scholarly journals The genesis of the “goodwill” concept in financial and managerial accounting

2018 ◽  
pp. 74-83
Author(s):  
Yuliia Sudyn
Keyword(s):  
Financial Reporting ◽  
Research Literature ◽  
National Standards ◽  
Managerial Accounting ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Business Combinations ◽  
Significant Difference ◽  
Economic Nature ◽  
Conceptual Foundations

The paper provides an analysis of the evolution of the “goodwill” concept from 1982 up to now on the basis of definitions found in foreign and national literature. The study focuses on conceptual foundations for accounting goodwill at an enterprise. Within the study the following general and special research methods for describing economic phenomena and processes are applied: historical and logical – to identify evolutionary approaches to defining the concept of “goodwill”; generalization, grouping and comparison – to study the essence of economic concepts and reinforce their definitions; analysis, synthesis, induction and deduction – to describe the main features of goodwill which reflect the economic nature of the concept. Based on foreign and national research literature, a review of definitions for the concept of “goodwill” is presented in the chronological order. In the article, a reinforced definition is formulated, which is tailored to the current environment of doing business and requesting for information. The evolution of conceptual foundations for accounting goodwill which complies with international and national standards is described. The structure of goodwill is graphically de- picted in accordance with International Financial Reporting Standard 3 Business Combinations. It is found that goodwill at an enterprise is not always economically justified and does not indicate the existence of non-economic amenities. A significant difference is found between the interpretation of the concept of “goodwill” in accounting and economic interdisciplinary aspects. Speculative reasons for the positive variance in the implementation of integration agreements are described, which confirm the discrepancy between economic and accounting definitions of goodwill. It is pointed out that there is a need for the convergence of existing approaches in order to unify the conceptual foundations of goodwill as an accounting concept. It is proposed to record the internal goodwill on accounts as an economic embodiment of non-economic amenities that the enterprise owns.

scholarly journals International Financial Reporting Standard (IFRS) Adoption and Economic Growth: A Study of Nigeria and Kenya

2019 ◽  
pp. 1-8
Author(s):  
Ajibade, Ayodeji Temitope ◽  
Okeke, Obiajulu Chibuzo ◽  
Olurin, Oluwatoyosi Tolulope
Keyword(s):  
Economic Growth ◽  
Financial Reporting ◽  
Manufacturing Sector ◽  
Descriptive Statistics ◽  
National Bureau ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Ifrs Adoption ◽  
Adoption And Implementation ◽  
Significant Difference

This study examines the effect of IFRS adoption on economic growth, using Nigeria and Kenya, for the period 2000-2016. The data which was utilized in this study, was gotten from National bureau of statistics. Descriptive statistics and paired sample t-test were used to analyze the data. Manufacturing sector Gross domestic product (GDP) was used to proxy Economic growth. However, the findings show that there is a significant difference in Economic growth of Nigeria and Kenya between pre and post IFRS adoption. Hence, the study recommends that government should ensure the fully adoption and implementation of IFRS in every possible sector in other to enjoy other benefits that accrue from it. Also, further studies on IFRS adoption and economic growth should employ other variables not used in the study.

scholarly journals Accounting standards for small and medium-sized entities. Evidence from Spain

2011 ◽  
Author(s):  
Patricia Milanés Montero ◽  
Irene Albarrán Lozano ◽  
Joaquín Texeira Quirós ◽  
Esteban Pérez Calderón
Keyword(s):  
European Commission ◽  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Information ◽  
National Standards ◽  
International Accounting Standards ◽  
Social Significance ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Difficult Decision

By approving Regulation 1606/2002, the European  Commission entrusts the local European Union regulators with the difficult decision as to whether making the International Accounting Standards (IAS/IFRS) extensive for their Small and Medium sized Entities or not. International Financial Reporting Standard for Small and Medium-sizzed Entities (hereinafter IFRS for SMEs) was published in 2009, and the European Commission had also decided to seek the opinion of EU stakeholders on this Standard. We understand that the European accounting regulators’ position should be based on the analysis of the extent to which current domestic standards allow useful financial information to be provided by and to these companies. <br />Therefore, this paper presents empirical evidence regarding Spanish SMEs’ characteristics, timely facing the harmonizzation process, in order to determine if the information provided according to the national standards accomplishes the required usefulness. Its purpose is to share facts and data about this kind of still underestimated companies, though of great economic and social significance in Spain and in Europe in general.

scholarly journals Segment disclosures in the financial statements of stock companies in the Republic of Serbia and the Republic of Croatia

2021 ◽  
Vol 23 (1) ◽  
pp. 55-70
Author(s):  
Vladimir Obradović ◽  
Marko Milašinović ◽  
Jasmina Bogićević
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Business Decisions ◽  
Audit Firms ◽  
Significant Difference ◽  
The Republic ◽  
Segment Disclosures ◽  
Segment Information

Information about the segments of a company is an important basis for making business decisions. In order for decisions based on segment information to be adequate, that information should be communicated in accordance with regulations. This paper is aimed at examining the adequacy of the segment information of listed companies in the Republic of Serbia and the Republic of Croatia and determining whether the volume of disclosed financial segment information is related to the company size and character of the audit firm. The research reveals that, in general, the disclosure of segment information is not fully in line with the International Financial Reporting Standard 8 - Operating Segments and that the joint-stock companies with a higher value of their total assets disclose financial segment information in more detail. However, there is no statistically significant difference in the amount of the segment information disclosed between the companies whose financial statements are audited by large audit firms and those that are the clients of other audit firms.

Challenges in auditing fair value measurement and accounting estimates

2020 ◽  
Vol 18 (1) ◽  
pp. 51-75
Author(s):  
Babajide Oyewo ◽  
Ebuka Emebinah ◽  
Romeo Savage
Keyword(s):  
Financial Reporting ◽  
Reporting Quality ◽  
Fair Value ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Content Type ◽  
Significant Difference ◽  
Accounting Estimates ◽  
Fair Value Measurement ◽  
Value Measurement

Purpose Following the issuance of International Financial Reporting Standard 13 on fair value measurement (which became operational from January 2013), this study aims to investigate post-implementation challenges in the audit of fair value measurement and accounting estimates in the Nigerian context. Design/methodology/approach Data-collection was through a structured-questionnaire administered on 400 auditors from diverse backgrounds in terms of audit firm size, international affiliation and global presence. Findings Empirical data obtained from 277 auditors were analysed using descriptive statistics, factor analysis, one-way ANOVA, cluster analysis, independent sample t-test and one-way multivariate analysis of co-variance. It was observed that the two highest-ranking and most-prevalent challenges of auditing fair value measurement and accounting estimates are the tendency for managers to manipulate earnings owing to the inability of auditor to effectively test fair value estimates; and the difficulty in testing unobservable inputs due to the application of assumptions and judgement in arriving at estimates by preparers of financial reports. Originality/value While there is no significant difference in the perception of auditors on the audit challenges associated with fair value measurement and accounting estimates, there is a significant difference in the magnitude of audit challenges faced in verifying fair value measurements and accounting estimates across industry sectors. Concerned stakeholders (including but not limited to accounting regulators, auditing standard setters, audit firms, researchers) are importuned to come up with robust and pragmatic measures to curtain these challenges, as the inability of auditors to rigorously verify fair value estimates may jeopardize the very essence of fair value measurement which is to elevate financial reporting quality.

Accounting for Business Combinations: Contrasting IFRS 3 Converged IND AS 103 with AS 14

2014 ◽  
Vol 1 (2) ◽  
Author(s):  
Tanupa Chakraborty
Keyword(s):  
Financial Reporting ◽  
Business Environment ◽  
Global Business ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Accounting Standard ◽  
Business Combinations ◽  
Common Control ◽  
Extensive Coverage ◽  
Compare And Contrast

Business combinations have become the most preferred route for business houses to achieve growth at a faster pace, given today’s intensely competitive global business environment. In regard to accounting for business combinations, the paper aims to compare and contrast the provisions of old Accounting Standard (AS) 14 on ‘Accounting for Amalgamations’ issued by the Institute of Chartered Accountants of India (ICAI) in 1995 with that of new International Financial Reporting Standard (IFRS) 3 converged Indian Accounting Standard (Ind AS) 103 on ‘Business Combinations’ issued by ICAI and notified as ‘standards’ by the Ministry of Corporate Affairs (MCA) in 2011. The paper showcases extensive coverage in Ind AS 103 vis-à-vis AS 14 not only in respect of accounting method, valuation of assets and liabilities, nature of consideration, measurement of non-controlling interest, treatment of goodwill / capital reserve or bargain purchase to mention a few, but also in its reference to various types of business combinations, including that of reverse acquisitions and business combinations under common control.

scholarly journals Adapting the Default Weighted Survival Analysis Modelling Approach to Model IFRS 9 LGD

Risks ◽  
2021 ◽  
Vol 9 (6) ◽  
pp. 103
Author(s):  
Morne Joubert ◽  
Tanja Verster ◽  
Helgard Raubenheimer ◽  
Willem D. Schutte
Keyword(s):  
Survival Analysis ◽  
Financial Reporting ◽  
Proportional Hazards ◽  
Proportional Hazards Model ◽  
Survival Curve ◽  
Cox Proportional Hazards ◽  
Cox Proportional Hazards Model ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Ifrs 9

Survival analysis is one of the techniques that could be used to predict loss given default (LGD) for regulatory capital (Basel) purposes. When using survival analysis to model LGD, a proposed methodology is the default weighted survival analysis (DWSA) method. This paper is aimed at adapting the DWSA method (used to model Basel LGD) to estimate the LGD for International Financial Reporting Standard (IFRS) 9 impairment requirements. The DWSA methodology allows for over recoveries, default weighting and negative cashflows. For IFRS 9, this methodology should be adapted, as the estimated LGD is a function of in the expected credit losses (ECL). Our proposed IFRS 9 LGD methodology makes use of survival analysis to estimate the LGD. The Cox proportional hazards model allows for a baseline survival curve to be adjusted to produce survival curves for different segments of the portfolio. The forward-looking LGD values are adjusted for different macro-economic scenarios and the ECL is calculated for each scenario. These ECL values are probability weighted to produce a final ECL estimate. We illustrate our proposed IFRS 9 LGD methodology and ECL estimation on a dataset from a retail portfolio of a South African bank.

scholarly journals Lobbying na Regulação Contábil: Evidências do Setor Petrolífero

2014 ◽  
Vol 25 (65) ◽  
pp. 124-144 ◽  
Author(s):  
Odilanei Morais dos Santos ◽  
Ariovaldo dos Santos
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Status Quo ◽  
International Accounting ◽  
International Accounting Standards ◽  
Discussion Paper ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
International Accounting Standards Board

Este trabalho tem como objetivo identificar os fatores determinantes à submissão de cartas comentários, como estratégia de lobbying no contexto da regulação contábil, à audiência pública do Discussion Paper Extractive Activities do International Accounting Standards Board IASB).Os resultados mostram o tamanho como fator determinante, em todas as modelagens utilizadas, indicando que grandes empresas petrolíferas possuem maior probabilidade para realizar lobbying. Essa propensão é verificada para posicionamentos essencialmente desfavoráveis às propostas apresentadas pelo IASB, o que implica em considerar que a revisão/substituição do International Financial Reporting Standard -IFRS6 será um processo complexo e sujeito a pressões por parte das empresas petrolíferas para manter o status quo.

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.

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