...J. Account. Public Policy 27 (2008) 455–461 Contents lists available at ScienceDirect J. Account. Public Policy journal homepage: www.elsevier.com/locate/jaccpubpol On the global acceptance of IAS/IFRS accounting standards: The logic and implications of the principles-based system q Salvador Carmona *, Marco Trombetta IE Business School, Calle Pinar, 15-1B, 28006 Madrid, Spain a r t i c l e i n f o a b s t r a c t The widespread acceptance of International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS) makes it timely to examine their technical determinants as well as their implications for the accounting profession and the process of accounting harmonization. In this respect, we suggest that the principles-based approach to the standards and its inner flexibility enables the application of IAS/IFRS to countries with diverse accounting traditions and varying institutional conditions. Furthermore, the principles-based approach involves major changes in the expertise held by accountants and, hence, in their educational background, training programs, and in the organizational and business models of accounting firms. Finally, we submit that the standards set by the IAS/IFRS constitute a step forward in the process of accounting harmonization, although there is still far to go in the comparability of accounting measures across countries and regions. Ó 2008 Elsevier Inc. All rights reserved. Keywords: Globalization Accounting harmonization...
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...Inter-Country Adoption Republic Act Number 8043 Inter-country Adoption • Refers to the socio-legal process of adopting a Filipino child by a foreigner or a filipino citizen permanently residing abroad where the petition is filed, the supervised trial custody is undertaken, and the decree of adoption is issued outside the Philippines Child • Means a person below fifteen (15) years of age unless sooner emancipated by law The phrase “unless sooner emancipated by law”- erroneous because RA 6809 which took effect on December 18, 1989, the age of emancipation is 18 years Authorized and accredited agency • Refers to the State welfare agency or licensed adoption agency in the country of the adopting parents which provide comprehensive social services and which is duly recognized by the Department Legally-free child • Means a child who has been voluntarily or involuntarily committed to the Department, in accordance with the Child and Youth Welfare Code • RA 6809 (December 18, 1989) Age of emancipation: 18 years Foreign Adoption Agency • Refers to the State welfare agency or the licensed and accredited agency in the country of the foreign adoptive parents that provides comprehensive social services an is duly recognized by the Department • Child-Caring Agency vs Child Placement Agency • Application –Homestudy report –Supporting documents Inter-country Adoption Board • The Inter‐Country Adop1on Board (ICAB) created by Republic...
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...Does Mandatory Adoption of IFRS Improve Accounting Quality? Preliminary Evidence* ANWER S. AHMED, Texas A&M University MICHAEL NEEL, University of Houston DECHUN WANG, Texas A&M University 1. Introduction We provide evidence on the preliminary effects of mandatory adoption of International Financial Reporting Standards (IFRS) on accounting quality for a relatively broad set of firms from 20 countries that adopted IFRS in 2005 relative to a benchmark group of firms from countries that did not adopt IFRS matched on the strength of legal enforcement, industry, size, book-to-market, and accounting performance. Understanding the effects of mandatory adoption on properties of accounting numbers is of potential interest to standard-setters and securities regulators in countries that are considering IFRS adoption as well as in countries that have already adopted IFRS. Furthermore, evidence on this question is of particular importance to the IASB because it can help the board evaluate whether its stated objective of improving accounting quality is being accomplished (see IASC 1989; Barth 2008). Finally, analysts, investors, and other users may also find it useful to understand the effects of IFRS adoption on accounting quality to potentially reassess how they use accounting numbers. The effects of mandatory IFRS adoption on accounting quality critically depend upon whether IFRS are of higher or lower quality than domestic GAAP and how they affect the efficacy of enforcement mechanisms...
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...AGREEMENTS TIMELINE OF THE DISPUTE Establishment of Panel TBT Annex 1.1 GATT Arts. III:4, XX and XXIII:1(b) Circulation of Panel Report Circulation of AB Report Adoption 25 November 1998 18 September 2000 12 March 2001 5 April 2001 Respondent European Communities 1. MEASURE AND PRODUCT AT ISSUE • • Measure at issue: France's ban on asbestos (Decree No. 96-1133). Product at issue: Imported asbestos (and products containing asbestos) vs certain domestic substitutes such as PVA, cellulose and glass (“PCG”) fibres (and products containing such substitutes). 2. SUMMARY OF KEY PANEL/AB FINDINGS • TBT Annex 1.1 (technical regulation): The Appellate Body, having rejected the Panel's approach of separating the measure into the ban and the exceptions, reversed the Panel and concluded that the ban as an “integrated whole” was a “technical regulation” as defined in Annex 1.1 and thus covered by the TBT Agreement, as (i) the products subject to the ban were identifiable (i.e. any products containing asbestos); (ii) the measure was a whole laid down product characteristics; and (iii) compliance with the measure was mandatory. However, the Appellate Body did not complete the legal analysis of Canada's TBT claims as it did not have an “adequate basis” upon which to examine them. GATT Art. III:4 (national treatment – domestic laws and regulations): As the Appellate Body found the Panel's likeness analysis between asbestos and PCG fibres and between cement-based products containing...
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...Shanghai University of Finance and Economics, Singapore Management University, Southern Methodist University, Stanford University, Washington University at St. Louis, and the European Accounting Association Congress. We also thank Dan Amiram and Mark Maffett for assistance with data collection. Electronic copy available at: http://ssrn.com/abstract=1585404 Are IFRS-based and US GAAP-based Accounting Amounts Comparable? Abstract This study documents whether application of IFRS by non-US firms results in accounting amounts comparable to those resulting from application of US GAAP by US firms. IFRS firms have greater accounting system and value relevance comparability with US firms when IFRS firms apply IFRS than when they applied domestic standards. Comparability generally is greater for firms that adopt IFRS mandatorily, observations after 2005, and firms in countries with common law legal origin and high enforcement. We find earnings smoothing, accrual quality, and timeliness all are potential...
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...é The Effects of Mandatory IFRS Adoption in the EU: A Review of Empirical Research October 2014 Information for Better Markets An initiative from the ICAEW Financial Reporting Faculty The Effects of Mandatory IFRS Adoption in the EU: A Review of Empirical Research forms part of the Information for Better Markets thought leadership programme of ICAEW’s Financial Reporting Faculty. ICAEW operates under a Royal Charter, working in the public interest. As a world leading professional accountancy body, ICAEW provides leadership and practical support to over 142,000 members in more than 160 countries, working with governments, regulators and industry to ensure the highest standards are maintained. The ICAEW Financial Reporting Faculty provides its members with practical assistance and support with IFRS, UK GAAP and other aspects of business reporting. It also comments on business reporting issues on behalf of ICAEW to standard setters and regulators. Its Information for Better Markets thought leadership programme subjects key questions in business reporting to careful and impartial analysis so as to help achieve practical solutions to complex problems. The programme focuses on three key themes: disclosure, measurement and regulation. We welcome comments and enquiries on this report and on the other aspects of the Information for Better Markets programme. To contact us, please email bettermarkets@icaew.com. © ICAEW 2014 All rights reserved. If you want...
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...Slide 4. 1 Chapter 4 E-Environment David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012 Slide 4. 2 Learning Outcomes • Identify the different elements of an organization macro-environment that impact on an organization‟s e-business and e-marketing strategy • Assess the impact of legal, privacy and ethical constraints or opportunities on a company • Assess the role of macro-economic factors such as economics, governmental e-business policies, taxation and legal constraints. David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012 Slide 4. 3 Management Issues • What are the constraints such as legal issues placed by the e-environment on developing and implementing an e-business strategy? • How can trust and privacy be assured for the customer while seeking to achieve marketing objectives of customer acquisition and retention? • Assessment of the business relevance of technological innovation. David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012 1 Slide 4. 4 Activity 4.1 Introduction to Social, Legal and Ethical Issues • List all the social, legal and ethical issues that the manager of a sell-side e-commerce website needs to consider to avoid damaging relationships with users of his or her site or which may leave the company facing prosecution. You can base your answer on issues which may concern...
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...Shadow vs. Market Prices in Explaining Land Allocation: Subsistence Maize Cultivation in Rural Mexico Aslıhan Arslan No. 1469 | December 2008 Kiel Institute for the World Economy, Düsternbrooker Weg 120, 24105 Kiel, Germany Kiel Working Paper No. 1469 | December 2008 Title* Author Aslihan Arslan Abstract: Economic models of land allocation may lead to expectations for farmer response that “surprisingly" do not materialize, if market prices fail to reflect the value of farmers' product. “Shadow prices" rather than market prices explain resource allocation better for farmers who attach significant non-market values to their own crops. I extend the theoretical model in Arslan and Taylor (2008) to explain why the land allocation of such farmers may not respond to market signals even if transaction costs are not binding. I estimate the proportion of land subsistence maize farmers allocate to traditional versus modern maize varieties using nationally representative rural household data from Mexico – the center of diversity of maize. I conclude that shadow prices explain land allocation better than market prices and discuss the importance of non-market values in understanding both farmers' supply response and on-farm conservation of traditional crops with non-market values. Keywords: Land allocation, shadow prices, non-market values, traditional crops, on-farm conservation, Mexico JEL classification: O12, O13, Q12, Q39 Aslıhan Arslan Kiel Institute for the World Economy...
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...standards in the United States have been set by the AICPA (American Institute of Certified Public Accounts) as laid out by the regulations set by the Securities and Exchange Commission (SEC). In 1973, the Financial Accounting Standards Board (FASB) was developed by the AICPA as a council for establishing standards for reporting for all United States companies. Under FASB, GAAP was reorganized into approximately 90 accounting standards offering concise methods to follow for financial reporting. This not only allowed for ease of access when reading US financials statements, but also allowed for comparison of documentation for investments, credits, and other financial decisions. On the other hand, the International Financial Reporting Standards (IFRS) were developed by the International Accounting Standards Board (IASB) based in London. Currently, about 120 nations require the use of IFRS for financial reporting by public companies. Discussions have been underway to converge the United States to the...
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...Accounting Horizons Vol. 24, No. 3 2010 pp. 355–394 American Accounting Association DOI: 10.2308/acch.2010.24.3.355 Global Accounting Convergence and the Potential Adoption of IFRS by the U.S. (Part I): Conceptual Underpinnings and Economic Analysis Luzi Hail, Christian Leuz, and Peter Wysocki SYNOPSIS: This article is Part I of a two-part series analyzing the economic and policy factors related to the potential adoption of IFRS by the United States. In this part, we develop the conceptual framework for our analysis of potential costs and benefits from IFRS adoption in the United States. Drawing on the academic literature in accounting, finance, and economics, we assess the potential impact of IFRS adoption on the quality and comparability of U.S. reporting practices, the ensuing capital market effects, and the potential costs of switching from U.S. GAAP to IFRS. We also discuss the compatibility of IFRS with the current U.S. regulatory and legal environment, as well as the possible macroeconomic effects of IFRS adoption. Our analysis shows that the decision to adopt IFRS mainly involves a cost-benefit trade-off between ͑1͒ recurring, albeit modest, comparability benefits for investors; ͑2͒ recurring future cost savings that will largely accrue to multinational companies; and ͑3͒ one-time transition costs borne by all firms and the U.S. economy as a whole, including those from adjustments to U.S. institutions. In Part II of the series ͑see Hail et al. 2010͒, we provide an analysis...
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...www.ccsenet.org/ijbm International Journal of Business and Management Vol. 7, No. 3; February 2012 Adoption of International Financial Reporting Standards in Developing Countries: The Case of Nigeria Abdulkadir Madawaki College of Business, Universiti Utara Malaysia Sintok, 06010 Kedah, Malaysia E-mail: abdulkadirmadawaki@yahoo.com Received: September 16, 2011 doi:10.5539/ijbm.v7n3p152 Abstract The study focused on the adoption process of International Financial Reporting Standards (IFRS) on a developing economy, with particular reference to Nigeria. The paper is based on the data obtained from literature survey and archival sources in the context of the globalization of International Financial Reporting and the adoption of International Financial Reporting Standards (IFRS).Nigeria has embraced IFRS in order to participate in the benefits it offers, including attracting foreign direct investment, reduction of the cost of doing business, and cross border listing. In implementing IFRS Nigeria will face challenges including the development of a legal and regulatory framework, awareness campaign, and training of personnel. Recommendations were made to forestall such challenges which include strengthening education and training, establishment of an independent body to monitor and enforce accounting and auditing standards. Keywords: Financial reporting, Adoption, Accounting standard and Developing countries 1. Introduction Globalization of capital markets is an irreversible...
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...U.S. VS. International Auditing Standards 4-22-08 In the last few years, the world's financial centers have grown increasingly interconnected. This increase in the global business climate can attributed in part to dramatic changes in the business and political climates, increasing global competition, the development of more market-based economies, and rapid technological improvements. With the seemingly unlimited advances in technology, it has become feasible and in most cases very necessary for companies to expand their business operations overseas. This smaller global business environment has led to numerous changes in U.S. Accounting Standards as well as International Accounting Standards. It is needless to say that foreign and domestic auditing standards would have to undergo change as well. Generally Accepted Accounting Principles are broad concepts, evolving from the actual accounting profession. Now, accountants all know that “generally accepted accounting principles” are far from being a clearly defined, comprehensive set of rules which will insure the identical accounting treatment of the same kind of transaction in every case in which it occurs. Auditing in the United States was patterned after early English practices in this countries infancy but was eventually influenced less by the English and more by professional accounting societies. The first national U.S. accounting firms were established by British accountants who brought discipline, professional...
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...prepares a company financial statements. For years GAAP has been the common set of standards and procedures for the U.S, the core for establishing a principle of reporting but now IFRS an international friendly financial reporting system has become popular for its use globally. In the text Intermediate Accounting by C.P.A Kieso, GAAP also known as generally accepted accounting principles are standardized guidelines and procedures to financial accounting and reporting. There are three major parties that are involved in the standard setting where U.S companies must abide by. Securities and Exchange (SEC), established by the federal government to help create and regulate financial information presented to stockholders. American Institute of Certified Public Accountants (AICPA), an organization of practicing Certified Public Accountants (CPA’s) established to contribute to the effort. And the major operator Financial Accounting Standards Board (FASB), objective is to establish and improve standards of financial accounting and reporting for the guidance and education of the public, which includes issuers, auditors, and use of financial information. Transpired by the London-based International Accounting Standards Boards (ISAB); for international purposes U.S GAAP or (IFRS) International Reporting Standards, also known as IGAAP are two rules accepted for financial reporting. Requirements for IFRS;...
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...This article was downloaded by: [Library Services City University London] On: 26 July 2013, At: 08:32 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK Accounting and Business Research Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/rabr20 International Financial Reporting Standards (IFRS): pros and cons for investors Ray Ball a a University of Chicago Published online: 28 Feb 2012. To cite this article: Ray Ball (2006) International Financial Reporting Standards (IFRS): pros and cons for investors, Accounting and Business Research, 36:sup1, 5-27, DOI: 10.1080/00014788.2006.9730040 To link to this article: http://dx.doi.org/10.1080/00014788.2006.9730040 PLEASE SCROLL DOWN FOR ARTICLE Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) contained in the publications on our platform. However, Taylor & Francis, our agents, and our licensors make no representations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the Content. Any opinions and views expressed in this publication are the opinions and views of the authors, and are not the views of or endorsed by Taylor & Francis. The accuracy of the Content should not be relied upon and should be independently verified with primary sources of information...
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...International Financial Reporting Standards (IFRS): Pros and Cons for Investors by Ray Ball* Sidney Davidson Professor of Accounting Graduate School of Business University of Chicago 5807 S. Woodlawn Ave Chicago, IL 60637 Tel. (773) 834 5941 ray.ball@gsb.uchicago.edu Acknowledgments This paper is based on the PD Leake Lecture delivered on 8 September 2005 at the Institute of Chartered Accountants in England and Wales, which can be accessed at http://www.icaew.co.uk/cbp/index.cfm. It draws extensively on the framework in Ball (1995) and benefited from comments by Steve Zeff. Financial support from the PD Leake Trust and the Graduate School of Business at the University of Chicago is gratefully acknowledged. 1 Abstract Accounting in shaped by economic and political forces. It follows that increased worldwide integration of both markets and politics (driven by reductions in communications and information processing costs) makes increased integration of financial reporting standards and practice almost inevitable. But most market and political forces will remain local for the foreseeable future, so it is unclear how much convergence in actual financial reporting practice will (or should) occur. Furthermore, there is little settled theory or evidence on which to build an assessment of the advantages and disadvantages of uniform accounting rules within a country, let alone internationally. The pros and cons of IFRS therefore are somewhat conjectural, the unbridled enthusiasm...
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