed this requirement in the recently effective ASU 2017-12. However, this change was made with little empirical evidence on the benefits of retrospective effectiveness assessment and quantitative disclosure of AMHI. We document one potential benefit of this requirement to investors by providing initial evidence that (1) AMHI is positively associated with an array of concurrent market- and accounting-based risk measures and (2) investors react negatively to large AMHIs and related disclosures upon 10-K filings. Our findings suggest that this requirement can provide investors with risk-relevant information and shed light on its potential usefulness.

Working Women’s Decision-Making Power at Home: Evidence from Four North Indian Urban Clusters

Urbanisation ◽  
2021 ◽  
pp. 245574712110258
Author(s):  
Megan Maxwell ◽  
Milan Vaishnav
Keyword(s):  
Decision Making ◽  
Labour Market ◽  
Empirical Evidence ◽  
Working Women ◽  
Human Agency ◽  
Significant Heterogeneity ◽  
Household Decision ◽  
Household Decision Making ◽  
Theoretical Foundations ◽  
Shed Light

Do working women enjoy greater levels of human agency? While the theoretical foundations underlying this connection are clear, the empirical evidence is quite mixed. We leverage detailed, new data on intra-household decision-making and labour market behaviour from four north Indian urban clusters to shed light on this question. We find that women who work exercise greater say in important decisions around the home. However, this ‘work advantage’ exhibits significant heterogeneity across decision types, decision-making domains, and definitions of work.

scholarly journals The Mode Heuristic in Service Consumers’ Interpretations of Online Rating Distributions

2021 ◽  
pp. 109467052110124
Author(s):  
Sarah Köcher ◽  
Sören Köcher
Keyword(s):  
Empirical Evidence ◽  
Graphical Display ◽  
Visual Salience ◽  
Graphical Displays ◽  
Volume Average ◽  
Online Rating ◽  
Process Level ◽  
Shed Light

In this article, the authors demonstrate a tendency among consumers to use the arithmetic mode as a heuristic basis when drawing inferences from graphical displays of online rating distributions in such a way that service evaluations inferred from rating distributions systematically vary by the location of the mode. The rationale underlying this phenomenon is that the mode (i.e., the most frequent rating which is represented by the tallest bar in a graphical display) attracts consumers’ attention because of its visual salience and is thus disproportionately weighted when they draw conclusions. Across a series of eight studies, the authors provide strong empirical evidence for the existence of the mode heuristic, shed light on this phenomenon at the process level, and demonstrate how consumers’ inferences based on the mode heuristic depend on the visual salience of the mode. Together, the findings of these studies contribute to a better understanding of how service customers process and interpret graphical illustrations of online rating distributions and provide companies with a new key figure that—aside from rating volume, average ratings, and rating dispersion—should be incorporated in the monitoring, analyzing, and evaluating of review data.

scholarly journals Did CEO’s Equity-Based Compensation Benefit Firms at All? – Evidence From the Regime Before Adoption of Statement of Financial Accounting Standards 123(R)

2018 ◽  
Vol 8 (2) ◽  
pp. 1
Author(s):  
Min (Shirley) Liu
Keyword(s):  
Empirical Evidence ◽  
Agency Problem ◽  
Accounting Standards ◽  
Compensation Method ◽  
Financial Accounting ◽  
Sensitivity Tests ◽  
Accruals Quality ◽  
Reported Earnings

Previous studies documented empirical evidence that stock- and option-based compensation exacerbates the agency problem, which is opposite to the goal of awarding such kind of compensations to executives. If the stock- and option-based compensation is so bad, why did companies previously adopt such kind of compensation method. I use data from 1992-2005, a period before the adoption of FAS 123 (R), to examine whether the stock-based and option-based compensation benefits firms at all. I find that the firms, whose CEOs received higher values of stock- and option- compensations, have higher accruals quality and more predictable reported earnings, as well as enjoy lower implied costs of equity capital.These findings are robust to various sensitivity tests. The results indicate that such compensation method at least provided certain benefits to the firms.

scholarly journals Analysis Of Presentation Of Sharia Financial Statements According To Psak 101 At Pt. Mandiri Sharia Bank

2021 ◽  
Vol 2 (4) ◽  
pp. 1175-1183
Author(s):  
Fera Riske Anggita ◽  
Tommy Kuncara
Keyword(s):  
Accounting Standards ◽  
Secondary Data ◽  
Financial Statements ◽  
Relevant Information ◽  
Financial Accounting ◽  
Financial Statement ◽  
Islamic State ◽  
Literature Study ◽  
Financial Position ◽  
Other Information

The presentation of Islamic Financial Statements has been regulated in PSAK 101 and every bank needs to refer to it. As we know, PT Bank Syariah Mandiri is the number 1 largest Islamic bank in Indonesia and other information obtained by researchers, PT Bank Syariah Mandiri will merge with 2 other Islamic state-owned banks, namely PT Bank BNI Syariah and PT Bank BRI Syariah. Therefore, researchers are interested in examining whether the financial statements of PT Bank Syariah Mandiri are appropriate in applying the application of Financial Accounting Standards 101. The types of data used are qualitative and quantitative data, the data used are general company information and company financial statement information in 2019. Sources the data used is secondary data. The data collection method is literature study. In the financial statements of PT Bank Syariah Mandiri, the bank has reported all components of the financial statements in PSAK 101. In the Statement of Financial Position PT Bank Syariah Mandiri does not include the Istishna Assets in Settlement and Salam Receivable accounts in the Statement of Financial Position, but in PSAK 101 Paragraph 61 explains Statement of Financial Accounting Standards 101 does not regulate the composition or format of presentation of statement of financial position items. PT Bank Syariah Mandiri continues to present relevant information on the Statement of Financial Position. However, in PSAK 101 Paragraph 61 explaining the Statement of Financial Accounting Standards 101 does not regulate the composition or format of the presentation of the statement of financial position. PT Bank Syariah Mandiri continues to present relevant information on the Statement of Financial Position. However, in PSAK 101 Paragraph 61 explaining the Statement of Financial Accounting Standards 101 does not regulate the composition or format of the presentation of the statement of financial position. PT Bank Syariah Mandiri continues to present relevant information on the Statement of Financial Position.

scholarly journals The Value of Abstraction

2019 ◽  
Author(s):  
Mark K Ho ◽  
David Abel ◽  
Tom Griffiths ◽  
Michael L. Littman
Keyword(s):  
Problem Solving ◽  
Relevant Information ◽  
Scaling Up ◽  
Limited Resources ◽  
Abstract Representations ◽  
Learning Research ◽  
Crucial Ingredient ◽  
Insight Into ◽  
Shed Light

Agents that can make better use of computation, experience, time, and memory can solve a greater range of problems more effectively. A crucial ingredient for managing such finite resources is intelligently chosen abstract representations. But, how do abstractions facilitate problem solving under limited resources? What makes an abstraction useful? To answer such questions, we review several trends in recent reinforcement-learning research that provide insight into how abstractions interact with learning and decision making. During learning, abstraction can guide exploration and generalization as well as facilitate efficient tradeoffs---e.g., time spent learning versus the quality of a solution. During computation, good abstractions provide simplified models for computation while also preserving relevant information about decision-theoretic quantities. These features of abstraction are not only key for scaling up artificial problem solving, but can also shed light on what pressures shape the use of abstract representations in humans and other organisms.

Reflections on the Accounting Framework of Public Interest Cooperatives in Portugal

2018 ◽  
pp. 433-445
Author(s):  
Ana Maria Bandeira ◽  
Deolinda Meira ◽  
Brízida Tomé
Keyword(s):  
Content Analysis ◽  
Public Interest ◽  
Accounting Standards ◽  
The Public ◽  
Social Object ◽  
Current Accounting ◽  
The Social

The purpose of this chapter is to determine whether the current accounting standards of public interest cooperatives in Portugal are adequate, taking into account the social object, particularly the pursuit of furthering public interest and the nature of the subjects that integrate it. Thus, through the methodology of content analysis, the authors analyze the various policies and accounting legislation as well as the literature available on this topic. Through the classification and analysis of the main characteristics of these cooperatives, the authors conclude that they should be subject to the Public Administration's accounting regime in order to respond to the needs of different users of information.

scholarly journals Phenomenology and Experimental Psychology: On the Prospects and Limitations of Experimental Research for a Phenomenological Epistemology

2020 ◽  
Vol 1 (1) ◽  
pp. 85-108 ◽  
Author(s):  
Philipp Berghofer
Keyword(s):  
Perceptual Learning ◽  
Empirical Evidence ◽  
Empirical Research ◽  
Experimental Research ◽  
Experimental Psychology ◽  
A Priori ◽  
Transcendental Phenomenology ◽  
Natural Sciences ◽  
Shed Light ◽  
Phenomenological Conception

AbstractHusserl’s transcendental phenomenology is first and foremost a science of the structures of consciousness. Since it is intended to yield eidetic, i. e., a priori insights, it is often assumed that transcendental phenomenology and the natural sciences are totally detached from each other such that phenomenological investigations cannot possibly benefit from empirical evidence. The aim of this paper is to show that a beneficial relationship is possible. To be more precise, I will show how Husserl’s a priori investigations on consciousness can be supplemented by research in experimental psychology in order to tackle fundamental questions in epistemology. Our result will be a phenomenological conception of experiential justification that is in accordance with and supported by empirical phenomena such as perceptual learning and the phenomenon of blindsight. Finally, I shall shed light on the systematic limits of empirical research.

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