Explaining the accounting disclosure index of stock exchanges by foreign exchange market activity

In this article, researcher-created accounting disclosure index of 23 stock exchanges for the year 1992 and its relationship with variables including foreign exchange turnover, economic and financial indicators were investigated. The accounting disclosure index of global stock exchanges crafted by Adhikari and Tondkar (1992) was regressed on foreign market turnover which was utilized as a proxy for foreign exchange market activity. The OLS results supported that along with the activity of foreign exchange market; GNI per capita, market capitalization, energy and electric consumption, number of listed companies were significantly related with the accounting disclosure index. The foreign market turnover was found to be positively influencing the accounting disclosure index. The models explained about 73% of the variation in the index with an F-ratio of 26.56 indicating the overall significance of the model.     

Development of accounting in Iran

The main purpose of this paper is to show the origin, growth and practice of accounting in Iran plus analysis of influential factors such as financial markets, tax policies, privatization, membership in the World Trade Organization, foreign investment, and legal systems. Documents of ancient Iran show that in 550 B.C. (Achaemenid era), all records of public revenues and costs were kept soundly and with remarkable accuracy. These documents display the relentless progress and development of accounting in Iran up until now (pre-Islamic era, post-Islamic era, and contemporary era). During the past two decades, various measures have been adopted to promote and advance accounting in Iran via harmonizing the domestic accounting practices with International norms and standards. Although Iran has employed International Accounting Standards as the basis for developing its National Accounting Standards, there are still some differences between Iranian and international standards, and there are some certain International Accounting Standards that are not applicable in Iran. A host of endemic factors, such as existing laws and rules, religious beliefs, culture, economic and political conditions, have influenced the National Accounting Standards setting processes.     

Rationalities, domination and accounting control: A case study from a traditional society

Previous studies on management control in less developed countries have mainly concentrated on the state and privatised enterprises. Drawing upon Weber's work [Weber M. The protestant ethic and the spirit of capitalism. New York, NY: Scribner; 1958; Weber M. General economic history. New York, NY: Collier Books; 1961; Weber M. Economy and society: an outline of interpretive sociology (two volumes). New York, NY: Bedminster; 1968; Weber M. Economy and society. Berkeley, CA: University of California Press; 1978] on traditional society, and a Weberian framework developed by [Colignon R, Covaleski M. A Weberian framework in the study of accounting. Accounting, Organiztions and Society 1991;16(2):141–57], this paper seeks to understand ‘private management practices’, including accounting, in a stock exchange listed company (public limited company). The case study evidence indicates that organisational controls are biased to serve the dominant owners or family/sponsors of the company instead of general shareholders. The paper argues that family dominance is facilitated by the external and internal layers within which the company is operating. The greater understanding of traditional societies developed in Weber's works [Weber M. Economy and society. Berkeley, CA: University of California Press; 1978] is very useful in explaining why managers work to serve the family. Domination by family via trusted managers using accounting calculations instead of bureaucracy is highly relevant, as the case study shows. These findings are not dissimilar to those of previous studies conducted in privatised and family-owned companies in Bangladesh and elsewhere. The paper calls for more research on management accounting practices employing Weber's works, especially in traditional societies.     

The economic determinants of depreciation accounting in late nineteenth-century Britain

This paper examines the economic incentives for unregulated companies, in late nineteenth-century Britain, to disclose in their published accounts the fact that they had charged depreciation. We argue that the disclosure will be positively associated with whether a company has outside shareholders and long-term debtholders, profitability, extent of depreciable assets, appointment of a professional auditor, and size. These hypotheses are tested using 150 British companies from the years 1880/81, 1889/90 and 1899/01. Our results indicate that whether depreciation was charged is related to profitability and, to a lesser extent, to the presence of outside shareholders, long-term debt holders and the appointment of a professional auditor. However, the amount of depreciation charged is related only to profitability and appears to be opportunistically determined.     

A fundamentalist perspective on accounting and implications for accounting research

This paper presents a framework for addressing normative accounting issues for reporting to shareholders. The framework is an alternative to the emerging Conceptual Framework of the International Accounting Standards Board and the Financial Accounting Standards Board. The framework can be broadly characterized as a utilitarian approach to accounting standard setting. It has two main features. First, accounting is linked to valuation models under which shareholders use accounting information to values their stakes. Second, the desirable characteristics of accounting information are inferred from the demand of investors and analysts who use the information in practice. This stands in contrast to the “qualitative characteristics” in the Boards’ Framework which are embraced largely on the basis of their aesthetic appeal. These features lead to a set of broad accounting principles that resolve “recognition” and “measurement” issues at the core of the Boards’ Conceptual Framework and also the central issue of a balance sheet approach versus an income statement approach. The framework in the paper also frames the research questions for researchers interested in accounting policy.     

Convergence of accounting standards and foreign direct investment

Since the development of the eclectic paradigm by Dunning (1977, 1988, 1993), many studies have investigated different forms of location advantages that attract foreign direct investment (FDI). In this study, we consider accounting standards as a component of the institutional infrastructure of a location and hypothesize that the convergence of domestic and International Financial Reporting Standards (IFRS) promotes FDI as it reduces information processing costs for foreign investors.² We also hypothesize that the effect of reduced information costs is stronger for partner countries whose accounting systems showed greater pre-convergence differences because they magnify the facilitating role of accounting standard convergence for FDI. Using bilateral FDI data from 30 OECD countries between 2000 and 2005, we find evidence generally consistent with these hypotheses.     

Micro-processes of justification and critique in a water sustainability controversy: Examining the establishment of moral legitimacy through accounting

To analyse the micro-processes of moral justification and critique, this paper explores how managers combine different moral principles through the use of accounting, in order to establish the moral legitimacy of water sustainability practices. Drawing on the Economies of Worth framework and based on an exploratory case study of a water utility, this paper reveals four micro-processes of justification and critique - neutralising, enlisting, summoning and sensegiving - that reflect the different ways of moral legitimation mobilised by the managers. It also reveals the presence of different orders of worth which refer to the market, industrial, civic and green moral principles, and the dynamic role of accounting as a test of worth used to combine and bring them together. The findings suggest that moral legitimacy is not necessarily a dichotomous variable, but that it operates on a continuum established by managers and negotiated through the use of accounting. The paper illuminates the role of accounting in the unfolding of moral legitimation processes, and advances the micro-analysis of moral legitimacy in sustainability accounting research. It also contributes to sustainability disclosure research by showing that external disclosure reflects internal deliberations, and together they participate in the establishing of moral legitimacy.     

How do institutional investors influence accounting conservatism in China?

Using a sample of Chinese listed firms from 2003 to 2015, we find that domestic mutual funds have negative effects while qualified foreign institutional investors (QFIIs) have positive effects on firm accounting conservatism. These effects become stronger when their ownerships are closer to that of the controlling shareholder, respectively. Furthermore, these results are more pronounced when institutional investors are more able to monitor managers and compete with controlling shareholders. Our findings suggest that the influence of institutional investors on accounting conservatism in China is subject to their identities as well as the control contestability against the controlling shareholders.     

Excel in the accounting curriculum: perceptions from accounting professors

Public accounting firms emphasize the importance of accounting graduates being proficient in Excel. Since many accounting graduates often aspire to work in public accounting, a question arises as to whether there should be an emphasis on Excel in accounting education. The purpose of this paper is to specifically look at this issue by examining accounting faculty's perceptions of Excel in public accounting and accounting education. We survey 245 faculty members at over 100 accounting programs. We find that a majority of faculty incorporate Excel in their accounting classes consistent with their perception of Excel importance. However, we find that students are not fully proficient in Excel based on faculty's perceptions. This study contributes to the accounting education literature by identifying possible disconnections between Excel skills faculty include in the accounting curriculum and specific Excel skills faculty believe new hires (i.e. recent accounting graduates) most often use in public accounting.     

A Weberian model applied to the study of accounting stagnation in late Qing China

The industrialization and commercial expansion that China experienced following foreign intrusion, in 1840, necessitated the modernization of its accounting, but its accounting technology continued to stagnate for more than half a century. Weber's socio-historical model provides a framework for posing the question why indigenous accounting systems persisted even though superior western bookkeeping techniques were available. Weber's framework for the study of the relations of accounting to organizations and society may be divided into two analytic layers: structural conditions of accounting and the historical dynamic arising from the tensions between formal and substantive rationalities. All structural conditions specified in his first analytic layer as necessary for capital accounting were basically satisfied in Qing China. The second layer of Weber's framework is ideational. Rationality is the key concept in Weber's work. Replacing traditional accounting amounted to a direct challenge to substantive rationality of ti ('substance', 'essence') by the formal rationality of yung ('instruments', 'utility').     

The effect of owner versus management control on the choice of accounting methods

This paper examines the relationship between the ownership control status of firms and the accounting methods they adopt. The arguments of Watts and Zimmerman's positive theory are integrated with those of managerial economists to generate the prediction that management controlled firms are more likely than owner controlled firms to adopt accounting methods which increase reported earnings. This prediction is inconsistent with Fama's hypothesis that the market for managerial talent will prevent management controlled firms from acting differently than owner controlled firms. This paper compares the depreciation methods used by a sample of management and owner controlled firms for financial reporting purposes. The comparison considers and controls for the factors of firm size, leverage, and the depreciation method used for tax reporting purposes. The comparison reveals that there is a significant difference in the depreciation methods adopted by management controlled and owner controlled firms for financial reporting purposes.     

The Impact of Financial Accounting Practices on the Measurement of Profit and Equity: Australia Versus the United States

The purpose of this paper is to make a quantitative comparative analysis of differences between Australian financial reporting practices and U.S. GAAP. The empirical data consist of Form 20-F filings for thirteen Australian incorporated companies for the period 1985–93. Based on prior research, there is a test of the hypothesis that U.S. GAAP is more conservative than Australian financial reporting practice. The results of the empirical analysis offer little support for this hypothesis in the context of the reporting of profit. However, the hypothesis is supported for the reporting of shareholders’ equity. The most frequent and material differences in profits relate to asset measurement, equity consolidation and accounting for intangible assets. Generalizations relating to differences in shareholders’ equity are more difficult to make.     

Changes in accounting curricula: discussion and design

This paper illustrates a model accounting curriculum developed to meet the needs of future accounting professionals. In addition, it offers a process for encouraging change in accounting curricula and discussion concerning teaching, pedagogy, and curriculum development. Calls for change in accounting education from academics and professional accountants are reviewed and the conclusion is reached that accounting education, as a whole, is still in need of reform.     

论资产弃置会计的国际比较

本文首先说明了资产弃置费用概念,然后分别阐述了不同国家和组织对资产弃置费用处理的会计规定和处理方法,并对其进行了理论性总结,认为它是对传统会计处理方式的一种扩展。作为环境会计的一项重要核算内容,它涉及环境负债、长期资产、折旧与新增费用的组合处理,并采用未来不确定估计方式计量环境负债金额,具有较大的创新。对此,论文还提出了构建我国资产弃置费用会计准则的建议。     

Towards an enabling research agenda for the accounting/contracting nexus

Although it shares many similar concerns with the critical accounting project, the socio-legal approach has been neglected in the accounting literature. Drawing on the socio-legal literature, the paper argues that the law-and-economics model of contract ignores the diversity of judicial ideologies as well as failing to explain empirical evidence on the opportunistic use or non-use of contract in business relations. Presenting a summary of the complex linkages between accounting and contract, the paper demonstrates the possibilities of a shared enabling and emancipatory research agenda for the accounting/contracting nexus. Given that practitioners who promote strategic alliances and partnerships have already embraced much of the rhetoric of the relational contract, the paper argues for more empirical studies that examine whether the longer-term outcomes have delivered the proclaimed benefits.     

The Politics of Rule Development: A Case Study of Australian Pension Fund Accounting Rule-Making

Describing the politics surrounding accounting rule development may provide greater insights to such processes than analysing written submissions to rule-making bodies. Over a twenty-year period a rule-making contest evolved between the accounting profession and an alliance of pension industry interest groups over the introduction of different forms of regulation (accounting standards versus legislative-backed rules) relating to pension fund accounting. From the perspective of government, the debate about pension fund accounting reflects the outside-initiative model (Cobb and Elder, 1972; Cobb et al., 1976). Issues were created by the (accounting and actuarial) professions, expanded in the relevant (pension and life insurance) industry and then gained entrance to the formal agenda of both regulatory and government deliberations. In this case the accounting profession failed to gain acceptance of its professional rule-making activities. Alternative possible explanations as to why the alliance of interest groups eventually prevailed over the accounting profession are explored.     

Deconstruction and the responsibilities of the accounting academic

This paper draws on the philosophy of Jacques Derrida to review and re-evaluate the responsibilities of the accounting community and in particular of the accounting academy. The paper begins with a brief explanation of deconstruction and implications of responsible deconstruction for truth in accounting. It is argued that Derrida's philosophy is compatible with a pragmatic approach to the pursuit of truth in accounting. In the second section of the paper the responsible, and essentially ethical, nature of deconstruction is discussed and the charge that it threatens to undermine institutions like accounting that rely of notions of truth, reasons, objectivity and disinterestedness, is rebuffed. In the third part of the paper responsibilities of the university as an institution, and accounting, are discussed drawing on some of Derrida's work on that theme, and in particular responsibility to and for reason. Derrida's analysis is applied to accounting and two competing orders of responsibility are identified and contrasted: a traditional responsibility grounded in representationalism and a new responsibility of openness to the other's demand. In the fourth part of the paper discussion of contrast and tension between types of responsibility is extended into a consideration of the relationship between moral and ethical responsibilities, in the context of accounting education. The paper concludes with reflections on the responsibilities of accounting educators.     

Engineering culture and accounting development at Albion Motors, 1900-c.1970

This paper examines the relationship between the engineering-oriented culture at Albion Motors, Scotland's most successful vehicle manufacturers, and the development and use of accounting systems there. Utilizing primary sources and information obtained from interviews, the study concludes that Albion's comparatively rudimentary management accounting systems, in particular, were a direct result of the firm's technological values. The study also concludes that there is no evidence that any major disadvantage accrued directly from this. It ends with a discussion of the relevance of the findings for issues in the accounting and business history literature and for future research.     

Deep and surface approaches to learning within introductory accounting: a phenomenographic study

This paper reports the findings of a phenomenographic research study which sought to identify students' approaches to learning introductory accounting and their conceptions of accounting. The findings reveal that, in common with other disciplines, deep and surface approaches to learning can be identified. However, the main contribution of this study lies in two areas. First, it distinguishes those features that are characteristic of the deep and surface approaches within the discipline of accounting. Secondly, it identifies contextual features surrounding these approaches to learning and which are central to an understanding of them. The paper suggests how these findings can be used immediately to make changes within teaching and assessment practice through a phenomenographic pedagogy which: seeks to make students' conceptions of the subject matter explicit; provides diagnostic tools for the identification of distinctively different conceptions of the subject and approaches to learning; and addresses issues of preconceptions and relevance within teaching and assessment. The findings can also be used as the basis for further research into the identification of statistical variation in approaches to learning between students.     

Effect of information quality due accounting regulatory changes: Applied case to Mexican real sector

The purpose of this paper is to examine whether changes in accounting standards improve value relevance of financial information on listed companies in Mexico. The research was conducted for the period 2000–2013 using a sample of 141 companies that report to the Mexican stock exchange using the methodology of panel data. Our findings show that changes in local regulations (generally accepted accounting principles) to internationally approved standards (Financial Reporting Standards and International Financial Reporting Standards) increase the value relevance and therefore the quality of information. The study shows that the accounting information with international Financial Reporting Standards is more trustworthy for foreign and national investors.