Eliminating the Form 20-F Reconciliation and Audit Pricing

2016 ◽  
Vol 16 (1) ◽  
pp. 1-19 ◽  
Author(s):  
Yi-Hung Lin ◽  
Hua-Wei (Solomon) Huang
Keyword(s):  
Financial Reporting ◽  
Direct Evidence ◽  
Audit Fees ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Audit Pricing ◽  
Listed Firms ◽  
Financial Reporting Standards ◽  
The Impact ◽  
Industry Specialist

ABSTRACT This study examines the impact of the Securities and Exchange Commission's (SEC) policy in 2007 to eliminate the Form 20-F reconciliation requirements for foreign cross-listed firms following the International Financial Reporting Standards (IFRS) on audit pricing. We find that the elimination of this requirement decreases audit fees, and this fee decrease is less prominent when foreign cross-listed firms engage industry-specialist auditors. Our findings reinforce prior studies that found that managers of foreign cross-listed firms have a greater tendency to manage earnings when there is a need to reconcile earnings (Bradshaw, Bushee, and Miller 2004; Lang, Raedy, and Wilson 2006; Kang, Krishnan, Wolfe, and Yi 2012), and thus eliminating the Form 20-F reconciliation impedes managerial manipulation of earnings, decrease financial reporting risk, and audit fees. The results also provide direct evidence to support the SEC's (2007) claim that eliminating the Form 20-F reconciliation would reduce the preparation costs and regulatory burdens for foreign issuers.

scholarly journals Big 4 and audit fees in the context of adopting International Financial Reporting Standards

2019 ◽  
Vol 1 (1) ◽  
pp. 463-472
Author(s):  
Marta Tache
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Audit Fees ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Audit Market ◽  
Big 4 ◽  
The Impact

Abstract The main purpose of this article is to determine the impact that Big 4 companies have had after the adoption of IFRS became mandatory and if the level of the fees related to the audit services registered a significant increase. Thus, after a thorough research of the specialized studies, we analyzed the impact of financial reporting according to the International Financial Reporting Standards, determining how the audit fees were influenced and which was the impact of the largest companies targeted in this study. In order to determine the number of companies audited by Big 4, we analyzed all the companies listed on Bucharest Stock Exchange, during the period 2010-2018, which trade premium shares. It is obvious that the financial reporting according to the International Financial Reporting Standards increases the number of companies audited by Big 4, although there has audit fees with higher values. In the following, we will analyze the changes that have occurred in the audit market of Romania.

scholarly journals Impact of Accounting Software among SMEs Accountants in Oman

2020 ◽  
Vol 4 (2) ◽  
pp. 25-33 ◽  
Author(s):  
Mohammed Muneerali Thottoli
Keyword(s):  
Financial Reporting ◽  
Small And Medium Enterprises ◽  
Basic Knowledge ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Incorrect Choice ◽  
Financial Reporting Standards ◽  
Accounting Software ◽  
Medium Enterprises ◽  
The Impact

Financial losses, bankruptcy and closure of the company may be the result of incorrect choice of accounting software, inefficient modernization of such software depending on the specifics of the economic entity and ignorance of technical knowledge of staffs to work with the software product. The paper notes that for companies from member countries of the Gulf Cooperation Council, the technique of implementation and application of tax legislation and International Financial Reporting Standards (IFRS) differs significantly from other countries. The article emphasizes that in Oman, companies need to prepare financial statements in accordance with current applicable IFRS, as well as the Law on Commercial Companies 2019 and the guidelines and requirements for disclosure of capital market information. The purpose of this paper is to study and study the impact of the implementation of accounting software among small and medium enterprises (SMEs) in Oman. The study systematizes the features and issues of assessing the relationship between generalized accounting software (GAS) and its use by accountants working for SMEs. Twenty small and medium business accountants were selected as the target audience, taking into account their experience and basic knowledge of accounting in the context of ownership and use of GAS. The study confirms and theoretically proves that the use of GAS in the financial and economic activities of SMEs has a significant impact on the practice of accountants working in such enterprises, ie, there is a positive and significant relationship between GAS choice and use of GAS by SME accountants. The results of this study can be useful for the government, representatives of tax authorities, higher education institutions in the context of establishing adequate policies regarding the use of software for accounting by economic entities. Keywords: Generalized accounting software, accounting, accountant, small and medium enterprises, international financial reporting standards (IFRS), Oman.

scholarly journals The influence of culture on disclosures in financial statements prepared under International Financial Reporting Standards

2019 ◽  
Vol 2019 (101 (157)) ◽  
pp. 111-132 ◽  
Author(s):  
Jerzy Gierusz ◽  
Katarzyna Koleśnik
Keyword(s):  
Financial Reporting ◽  
Comparative Studies ◽  
Financial Statements ◽  
Arab Countries ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Consolidated Financial Statements ◽  
Financial Reporting Standards ◽  
Financial Disclosures ◽  
The Impact

The primary objective of this article is to investigate the impact of culture (as measured by Hofstede) on disclosures in financial statements prepared under International Financial Reporting Standards (IFRS) by firms from different countries. The sample comprises 2011−2013 consolidated financial statements of stock companies (excluding banks, insurance, and other financial institutions) from four countries repre- senting different cultural areas: the United Kingdom (Anglo), Germany (Germanic), Poland (Central Eastern Europe; CEE) and Kuwait (Arab). The research material came from 312 annual consolidated financial statements from 104 companies. The results reveal that cultural values have a significant impact on financial disclosures even after the use of IFRS. The paper is one of the few comparative studies attempting to assess the effects of culture on financial disclosures in Western Europe countries, CEE countries and Arab countries. Most of the international comparative studies in this research area have neglected CEE and Arab countries.

Compliance with international financial reporting standards: the case of listed firms in Ghana

2016 ◽  
Vol 14 (1) ◽  
pp. 131-156 ◽  
Author(s):  
Kingsley Opoku Appiah ◽  
Dadson Awunyo-Vitor ◽  
Kwame Mireku ◽  
Christian Ahiagbah
Keyword(s):  
Financial Reporting ◽  
Firm Size ◽  
Developing Economies ◽  
Random Effect ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Firm Age ◽  
Content Type ◽  
Listed Firms ◽  
Financial Reporting Standards

Purpose This study aims to examine the association between five firm-specific characteristics and the level of compliance with International Financial Reporting Standards (IFRS) by companies listed on Ghana Stock Exchange. The five firm-specific characteristics are firm size, profitability, leverage, auditor type and firm age. Design/methodology/approach The study uses dataset from 31 listed Ghanaian firms from 2008 to 2012. Random effect is used to examine the influence of the predictive variables on the level of IFRS corporate compliance. Findings The result reveals a positive significant relationship between the level of compliance and firm size, auditor type, cross-listing and sector (information and communications technology (ICT) and agro-forestry). On the contrary, the level of compliance exhibits a negative significant association with leverage and firm age. It is observed that the level of compliance is not related to profitability. The results are robust to different model specifications. Practical implications This study identifies firm-specific characteristics that influence IFRS compliance by listed firms in Ghana. This would aid accounting policy makers to institute strategies to encourage compliance with IFRS by the listed firms. Originality/value The study contributes to financial reporting literature relating to developing economies and Ghana, in particular.

scholarly journals Post-Earnings Announcement Drift in Greece

2015 ◽  
Vol 18 (03) ◽  
pp. 1550019 ◽  
Author(s):  
William Forbes ◽  
George Giannopoulos
Keyword(s):  
Financial Reporting ◽  
Stock Prices ◽  
Stock Exchange ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Earnings Announcement ◽  
Financial Reporting Standards ◽  
Post Earnings Announcement Drift ◽  
Athens Stock Exchange ◽  
The Impact

This paper presents evidence regarding the post-earnings announcement drift (PEAD) anomaly for the Greek market in the years 2000–2006 (covering earnings announcements in the years 2001–2007). The impact of the introduction of International Financial Reporting Standards on the size and prevalence of the PEAD anomaly is examined. Unlike recent evidence for the US market we find PEAD to be alive and well, and of growing importance in our Greek sample. It may be the adoption of international financial reporting standards (IFRS) has served to reduce earnings predictability in Greece and thus enhance PEAD in the Athens stock exchange (ASE) market. This contrasts strongly with US evidence that the post-earnings-announcement drift anomaly is now waning as more efficient markets and smarter, fundamentals-based, traders arbitrage its impact on stock prices.

scholarly journals THE IMPACT OF THE ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS ON THE FINANCIAL SITUATION AND PERFORMANCE OF THE COMPANY

2020 ◽  
Author(s):  
Radoslav Tusan ◽  
Keyword(s):  
Financial Reporting ◽  
Insurance Companies ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Indicators ◽  
Financial Situation ◽  
Financial Reporting Standards ◽  
And Performance ◽  
The Impact

This paper deals with the evaluation of the impact of the adoption of International Financial Reporting Standards (IFRS) on the financial situation and performance of the company. The Slovak Accounting Act allows accounting and reporting under IFRS for two types of entities - explicitly specified by law (e.g. banks, insurance companies, stock exchange); and those that meet specified size criteria. The analyzed company met the size criteria and IFRS has been applying since 2018. The transition from Slovak accounting procedures to IFRS has an impact on the classification of individual items of assets and liabilities, their structure, and the classification of related costs and revenues. The transition to IFRS thus has an impact on the company's financial position and performance. The paper set out two objectives of the research: 1) the transition to IFRS caused an insignificant change in the company's financial indicators; 2) the transition to IFRS caused a significant change in the company's financial indicators. The results of the analysis show changes in the structure of the company's assets and liabilities, the amount of income and expenses, and the less significant impact of the adoption of IFRS on financial indicators.

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