The influence of the development of accounting standards to preserve sustainability: Literature Review

Current Accounting ◽

The study aims to investigate the relationship between the impact of the development of accounting pronouncements and the extent to which accounting can or should contribute to the pursuit of economic & social developments, and the sustainable development of an organization, and the contradiction between sustainability and accounting practices based on traditional financial reporting standards. It has been argued that the current accounting standards represent an attempt to present a ‘true and fair’ view. Design/methodology/approach: The study is essentially a literature review study that seeks to discuss a number of implicit assumptions within traditional accounting by IASB. Findings: Regulatory reports on the social and environmental dimension, particularly sustainability reports, demonstrate that accounting pronouncements, while trying to report on the environmental and social dimensions, suffer from some imbalance that has omitted environmental destruction and eroded any realistic concept of social justice. Practical implications: In this sense, this study seeks to demonstrate this contradiction and the strong and fundamental implications that this implies for traditional financial reporting and insignificant adjustments to these reports through "new models of regulatory reporting. Originality/value: The study highlights the disregard of external factors as a major obstacle to the sustainability report and proposes accounting and tax designs to identify costs associated with external factors as a basis for fair reporting, pricing and sustainable business practices.

The impact of IFRS-based accounting standards on earnings management: evidence from Malaysia

International Journal of Accounting and Economics Studies ◽

10.14419/ijaes.v5i1.6821 ◽

2016 ◽

Vol 5 (1) ◽

pp. 1

Author(s):

Yosra Makni Fourati ◽

Rania Chakroun Ghorbel

Keyword(s):

Earnings Management ◽

Financial Reporting ◽

Emerging Market ◽

Accounting Standards ◽

Absolute Value ◽

Ifrs Adoption ◽

Earning Quality ◽

The Impact ◽

Different Levels

This study aims to examine the consequences of International Financial Reporting Standards (IFRS) convergence in an emerging market. More specifically, we investigate whether the adoption of the new set of accounting standards in Malaysia is associated with lower earnings management. Using a sample of 3,340 firm-year observations across three reporting periods with different levels of IFRS adoption, we provide evidence that IFRS convergence improves earning quality. In particular, we find a significant decrease in the absolute value of discretionary acccruals in the partial IFRS-convergence period (2007-2011), whereas this effect is restrictive after the complete IFRS- implementation.

The Impact of Financial Statement Comparability on Earnings Management: Evidence from Frontier Markets

International Journal of Financial Studies ◽

10.3390/ijfs8040073 ◽

2020 ◽

Vol 8 (4) ◽

pp. 73

Author(s):

Wil Martens ◽

Prem W. S. Yapa ◽

Maryam Safari

Keyword(s):

Earnings Management ◽

Financial Reporting ◽

Common Law ◽

Accounting Standards ◽

Real Earnings Management ◽

Financial Statement ◽

Developed Markets ◽

Accounting Comparability ◽

This paper examined whether financial statement comparability constrains opportunistic earnings management in frontier market countries. Using a large sample of 19 frontier market countries, and an accounting comparability method that maps comparability across several accounting standards, the results show that enhanced financial comparability constrains accruals earnings management (AEM). Contrary to developed markets and novel to this study, a significant relationship between financial comparability and real earnings management (REM) was not found. For greater robustness, AEM and REM were also tested on both International Financial Reporting Standards (IFRS) adopting and non-adopting countries. The results suggest IFRS adoption constrains AEM, yet exhibited no impact on constraining REM. Additionally, the use of BigN auditors failed to conclusively show an ability to moderate EM. When combined, the results suggest that frontier markets engage in less REM than expected. It is also noted that the legal roots (civil vs. common law) play a significant role in constraining earnings management. Common law countries exhibited lower AEM when comparability increased; this significance was not found in countries that were rooted in civil law. Contributions from this study show that findings from developed markets cannot be generalised to frontier markets.

Handbook of Research on Global Issues in Financial Communication and Investment Decision Making - Advances in Finance, Accounting, and Economics ◽

A Review of the Literature on IFRS Adoption From the Perspective of the Value Relevance

10.4018/978-1-5225-9265-5.ch017 ◽

2019 ◽

pp. 367-394 ◽

Cited By ~ 2

Author(s):

Melik Ertuğrul

Keyword(s):

Literature Review ◽

Financial Reporting ◽

Value Relevance ◽

The European Union ◽

Archival Research ◽

Ifrs Adoption ◽

Comprehensive Picture ◽

Mandatory Adoption ◽

International Financial Reporting Standards (IFRS)-based financial reporting has become widespread all around the world especially after its mandatory adoption in the European Union in 2005. There are several objectives of IFRS-based financial reporting, all of which depends on the idea of a single set of high-quality standards as frequently highlighted by promoters of IFRS. This literature review depicts a comprehensive picture of the archival research on the impact of IFRS-based reporting on capital markets from the perspective of the value relevance (VR) concept. First, the VR concept, as well as models employed to measure the VR, are described. Afterwards, selected studies of the archival research are grouped, summarized, and discussed. Finally, archival research is methodologically analyzed by considering different dimensions. All in all, this literature review provides information on IFRS adoption from the perspective of the VR.

Continued Impact of International Financial Reporting Standards on U.S. Generally Accepted Accounting Principles

The Journal of Global Awareness ◽

10.24073/jga/1/01/07 ◽

2020 ◽

pp. 1-12

Author(s):

Sylwia Gornik-Tomaszewski ◽

Victoria Shoaf

Keyword(s):

Financial Reporting ◽

Accounting Standards ◽

Fair Value ◽

International Financial Reporting Standards ◽

Reporting Standards ◽

Generally Accepted Accounting Principles ◽

Accounting Principles ◽

Value Measurement ◽

The milestone outcomes of over a decade of close cooperation between the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) on the convergence of U.S. Generally Accepted Accounting Principles (U.S. GAAP) and International Financial Reporting Standards (IFRS) have been highly publicized in the professional media. Great attention has been paid to such joint FASB and IASB projects as accounting for business combinations, fair value measurement, and revenue recognition. The impact of U.S. GAAP on IFRS has also been discussed and highlighted in many professional and academic resources. It should come as no surprise since FASB is considered a world leader in creating high-quality standards through an exemplary standard-setting process. In this paper, we look at the least noticed outcome of the convergence process: the impact of IFRS on U.S. GAAP. We reviewed all of the Accounting Standards Updates (ASUs) to the FASB Accounting Standards Codification®, from the first issued in June 2009 to 2016, and listed instances where U.S. GAAP was significantly modified to reflect international solutions. These examples of U.S. GAAP modifications indicate that the impact of IFRS on U.S. GAAP continued well after the bilateral cooperation between FASB and IASB effectively ended in 2014. Furthermore, look at the most recent FASB pronouncement let us conclude that the FASB continues to be engaged in seeking comparable global accounting solutions.

The implementation of IFRS in Indonesian Islamic accounting

Journal of Economics Business and Accountancy Ventura ◽

10.14414/jebav.v21i3.1254 ◽

2019 ◽

Vol 21 (3) ◽

pp. 361

Author(s):

Agus Arwani

Keyword(s):

Literature Review ◽

Financial Reporting ◽

Accounting Standards ◽

Financial Accounting ◽

International Financial Reporting Standards ◽

Reporting Standards ◽

Accounting Theory ◽

Local Languages ◽

Ifrs Implementation

This research examines the IFRS implementation in Indonesian Islamic accounting. It employs a literature review method to systematically explain the accounting theory, the Islamic Financial Accounting Standards, and International Financial Reporting Standards (IFRS). This study concludes that there is a conflict between the International Financial Reporting Standards (IFRS) and some Islamic principles which has not been yet resolved. The Islamic accounting is also facing some complex issues related to the convergence of International Financial Reporting Standards in Indonesia due to incorrect implementation of IFRS in some countries related to the translation problems from English to local languages. The biggest problem in implementing IFRS convergence for business is dealing with the expenses spent for the development of knowledge, supports and trainings for consultants

Financial statement analysis

10.12737/textbook_5cfa59205f9890.46595973 ◽

2019 ◽

Author(s):

Мария Вахрушина ◽

Mariya Vakhrushina ◽

Ольга Антонова ◽

Ol'ga Antonova ◽

Марина Друцкая ◽

...

Keyword(s):

Financial Reporting ◽

Public Information ◽

Accounting Standards ◽

Financial Statements ◽

Legal Framework ◽

International Financial Reporting Standards ◽

Reporting Standards ◽

Integrated Reporting ◽

The textbook presents the basic theoretical, methodological and practical provisions of the discipline "Analysis of financial statements" in accordance with the state educational standard of higher education for the preparation of students in the direction of "Accounting, analysis and audit". The issues of analysis and evaluation of the financial situation and performance of the organization using practical data of individual and consolidated financial statements, statistical and tax reporting. The algorithms and practical calculations of analytical indicators are based on the principle of "through example". The textbook takes into account changes in the legal framework - the development of Federal accounting standards (FSBU). Federal law No. 160-FZ of 18 July 2017 clarifies the status of accounting regulations (PBU). PBU approved by the Ministry of Finance of Russia in the period from October 1, 1998 to January 1, 2013 are recognized as Federal accounting standards. At the same time a number of PBU changes. The textbook reflects the impact of legislative changes on the preparation and analysis of financial statements. The influence of international approaches to the disclosure of public information on the Russian practice of its presentation continues to grow. The textbook describes the changes in International financial reporting standards, taking into account their impact on the presentation and analysis of financial statements. The influence of international approaches to the disclosure of public information on the Russian practice of its presentation continues to grow. The textbook describes the changes in International financial reporting standards, taking into account their impact on the presentation and analysis of financial statements. Taking into account the strengthening of the position of integrated reporting in ensuring sustainable development of economic entities radically revised section of the textbook on the practice of its analysis. For students, postgraduates, teachers of economic specialties, students of the system of training and advanced training of accountants, auditors, specialists of financial and economic services.

Presentation Pattern and the Value Relevance of Comprehensive Income --- Evidence from China

International Journal of Economics and Finance ◽

10.5539/ijef.v9n6p31 ◽

2017 ◽

Vol 9 (6) ◽

pp. 31 ◽

Cited By ~ 1

Author(s):

Wenjing Xu ◽

Ming Qi

Keyword(s):

Financial Reporting ◽

Information Disclosure ◽

Value Relevance ◽

Accounting Standards ◽

Accounting Standard ◽

Comprehensive Income ◽

Other Comprehensive Income ◽

In 2006 the Chinese Ministry of finance(CMF) issued new accounting standards that required companies began to present comprehensive income information in the statement of equity. In 2009 and 2014, CMF changed the comprehensive income presentation pattern consecutively twice, from the equity statement pattern to the performance statement transition pattern, and then to the single performance statement. The purpose of these changes is to harmonize China Accounting Standard (CAS) with International Financial Reporting Standards(IFRS). It also aims to enhance the usefulness of comprehensive income information by improving the transparency of information disclosure. From the perspective of presentation patterns, the paper examines the influence of presentation pattern changes on the value relevance of comprehensive income (CI), and on other comprehensive income (OCI). The results show that, under the equity statement pattern, neither CI nor OCI was correlated with value. Under the performance statement transition pattern, both CI and OCI have the value relevance. Under the single performance statement pattern, the CI has higher value relevance, while the OCI does not reflect higher value relevance. This study reveals the impact of comprehensive income presentation pattern on the usefulness of decision making. It has certain inspiration and reference for improving the quality of accounting standards and financial reporting.

Corporate sustainability: accounting standards vs tax by design

Social Responsibility Journal ◽

10.1108/srj-10-2012-0122 ◽

2014 ◽

Vol 10 (3) ◽

pp. 386-398 ◽

Cited By ~ 3

Author(s):

David Russell

Keyword(s):

Financial Reporting ◽

Design Methodology ◽

Economic Status ◽

Corporate Sustainability ◽

Accounting Standards ◽

Financial Statements ◽

Business Practices ◽

Sustainable Business ◽

Legal Form ◽

Content Type

Purpose – The purpose of this paper is to examine the contradiction between sustainability and accounting practices, underpinned by reporting standards and question whether financial statements prepared in this way represent a true and fair view? The paper highlights the disregard for externalities as a fundamental obstacle to sustainable reporting and proposes taxation designs to recognise the costs associated with externalities as the basis for equitable reporting, pricing and sustainable business practices. Design/methodology/approach – The approach taken uses Smith’s (1776) tenets of a good tax, to consider characteristics of taxation that may be harnessed for financial reporting, valuation, economic substance and legal form. Findings – The findings reveal a case for further examination of the efficacy of taxation, alongside a full-cost accounting approach, to benefit sustainable reporting. Research limitations/implications – The implications of the research are a possible whole reappraisal of costs and prices to recognise the sustainability dimension and place it at the heart of the corporate agenda. The limitations arise from contestable valuation of sustainable matters, arising from a lack of an agreed theoretical framework. Originality/value – The paper proposes a realignment of costs and prices to correct market imperfection through the innovative application of taxation, but without a fundamental reappraisal of the economic status quo upon which Western-style capitalism is underpinned.

The Convergence of U.S. GAAP with IFRS: A Comparative Analysis of Principles-based and Rules-based Accounting Standards

Scholedge International Journal of Business Policy & Governance ISSN 2394-3351 ◽

10.19085/journal.sijbpg030501 ◽

2016 ◽

Vol 3 (5) ◽

pp. 63

Author(s):

Oris Guillaume ◽

Denel Pierre

Keyword(s):

Financial Reporting ◽

Accounting Standards ◽

Financial Accounting ◽

Accounting Standard ◽

Generally Accepted Accounting Principles ◽

Future State ◽

The Impact ◽

International Accounting Standard ◽

Single Set

The Financial Accounting Standard Board (FASB) and the International Accounting Standard Board (IASB) have been working jointly toward the convergence of the U.S. generally accepted accounting principles (GAAP) and the international financial reporting standards (IFRS). However, several arguments still exist as to whether or not U.S. companies should adopt or converge with IFRS. This qualitative study identified the differences noted between rules-based and principles-based accounting, and discussed the impact of these accounting standards on financial reporting. Additionally, several resources were analyzed to understand the path to convergence and the future state of IFRS. The examination of information regarding the transition towards one single set of accounting standards led to the development of two alternate conclusions. Although research allows for the belief that convergence with IFRS is imminent, the fact remains that FASB and IASB will need to work diligently in order to resolve the differences between the two sets of accounting standards.