...obtained and presented in accordance with academic rules and ethical conduct. I also declare that, as required by these rules and conduct, I have fully cited and referenced all material and results that are not original to this work. Name, Last name : Fatma, Aksoy Signature : iii ABSTRACT THE INFORMATION CONTENT OF EARNINGS AND SYSTEMATIC RISK IN CHANGING ECONOMIC CONJECTURE: THE TURKISH CASE Aksoy, Fatma M.B.A., Department of Business Administration Supervisor : Prof. Dr. F. N. Can Şımga-Muğan October 2008, 73 pages This thesis analyses the information content of inflation adjusted financial statements for investors and the informational value of accounting earnings and systematic risk in explaining stock returns in Turkey. Information content of inflation accounting is tested by using event study methodology. Results show...
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...Accounting research is hard to define because it has shifted over time. As a rough overview, early accounting research (pre-1960s) was mostly normative (i.e., argued for the “correct” accounting treatment, or what should be). With the advent of the Journal of Accounting Research, advances in finance such as the efficient market hypothesis, creation of large data sets and the statistical abilities to analyze them (i.e., computers), and the publication of Ball and Brown’s seminal work in 1968, accounting research moved into positive research (i.e., examining what is rather than what should be). Although this change has had its critics, it has resulted in a significant increase in research output (and many new journals). A cynical definition of research is: any paper that cites a lot of other accounting papers must be accounting research. This “quick and dirty” definition restricts accounting research to topics and methodologies that are well established in the literature; it is “safe” but somewhat limiting. More rigorously, Oler, Oler, and Skousen (2009) attempt to characterize accounting research by looking at the topics, research methodologies, and citations made by papers published in a set of six top accounting journals (AOS, CAR, JAE, JAR, RAST, and TAR). Their work can be criticized, though, because they do not consider all accounting journals, and because their categorizations of topics (6 of them) and research methodologies (7 of them) are broad. In spite of shortcomings...
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...favor of what the accountant is able to measure and chooses to measure…” (p. 480). Required: Discuss the extent to which the “scientific” world-view of mainstream accounting researchers, is grounded on a belief that “reality” exists independently of thee human subject and the possible implications this has for accounting theory development. Introduction Accounting is a subject that is guided with principles and regulations. Thus, it is often regarded as a rigid, rigorous, and highly analytical discipline with very precise interpretations. However, this is far from the truth. For instance, two organizations that are otherwise homogeneous can apply different valuation methods giving entirely distinct but equally correct answers. One may argue that a choice between accounting schemes is merely an “accounting construct” the sorts of “games” accountants play that are exclusively of relevance to them but have no pertinent in the “real world.” Once again this is entirely false. For example, valuation of inventory using either LIFO (Last-in-last-out) or FIFO (First-in-first-out) has an impact on income tax, especially in the US. Therefore an accounting construct possesses an essential “social reality” i.e. the amount of income tax that is paid. Income tax payments are not the only social reality that accounting numbers affect. Income numbers also influence dividend payments, price of a firm’s stock, the cost of capital as well as salaries and bonuses since it can be used as an...
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...their methodologies as their ratings were not good indicators of banks’ vulnerabilities before the crisis (weak and positive relationship on FSR – but market indicators not better). * SP has proposed significant changes to its ratings methodology. * Moody’s has recalibrated the relative importance attached to rating factors. 1. All 3 CRA consider that the banks’ creditworthiness has worsened materially in Europe and in the US. 2. Greater agreement between CRA than in mid-2007, reflecting shifts in estimates of government support. 3. Revisions in methodologies likely to lead to further downgrades in the banking sector. Indicators that would have improved accuracy of pre-crisis ratings: * Regulatory environment/financial culture (exposure to complex financial products tolerated encouraged) * Macro-prudential indicators * Excessive credit growth * Asset price increases * Bank-level characteristics * High-quality capital Main issues: * Accounting for external support * Accounting for systemic risk (no definition of system, no metric => rely on macro-indicators) * Accounting for earnings volatility (due to high leverage) METHODOLOGIES 1. FITCH * Stand alone scale from 9 to 19 ratings by mid-2011 * = more granularity and more transparent link stand alone/final rating * Systemic risk assessed but used for sovereign ratings rather than individual 2. MOODY’S * JDA methodology to...
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...University of Wollongong Research Online Faculty of Business - Accounting & Finance Working Papers 2006 Faculty of Business The Critique of Accounting Theory M. Gaffikin University of Wollongong, gaffikin@uow.edu.au Publication Details This working paper was originally published as Gaffikin, M, The Critique of Accounting Theory, Accounting & Finance Working Paper 06/25, School of Accounting & Finance, University of Wollongong, 2006. Research Online is the open access institutional repository for the University of Wollongong. For further information contact the UOW Library: research-pubs@uow.edu.au 06/25 University of Wollongong School of Accounting & Finance The Critique of Accounting Theory Working Papers Series Michael Gaffikin School of Accounting & Finance University of Wollongong Wollongong NSW 2522 Australia Tel +61 (2) 4221 3718 Fax +61 (2) 4221 4297 eMail george@uow.edu.au www.uow.edu.au/commerce/accy/ The Critique of Accounting Theory Michael Gaffikin* School of Accounting and Finance, University of Wollongong, NSW 2522 In previous papers (Gaffikin 2005a, 2005b, 2005c, 2006) the discussion has examined accounting as a science, with attempts to employ a scientific methodology; as a purely technical expression of economic theory, heavily dominated by research in finance; and as part of “law”, albeit law (regulation) heavily influenced by dominant economic and political ideology. That discussion revealed that all these perspectives...
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...Positive Accounting Theory: A Ten Year Perspective Ross L. Watts and Jerold L. Zimmerman University of Rochester ABSTRACT: This paper reviews and critiques the positive accounting literature following publication of Watts and Zimmerman (1978, 1979). The 1978 paper helped generate the positive accounting literature which offers an explanation of accounting practice, suggests the importance of contracting costs, and has led to the discovery of some previously unknown empirical regularities. The 1979 paper produced a methodological debate that has not been very productive. This paper attempts to remove some common misconceptions about methodology that surfaced in the debate. It also suggests ways to improve positive research in accounting choice. The most important of these improvements is tighter links between the theory and the empirical tests. A second suggested improvement is the development of models that recognize the endogeneity among the variables in the regressions. A third improvement is reduction in measurement errors in both the dependent and independent variables in the regressions. I T is more than a decade since our two papers, "Towards a Positive Theory of the Determination of Accounting Standards" and "The Demand for and Supply of Accounting Theories: The Market for Excuses" were published in The Accounting Review. The intervening time allows us to look back on these papers and the ensuing literature with some perspective. The two papers were...
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...THE IMPACT OF INFORMATION TECHNOLOGY ON THE ACCOUNTING PROFESSION. 1.1 Introduction It has become increasingly necessary for all businesses to incorporate Information Technology (IT) solutions to operate successfully and be able to maintain a competitive edge within the market they operate. As a result, many corporations have adopted Information Technology on a large scale by investing in Enterprise Resource Planning systems (ERPs) to accomplish their business transactions and data processing needs. Through the use of technology, various organisations have ventured into more efficient ways of conducting their business operations. Focus has since shifted to adopting the latest technology in order to beat competition. In light of the accounting division, this has meant adopting different forms of ERPs, some of which have led to huge failures even in reputable organisations. In some organizations, decisions with regards to adopting newer technology are made independent of the accounting function. This implies taking on such projects without prior consultation of personnel in the accounting division. As a result, some of the failures in those projects have adversely affected the accounting function of many organizations. In this study of the Impact of Information Technology on the accounting function I intend to establish a conclusion as to whether the impact being made by Information Technology on the accounting profession is positive or negative with particular attention to...
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...CPA Report Michelle Richardson ACC/545 Internal Control Systems September 10, 2012 Jeffrey Mitchell Memo Accounting Professionals, Inc. To: Management From: Michelle Richardson CC: Jeffrey Mitchell Date: September 10, 2012 RE: CPA Report ________________________________________________________________________ Per your request, this memo provides explanations regarding a subsidiary that has recently been set up as a corporation. This explanation includes the procedures for reporting accounting changes and error corrections, the methodology used to determine deferred taxes, and the rationale for establishing the subsidiary as a corporation. According to the AICPA (2012), “licensed CPAs are subject to regulation by their respective state boards of accountancy and strict professional ethics rules adopted by the boards to protect the public against fraud, incompetence and conflicts of interest” (para. 1). As such, the responses to the outside CPA’s in regard to the above-mentioned matters will be handled with the utmost diligence. In addition, to clarify the questions regarding the differences between reviews and audits, an audit is the “accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria” (Arens, Elder, & Beasley, 2006, p. 19). Reviews, on the other hand, are a “form of attestation in which a CPA firm issues a written report concerning historical...
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...136 Positive Accounting Theory and Science JCC Journal of CENTRUM Cathedra ™ Positive Accounting Theory and Science by M. Humayun Kabir Senior Lecturer, Faculty of Business Auckland University of Technology, Auckland, New Zealand Abstract This paper examines the development of positive accounting theory (PAT) and compares it with three standard accounts of science: Popper (1959), Kuhn (1996), and Lakatos (1970). PAT has been one of the most influential accounting research programs during the last four decades. One important reason which Watts & Zimmerman (1986) have used to popularize and legitimize their approach is that their view of accounting theory is the same as that used in science. Thus, it is important to examine how far accounting has been successful in imitating natural science and how the development of PAT compares with the three standard accounts of science. This paper shows that accounting could not emulate the success of natural science. Further, the methodological positions of PAT conform to none of the standard accounts of science. Rather, PAT contains elements of all three. Finally, this paper identifies some methodological gaps in PAT. Keywords: Positive Accounting Theory, Philosophy of Science, Methodological Controversies Acknowledgements I would like to thank two anonymous reviewers of the journal for their helpful comments. Earlier versions of this paper benefited from comments from Lee Parker of the University of South Australia, Keith...
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...Executive Summary This report provides an analysis and evaluation of Triple Bottom Line (TBL) accounting. Many corporations adopt and follow the novel term, along with the public increasing public concern of social and environmental performances. The research pays attention to the arguments for and against the TBL accounting in corporate accounting reporting. Many companies concur with the significance of concept to reinforce their business, yet others hold the view that TBL is accompanied by diverse debates. The findings of this review show that TBL accounting: • Refers to a good tool of the measurement of accountability and transparency • Provides a beneficial opportunity to obtain the value of a corporate name and the market share in completion • Contributes to the reduction of production cost and the conservation of environment through making use of resources efficiently • Improves corporate management and employee productivity due to the measurement of accountability and transparency • Impacts on a core competency of business and a social situation • Adjusts a methodology to measure social and environmental performances TBL accounting with economic, social, environmental activities has been some negative thus far. However, the arguments against TBL accounting, which are related to core competency, poor societies and measure standard, are still doubtful and cannot address a strong persuasive in opposition to...
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...CHRIST UNIVERSITY Mid SEMESTER EXAMINATION JAN 2014 ( II Sem UG and VIII BHM) : Time: 9:30 to 11:30am Day & Date | 16/01/2014Thursday | 17/01/2014Friday | 18/01/2014Saturday | 20/01/2014Monday | 21/01/2014Tuesday | 22/01/2014Wednesday | II Sem -B.A Programmes HEPEPS | English | Languages/Ad. English | | Political Science | Principles of Macro Economics | Contemporary IndiaSociology | PSEngPSEcoJPEng | English | Languages/Ad .English | | BasicPsychologicalProcesses -II | Principles of Macro Economics British Literature | Foundations of SociologyJournalism | CEP | English | Languages/Ad .English | | BasicPsychologicalProcesses -II | British Literature | Software applicationFor print media & the web | TCE(Theatre Studies) | | | | Introduction toMusic & Dance –II | | | PEP | English | Languages/Add.English | | Basic PsychologicalProcess –II | British Literature | Dynamics of DanceMusic & Theatre | II Sem -B.Sc Programmes CME | English-- | 9:30 to 11:30 amLang/Ad .English | | Computer Science Data Structures & operating system | Electronics | Differential Calculus | | | 2:30 to 4:30 pmIntegral Calculus | | | | | EMSCMS | English | 9:30 to 11:30 amLang/Ad .English | Statistics ( 9:30 to 11:30 am)(Examination will be held in separate room for Stats; check the notice board) | Computer ScienceOperating...
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...Scholarship Programs Essay “How do you believe that a Keller Graduate School of Management degree curriculum, integrated with Becker CPA review methodology will help you to succeed and meet your career goals?” Domanique Sylvester Keller Graduate School of Management August 31, 2010 I obtained a degree in business administration from DeVry Institute of Technology in June 2002. Over the last five years, I have worked in the finance industry as a Mortgage Loan Originator for one of the largest financial companies in Georgia. My bachelor’s degree equipped me the necessary knowledge and skills to run any business entity. Combining these with my entrepreneurial skills, I was able to start my own income tax company. Keller Graduate School of Management will allow me to obtain my Master of Accounting degree and at the same time prepare me for the CPA exam. With Keller offering both Accounting degree courses and an opportunity to prepare for the CPA exams through the Becker CPA review methodology. I am confident that my enrollment at Keller Graduate will make me achieve my dream. However, I am striving to further my business knowledge and skills to become a Certified Public Accountant for a Fortune 500 company and the same time open more income tax branches. I believe that enrolling for the CPA exam at Becker will thus advance my business capability to propelling me to attain my desire of employing more people, and travel from business to business educating individuals about...
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...emergence of new research directions around the organizational and social aspects of accounting. During this time the accountancy profession was rapidly growing and moving into many new areas, there was a new standard-setting process, greater use of accounting controls in both private and public-sector enterprises, new forms of social accounting, intervention by government in the inflation accounting debate and calls on accounting to change in diverse directions. All of these rapid changes were forcing accounting academics to analysis the changing world of accounting more closely. (p454 30 years of historical accounting research) One of the changes in accounting analysis was a move towards accounting history. Hopwood (1976)called for historical studies in terms that would later be labelled as “traditional”, despite the label it would receive in the future, it still represented an awareness that historical studies would soon be an important source of understanding of the roles of accounting in organizations and society (reference 30 years of historical accounting research). Historical research was slow to emerge, as was highlighted in the Accounting, Organizations and Society journal where between 1976 and 1985 only 13 historical papers were published. Historical research came to the fore during the period from 1986 and 1990 where 22 historical papers were published in the journal Accounting, Organizations and Society, this period was also the time where there was the development...
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...the management for the owners. Profit maximization as a concept is age-old, wealth maximization is matured and value maximization is today’s wisdom. Stern Stewart’s EVA raises storm in corporate world and gives a new way to think about rewarding management. Usability of EVA largely depends on the quality of accounting information system, as traditional information system will not provide sufficient information to compute true EVA. Thus, EVA is required to be tailored in line with accounting system, management philosophy and the degree of demand of such a system. In this paper, an earnest effort has been made to explain theoretical foundation of EVA with its origination, definition, ways to make it tailored, adjustments required, scope and some other related issues. The methodology used is a type of theoretical mining of logics resulting a step-by-step process required for EVA implementation. As corporate house plans to move from traditional to value based performance measures, EVA would yield good result and the paper may become helpful to them to comprehend the methodology. Keywords: Value Based Performance Measure, Tailored EVA, Residual Income (RI), Accounting Distortions, Shareholders’ Value, Value Based Measure, Market Value Added, True EVA 1. Introduction Economic Value Added (EVA) is the financial performance measure that comes closer than any other to capturing the true economic profit of an enterprise. Thus, in modern economics and finance area, EVA holds...
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...International Journal of Economics, Management & Accounting 19, no. 1 (2011): 1-26 © 2011 by The International Islamic University Malaysia METHODOLOGY OF ISLAMIC ECONOMICS: OVERVIEW OF PRESENT STATE AND FUTURE DIRECTION* Mohamed Aslam Haneefa and Hafas Furqanib Department of Economics, International Islamic University Malaysia, Jalan Gombak, 53100 Kuala Lumpur, Malaysia. (Email: mdaslam@iiu. edu.my) b Department of Economics, International Islamic University Malaysia, Jalan Gombak, 53100 Kuala Lumpur, Malaysia. (Email: hafasf@gmail.com) a ABSTRACT This paper argues that research and publications in the area of methodology of Islamic economics is very significant for a meaningful development of the discipline. Although the discussion on methodology of Islamic economics in contemporary Islamic economics literature is rather limited, this paper reviews the works of selected scholars who have attempted to present works on ‘methodology’ and their approach to the process of theory building in Islamic economics. The paper then presents some implications of these views based on the position that methodology investigates the criteria, rationalizations, arguments and justifications used in theory appraisal as well as evaluating the reliability of theories, this paper concludes that greater resources, both human and financial, need to be channeled to developing uÎūl al-iqtiÎād, a fundamental, but vastly, neglected area of research in contemporary Islamic economics...
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