A Study of Accountants' Judgments With Respect to the Provision of Consolidated Financial Statements

The release of the Australian Accounting Standards Board AASB 1024. Consolidated Accounts. in September 1991 represents a fundamental shift in concept, criteria and approach. The Standard is based on the entity concept and adopts 'capacity to control' as the sole criterion for identifying related entities for the purpose of preparing consolidated financial statements. A conceptual (substance-over-form) approach is used to implement the control criterion. In essence, this approach requires accountants to make professional judgments about the existence of control based on the substance of group structures and arrangements rather than their legal form. Concerns about the subjectivity and possible variability of accountants' judgments cast some doubt on the operational effectiveness of the conceptual approach. In response to these concerns, this paper reports the results of an experiment that examines the consolidation judgments accountants make in response to a number of hypothetical scenarios. The purpose of this paper, therefore, is to provide some insights into the likely quality and reliability of consolidation judgments under the conceptual approach adopted by AASB 1024. The results indicate that accountants can be expected to exhibit broad consensus in their consolidation judgments. In addition, an analysis of the variables suggests that the degree of share ownership is the most significant factor in making such judgments. Nevertheless, other factors including the composition of the board of directors, the existence of a special arrangement, and interactions with the other variables also proved to be significant. Overall, the study provides tentative support for the conceptual approach adopted in AASB 1024.     

文化价值观对会计估计职业判断影响的实证研究——以新疆地区维吾尔族、汉族和回族为研究对象

本文以新疆地区维吾尔族、汉族和回族会计人员为研究对象,研究了这三个民族文化价值观的差异对会计人员会计估计计量的影响。研究结果发现:面对相同的经济事项,这三个民族会计人员的会计估计计量结果存在着显著的差异,且会计估计计量结果的差异还受到不确定环境呈现方式的影响。研究结果表明:会计人员解释和运用会计准则的方式受其文化价值观的支配和影响,因此,会计准则的国际协调决不是仅仅通过发布一套与国际惯例一致的会计准则就可以完成的。     

Rules, principles and judgments in accounting standards

The distinction between rules-based and principles-based standards is not well defined and is subject to a variety of interpretations ( SEC, 2003 , p. 5). Yet there is a commonly held view that the FASB's standards are rules-based and the IASB's standards are principles-based. This article identifies the basis of this distinction. For research and development, the article compares the FASB standard with two principles-based standards. For each standard we identify and classify rules and judgments, and observe the level of justifications for the rules and assistance to support the judgments. The three standards have rules, are based on principles, and require the exercise of professional judgment; the less conservative standard requires more judgments and, unexpectedly, more rules. The results suggest that the rules-based versus principles-based distinction is not meaningful, except in relative terms. We conclude that a relatively more principles-based standards regime requires professional judgment at both the transaction level (substance over form) and at the financial statement level ('true and fair view' override). Furthermore, it is suggested that any FASB and IASB convergence will require agreement on the weightings given to the qualitative characteristics.     

会计专业判断:信息质量视角的透视

本文基于会计主观性的观点，认为专业判断是应计制会计固有的特征，具有不可替代性，是影响会计信息质量的基础性因素。我国会计改革的方向：培养会计人员判断能力，使其熟练掌握会计专业判断的原则和方法，并通过构筑和完善专业判断的支撑环境，优化专业判断，提高会计信息质量。     

浅析环境公益诉讼中排除妨害判决的执行问题

环境公益诉讼案件不断涌现,公众对环境公益诉讼的关注和认可也不断增加,在法院克服原告资格和受案范围等立法缺陷,大胆进行环境公益诉讼尝试和革新的背后,环境公益诉讼中所作出的排除妨害判决却得不到有效的执行,本文拟针对目前我国环境公益诉讼中排除妨害判决的执行情况,分析其存在的困境并提出自己的解决策略和建议。     

A true and fair view of the principles/rules debate

The nature of 'reality' in the context of financial reporting is, at best, a generally agreed, inter-subjective human construction. This article considers the nature, and alternative perceptions, of the notions of principles and rules, exploring the idea of true and fair view presentation as a meaningful requirement in its own right, and as an override. An overview of the standard setting process in the United States from the historical perspective identifies factors fostering the rules-based accounting system. We then analyse recent developments in the United States regarding the adoption of a principles-based accounting system, and in the U.K. arising from the introduction of IAS in Europe. Both support the conclusions that: The purpose of financial reporting is to give an understanding, which is not misleading, of the underlying economics of an enterprise; the 'underlying economics' represents an inherently subjective construct; rules, by themselves, are inadequate, whether or not they are based on principles; major and fundamental differences exist between various players on the world regulatory scene; much of the debate at the regulatory and policy level is at best vague and confused, more likely disingenuous, possibly intellectually dishonest; interested parties will interpret words, concepts and agreements differently; significant limitations for international standardization are implied by the above points. Further, no one player, construct or culture can impose its will at a global level.
In 1942 the U.S. SEC aptly captured the appropriate sentiment: 'The basic question [is] whether the financial statements performed the function of enlightenment, which is their only reason for existence'.     

Olfaction as a cue for product quality

This paper explores the effect of olfaction on product performance judgments. An experiment is conducted to determine (1) the robustness of the olfaction effects observed in early research and (2) the underlying reason why olfaction affects judgments. It appears that cognitions, rather than hedonics, drive the observed olfaction effects.The authors thank Terence A. Shimp and Pam Scholder Ellen for their helpful comments. Thanks also go to Renee Mayhugh and Yukiyo Tanaka for their assistance in collecting data.