Accounting for crypto-assets: stakeholders’ perceptions

Purpose The purpose of this paper is to analyse stakeholders’ perceptions on the accounting of crypto-assets. They also look at the need to amend/clarify existing accounting standards or develop new accounting standards. Design/methodology/approach The authors use a qualitative approach featuring interviews with four stakeholder groups including academics, professional bodies, standard setters and accounting practitioners. Interview recordings are transcribed and then analysed through NVivo. Findings The interviewees identify various issues in the application of current accounting standards to crypto-assets. The interviewees perceive that the rapid development of crypto-assets and fluidity hinder the development of accounting guidance. Hence, continuous monitoring by standard-setters is required. The general consensus is that unless there are crypto-assets with economic characteristics and functionality that are pervasive enough to warrant a new accounting standard, principles of current accounting standards are robust to address gaps in accounting requirements for crypto-assets. Originality/value This study adds to the discussion on harmonising the current practices in accounting of crypto-assets. By examining perceptions of multiple stakeholder groups, this study provides insights into the applicability of current accounting standards to the classification, measurement and disclosure of crypto-assets. The findings will inform standard setters and aid their efforts towards providing formal guidance on the accounting of crypto-assets.

Financial reporting by Small and Medium sized Entities in Mongolia and the International Financial Reporting Standard for Small and Medium sized Entities

<p>This study examines three important aspects of financial reporting practice of Small and Medium sized Entities (SMEs) in developing economy. First, the study investigates the existing reporting practices of SMEs in Mongolia. Second, the study considers the expected impact for Mongolian SMEs of adopting the International Financial Reporting Standard for Small and Medium sized Entities (IFRS for SMEs). Third, the study examines the relationships between the economic characteristics of SMEs and both their reporting practice and the expected impact of adoption of the IFRS for SMEs. The study adopts a mixed method approach with a quantitative survey questionnaire and qualitative semi-structured interviews. The study developed a survey questionnaire and obtained 102 responses: 67 responses from employee account preparers of SMEs and 35 responses from accounting practitioners of Public Accounting Firms (PAFs) engaged with SMEs. The results of the survey were analysed using a range of non-parametric tests and Ordinary Least Squares (OLS). The qualitative semi-structured interviews were carried out with eight standard-setters, educators and information users and analysed using Nvivo. Overall, the research findings suggest that in Mongolia there is a low level of compliance with international financial reporting standards. It appears that preparers and users perceive a low level of net benefits from compliance. Surprisingly, the results indicate that the economic characteristics of SMEs do not appear to influence their reporting practice. Adoption of the IFRS for SMEs is expected to increase the level of compliance by SMEs.</p>

Financial reporting by Small and Medium sized Entities in Mongolia and the International Financial Reporting Standard for Small and Medium sized Entities

<p>This study examines three important aspects of financial reporting practice of Small and Medium sized Entities (SMEs) in developing economy. First, the study investigates the existing reporting practices of SMEs in Mongolia. Second, the study considers the expected impact for Mongolian SMEs of adopting the International Financial Reporting Standard for Small and Medium sized Entities (IFRS for SMEs). Third, the study examines the relationships between the economic characteristics of SMEs and both their reporting practice and the expected impact of adoption of the IFRS for SMEs. The study adopts a mixed method approach with a quantitative survey questionnaire and qualitative semi-structured interviews. The study developed a survey questionnaire and obtained 102 responses: 67 responses from employee account preparers of SMEs and 35 responses from accounting practitioners of Public Accounting Firms (PAFs) engaged with SMEs. The results of the survey were analysed using a range of non-parametric tests and Ordinary Least Squares (OLS). The qualitative semi-structured interviews were carried out with eight standard-setters, educators and information users and analysed using Nvivo. Overall, the research findings suggest that in Mongolia there is a low level of compliance with international financial reporting standards. It appears that preparers and users perceive a low level of net benefits from compliance. Surprisingly, the results indicate that the economic characteristics of SMEs do not appear to influence their reporting practice. Adoption of the IFRS for SMEs is expected to increase the level of compliance by SMEs.</p>

Attitudes and Soft-Skills Acquired from Accounting Internship; Does It Affect the Academic Performance?

The evolution of financial reporting and information technology disruption has increased challenges in the accounting profession. Accounting practitioners have raised concerns that accounting graduates seem to possess sufficient technical knowledge, but somehow, they lack the required soft skills such as communication and analytical thinking. The accounting program must address issues on technical, soft skills and ethical issues reflecting the graduates.

Factors Influencing the Choice of Sophisticated Management Accounting Practices - Exploratory Evidence from An Emerging Market

This study attempts to explore the factors that may lead to the choice behind sophisticated management accounting practices (SMAP) in an emerging economy, Bangladesh. A semi-structured questionnaire has been developed to capture the market data and different descriptive and inferential statistical tools have been used to test relevant hypotheses. The findings of the study are helpful for the management accounting practitioners, academics, and researchers to understand the current state of management accounting practices in an emerging market. In addition, the study brings an extension to existing literature by exploring potential causal relationship between sophistication in applying management accounting tools and satisfaction of management accounting practitioners. This study confirms that there is a missing link between practitioners’ satisfaction and SMAP. It gives a signal to the market that the critical decision-making process is not supported by tactical exercises and market lacks professionalism greatly which may act as an obstacle to develop a competitive business environment.

Embracing digitalisation of the profession and practice: MIA’s walking the tech talk

Study level/applicability Undergraduate courses: Auditing, Leadership, Management accounting. Postgraduate courses: Leadership, Management accounting. Subject area Auditing, Leadership, Management accounting Case overview This case documents the journey of a professional accountancy organisation, namely, the Malaysian Institute of Accountants (MIA) and document the MIA’s journey on the establishment of digital blueprint for the accounting profession in Malaysia including some major milestone in innovating audit evidence-gathering technique by introducing e-confirm for auditing bank confirmation in Malaysia. This case highlights the significant role played by a lady chief executive officer (CEO) in embarking into the digitalisation of the accountancy profession and practice in Malaysia. While the ultimate objective of digital blueprint is to transform the accounting and auditing practices in Malaysia, the CEO has led by example by embedding digitalisation within MIA’s practices itself. Expected learning outcomes The learning outcome of this paper are as follows: to develop students’ understanding on the right attitudes, skills and characters that a successful leader should possess in contemporary business environment by focusing on dilemma and stereo-typing faced by women leaders; to develop the students’ understanding on the changes in business environment particularly the rise of digital technology that affecting the ways in which accounting functions in organisations; to encourage students to be aware that technical accounting knowledge is just one of the key success factors in the career of a professional accountant. The case offer insight into accountants’ role in digital environment and the development needed for accounting profession; to demonstrate how auditing process can benefit from the advancement in technology; and to encourage critical discussion on the development of accounting profession in Malaysia. The case aims to develop students’ critical discussion on the roles of MIA as a regulator of accounting profession and to appreciate historical development of accounting profession in Malaysia. The case also aims to encourage students to realise the existence of other professional accounting bodies, accounting practitioners and academic accountants, and together with MIA, they play significant role in shaping the accounting profession in Malaysia. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Social implications The case has a strong implication on the role of effective leaders in ensuring that significant efforts involved in digitalisation journal, a vital need for the accountancy professional to continue to be a relevant profession, is a success. Subject code CSS 1: Accounting and Finance. Keywords Women leadership, Digitalisation, Professional accountancy organisation, Electronic bank confirmation, Malaysia

Forensic accounting as a profession in Australia? A sociological perspective

Purpose This study aims to ask a theoretical question of “whether forensic accounting meets the sociological criteria of being a profession” in the Australian context. The present study responds to several scholarly calls to improve the studies on forensic accounting in Australia. Design/methodology/approach Based on the professionalism theory perspective, this study developed an analysis of the sociological criteria of a profession. This study used qualitative data from semi-structured interviews with elite Australian forensic accounting practitioners and academics. Findings The findings of the study show that forensic accounting in Australia partly meets the sociological criteria of a profession. Forensic accounting in the Australian context must meet essential criteria such as autonomy and commitment to be recognized as a profession. Practical implications This study has implications for the professionalism of forensic accounting along with vital issues surrounding the profession such as public recognition, altruistic behavior and control of entry to the profession. Social implications This study provides social contributions by emphasizing forensic accountants’ sociological roles, including the altruistic role and solving social problems role. Understanding these roles provides the practitioners with the fundamental knowledge to use during their work. Originality/value This study is original in that it sheds light on the professionalism of forensic accounting in the Australian context.

EFFECT OF NON-AUDIT SERVICES ON AUDITOR’S INDEPENDENCE: EVIDENCE FROM ACCOUNTING PRACTITIONERS IN ABIA STATE

This study investigates the effect of the provision on non-audit services on Auditor’s independence: evidence from accounting practitioners and consequent effect on the auditor’s objectivity and professional skepticism in the financial statement audited. The study used the Institute of Chartered Accountants of Nigeria (ICAN) and Association of National Accountants of Nigeria (ANAN) domiciled in Abia State. The data for the study were generated from primary source: questionnaires were the major instrument for data collection. The instrument was subject to both content and faces validity by experts. Three questions were structured in Likert scale form and the formulated hypotheses were tested with ordinary Logistic regression using SPSS package. The study found that non-audit services have no effect on auditor’s independence, the auditor’s objectivity and professional skepticism. The study therefore recommends that the audit committee should have full oversight of the auditor’s independence, including the nature and extent of the work they do and their fees. The audit committee should make its charter public. The charter should give investor information about how the audit committee chooses its auditors and how it decides the type of service they can provide.