GAAP-IFRS Convergence

The IASB is an independent accounting standard setter established in April 2001. It is based in London, United Kingdom. Its predecessor, International Accounting Standards Committee (IASC), was founded in 1973. At the first meeting of IASB, it adopted the International Accounting Standards (IASs) issued by IASC.The International Accounting Standards Board (IASB) plays a crucial role in shaping accounting standards globally, this is a result of the development, adoption and promoting International Financial Reporting Standards (IFRS). The IASB is in the business of enhancing transparency, consistency and comparability in the reporting of financial across jurisdictions, making the investors take informed economic decisions. The IASB has also tried to work around the diverse economic environments by doing extensive research and consultations with the stakeholders that are key. The IASB has also maintained cordial relationship with the standard setters of countries, so as promote the convergence of accounting practices worldwide. This abstract shows the effort of the IASB to promote and strengthen global financial infrastructure, making the accounting standards of good quality. This paper looks into the collaboration of the IASB, with the FASB (Financial Accounting Standards Board), to achieve a convergence with GAAP (Generally Accepted Accounting Practice). This paper also critically examines the IASB's role as a standardsetter globally, and also addressing some debates about the relevance of the body in this dynamic economic environment. The challenges and opportunities available for the IASB in shaping global accounting standards is also examined.

Reporting Standard more significant than ever before. The adoption of IFRS in Commercial Bank of Ethiopia like in many countries banking sectors has obstacles and challenges. The purpose of this study is to identify factors affecting adoption of IFRS in Commercial Bank of Ethiopia, as well as potential benefits and key challenges that will face on adoption of IFRS. In this regard from the total of distributed 55 questionnaires to all finance department accountants and auditors in head office, 53 were valid to analysis and interviews were conducted with accounts director, finance managers and with experts and also document analysis were used to collect the required data. To address research objectives and test the hypotheses the study adopted the mixed research approach. The questionnaire data were analyzed using descriptive statistics, correlations, and multiple linear regression analysis and data from interview and document reviews were interpreted qualitatively. The study finds that with the exception of government policy the other four independent variables which are educational level, professional bodies, company size and capital market are significantly affect the adoption of IFRS in Commercial Bank of Ethiopia. The results also show that IFRS adoption in CBE will result in a number of important benefits to a wide range of stakeholders, Managements and to the bank. High cost of adopting, the complex nature, lack of proper instructions from regulatory bodies for adopting IFRS, high level training requirement as well as IFRS's emphasis on fair value accounting, are listed among the most important challenges of IFRS adoption. Based on the findings CBE is required to revise the current accounting policy and procedure of the bank in accordance with IFRS and a number of recommendations and direction for future research are provided.

The aim of this paper is to measure the financial performance of the Emirates Telecommunications Group Company, the largest provider of internet and telephony services in the United Arab Emirates, during the years 2016 to 2018. This paper empirically analyzes three groups of indicators, profitability, liquidity and capital structure. Due to its high degree of validity in its ability to dissect and measure various aspects of a firm’s financial health, financial ratio analysis was performed using data provided by the Emirates Telecommunications Group Company in its annual reports. Ratio analysis has consistently been recognized as the gold standard for investorsinterested in analyzing the financial performance of large institutions. Relevant ratios that reflect various aspects of the firm’s financial health have been analyzedand compiled in order to reach a conclusion regarding the overall financial standing of Emirates Telecommunications Group Company. The findings indicate a noticea...

This pioneering study examines the impact of the provision of additional guidance on International Financial Reporting Standards (IFRS) as a “decision aid” on the accuracy of judgments of the accountants. To extend the prior research on accounting judgment and decisionmaking, we also examine the interactive effects of task complexity and additional guidance on the judgments of accountants. The results provide evidence that those accountants who are provided with decision aid in the form of additional guidance on IFRS make more accurate judgments than accountants who are not provided with such guidance. Furthermore, the study provides evidence that this additional guidance improves the judgments of accountants when they undertake tasks which they find complex. The results indicate that additional guidance on IFRS needs to be provided and suggests that accountants should exploit any guidance which is currently provided in IFRS and by the International Financial Reporting Standards Int...

The impact of mandatory IFRS adoption on earnings management and its implications for the cost of debt in emerging economies is a critical area of research. Despite the mandatory implementation of IFRS, empirical evidence suggests that African-listed firms often fail to comply due to weak enforcement mechanisms. This study examines the impact of IFRS adoption on earnings management and its subsequent effect on the cost of debt in emerging economies, with a particular focus on Ghana and Kenya. Using an explanatory research design, the study applies random and pooled OLS techniques for inferential analysis, drawing on 495 firm-year observations from listed non-financial firms between 2010 and 2020. The findings indicate that IFRS adoption significantly reduces earnings management, thereby enhancing accounting quality. Furthermore, the results underscore the crucial role of earnings management in moderating the relationship between earnings quality and the cost of debt. The study recommends that regulators strengthen IFRS enforcement to promote higher-quality financial reporting, fostering greater transparency, investor confidence, and a more robust investment climate in emerging economies. These insights offer valuable guidance for decision-makers, regulators, and policymakers seeking to enhance corporate financial reporting through the adoption of IFRS. Additionally, the study contributes to the literature by illuminating the broader implications of IFRS adoption for financial reporting quality and credit risk assessment in emerging markets.

The convergence between International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (US GAAP) represents an ongoing global effort of particular importance to the agricultural sector¹. This convergence initiative has proven to be particularly relevant for multinational public enterprises, although its impact extends substantially to small and medium-sized agricultural entities. While significant progress has been made in harmonizing these accounting frameworks, notable differences remain, especially in the treatment of agricultural assets where IFRS provides specific guidance through IAS 41 that differs markedly from US GAAP² approaches.

Japan, a nation with a long and rich history in Asia, has emerged as the fourth largest economy in the world in the 21st century, largely attributed to its developed sense of cooperation, which stems from historical ties.The commitment of Japanese society to social principles has fostered a collective consciousness of being stakeholders in the social domain. This stakeholder consciousness has evolved alongside the principle of collectivism, where group belonging and harmony are prioritized over individualism. However, as social culture is a dynamic entity, it is plausible that shifts in the prevailing sense of togetherness within Japanese society may influence the field of accounting. It is widely acknowledged that the functioning of accounting is shaped by the identities and cultural characteristics of societies. This study first explores how Japanese society, deeply rooted in historical traditions, influences and shapes the understanding and practices of accounting. Secondly, it examines studies and indicators highlighting the rise of individualism in Japan, with the aim of analyzing how this increasing individualism may be reflected in accounting practices and evaluating the potential impact of changing social structures on the conceptualization and application of accounting.

At present we are continuing an intense conversion due to the convergence of vital powers and dominant movements that are restructuring businesses, dynamic new expertise, fluctuating needs of talent, and varying in human culture. It is therefore, decisive to developing behavioral model to analyse Behavioral aspects of IFRS Implementation in respect to Kenya and India. IFRS are deliberated to fetch uniformity to accounting philosophy, practices and statements, and to assist corporates and stakeholders to understand economic analyses and sentences. The IFRS Foundation arrays the criteria to bring transparency, accountability and effectiveness to monetary markets all over the world. Therefore, there is need to measure IFRS and effects on accounting as well as reporting of global corporate sector which has not been explored by many researchers. Further, measuring most influential factor for IFRS adoption and measuring satisfaction with the Benefits of Current Adoption of IFRS, Benefits and problem faced by the working professionals with the Current Implementation of IFRS in their corporation has not been given weightage in the previous studies. Thus we have studied behavioral factors of IFRS implementation.

This study aims to measure the financial distress and forewarn bankruptcy in Textile Sector of Pakistan using popular statistical measures i.e., Z-Score, O-Score, Probit and D-Score. First, applicable financial ratios (profitability, liquidity, leverage, market ratios) and scores (Z-Score, O-Score, Probit and D-Score) of all 77 textile companies were calculated then estimated scores were compared with cut-off point of respective model. Based on findings, models are categorized in two groups: (a) Group-I (Z-Score and O-Score), (b) Group-II (Probit  and D-Score). Results indicate that some of the textile firms are about to face financial distress in near future, which could ultimately lead those firms to bankruptcy. The findings of Group-I indicate that about 43% - 44% companies in the textile sector are in the phase of financial distress; whereas the results of Group-II reveal that about 8% - 16% companies are in financial distress phase. Thus, we could draw two conclusions: (1) the ...

In conditions of globalization of the world economy, development of the assets measurement uniformed rules and methods is deemed one of the most important factors for ensuring competitiveness of entities of the international markets. According to requirements of the International Financial Reporting Standards, a clause that meets a meaning of element of the financial reporting, should be recognized and reflected in the financial statement if it has a par value or a value and, can be measured reliably. This requirement relates also to the assets reflected in the financial reporting, which fair value may be changed during a time due to various reasons. Therefore, an entity should re-measure within certain intervals of time the assets it holds and, fix their fair value as at a given moment. Considering the aforementioned, the issues of measurement of the assets of enterprises, is critically important. The present Article deals with the methods of measurement used for certain classes of assets, as well as the real value measurement issues and, and the author's opinion on all this.

O objetivo deste estudo e identificar o comportamento dos custos das empresas do setor de telecomunicacoes listadas na BMF (ii) analise da assimetria sob a otica do grau de imobilizacao; (iii) analise da assimetria sob a otica da expectativa dos gestores em relacao as vendas. Na primeira etapa, os resultados demonstram que o CPV e o total das despesas possuem comportamento assimetrico, ainda que isto ocorra em direcoes distintas. Na analise que contempla o grau de imobilizacao, verifica-se que a assimetria e maior nas empresas em que a imobilizacao e menor, diferentemente de outros estudos nesta area. Por fim, ao considerar a expectativa dos gestores em relacao as vendas, observa-se maior assimetria no CPV e no total das despesas apos reducoes sucessivas na RLV. Ainda, apos reducoes sucessivas na RLV, quanto esta volta a crescer, verifica-se comportamentos distintos para o CPV e para o total das despesas, enquanto aquele aumenta significativamente, este quase nao se altera.

This study identifies and analyzes the main determinants of tax litigation in Brazilian publicly traded companies, focusing on internal factors such as indebtedness, size, growth, profitability, liquidity, and business risk. The sample consisted of 233 non-financial companies listed on the B3 (Brazilian stock exchange), examined from 2017 to 2022. Tax litigation was measured as the sum of tax provisions and tax contingent liabilities divided by total assets. Fixed effects regression results indicate that in-debtedness is positively associated with tax litigation, supporting the hypothesis that more indebtedcompanies tend to face more tax disputes. Conversely, firm size showed a significant negative relationship with tax litigation, suggesting that larger firms have more robust governance systems that mitigate tax conflicts. Additionally, companies experiencing growth and with higher liquidity demonstrated lower propensity for tax litigation. These findings offer practical implications for managers in formulating strategies for fiscal risk management and capital structure, as well as contributing to the debate on policies aimed at simplifying the tax system and reducing conflicts between taxpayer sand the tax authorities

The goal of this article is to track the evolution of the Indian business community’s embrace of International Financial Reporting Standards (IFRS). The goal of this IFRS is to guarantee that the users of financial statements are to be prepared in the accordance with IFRS, as well as interim financial reports prepared by such an entity that relate to a portion of the exercise covered by such financial statements, receive useful and accurate information. The Institute of Chartered Accountants of India (ICAI) was created by the Indian government through the ICAI Act, 1949, which aimed to standardise accounting procedures throughout the country. The ICAI formed the Accounting Standard Board in that same year to assist and standardise India’s varying approaches to accounting. The Indian accounting community has devised a three-step process, which can be summarised as follows: first, the impact of IFRS is evaluated; second, preparations are made for its adoption; and third, IFRS is fully implemented. Convergence of IFRS is demonstrated in its next section. Finally, this article outlines the procedures by which the Indian business sector has adopted IFRS.

This paper discusses the noticeable nervousness of many US-based financial statement issuers in adopting IFRS. For contextual purposes, the paper provides an overview of the FASB/IFRS convergence so far and its probable future. A detailed review of convergence in accounting standards is explained through the respective standards for Pensions and Other Post-Employment Benefits. The paper concludes by suggesting that, while one set of global steps is a noble goal, it might not achieve the desired goal of comparability.

This study examines how International Financial Reporting Standards (IFRS) align with the cultural characteristics of adopting countries, emphasizing the professional judgment required for IFRS implementation. Building on the cultural frameworks of Hofstede and Gray, the study highlights the importance of professional autonomy and confidence in adopting IFRS. The research identifies six key factors influencing IFRS adoption using data from the World Values Surveys. The findings highlight the pivotal roles of professional autonomy, with social trust emerging as a crucial element influencing autonomy. The study also addresses the challenges posed by political interference and recommends clearer regulatory frameworks to mitigate risks associated with professional judgment. Additionally, the paper emphasizes the role of professional confidence, supported by trust in the government and the justice system, in facilitating IFRS adoption. The study suggests that developing countries can enhance their alignment with IFRS by fostering trust, minimizing political interference, and improving societal well-being.

Purpose The purpose of this paper is to understand the institutionally driven changes impacting organizational accounting manipulation in Vietnam’s emerging transitional economy. Specifically, this study explore how Vietnamese accountants and regulators explain questionable accounting transactions and their rationalization for those practices, especially during the period of accounting system transition from Vietnamese accounting standards to International Financial Reporting Standards (IFRS). Design/methodology/approach The study uses interview-based methods involving 22 Vietnamese accountants, financial managers, audit partners and regulators. Findings This study have found dysfunctional approaches to revenue and expense recognition underpinned by institutional theory. At play is a combination of opportunities relating to weak accounting standards and organizational controls; management pressure; and a desire to avoid unwanted scrutiny from Vietnamese regulators. Research limitati...

The auditor is seen as the guardian of the market. However, several scandals have resulted in the public's suspicions of auditor ethics. Therefore, the need of investigation of ethical awareness and ethical judgment among auditors should be taken into a deep consideration. The aim of this thesis is to investigate the differences in ethical awareness and ethical judgment of auditors across nations, including Sweden, India and Vietnam. In order to reach our research purpose, a positivistic philosophy together with deductive and quantitative research method was employed. Seven hypotheses were derived from five different theories such as theory of profession, theory of legitimacy, cultural theory, moral reasoning ability and institutional theory. The focal idea of these hypotheses is to test the existence of the homogeneity in ethical sensitivity of auditors. It was theoretically assumed that the main influential factors include national culture system, firms which auditors work for, gender, age, education and experience. However, empirical findings indicate that auditors' ethical awareness and ethical judgemnt are maily influenced by their national cultures, as well as age and experiences. Meanwhile, education and gender failed in being regarded as the important variables which can bring an impact. Moreover, the results also show that the level of ethical sensitivity is homogeneous in all audit firms regardless of their size, as the effects of legitimate and mimetic isomorphism from different firms. That also reveals the image of the consistency and uniformity of the audit profession, which strongly supports to the explanation power of professional theory. To sum up, our results indicate that the most significant signals belonged to culture, age, working firms as big-4 or non big-4 and length of experience. Such these findings can be used as supportive evidents for the explanation strength of the theories mentioned above.

International financial reporting standards (IFRS) are the group of international standards or rules issued by the International Accounting Standards Board. India was adhering to traditional accounting standards popularly known as Indian General Accepted Accounting Principles (Indian GAAP). But to keep the promises made at G20 India developed Indian accounting standards in the year 2011, keeping the needs of local businesses in mind. India decided to adopt IFRS in a phased and well-planned manner. Till now India has mixed experience regarding adoption of IFRS. A lot of studies have been conducted to figure out these experiences. This paper attempts to explore experiences of Indian companies in implementing IFRS and the role of education for successful implementation of IFRS. It is discovered that different companies or industries have different experiences. Some companies find IFRS useful and beneficial while others find these burdensome. The education in relation to IFRS is still in early stages, being introduced at preliminary stages within the last decade. But after the complete inculcation of these new standards into the education system, the successful implementation of IFRS can be ensured.

International financial reporting standards (IFRS) are the group of international standards or rules issued by the International Accounting Standards Board. India was adhering to traditional accounting standards popularly known as Indian General Accepted Accounting Principles (Indian GAAP). But to keep the promises made at G20 India developed Indian accounting standards in the year 2011, keeping the needs of local businesses in mind. India decided to adopt IFRS in a phased and well-planned manner. Till now India has mixed experience regarding adoption of IFRS. A lot of studies have been conducted to figure out these experiences. This paper attempts to explore experiences of Indian companies in implementing IFRS and the role of education for successful implementation of IFRS. It is discovered that different companies or industries have different experiences. Some companies find IFRS useful and beneficial while others find these burdensome. The education in relation to IFRS is still in early stages, being introduced at preliminary stages within the last decade. But after the complete inculcation of these new standards into the education system, the successful implementation of IFRS can be ensured.

In a corporate world, it needed a common global language for business affairs so that company accounts are understandable and comparable across international boundaries. The business world need for a common set of accounting standards. International financial reporting standard (IFRS) convergence, in recent years, has gained momentum all over the world. The International Financial Reporting Standards (IFRS) aims to make international financial reporting comparisons as easy as possible because each country has its own set of accounting rules. IFRS represents the most commonly accepted global accounting framework as it has been adopted by more 100 countries. By adopting IFRS, a business can present its financial statements on the same basis as its foreign competitors, making comparisons easier. IFRS are the globally accepted accounting standards and interpretations adopted by the IASB (International Accounting Standard Board). In India, ICAI has decided to adopt the IFRS by April 2011. This paper discusses the possible challenges during the process of adopting IFRS and its impact on India and also measures taken to address the challenges.

Convergence of accounting standard across the globe is the next revolutionary change in the accounting world. Convergence of Indian accounting standard with IFRS will ensure reliable and high quality financial statement for Indian companies & this would mean greater competitiveness in the global arena. In the context, Indian accounting standards need to harmonize (converge) with International Financial Reporting Standards (IFRS). In this paper an attempt is made primarily to give an overview of IFRS and secondly to highlight the key difference between IFRS and Indian AS, with its impact on the financial reporting. We have also made an effort to extract out the challenges which are face by Indian AS and thrown a light on the strategy of convergence by Indian globalized companies. The impacts are also discussed

Dit artikel onderzoekt effecten van de eerste toepassing van IFRS 16 op informatie gerelateerd aan leases in jaarrekeningen over 2019 bij lessees. IFRS 16 vereist meer informatie over leases waarvan een groot deel dikwijls wordt gegeven. Een ander deel echter, met name over toekomstige leasebetalingen, veel minder. Ook over gevolgen van door de invoering van IFRS 16 veranderde cijfers in de jaarrekening op impairment testing, alternatieve prestatiemaatstaven en bestuurdersbeloningen treffen we (heel) weinig informatie aan. Vaker besteden de controleverklaringen van de accountant bij de jaarrekening aandacht aan de invoering van IFRS 16. De grondslag voor verwerking van latente belastingposities als gevolg van IFRS 16 wordt weinig vermeld, is uiteenlopend en wacht op de aangekondigde regelgeving.

Indonesia has a continuous concerned on its audit quality (AQ) since the impact of global changes on the country's accounting profession. The data was obtained from face-to-face interviews with practitioners which have given the notion on how far Indonesia has already gone to enhance its AQ. Review of documentary material which was obtained from on the official websites of parties and observation of routine activities of the participants also involved in this study. The discussion of the developments focused on the way to implement AQ conducted by each participant. Institutional analysis was derived directly from data obtained. The findings explained regulators' roles have created significant efforts to the development on audit quality. In addition, it also shows the implementation of AQ conducted by practitioners in their audit firm. Therefore, those created the expectation of most of practitioners to obtain monetary and nonmonetary value-added impact significantly because of the regulatory efforts. This paper is a contribution to the literature on the subject of AQ by providing the insights into how Indonesia as an emerging country responded to the global demands on AQ improvements and the expectation of the practitioners regarding to the changes.

International economic integration has been taking place more and more deeply in many aspects, including the integration of accounting. The integration of accounting has created much useful information for investors as well as managers, which has been widely recognized in many countries in the world. Nowadays, Vietnam is in the process of international economic integration and is reforming their economic structure; therefore, the government's direction is to apply International Financial Reporting Standards for Small and Medium-Sized Entities (IFRS for SMEs) issued by the International Accounting Standards Board (IASB). However, many factors affect to implement IFRS for SMEs in Vietnam successfully; hence, the Vietnamese government wants to have a set of Vietnam Accounting Standards for Small and Medium Enterprises (VAS for SMEs) before IFRS for SMEs standards is applied wholly in the near future. This article focuses on discussing some issues related to VAS for SMEs created based on IFRS for SMEs then proposing some recommendations to step by step implement IFRS for SMEs in Vietnam. The article uses the Archival Research method to conduct research.

The International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) have been rapidly adopted in the world. Furthermore, the rapid growth of the Vietnamese economy in recent years has led to the necessity to apply IFRS to harmonize with international accounting and the globalization trend of the world economy. Adopting IFRS to prepare and present financial statements has provided many benefits but also poses certain challenges, therefore, Vietnam must have an appropriate and timely orientation plan to apply IFRS. The purpose of this article is to outline the benefits, challenges, and conditions for the countries having adopted IFRS. Based on the specific situation, characteristics and conditions of the Vietnamese economy, this article also proposes reasonable directions for applying IFRS in Vietnam.

We examine comment letters written in response to the SEC's Proposed IFRS Roadmap using traditional content analysis and CLUTO, a unique text clustering software. We find that while there is strong support for the idea of one set of high quality global accounting standards, a majority of respondents are opposed to the proposed roadmap. Additionally, our results suggest that comments received systematically differ with respondent characteristics such as respondent type, firm characteristics, and industry affiliation. Finally, the complementary use of CLUTO with manual content analysis and the robust results obtained from CLUTO, provide support for the potential use of CLUTO to examine large textual databases in future accounting research.

Today’s economies depend on cross-border transactions and free international flow of capital. These capital allocation decisions require assessment of company’s value. Financial reports are integral and fundamental to such a valuation exercise. However, because of different legal political and economic systems, measurement, analysis, and reporting of many business and financial transactions is country specific. Differences in accounting rules and principles add cost, complexity, and risk for both the companies preparing financial statements and the investors making economic decisions. Such differences complicate comparison of accounting statements prepared under different regimes. This article approaches the problem from two perspectives. The historical perspective helps understand the evolution of accounting into an important business tool and the need to have common accounting practices across the globe. The second perspective looks at the progress made till date to achieve convergence and important areas of economic activity where differences exist. The findings have been arrived at with the help of an in-depth review of available literature. They help conclude that the much sought after convergence is still work in progress as there are large number of economic activities whose accounting treatment differs in different areas of operation.

Keywords: Convergence, IFRS, IASB, FASB, Inventory, Leasing

A set of rich value and quality accounting standards related to financial reporting are required worldwide in order to operate businesses successfully. Over the past three decades accounting bodies and professional has been contributing to the worldwide efforts with an objective to promoting uniform and harmonized financial reporting system. The globalization have necessitated for a corporate sector to have a uniform, single and universally acceptable system of financial reporting. In 2001, International Financial Reporting Standards were developed with the contributions of International Accounting Standard Board with a view to facilitate a particular set of rich quality and understandable standards for financial reporting. The inaugural of economic reforms and globalization in the late 1980s led the process of changes in financial reporting methods in India. So Indian government also determined to converge its local accounting standards to IFRS. In 2006, ICAI constituted a task force with an objective to propose a blue prints for convergence process in India. This paper is an attempt to discuss the Indian scenario in context to roadmap of IFRS adoption, efficacy of adoption, complications in this convergence process. To conclude, paper suggests ways to address these obstacles.

The objective of the study is to justify the concept of fair value as a theory through International financial Reporting Standard (IFRS). This paper examined what effect would this newly adopted measurement of valuing assets and liabilities have on reported profit disclosed in the financial statement. Three theories that are of interest to this study, depreciation theory, asset theory and profitability theory were reviewed. The study used ex-post factor research design using data analysis of financial information extracted from audited financial statement for the  periods 2009 to 2011 (Pre-IFRS) and 2012 to 2014 (Post-IFRS) which was used to examine how independent variables affects dependent variables during N-GAAP and after adoption of IFRS. In order to arrive at conclusion data of twelve (12) companies in the consumers sector of the manufacturing industry quoted on the Nigerian Stock Exchange analyzed using multiple regression. Findings revealed that Pre-IFRS adoption strengthens...

As affected by Covid-19 pandemic, most of children experienced online learning. This online learning could affect children school readiness when they entering school. They showed various problems, such as math, writing, emotion, attention and in following instructions. To assist these children, teachers need to assess their school readiness using NST, and their intellectual potential using CPM. As the assessment process often takes time, we developed an information system integrated in this assessment. This system enables the psychologists to reduce time in doing the assessment and teachers may get the result faster. Based on the assessment using NST and CPM, it was found that in general children are ready to enter the school.

This study investigates the effect of a change in financial reporting regulation, the adoption of International Financial Reporting Standards (IFRS), on investment decisions in Europe. It further investigates whether capital investment decisions were influenced by the adverse macroeconomic conditions that took place during the crisis period in the Eurozone in years 2008-2010. Moreover, we control for the fact that the impact of the IFRS adoption may differ depending on a) the timing of the adoption i.e. voluntary versus mandatory adopters and b) the legal enforcement and corruption levels. We provide evidence that financial reporting practices of mandatory versus voluntary adopters cause significant differences in (a) the cost of equity capital, (b) the level of capital investments and (c) the return on invested capital. Our evidence suggest that mandatory adopters improved the level of capital investments and the return on invested capital in the post IFRS period and that the cost of equity capital was reduced. These evidence are more pronounced under the strong legal enforcement environment. For the group of voluntary adopters, we verify also a significant reduction in the cost of equity capital in the post IFRS adoption period. Regarding their investment practices, we document higher level of capital investment relative to 3 mandatory adopters in both the pre and post IFRS period and even after controlling for the legal enforcement environment. We provide evidence that during the crisis period the cost of equity capital was increased for both groups. Nevertheless, our results suggest that both groups keep their investment policy unchanged by not reducing the level of capital investments.

In increasingly global markets for finance, goods, and services, a variety of decision makers need to assess companies from numerous countries on a common basis. Differences between national and international accounting principles and practices make such a task difficult, if not impossible. This article considers the contribution of previous research to resolving this problem. Much of the earlier work in this area has used metrics based on a broad database of companies from many different industries and worked out conservatism indices based on a comparison of profit levels of companies reporting in two generally agreed accounting principles and practices (GAAPs). While useful, this does not address the problems of conversion for any one industry or company. In order to examine the implications of GAAP differences for international comparisons, a case study approach is adopted, considering two of the major players in the European steel industry. Accounting information is produced for both companies under their domestic GAAPs and under United States (US) GAAP, thus allowing for an analysis based on a common, US, GAAP. As a part of this analysis, a time series approach is taken. The article concludes that there are additional factors that may affect the evaluation of relative conservatism and the financial comparison of individual companies even when carried out on a common GAAP basis.

Na ciência discute-se a cultura organizacional e a performance da companhia e defende-se que os valores sejam vistos como essência para criação de padrões comportamentais que podem gerar vantagens competitivas. Essas vantagens podem incluir decisões gerenciais concernentes aos custos. Esse estudo analisa os valores dominantes para as 14 empresas brasileiras de capital aberto do setor de FMCG (Fast Moving Consumer Goods) listadas na B3 e classificadas como Setor Econômico de Consumo Anticíclico. Os valores foram categorizados a partir das dimensões culturais propostas por Schwartz e Ros (1995). A determinação dos valores relevantes foi baseada em levantamento de material institucional das empresas e os custos pegajosos foram tomados dos Demonstrativos de Resultado. A hipótese investigada foi que os valores, através da influência sobre o comportamento dos gestores, seriam capazes de afetar as decisões de ajustes da estrutura de custo, levando a assimetrias de custos diferentes entre as empresas de acordo com os valores dominantes de cada uma. Para o presente estudo, usou-se a análise de conteúdo para categorização das empresas de acordo com os tipos de cultura, e também o teste de médias para identificar se os valores dominantes dicotômicos apresentavam comportamento de custo diferentes. Os resultados não foram estatisticamente significativos e, portanto, não foi possível evidenciar que os valores organizacionais dominantes são capazes de gerar comportamentos diferentes dos custos em relação à variação da receita.

In the context of continuous globalization, it is essential to have common accounting standards that allow efficiency and transparency in the handling of information. The present article, applying a systematic mapping study, presents an analysis of the scientific production associated with the research topic. The results obtained generate new challenges in the accounting profession and contrast the need to distinguish the accountant as a key professional in the process of transition of financial information under IFRS. This paper presents a theoretical discussion about the role of IFRS and varius states

Accountancy profession across the world has been witnessing revolution for sometimes now, especially after thecase of Enron and Word com and the challenges to Auditing as profession. The profession has another breakingpoint in Nigeria in 2012 just like many other countries, IFRS transplanting and convergence, a standard that hasnot yet been adopted in the United States of America. The specific of objective of the paper is to evaluate theconsequences of the convergence in Nigeria with a view to pointing out what per adventure have not been doneright in the transplanting, suggest what should be done to enable the country derive the full benefits of thechange in the accounting regulation. The data are collected through primary data apparatus and cross sectionalsecondary data from the annual reports of the selected case studies. The methodology adopted is student-tdistribution. We also deployed descriptive statistics. The results from the descriptive statistics portend mixreactions. Mos...

This paper takes institutional theory perspective to discuss the efforts being undertaken by regulators and accounting profession in Indonesia to strengthen its audit quality (AQ). The question being asked is whether Indonesia's participation in ASEAN Audit Regulators Group (AARG), whose aim is to strengthen AQ in ASEAN country, is purely part of the country's ongoing efforts on AQ or is it motivated by mimetic pressure to be similar to its neighbours. Using data obtained from various public sources, the paper shows that in comparison with its neighbouring countries Indonesia is behind in terms of few aspects concerning AQ including the number of accountants in the country. However, evidence also shows that the country was putting in various initiatives in relation to its AQ even prior to its joining the AARG in 2014. Although the number of accountants was small relative to its population, the country is in fact seeing significant increase in the number in the last three years prior to its joining the AARG. Indonesia's participation in AARG suggests that the country aims to be at par with its neighbours in terms of AQ. Following its participation with AARG, the country has issued a draft of Audit Quality Indicators (AQIs) in 2016 as well as Code of Ethics in 2017 for accountants. Hence, although participation in AARG could initially be motivated by mimetic pressure, the evidence shows that the country is in positive direction in its quest to improve AQ.

O objetivo deste estudo foi verificar como se comportam os custos em relação às receitas de vendas nas empresas brasileiras listadas na BM&FBOVESPA entre 2000 a 2015. Por meio de um levantamento, com as 347 empresas listadas na BM&BOVESPA, de caráter descritivo, quantitativo e documental, se utilizou de regressão linear, média e coeficiente de variação para analisar o comportamento dos custos e a teoria dos sticky costs. Os resultados encontrados mostraram que no geral as empresas comprometem 71,26% da receita líquida de vendas (RLV) com o custo dos produtos vendidos (CPV) ao longo dos 16 anos analisados.

This study was conducted to understand the factors that form the quality of human resources in auditing and accounting. At the same time, we analyze the influence of human resource quality and technology application factors on job efficiency in accounting and auditing service companies in Vietnam. The authors followed two main steps including an exploratory phase and a quantitative one. The former stage includes discussion, interview with key staff from auditing and accounting departments. The latter one necessitates 470 questionnaires to collect quantitative data for inference analysis on hypothesized relationships between HRM elements, HR quality, technology application and employees’ work efficiency. We found that some key HRM elements influencing HR quality include training, assessment, demand and integration. Subsequently, HR quality and technology application exerts significant effects on employees’ work efficiency. We recommend that, in auditing and accounting, there need to be some priorities and planned investment on the most vital factors for the purpose of forging strong human forces in terms of both quality and work efficiency.

This paper relates to the financial effects of the official adoption of International Financial Reporting Standards (IFRS) in the US. IFRS is a set of unique, high-quality accounting standards that listed firms have been obliged to implement since 2005 in Europe. However, in 2007, the SEC decided to allow foreign firms listed in the US stock markets to publish their financials under IFRS without the need to reconciliate to the US GAAP. That fact increased the proportion of the converging process between the two regimes but provoked several core questions of interest to both academics and market professionals. In this order, the paper aims to detect any financial statement effects under IFRS for firms that used to follow US GAAP, to analyse whether the acceptance of IFRS in the US has improved the level of convergence between the two regimes, and provide evidence on whether listed firms in US markets exhibited fewer earnings management under IFRS. In this way, the paper tested a total of three Hypotheses, by involving quantitative analysis of secondary numerical data, from firms listed in the US stock markets that followed IFRS during the first allowance year (2007). The findings reveal that IFRS has not succeeded in eliminating falsified statements entirely but has performed better compared to other countries where they have been introduced. It seems that the US environment is appropriate for IFRS. Additionally, there are indications for fewer earnings management in the first IFRS adoption year, keeping a high level of accurate accounting interpretation. However, special attention is needed for any emerging issues in the future.

The decision whether to require publicly traded companies to adopt International Financial Reporting Standards (IFRS) remains in flux. In 2008, the US Securities and Exchange Commission proposed a roadmap leading to complete acceptance of IFRS in the US. With the potential replacement of US GAAP with IFRS in the near future, understanding the impact of IFRS on corporate financial reporting is more important than ever. This study examines two factors which are critical considerations in the decision to accept or not accept IFRS in the US: How different is financial statement information derived under IFRS from information derived under US generally accepted accounting principles (GAAP); and how much incremental information value, if any, is provided by IFRS over US GAAP. The present study extends prior research by examining concurrently both differences and their impact on market performance. Findings of this study support the view that differences on financial statement results between IFRS and US GAAP are not significant, thus, supporting proponents of adoption of IFRS in the US, after which all US publicly traded companies would use IFRS and not US GAAP.

This study aims to measure the financial distress and forewarn bankruptcy in Textile Sector of Pakistan using popular statistical measures i.e., Z-Score, O-Score, Probit and D-Score. First, applicable financial ratios (profitability, liquidity, leverage, market ratios) and scores (Z-Score, O-Score, Probit and D-Score) of all 77 textile companies were calculated then estimated scores were compared with cut-off point of respective model. Based on findings, models are categorized in two groups: (a) Group-I (Z-Score and O-Score), (b) Group-II (Probit  and D-Score). Results indicate that some of the textile firms are about to face financial distress in near future, which could ultimately lead those firms to bankruptcy. The findings of Group-I indicate that about 43% - 44% companies in the textile sector are in the phase of financial distress; whereas the results of Group-II reveal that about 8% - 16% companies are in financial distress phase. Thus, we could draw two conclusions: (1) the ...

This study focused on presenting the views of members of a professional accounting group about intangible assets accounting in Vietnam. This group consisted of 44 random  interviewees who were auditors, lecturers, and banking staff, among others. Based on the results of this survey, the characteristics of the professional accounting group, including occupation, educational level, and work experience, etc., were collected. The accounting regulations for intangible assets in Vietnam in accordance with the guidelines of Vietnamese Accounting Standard (VAS) No. 04 (Intangible assets and other circulars) were then analyzed. Especially, these interviewees indicated three main obstacles of intangible assets accounting through this survey. First, the skills and knowledge of accounting staff are the most current weaknesses of intangible assets accounting. Following that, the slow integration of Vietnamese accounting regulations with the international accounting system for intangible assets i...

Tujuan jangka panjang dari penelitian ini adalah untuk mengembangkan model competency based-assessment pada Praktik Cleaning Bathroom di Housekeeping Department. Target khusus yang ingin dicapai dari penelitian ini adalah menghasilkan: 1) Model competency based-assessment pada pembuatan alat penilaian Praktik Cleaning Bathroom di Housekeeping Department. 2) Implementasi model competency based-assessment pada praktik Cleaning Bathroom di Housekeeping Department. 3) Capaian kompetensi pada praktik Cleaning Bathroom di Housekeeping Department. 4) Kualitas model competency based-assessment praktik Cleaning Bathroom di Housekeeping Department. Penelitian ini mengunakan  metode deskriptif dengan pendekatan Research and Development. Penelitian mencakup studi pendahuluan, tahap pengembangan model, dan tahap uji validasi model. Subjek penelitian terdiri dari praktikan, penilai internal dan eksternal pada praktik Cleaning Bathroom. Teknik pengumpulan data dilakukan melalui observasi dan uji k...