scholarly journals Islamic Finance and the Convergence towards International Financial Reporting Standards (IFRS): The State of Research Development

2018 ◽  
Vol 1 (1) ◽  
pp. 85-97
Author(s):  
Ratna Mulyany ◽  
Noraini Mohd. Ariffin
Keyword(s):  
Financial Reporting ◽  
Academic Research ◽  
Empirical Method ◽  
Islamic Finance ◽  
International Accounting ◽  
Financial Industry ◽  
Accounting Standard ◽  
Research Theme ◽  
Islamic Financial Institutions ◽  
International Accounting Standard

Objective – Extensive research has been undertaken in the area of accounting harmonization ever since the idea of harmonizing accounting standards and practices was probably initiated as early as 1930s. The transformation of International Accounting Standard Committee (IASC) into International Accounting Standard Board (IASB) in 2001, which refines the harmonization agenda into convergence initiative, has escalated the academic research devoted in this field. Nevertheless within the broad research theme of International accounting harmonization and convergence (IAHC), quite limited studies have looked at the issues of IAHC and linking it to the development of Islamic banking and finance. Not until recently where quite significant acknowledgement has been given on this issue especially by the industry community, the earlier development of research in IAHC has not sufficiently covered the interaction between IAHC and the Islamic financial industry. Departing from this context, this paper aims to review the development of research that particularly looked into the issues of IAHC in relation to the Islamic financial industry.Design/methodology – This study was conducted based on rigorous literature review about the topic to identify gaps or inconsistencies in a body of knowledge.Results – Research in IAHC has progressed over the time evidenced with the various topics that have been studied within this theme. Of the broad research theme within IAHC is its interaction with the growing Islamic financial industry. While the reviewed studies in this paper have provided preliminary path in identifying the challenges of IAHC in relation to the financial reporting of Islamic banks (IBs), however there is lacking studies that theoretically and practically examines areas of incompatibility which may prove to be obstacles to the IAHC process and other important elements such as to understand what could be the possible approach to be pursued by IBs within the overall objective of IAHC or IFRS convergence specifically. Most studies within this theme are notably descriptive in nature and few has utilized the empirical method in their analysis.Research limitations/implications – This study is limited in its method of merely reviewing the literature. The use of other various methods may provide more meaningful findings. The result of this study nevertheless implies that further comprehensive research involving standard setters and regulators is viewed as an important future step in resolving the reporting issues for Islamic financial institutions. Given the unresolved dimensions between the adoption of IFRS and the application of Islamic financial activities, the issues examined in this study will continue to be highly relevant, as the Islamic financial industry expands further.Novelty/Originality – A review of researches in IAHC with particular reference to the unique accounting requirements of Islamic financial entities is still limited thus this study perhaps has sketched a map of overall studies that have been performed and shed the light for future areas to be researched within this themeKeywords Islamic Finance, IFRS Convergence, Accounting Harmonization

scholarly journals Ensino Embasado na Estrutura Conceitual: a escolha da metodologia ativa para aplicação de casos para ensino importa?

2020 ◽  
Vol 14 (4) ◽  
Author(s):  
Gleison De Abreu Pontes ◽  
Kellma Bianca Cardoso Fonseca ◽  
Ariane Caruline Fernandes ◽  
Patrícia De Souza Costa
Keyword(s):  
Financial Reporting ◽  
Problem Based Learning ◽  
International Financial Reporting Standards ◽  
International Accounting ◽  
Reporting Standards ◽  
Accounting Standard ◽  
Financial Reporting Standards ◽  
International Accounting Standard

Objetivo: Identificar quais competências são desenvolvidas na aplicação de casos para ensino com a utilização de técnicas de ensino diferentes, à luz do Ensino Embasado na Estrutura Conceitual (EEEC) e da Taxonomia de Bloom. Método: Foram testadas três técnicas de ensino: Grupo de Verbalização e de Observação (GVGO), Júri Simulado e Problem-Based Learning (PBL). A percepção dos discentes foi coletada por meio de questionário e grupo focal. Resultados: Na percepção dos estudantes, o emprego das técnicas, desenvolveu habilidades e competências distintas. Assim, a escolha da metodologia para aplicação de casos deve estar alinhada com os objetivos educacionais estabelecidos pelo docente. Além disso, apesar de terem sido desenvolvidas competências de todos os estágios do EEEC, GVGO e PBL desenvolveram mais aquelas do estágio 3, enquanto o Júri Simulado aquelas do estágio 2. Contribuições: Os resultados podem ser úteis para o International Accounting Standard Board (IASB) ir além do desenvolvimento de casos para ensino no EEEC, incorporando na agenda reflexões sobre quais metodologias utilizar na aplicação desses materiais no instituto de alcançar o objetivo aplicação coerente das International Financial Reporting Standards (IFRS). Essas reflexões também podem ser realizadas por pesquisadores e docentes a fim de contribuírem com o EEEC.

Instructional Case: Worldwide Shipping Corporation Ltd: Early or Late Adoption of a New International Accounting Standard?

1999 ◽  
Vol 14 (2) ◽  
pp. 211-231
Author(s):  
Peter Lee ◽  
Pearl Tan
Keyword(s):  
Financial Reporting ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Financial Statements ◽  
Economic Consequences ◽  
International Accounting ◽  
Accounting Choice ◽  
Accounting Standard ◽  
The Impact ◽  
International Accounting Standard

The management of Worldwide Shipping Corporation Ltd (hereafter “Worldwide Shipping”) is confronted with a dilemma when a new international accounting standard on leases is introduced which contains a transitional provision allowing firms to defer implementation for a period of four years. Students are required to put themselves in the position of managers who have to weigh the adverse impact of early adoption of the new accounting standard against a responsibility for fair financial reporting. Worldwide Shipping is a multifaceted case that can be used as an accounting case study or a financial analysis study. The objectives of the case are threefold. First, it aims to provide students with a better understanding of the impact of off-balance sheet transactions (in this case, sale-leaseback contracts) on a firm's financial statements. Second, it requires students to examine implications of accounting choice on management compensation and debt-contracting costs, as well as the perplexing problem of recognition in financial statements vs. footnote disclosures. By putting students in the position of managers, the case increases students' awareness of the possible economic consequences arising from accounting choice. Third, it provides students with a useful exercise in the mechanics of effecting a change in accounting method using the retroactive method.

scholarly journals Mengukur Tingkat Kesesuaian antara Standar Akuntansi Keuangan dengan International Financial Reporting Standards per 1 Januari 2008

2010 ◽  
Vol 1 (1) ◽  
pp. 87
Author(s):  
Rosinta Ria Panggabean
Keyword(s):  
Correlation Coefficient ◽  
Financial Reporting ◽  
International Financial Reporting Standards ◽  
International Accounting ◽  
Reporting Standards ◽  
Accounting Standard ◽  
Financial Reporting Standards ◽  
The Difference ◽  
Spearman’S Correlation ◽  
International Accounting Standard

International accounting topic was rare to adress between accounting practices, especially International Accounting Standard. It occured due to the restrictive source and difficulty in finding the source. However, recently the standard has been an addressed issue since Indonesia Chartered of Accountant (IAI) plans to comply the Indonesia Accounting Standard (SAK) with the International Financialreporting(IFRS)on1stJanuary2012.The purpose of the research is to measure the compliance of the (SAK) per 1st January 2008 with the IFRS per 1st January 2008 and attain the association between those two standards. Hence, the difference between the two standards and the neccessary steps to be taken for complying can be obtained. The methodology will be used in the paper are Jaccard’s Coefficients, Spearman’s Correlation Coefficient,Euclidean Distances.The sample for the paper will be 43 accounting issues adressed on both standards that have been chosen and investigated. The paper concludes that there are significant equalities (75%) between SAK per 1st January 2008 and IFRS 1st January 2008. (using Jaccard’s Coefficients). Due to several problems that have been found in the research, the author wish that the further researchers could widen the research’s samples, so the result will be more accurate and comprehensive. 

scholarly journals The Differences Of Ijarah Financing and Conventional Lease On Islamic Law and Accounting Perspectives

IQTISHADUNA ◽  
2018 ◽  
Vol 8 (2) ◽  
pp. 139-148
Author(s):  
Fitriani .
Keyword(s):  
Financial Institutions ◽  
Islamic Law ◽  
Accounting Standards ◽  
Financial Accounting ◽  
International Accounting ◽  
Accounting Standard ◽  
Accounting Principles ◽  
Islamic Financial Institutions ◽  
International Accounting Standard

The main objective of this study is to explore the nature of accounting for Ijarahfinancing and its differences with conventional lease financing from the Islamic law and accounting perspectives.The study makes a comparison between the International Accounting Standard on leasing (IAS 17); the accounting standard for Ijarah (FAS 8) as developed by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI); and Statement of Financial Accounting Standards (Pernyataan Standar Akuntansi Keuangan/PSAK 107). The study found that there are major differences as to the nature of leasing and Ijarah, and as a result accounting principles that have driven all the three standards as well as accounting techniques developed for leasing and Ijarah are significantly different.

scholarly journals SOME NOTES ON IFRS CONVERGENCE AND THE ISLAMIC FINANCIAL INDUSTRY

2018 ◽  
Vol 7 (1) ◽  
pp. 1
Author(s):  
Ratna Mulyany
Keyword(s):  
Financial Institutions ◽  
Financial Reporting ◽  
Service Industry ◽  
Accounting Standards ◽  
Islamic Finance ◽  
Financial Industry ◽  
Financial Reporting Standards ◽  
Islamic Financial Institutions ◽  
Worldwide Phenomenon ◽  
Accounting Convergence

IFRS Convergence has been a worldwide phenomenon with most of countries in the world are adoptingIFRS instead of their national accounting standards. At the same time, the Islamic finance is gaining its popularity in the present world with the increasing acceptance by international community. In relation to these two phenomena, there have been concerns that the establishment of Islamic financial institutions together with its own unique characteristics will impede the achievement of the global accounting convergence. Furthermore, the promulgation of accounting standards by Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), which is intended to fulfil the unique features of Islamic Financial Industry is viewed as a challenge to the International Financial Reporting Standards (IFRS), which is promoted by the convergence agenda. Numerous complex issues emerge as result of the dilemmatic position of IFIs in retaining its distinct Shari’ah principles, while attempting to be part of the global financial system through adopting the IFRS. This study aims to describe some notes relating to the IFRS convergence and the development of Islamic finance. The objective is to outline the issues, not necessarily to resolve them, and to consider the implications they have for pursuing IFRS convergence in the context of Islamic financial service industry.

scholarly journals Convergence of IFRS and Ind AS – A Descriptive and Exploratory Insight

2021 ◽  
pp. 34-40
Author(s):  
Sayan Basu
Keyword(s):  
Advisory Committee ◽  
Financial Reporting ◽  
Accounting Standards ◽  
International Financial Reporting Standards ◽  
International Accounting ◽  
Reporting Standards ◽  
Accounting Standard ◽  
Financial Reporting Standards ◽  
International Accounting Standard ◽  
Financial Analyses

IFRS are designed to bring consistency to accounting language, practices and statements, and to help businesses and investors make educated financial analyses and decisions. The Ind AS are named and numbered in the same way as the corresponding International Financial Reporting Standards (IFRS). National Advisory Committee on Accounting Standards (NACAS) recommends these standards to the Ministry of Corporate Affairs (MCA). Indian viewpoints do not receive adequate attention at International Accounting Standard Board (IASB). Those are not debated adequately at the IASB before rejection. The present paper will discuss the reasons behind convergence of IFRs, rather than adoption. It also shows the Carve Outs of Ind AS from IFRS by providing valid reasons.

scholarly journals The Enactment and Critique of International Accounting Standard Two

2021 ◽  
Vol 10 (6) ◽  
pp. 145
Author(s):  
Ayogeboh Epizitone ◽  
Samantha Cecilia Nxumalo
Keyword(s):  
Financial Reporting ◽  
Emerging Economies ◽  
Value Relevance ◽  
International Accounting ◽  
International Accounting Standards ◽  
Accounting Standard ◽  
Financial Reporting Standards ◽  
Current Asset ◽  
Asset Inventory ◽  
International Accounting Standard

Harmonising the International Accounting Standards/International Financial Reporting Standards (IAS/IFRS) globally has been the objective of national boards that seek to eliminate existing differences. The harmonisation project has been substantially efficient in realising the IFRS in emerging economies. However, concerning the international accounting standard two, the existence of different inventory valuation methods in literature is one of the dilemmas confronting the application of IAS 2 in many nations globally. This study through a comprehensive literature review discusses and present a critique on the international accounting standard two to afford insight that will be beneficial to both scholar and standard setters. The findings reveal a formidable contribution of the current asset inventory on companies and compliance levels in South Africa.  Furthermore, these findings supplement prevailing body knowledge on IAS two and the value relevance of accounting inventories. Highlighting key critiques on the IAS 2 prescriptions and application internationally and also revealing the standards own crucial flaws and strengths and on companies.   Received: 6 May 2021 / Accepted: 23 August 2021 / Published: 5 November 2021

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 IAS Basel: The Contribution of Losses to the Banks' Capital Adequacy

2017 ◽  
Vol 7 (2) ◽  
pp. 01 ◽  
Author(s):  
Panagiotis Papadeas ◽  
Alina Barbara Hyz ◽  
Evaggelia Kossieri
Keyword(s):  
Financial Reporting ◽  
Income Taxes ◽  
Capital Adequacy ◽  
Annual Reports ◽  
International Accounting ◽  
Banking Supervision ◽  
Accounting Standard ◽  
Financial Reporting Standards ◽  
Greek Banks ◽  
International Accounting Standard

<p>The main aim of this paper is to examine the consequences of International (Accounting) Financial Reporting Standards / IFRS - IASB and deferred taxation for banks in Eurozone area. The analysis used data from Annual Reports of four systemic Greek banks, which control around 95 percent of the sector's assets and 90 percent of total deposits. The results suggests that increasing banks' losses may improve their capital adequacy. The paper is organized as follows: in the next section we briefly present interactions between IASB and BASEL aiming at preventing banking and accounting problems at international level during the last decades.  This is followed by the comparative analysis of banking supervision accords and the presentation of International Accounting Standard 12: Income Taxes. The research methodology, the data sources used in the analysis and research results are presented and discussed in section four. Last section summarizes the conclusions and presents further opportunities for research.</p>

scholarly journals Akuntansi Aset Biologis – Studi Kasus PT. Bibit Indonesia

2021 ◽  
Vol 1 (11) ◽  
Author(s):  
Mohamad Dedi Junaedi
Keyword(s):  
Financial Reporting ◽  
International Accounting ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Accounting Standard ◽  
Parent Stock ◽  
International Accounting Standard

Latar belakang: Setiap negara memiliki sistem akuntansi berbeda yang disesuaikan dengan kebutuhan negara tersebut. Untuk meningkatkan komparabilitas dan kualitas laporan keuangan secara global, International Accounting Standard Board (IASB) mengembangkan dan mengeluarkan International Financial Reporting Standard (IFRS) dengan tujuan untuk mengurangi peraturan pelaporan yang berbeda antar negara, mengurangi biaya pelaporan keuangan perusahaan multinasional dan mengurangi biaya analisis laporan keuangan. Tujuan penelitian: Untuk mengatahui menganalisis perlakuan akuntansi aset biologis perusahaan, menganalisis klasifikasi aset biologis, nilai pasar aktif dan metode penilian aset biologis berdasarkan PSAK 69. Metode penelitian: Metode penelitian ini mengunakan metode kualitatif. Objek penelitian dilakukan pada PT. Bibit Indonesia. Hasil penelitian: Hasil penelitian menjukkan perusahaan sudah melakukan perlakuan akuntansi aset biologis sesuai dengan PSAK 69. Namun, masih terdapat beberapa perbedaan dimana perusahaan tidak melalukan pengukuran kembali nilai aset biologis pada setiap akhir periode pelaporan. Pengukuran kembali nilai wajar aset biologis diproyeksikan untuk laporan keuangan tiga bulan ke depan. Kesimpulan: Klasifikasi aset biologis perusahaan terbagi atas ayam pembibit induk nenek dan telur tetas. Masih belum terdapat pasar aktif atas aset biologis perusahaan. Jika ingin mengukur nilai pasar sebagai salah satu aspek pengukuran nilai wajar aset biologis, perusahaan mengambil dari nilai penjualan Parent Stock Daily On Chick (PS DOC), penjualan dari final stock broiler dan penjualan culled/infertile egg. Penilaian aset biologis perusahaan menggunakan metode hybrid, yaitu untuk ayam yang masih dalam masa pertumbuhan nilai ayam diukur berdasarkan biaya. Metode perusahaan dalam menilai aset biologis telah mengikuti langkah-langkah yang dijelaskan PSAK 69. Selisih menggunakan metode proyeksi nilai wajar dengan aktual nilai wajar menyebabkan selisih yang cukup besar.

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