scholarly journals The Institute of Chartered Accountants of India V/S National Financial Reporting Authority

2020 ◽  
Vol 10 (6) ◽  
Author(s):  
Shrihari Karanth ◽  
Srinivas K. T.
Keyword(s):  
Financial Reporting ◽  
Central Government ◽  
Code Of Conduct ◽  
Accounting Standards ◽  
Regulatory Body ◽  
High Quality ◽  
Accounting Practitioners ◽  
Set Up ◽  
Autonomous Institution ◽  
Chartered Accountants

In India traditionally accounting and audit related standards are regulated by The Institute of Chartered Accountants of India (ICAI). The ICAI was established to set a code of conduct that needs to be followed by all the professional accounting practitioners including auditing firms. ICAI working as an autonomous institution under Government of India, but Government has set up another regulatory body calledNational Financial Reporting Authority (NFRA)over ICAI for recommendations to the Central Government on formulating high-quality accounting standards and auditing polices, which mandatorily adapt by companies or auditors. NFRA is given complete power to regulate &control audit practices. Howeverone can observe that there are two equivalent organisation operating with the same objective which may create more bureaucratic hurdles in the system.

The Adoption of Financial Accounting Standards for Small Medium Enterprises by Muslim Entrepreneurs

2020 ◽  
Vol 27 (2) ◽  
pp. 54
Author(s):  
Muslichah Muslichah ◽  
Sunarto Sunarto ◽  
Anang Amir Kusnanto ◽  
Sri Indrawati ◽  
Hariyanto Hariyanto
Keyword(s):  
Financial Reporting ◽  
Quantitative Data ◽  
Accounting Standards ◽  
Financial Accounting ◽  
Unexpected Finding ◽  
Financial Reports ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
Chartered Accountants ◽  
Structured Questionnaire

This study aims to discuss the adoption of financial reporting and accounting standards for small-medium enterprises (SMEs) by Muslim entrepreneurs. A structured questionnaire was used to collect quantitative data from the SME owners. 214 Muslim owners of SME businesses participated in the survey. The results show that only a few Muslim entrepreneurs prepared financial reports regularly. The main reason for preparing the statement is for calculating tax, borrowing money, and decision making. An unexpected finding from this study is that most of the Muslim owners are unaware of Standard for SMEs. Users of SME financial reports include tax authority, banks, and owners, or shareholders. This study enriches the financial reporting studies by examining the accounting standards for SMEs in a Muslim dominated country. The findings of this study also have implications for the Institute of Indonesia chartered accountants (IICA) as standard setter. IICA must routinely disseminate these standards to SMEs and also assist them in preparing financial reports

scholarly journals On certain development aspects of an ipsas-based system-target approach to evaluation of net asset sustainability level projects in high-rise construction

2018 ◽  
Vol 33 ◽  
pp. 02071 ◽  
Author(s):  
Ruben Kazaryan
Keyword(s):  
Public Sector ◽  
Financial Reporting ◽  
Legal Status ◽  
Accounting Standards ◽  
Legal Aspects ◽  
Financial Reporting Standards ◽  
High Rise ◽  
Net Assets ◽  
Autonomous Institution ◽  
The Right

Problems of accounting and reporting of net assets and the procedure of their formation taking into account the specifics of the economic and legal status of property of a non-commercial autonomous institution are some of the most controversial in the accounting for entities of the public sector. The study focuses on justification of accounting rules for net assets of public sector entities. The methods used in the study are as follows: comparison, synthesis, analysis, logical approach, and system approach. The article examines legal aspects and specifics of recognition of assets of public sector entities in accordance with IPSAS standards (International Public Sector Accounting Standards are a set of accounting standards issued by IPSASB (Council for International Financial Reporting Standards for Public Sector Organizations) used by state-owned enterprises worldwide in preparation of financial statements as of the 31st of August, 2015. The most crucial factor in the modeling of key performance indicators of the system-target approach to estimation of the sustainability level of net assets on the basis of IPSAS is a multicriterial evaluation of the basic management strategy for quality system elements used in operational and strategic planning projects operations in high-rise construction. We offer an alternative evaluation of assets due to be returned to the right holder (the state controller) in the event of liquidation of a public sector entity.

Accounting Standards and Earnings Quality — Evidence from Registered ADRs

2018 ◽  
Vol 21 (04) ◽  
pp. 1850022
Author(s):  
Yaseen S. Alhaj-Yaseen ◽  
Kean Wu ◽  
Leslie B. Fletcher
Keyword(s):  
Financial Reporting ◽  
Earnings Quality ◽  
Accounting Standards ◽  
Securities And Exchange Commission ◽  
High Quality ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
The Us ◽  
Us Gaap

This paper examines the changes in earnings quality of registered American Depositary Receipts (ADRs) as a result of switching accounting standards. We aim to shed light on the potential impact of International Financial Reporting Standard (IFRS) adoption on US firms. A suboptimal approach to achieve this goal is through examination of US firms’ surrogates such as ADRs. Unlike previous studies, we made a distinction between registered and unregistered ADRs and affirmed that registered ADRs are the closest surrogates with which to conduct our analysis because they are exclusively required to adhere to the Securities and Exchange Commission (SEC)’s stringent disclosure requirements. When cross-listing their equity on the US exchanges, foreign issuers can file their financial reports with the SEC using IFRS, US GAAP (generally accepted accounting principles), or their domestic GAAP with reconciliation to US GAAP. An improvement in earnings quality is documented when ADRs adopt US GAAP or IFRS versus domestic GAAP. However, when the comparison is made between US GAAP and IFRS, no difference in earnings quality is documented. These results indicate that switching to high-quality accounting standards is likely to improve earnings quality. This improvement is maximized when the difference between reporting standards is high and minimized if otherwise. Our conclusion is that the adoption of IFRS in the US is unlikely to change earnings quality of local issuers. Moreover, we drew a distinction between reconciliation with and adoption of high-quality accountings standards and find that while the former can enhance earnings quality, the latter can further improve it.

scholarly journals ERRORS AND FRAUD IN ACCOUNTING. THE ROLE OF EXTERNAL AUDIT IN FIGHTING CORRUPTION

10.26458/1743 ◽  
2017 ◽  
Vol 17 (4) ◽  
pp. 29-36
Author(s):  
Luminita Ionescu
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
External Control ◽  
Electronic Systems ◽  
High Quality ◽  
External Audit ◽  
Strong Connection ◽  
Recent Developments

Accounting errors and fraud are common in most businesses, but there is a difference between fraud and misinterpretation of communication or accounting regulations. The role of management in preventing fraud becomes important in the last decades and the importance of auditing in curbing corruption is increasingly revealed. There is a strong connection between fraud and corruption, accelerated by electronic systems and modern platforms.The most recent developments tend to confirm that external auditing is curbing corruption, due to international accounting and auditing standards at national and regional levels. Thus, a better implementation of accounting standards and high quality of external control could prevent errors and fraud in accounting, and reduce corruption, as well.The aim of this paper is to present some particular aspects of errors and fraud in accounting, and how external audit could ensure accuracy and accountability in financial reporting. 

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).

scholarly journals Analysis of perceptions of auditors/chartered accountants’ on selected Indian accounting standards

2015 ◽  
Vol 4 (4) ◽  
pp. 340
Author(s):  
Bharathan Viswanathan ◽  
Robinson Joseph ◽  
Philip Thomas ◽  
Sambasivan Elumalai
Keyword(s):  
Professional Ethics ◽  
Codes Of Conduct ◽  
Code Of Conduct ◽  
Accounting Standards ◽  
Professional Code ◽  
Financial Reports ◽  
Chartered Accountants ◽  
Proper Behavior

<p>Indian accounting standards are not only principle based but also based on users’ perceived ethical notions on professional ethics and compliance with professional code of conduct that are issued by the Institute of Chartered Accountants of India (ICAI).Codes of conduct for accountants give guidelines for proper behavior in the profession. The present study attempts to understand the perceptions of practicing auditors and professional Chartered Accountants (CAs) on the Indian accounting Standards and adherence to the professional code of conduct issued by the ICAI. The study is based on a survey conducted among a sample of qualified CAs. On the basis of the findings, the study concluded that ethical accounting standards are fundamentally necessary for accountants to produce quality financial reports free from material misstatements.</p>

International accounting standards and accounting quality in code-law countries

2016 ◽  
Vol 24 (1) ◽  
pp. 41-59 ◽  
Author(s):  
Ibrahim El-Sayed Ebaid
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Management Practice ◽  
Accounting Standards ◽  
Accounting System ◽  
Accounting Quality ◽  
Regulatory Requirement ◽  
Content Type ◽  
Set Up ◽  
Egyptian Government

Purpose – This study aims to examine whether the adoption of International Financial Reporting Standards (IFRS) leads to accounting quality improvements in Egypt as a code-law country. In particular, the study examines earnings management, the construct often used to assess accounting quality. Design/methodology/approach – The study compares earnings management practice for Egyptian listed companies before (2000-2006) and after (2007-2009) the adoption of IFRS. Findings – The findings of the study reveal that accounting quality, as measured by earnings management, has decreased in post-adoption period compared to pre-adoption period. IFRS are set up to provide high-quality financial reporting. However, this cannot be achieved solely by a regulatory requirement to follow. The accounting system is a complementary component of the country’s overall institutional system. Institutional improvements did not simultaneously take place by the Egyptian government around the adoption of IFRS. The Egyptian government did not introduce a more effective enforcement system, mandatory corporate governance regulations, investor protection mechanisms and sufficient institutional knowledge of IFRS during that period. Thus, even if IFRS are higher quality standards, the institutional features of Egyptian market could eliminate any improvement in accounting quality arising from adopting IFRS. Research/limitations/implications – The results of the study are consistent with prior research suggesting that the adoption of IFRS, which are generally perceived to be of higher quality than domestic standards, does not necessarily lead to higher accounting quality in code-law countries like Egypt. The overall results indicate that incentives dominate accounting standards in determining accounting quality in Egypt. Originality/value – The main reason why countries adopt IFRS invariably is to improve accounting quality. It is, therefore, of interest to ascertain if this goal has been met, especially, in code-law countries such as Egypt.

The harmonization of government financial information systems: the role of the IPSASs

2007 ◽  
Vol 73 (2) ◽  
pp. 293-317 ◽  
Author(s):  
Bernardino Benito ◽  
Isabel Brusca ◽  
Vicente Montesinos
Keyword(s):  
Public Sector ◽  
Financial Reporting ◽  
Central Government ◽  
Accounting Standards ◽  
Financial Information ◽  
Accounting Systems ◽  
Starting Point ◽  
Public Sector Accounting ◽  
Near Future

The publication of International Public Sector Accounting Standards (IPSASs) in the field of governmental financial reporting has raised the necessity for a wide-ranging discussion about the harmonization of public sector accounting systems. The article has a double aim: to show the adoption or not of IPSASs in local and central government and to analyse the level of convergence between the different countries studied. In order to achieve these objectives, we carried out an empirical study, whose results allow us to show that while some accounting systems are very close to the IPSASs model, others are completely different. Nevertheless, we think that this could be a starting point and that in the near future countries could tend towards IPSASs more and more, which may be the most probable way to reach convergence accounting systems between them.

IFRS adoption challenges in developing economies: an Indian perspective

2017 ◽  
Vol 32 (4/5) ◽  
pp. 406-426 ◽  
Author(s):  
Sharad Sharma ◽  
Mahesh Joshi ◽  
Monika Kansal
Keyword(s):  
Financial Reporting ◽  
Quantitative Research ◽  
Developing Economies ◽  
Accounting Standards ◽  
Research Approach ◽  
Institutional Pressures ◽  
It Infrastructure ◽  
Content Type ◽  
Accounting Practitioners ◽  
Ifrs Implementation

Purpose This study aims to examine the perceptions of accounting practitioners and users about implementation challenges with International Financial Reporting Standards (IFRSs) at the pre-implementation stage. Under institutional pressures, India conveyed its decision to implement IFRS beginning 1 April 2016, despite initial reluctance to adopt IFRS. It specifically explores the responses of accounting professionals (preparers) and the banking industry professionals (users) in India to challenges in IFRS implementation, rather than more widely researched dimensions of IFRS implementation such as reasons for adoption, experience effects and diversity in practice. Design/methodology/approach A quantitative research approach was adopted, using a questionnaire survey that provided 192 responses from accounting practitioners and banking professionals working in India. Findings The findings convey IFRS implementation preparedness perceptions of participants with respect to education, training and information technology (IT) infrastructure. Respondents acknowledged the efforts and capability of the accounting body, the Institute of Chartered Accountants of India, but expressed reservations about training, cost, interpretation, IT infrastructure and staffing. The accounting practitioners and the users have similar perspectives on the subject of awareness and preparedness challenges of IFRS implementation. Practical implications The study heightens awareness of the challenges facing jurisdictions who express initial reluctance, although they ultimately decide to adopt IFRS on account of institutional pressures. The analysis suggests that the International Accounting Standards Board should increase focus on implementation issues, in addition to updating and making IFRSs. Originality/value The study is distinct from the studies in abundance on the creation of accounting standards, implementation benefits and their implication in a specific geography.

scholarly journals Measuring the Effectiveness of National Enforcers in the IFRS Context: A Proactive Approach

2018 ◽  
Vol 11 (6) ◽  
pp. 151 ◽  
Author(s):  
Alberto Quagli ◽  
Francesco Avallone ◽  
Paola Ramassa ◽  
Lorenzo Motta
Keyword(s):  
Empirical Analysis ◽  
Financial Reporting ◽  
Accounting Standards ◽  
High Quality ◽  
Crucial Element ◽  
Proactive Approach ◽  
System Building ◽  
Prior Literature ◽  
Public Output

It is widely acknowledged that an effective enforcement system represents a crucial element to achieve significant improvements in financial reporting through the adoption of high-quality accounting standards. Indeed, the quality of financial reporting is considerably influenced not only by the standards to be adopted but also by their actual implementation, and consequently by enforcement mechanisms.The topic has generated considerable interest among scholars, who devoted their attention to developing different measures of the quality of the enforcement system. Building upon this literature, this paper aims at exploring the accounting enforcement system and focuses on controls over financial reporting considering two levels, namely the auditing activity and the controls performed by national enforcers.This paper extends the prior literature by proposing a dynamic measure of the accounting enforcement system capturing controls at those two levels. More specifically, the index here proposed focuses on the quality of the accounting enforcement operated by national enforcers in terms of proactivity, intended as the national enforcers’ capability to detect problems not highlighted in the auditors’ opinions, thus shifting the focus from an input to an output perspective. Indeed, the activities of auditors and national enforcers are strictly connected, given that the auditors’ opinion is the first public output of accounting controls and that is normally one of the bases for further investigation by national enforcers. An illustrative empirical analysis is carried out on the German and the Italian contexts to show the potential of the index for enforcement studies.

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