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International Accounting Standards (international + accounting_standards)
Terms modified by International Accounting Standards Selected AbstractsNational Adoption of International Accounting Standards: An Institutional PerspectiveCORPORATE GOVERNANCE, Issue 3 2010William Judge ABSTRACT Manuscript Type: Empirical Research Question/Issue: Effective corporate governance requires accurate and reliable financial information. Historically, each nation has developed and pursued its own financial standards; however, as financial markets consolidate into a global market, there is a need for a common set of financial standards. As a result, there is a movement towards harmonization of international financial reporting standards (IFRS) throughout the global economy. While there has been considerable research on the effects of IFRS adoption, there has been relatively little systematic study as to the antecedents of IFRS adoption. Consequently, this study seeks to understand why some economies have quickly embraced IFRS standards while others partially adopt IFRS and still others continue to resist. Research Findings/Results: After controlling for market capitalization and GDP growth, we find that foreign aid, import penetration, and level of education achieved within a national economy are all predictive of the degree to which IFRS standards are adopted across 132 developing, transitional and developed economies. Theoretical/Academic Implications: We found that all three forms of isomorphic pressures (i.e., coercive, mimetic, and normative) are predictive of IFRS adoption. Consequently, institutional theory with its emphasis on legitimacy-seeking by social actors was relatively well supported by our data. This suggests that the IFRS adoption process is driven more by social legitimization pressures, than it is by economic logic. Practitioner/Policy Implications: For policy makers, our findings suggest that the institutional pressures within an economy are the key drivers of IFRS adoption. Consequently, policy makers should seek to influence institutional pressures that thwart and/or enhance adoption of IFRS. For executives of multinational firms, our findings provide insights that can help to explain and predict future IFRS adoption within economies where their foreign subsidiaries operate. This ability could be useful for creating competitive advantages for foreign subsidiaries where IFRS adoption was resisted, or avoiding competitive disadvantages for foreign subsidiaries unfamiliar with IFRS standards. [source] Financial Integration in the EU: the First Phase of EU Endorsement of International Accounting Standards,JCMS: JOURNAL OF COMMON MARKET STUDIES, Issue 2 2008IAN DEWING In 2002 the EU adopted the Regulation which required European listed companies to prepare their consolidated accounts in accordance with international accounting standards from 2005 onwards. A novel set of structures for the endorsement of international accounting standards for use in the EU was put in place. This article examines the first phase of endorsement of international accounting standards in the context of the novel endorsement structures. The article concludes that problems over the endorsement of IAS 39 Financial Instruments: Recognition and Measurement reveals a number of significant policy implications for the EU including the difficulty of forming a European view, the role of private actors in EU regulation, and the issue that international standards largely reflect Anglo-Saxon accounting practices rather than continental European practices. [source] Home Bias, Foreign Mutual Fund Holdings, and the Voluntary Adoption of International Accounting StandardsJOURNAL OF ACCOUNTING RESEARCH, Issue 1 2007VICENTIU M. COVRIG ABSTRACT We test the assertion that a consequence of voluntarily adopting International Accounting Standards (IAS) is the enhanced ability to attract foreign capital. Using a unique database that reports firm-level holdings of over 25,000 mutual funds from around the world, our multivariate tests find that average foreign mutual fund ownership is significantly higher among IAS adopters. We also find that IAS adopters in poorer information environments and with lower visibility have higher levels of foreign investment, consistent with firms using IAS adoption to provide more information and/or information in a more familiar form to foreign investors. Taken together, our findings are consistent with voluntary IAS adoption reducing home bias among foreign investors and thereby improving capital allocation efficiency. [source] Domestic Accounting Standards, International Accounting Standards, and the Predictability of EarningsJOURNAL OF ACCOUNTING RESEARCH, Issue 3 2001Hollis Ashbaugh We investigate (1) whether the variation in accounting standards across national boundaries relative to International Accounting Standards (IAS) has an impact on the ability of financial analysts to forecast non-U.S. firms' earnings accurately, and (2) whether analyst forecast accuracy changes after firms adopt IAS. IAS are a set of financial reporting policies that typically require increased disclosure and restrict management's choices of measurement methods relative to the accounting standards of our sample firms' countries of domicile. We develop indexes of differences in countries' accounting disclosure and measurement policies relative to IAS, and document that greater differences in accounting standards relative to IAS are significantly and positively associated with the absolute value of analyst earnings forecast errors. Further, we show that analyst forecast accuracy improves after firms adopt IAS. More specifically, after controlling for changes in the market value of equity, changes in analyst following, and changes in the number of news reports, we find that the convergence in firms' accounting policies brought about by adopting IAS is positively associated with the reduction in analyst forecast errors. [source] Compliance with the Disclosure Requirements of Germany's New Market: IAS Versus US GAAPJOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING, Issue 1 2003Martin Glaum This research examines compliance with both International Accounting Standards (IAS) and United States Generally Accepted Accounting Principles (US GAAP) for companies listed on Germany's New Market. Based on a sample of 100 firms that apply IAS and 100 that apply US GAAP, we investigate the extent to which companies comply with IAS and US GAAP disclosure requirements in their year,2000 financial statements. Compliance levels range from 100% to 41.6%, with an average of 83.7%. The average compliance level is significantly lower for companies that apply IAS as compared to companies applying US GAAP. This study provides the first systematic evidence regarding the enforcement of US GAAP outside the US, and accordingly not subject to Securities Exchange Commission (SEC) review. The results unveil a considerable extent of non,compliance. The overall level of compliance with IAS and US GAAP disclosures is positively related to firms being audited by Big 5 auditing firms and to cross,listings on US exchanges. Compliance is also associated with references to the use of International Standards of Auditing (ISA) or US GAAS in the audit opinion. The findings add to the growing concerns regarding the lack of effective supervision in the German capital market. [source] Mandatory Adoption of IASB Standards: Value Relevance and Country-Specific FactorsAUSTRALIAN ACCOUNTING REVIEW, Issue 2 2009Ana Isabel Morais The objective of this study is to investigate if the value relevance of European-listed companies increased after the mandatory application of International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS) and how the value relevance of accounting information prepared under IAS/IFRS is shaped by the specific factors of the country in which companies are domiciled. Results show that the value relevance of financial information during the period companies applied mandatory IAS/IFRS is higher than for the period during which they applied local accounting standards. We also found that countries where accounting and tax are clearly separated show more relevant accounting information. Finally, we found that companies from countries with more legal and public enforcement mechanisms disclose less relevant accounting information under IAS/IFRS. [source] Financial Reporting Regulation: The Case of Converging Canadian and International Accounting and Auditing Standards,/LA RÉGLEMENTATION DE L'INFORMATION FINANCIÈRE: LA CONVERGENCE DES NORMES CANADIENNES ET INTERNATIONALES DE COMPTABILITÉ ET DE VÉRIFICATIONACCOUNTING PERSPECTIVES, Issue 1 2008Kathryn Bewley ABSTRACT This paper provides a descriptive analysis of the differences between existing Canadian accounting and auditing standards and the corresponding international standards that Canadian standard-setters have decided to converge them with, at the time of the decisions to converge. The descriptive analysis is based on two reconciliation documents published by the standard-setting boards of the Canadian Institute of Chartered Accountants. The main contributions of the paper are to outline and analyze the differences systematically in the context of prior research on financial reporting regulation and the impact of internationalization of accounting and auditing standards, and to identify key areas of difference that are likely to have the greatest impact on preparers, auditors, and users of Canadian financial statements. The results do not indicate that Canada is moving to a significantly more or less restrictive accounting measurement regime, but it appears that there will be greater disclosure detail required under international accounting standards than under existing Canadian standards. The key accounting difference relates to appraisal values for tangible and intangible assets that are permitted in international standards but not currently in their Canadian counterparts. The findings for auditing standards suggest that international and Canadian auditing standards impose a similar set of requirements on the audit function, and provide a similar degree of detailed application guidance. Differences in standards for the auditor's report and for management's written representations to the auditor are the most significant changes for audit practice in Canada. RÉSUMÉ L'auteure présente une analyse descriptive des éléments qui différencient les normes canadiennes de comptabilité et de vérification existantes et les normes internationales correspondantes vers lesquelles les normes canadiennes devraient converger, selon la position adoptée par les normalisateurs canadiens au moment de trancher la question. L'analyse descriptive se fonde sur deux documents de conciliation publiés par les conseils de normalisation de l'Institut Canadien des Comptables Agréés. Le principal apport de la présente étude est double: elle propose une description et une analyse systématiques des différences entre les normes dans le contexte des recherches précédentes sur la réglementation de l'information financière et l'incidence de l'internationalisation des normes de comptabilité et de vérification, et elle recense les principales sphères dans lesquelles les normes présentent des différences susceptibles d'avoir les conséquences les plus importantes pour les auteurs de l'information, les vérificateurs et les utilisateurs des états financiers canadiens. Selon les résultats de l'étude, le régime de mesure comptable vers lequel s'oriente le Canada ne présente pas un caractère qui serait plus ou moins restrictif, mais tout indique que les exigences en ce qui a trait au détail de l'information à fournir seront plus grandes sous le régime des normes comptables internationales que sous celui des normes canadiennes existantes. La principale différence relevée au chapitre de la comptabilité se rapporte aux valeurs d'expertise des actifs corporels et incorporels qui sont permises dans les normes internationales mais ne le sont pas dans les normes canadiennes actuelles. Quant à la vérification, il semble que les normes internationales et canadiennes imposent à la fonction de vérification un ensemble d'exigences similaires et contiennent des directives d'application d'une précision analogue. Les différences dans les normes relatives au rapport du vérificateur et aux déclarations écrites de la direction sont les changements les plus importants pour l'exercice de la vérification au Canada. [source] Financial Integration in the EU: the First Phase of EU Endorsement of International Accounting Standards,JCMS: JOURNAL OF COMMON MARKET STUDIES, Issue 2 2008IAN DEWING In 2002 the EU adopted the Regulation which required European listed companies to prepare their consolidated accounts in accordance with international accounting standards from 2005 onwards. A novel set of structures for the endorsement of international accounting standards for use in the EU was put in place. This article examines the first phase of endorsement of international accounting standards in the context of the novel endorsement structures. The article concludes that problems over the endorsement of IAS 39 Financial Instruments: Recognition and Measurement reveals a number of significant policy implications for the EU including the difficulty of forming a European view, the role of private actors in EU regulation, and the issue that international standards largely reflect Anglo-Saxon accounting practices rather than continental European practices. [source] IAS Versus U.S. GAAP: Information Asymmetry,Based Evidence from Germany's New MarketJOURNAL OF ACCOUNTING RESEARCH, Issue 3 2003CHRISTIAN LEUZ abstract Motivated by the debate about globally uniform accounting standards, this study investigates whether firms using U.S. generally accepted accounting principles (GAAP) vis-à-vis international accounting standards (IAS) exhibit differences in several proxies for information asymmetry. It exploits a unique setting in which the two sets of standards are put on a level playing field. Firms trading in Germany's New Market must choose between IAS and U.S. GAAP for financial reporting, but face the same regulatory environment otherwise. Thus, institutional factors such as listing requirements, market microstructure, and standards enforcement are held constant. In this setting, differences in the bid-ask spread and share turnover between IAS and U.S. GAAP firms are statistically insignificant and economically small. Subsequent analyses of analysts' forecast dispersion, initial public offering underpricing, and firms' standard choices corroborate these findings. Thus, at least for New Market firms, the choice between IAS and U.S. GAAP appears to be of little consequence for information asymmetry and market liquidity. These findings do not support widespread claims that U.S. GAAP produce financial statements of higher informational quality than IAS. [source] The contribution of international accounting standards to implementing NPM in developing and developed countriesPUBLIC ADMINISTRATION & DEVELOPMENT, Issue 5 2007Andrés Navarro Galera Abstract In recent years, numerous countries have undertaken administrative reforms to implement New Public Management (NPM) postulates. The implementation of NPM involves new information needs for decision taking by public managers. In this context, public sector accounting plays a key role as an information system for the successful implementation of NPM. The International Federation of Accountants (IFAC) is undertaking an international accounting harmonisation project to establish high-quality public sector standards to meet the new information requirements under NPM worldwide. This article examines the capability of IFAC accounting measurement bases to meet information needs under NPM postulates, in both developing and developed countries, analysing the differences between these types of countries. The National Accounting Standard Setters (NASS) of 47 countries were asked about the usefulness and viability of Fair Value Accounting (FVA) to implement NPM postulates, especially those concerning improved efficiency, enhanced information transparency and benchmarking analysis. Copyright © 2007 John Wiley & Sons, Ltd. [source] Latin,American public financial reporting: recent and future developmentPUBLIC ADMINISTRATION & DEVELOPMENT, Issue 2 2007Carmen Caba Pérez Abstract In recent years, numerous Latin,American countries have carried out reforms in their public accounting systems, with technical cooperation provided by the U.S. Agency for International Development (USAID). Taking into account the lack of international accounting standards for the public sector, USAID has designed a model termed Integrated Financial Management System for Latin America and the Caribbean (IFMS or SIMAFAL). This model is intended to provide better financial information for governmental decision-taking as regards the allocation of resources; a further goal is to achieve greater transparency and for a higher degree of responsibility to be accepted for the commitments made and the results of activities undertaken. Important changes are currently taking place on the international public accounting scene and the International Federation of Accountants (IFAC) is pressing for the adoption of a set of international public accounting standards by Latin,American countries. In this article, we compare the level of information included in the year-end governmental public report in Latin,American countries which have carried out their reforms outside SIMAFAL with that of others which have followed this model. Second, we examine the extent to which the public financial reporting practices recommended by IFAC coincide with those adopted by the above countries. Copyright © 2007 John Wiley & Sons, Ltd. [source] | |||||||||||||