Measuring convergence of National Accounting Standards with International Financial Reporting Standards

This paper analyses three methods for measuring the success achieved in effecting convergence between any two sets of accounting standards. We begin by reviewing a measurement method based on the concept of Euclidean distances. We then propose two better measures (involving Jaccard's coefficients and Spearman's coefficients) to assess the progress of National Accounting Standards setting bodies in converging their standards with International Financial Reporting Standards [IFRS]. For illustrative purposes, we measure the convergence of National Accounting Standards in Portugal with International Accounting Standards [IAS] and IFRS over the period 1977–2003.     

国际财务报告准则前言

国际会计准则委员会最近发布了《国际财务报告准则前言》。该《前言》全面阐述了国际会计准则委员会的构成和职能、国际会计准则理事会的目标、国际财务报告准则的地位和作用、国际财务报告准则的制定程序 ,甚至还包括使用的语言 ,是国际会计准则委员会的全新展示。本期特刊出此《前言》译稿 ,供参考。     

国际财务报告准则第2号:以股份为基础的支付

目标1.本国际财务报告准则的目的是规范主体从事的以股份为基础的支付交易的财务报告.特别是,它要求主体在其损益和财务状况中反映以股份为基础的支付交易的影响,包括与授予雇员股票期权交易相关的费用.     

与资产评估业务相关的国际财务报告准则

2004年3月,国际财务报告准则经修订后重新发布,修订后的国际财务报告准则对于资产评估的需求大幅度增加.而根据惯例,相关的资产评估业务一般要求由独立的评估师来完成.近年来,国际财务报告准则(IFRS)日益受到各国的重视,2005年1月1日,欧盟上市公司已全面采用国际财务报告准则.同时,许多国家的会计准则也纷纷致力于与国际财务报告准则的接轨.     

The adoption of International Financial Reporting Standards in a non-colonized developing country: The case of Nepal

The purpose of this paper is to provide a systematic and rigorous analysis of the accounting environment in Nepal. Based on the accounting ecology framework developed by Gernon and Wallace (1995) and interviewing selected key stakeholders, it critically examines issues related to the adoption of International Financial Reporting Standards (IFRS) in Nepal. It contributes to the literature by examining issues associated with the adoption of IFRS in a non-colonized developing country. This study finds that the decision to adopt IFRS in Nepal is not driven by the needs of local organizations and is rather imposed by donor organizations such as the Asian Development Bank, International Monetary Fund and World Bank. The findings of this study provide evidence that the adoption of IFRS is likely to be problematic due to the country's contextual environment. Specifically, there is a severe lack of qualified accountants in Nepal and the accounting profession is not ready to adopt IFRS. The study also finds that social problems such as widespread corruption and fraud are likely to cause problems for the adoption of IFRS.     

The preparedness of companies to adopt International Financial Reporting Standards: Portuguese evidence

This paper uses ordinal regression, structural equation modelling, and multivariate analysis techniques to investigate the preparedness to adopt IFRS that was exhibited by listed Portuguese companies in August 2003. We find the level of preparedness was significantly associated with company size, commercial internationalization, audit by a ‘Big 4’ accounting firm, and profitability. Our findings will help to indicate the pre-conditions that are likely to spur lagging companies (and countries) to prepare to implement IFRS.     

国际财务报告准则研究的回顾和展望

国际财务报告准则制定者预期国际财务报告准则的应用将使财务报表能够更好地反映公司的经济实质、增强各国公司财务报表的可比性、改善公司信息的透明度、提高企业财务报告的质量,并最终使广大投资者受益。然而现有研究并未就国际财务报告准则的应用效果得出一致性结论。然而无论短期内投资者是否从国际财务报告准则中受益,各国采用国际财务报告准则似乎已是大势所趋,那么接下来最亟待解决的问题应该是探究如何使各国从国际财务报告准则的应用中收益最大化,而解决此问题的一个重要前提条件就是需要探究国际财务报告准则应用收益的影响因素。为此,本文首先对现有国际财务报告准则相关文献进行了梳理和回顾,具体包括自愿采用国际财务报告准则的相关研究,强制采用与自愿采用国际财务报告准则的应用效果存在差异的原因探析,和强制采用国际财务报告准则的相关研究。接下来,本文着重分析了影响国际财务报告准则应用效果的一些重要因素,以期为各个国家或地区改进国际财务报告准则应用效果提供努力方向。     

国际财务报告准则第1号—初次采用国际财务报告准则

目标 1.本国际财务报告准则的目标是确保实体首份按国际财务报告准则编制的财务报表,以及这些财务报表涵盖的部分期间的中期财务报告提供高质量的信息:     

The European Union Endorsement Process for International Financial Reporting Standards: A Telos-Based Analysis

The paper discusses the process for the endorsement of an IFRS in the European Union with regard to its compliance with teleological principles and with regard to the true and fair view. It begins with an exposition of the teleological principle under Roman law and its relationship to the true and fair view override, as known in the UK and in the EU. We then discuss firstly the telos-based criteria against which a new Standard is appraised during the endorsement process, and secondly the application of the true and fair view principle to the issue of which criteria an EU-endorsed IFRS should be appraised against as regards its application, using IFRS 3 as a specific illustration. The teleological principle is a crucial element in our conclusions. We show that this principle can be used, and in the EU is being used, to bypass democratic processes. The issues raised by this paper concern the operation of regulations designed to be, at least theoretically, context-neutral, within a specific legal and operational framework, that is, the European Union. But similar issues are likely to require consideration in other geographical areas, outside the European context.     

The voluntary adoption of International Financial Reporting Standards and loan contracting around the world

Using a sample of non-U.S. borrowers from 40 countries during 1997 through 2005, this paper investigates the effect of the voluntary adoption of International Financial Reporting Standards (IFRS) on price and nonprice terms of loan contracts and loan ownership structure in the international loan market. Our results reveal the following. First, banks charge lower loan rates to IFRS adopters than to non-adopters. The difference in loan rates in excess of a benchmark rate between the two groups is about 20 basis points for all loans and nearly 31 basis points for London Interbank Offered Rate (LIBOR)-based loans. Second, banks impose more favorable nonprice terms on IFRS adopters, particularly less restrictive covenants. We also provide evidence suggesting that banks are more willing to extend credit to IFRS adopters through larger loans and longer maturities. Finally, IFRS adopters attract significantly more foreign lenders participating in loan syndicates than non-adopters.     

国际财务报告准则实施进展与经验

近年来,经济发展导致融资竞争更加激烈,经济资源跨境流动愈加频繁,能够向潜在投资者提供可靠可比的财务报表的企业,更有可能吸引国内外的投资。联合国已成为其成员国就可靠和可比的公司报表问题交换意见和经验的重要论坛。2007年10月31日至11月1日,联合国贸易和发展会议在瑞士日内瓦召开了第24届国际会计和报告标准政府间专家工作组(ISAR)会议。会议的主题之一是国际财务报告准则(IFRS)具体实施中的国际经验。巴基斯坦、南非和土耳其三国代表分别以案例研究的形式介绍了本国实施IFRS以来的经验和教训。以下对此次会议的主要内容作一综述,以便大家更多地了解国际财务报告准则研究与实施中的一些情况。     

International Financial Reporting Standards in an Emerging Economy: Lessons from Romania

International Financial Reporting Standards (IFRS) are a reference point for the modernisation of accounting models in emerging economies. Previous literature documents a diverse IFRS experience, especially among emerging economies. The IFRS implementation strategy and local institutional characteristics shape the way in which the standards are used in practice. We use the Romanian case to illustrate the effect of various contextual factors, some historical, on the process and outcomes of IFRS implementation. We show that IFRS implementation can follow a different pattern in emerging economies.     

The Value Relevance of International Financial Reporting Standards: Empirical Evidence in an Emerging Market

This study examines the value relevance of accounting information under International Financial Reporting Standards (IFRS) in the Abu Dhabi Stock Exchange (ADX, henceforth). Based on models developed by Easton and Harris (1991), and Ohlson (1995) and using monthly market data from 2000 to 2006, this paper investigates the value relevance of accounting information of firms traded on the ADX. Our overall results show that earnings scaled by beginning of period price are positively and significantly related to cumulative returns and that earnings per share and book value per share are positively and significantly related to price per share. We also find that value relevance of accounting information has changed since the market inception in 2000. The results documented herein extend the literature on value relevance accounting information in an emerging market that requires the use of IFRS. The study therefore contributes to the debate over the mandatory adoption of IFRS and the value relevance of accounting information reported under IFRS.     

Adoption of International Financial Reporting Standards: Impact on the Value Relevance of Intangible Assets

We examine whether the value relevance of reported intangibles differs between financial reporting regimes pre- and post-adoption of Australian Equivalents to International Financial Reporting Standards (AIFRS) and Australian Accounting Standards (AGAAP) respectively. Using AIFRS and AGAAP measures of goodwill and identifiable intangible assets for the same financial year and testing their association with share prices, we find evidence that AIFRS generally convey incremental useful information for investors about goodwill. For aggregated identifiable intangible assets there is no evidence that AIFRS conveys information beyond that in AGAAP. In contrast, we find evidence that AGAAP provides incremental information for investors in relation to identifiable intangibles, but not goodwill .     

Disclosure of the impacts of adopting Australian equivalents of International Financial Reporting Standards

This study investigates two disclosure variables (Extent and Quality) in relation to compliance with paragraph 4.1 (b) of AASB 1047 Disclosing the Impacts of Adopting Australian Equivalents to International Financial Reporting Standards. Using a sample of 150 Australian listed firms, I find that the extent and quality of disclosure is influenced by firm size, leverage and auditor firm size, with the latter variable being the most significant. In general, the results suggest that many companies might have relied on sample disclosures provided by their auditors, perhaps limiting both quality and intent. Additionally, the ultimate usefulness of broad and imprecise standards might be questionable. Smaller companies might also require more guidance and assistance with their preparation for the adoption.     

Insights into accounting choice from the adoption timing of International Financial Reporting Standards

This paper collects survey evidence on the costs and benefits of adopting International Financial Reporting Standards (IFRS). It also examines the motivations for the timing of IFRS adoption. Significant differences exist between early and late adopters for three of nine benefits and for one of six cost measures. No significant differences exist in terms of firm size or the impact of IFRS on contracts. Early adopters perceive themselves as market leaders. They are more certain about the manageability of implementing IFRS and are more specific with regard to the impact of IFRS adoption. Late adoption decisions are motivated by adverse consequences and uncertainty.     

Towards the global adoption of XBRL using International Financial Reporting Standards (IFRS)

XBRL is a language based on XML for the electronic communication of business information. It is designed to improve the exchange, aggregation and analysis of corporate data requiring disclosure, through a unique tagging structure that provides interoperability. But, the proliferation of a multitude of XBRL taxonomies, based on different accounting principles, can risk the objectives of standardization, comparability and re-usability of the information that is sought with XBRL. It is therefore essential to develop global accounting standards as a unique foundation on which the XBRL taxonomies can be established, so that it becomes possible to compare the financial information originating from various countries. Along these lines, the International Financial Reporting Standards (IFRS-GP) taxonomy was created to establish a common ground for international firms and create a platform that would enhance the benefits of XBRL. This paper examines whether the IFRS-GP taxonomy, at its current state, adequately covers European companies' dissemination practices and strengthens the benefits of XBRL. Our results provide implications for the evaluation of the effectiveness of the IFRS-GP taxonomy and shed light on directions that may lead to the improvement of this taxonomy.     

Corporate Disclosure Quality: Lessons from Australian Companies on the Impact of Adopting International Financial Reporting Standards

For annual reporting periods beginning on or after 1 January 2005, Australian companies were required to comply with the Australian equivalents of International Financial Reporting Standards (AIFRS). To ensure a smooth transition, a broadly defined standard (AASB 1047) mandated pre-adoption company disclosures of the AIFRS' impact. The standard provided managers with the opportunity to exercise considerable discretion in complying with the underlying disclosure requirements. We examine how this discretion impacted on the quality of pre-adoption AIFRS disclosures provided by a sample of large Australian companies. Using a disclosure quality index, we find considerable evidence of a cross-sectional variation in disclosure quality that varies according to differences in the AIFRS financial impact, size, industry and profitability factors. Importantly, we also observe individual Big 4 audit firm influences on disclosure quality. These findings highlight consequences of mandating corporate disclosures based on broadly defined principles.     

The Measurement of International Harmonisation in Financial Reporting

Several developments in the harmonisation of accounting standards are described in the accompanying article by Howieson. This article explains how harmonisation can be measured and refers to studies of the harmonisation of accounting standards and of financial reporting in practice. These studies have measured harmonisation in Europe, the US and Japan, as well as comparing accounting standards and reporting practices under Australian accounting standards (AASBs) and international accounting standards (LASS).     

Impacts of Additional Guidance Provided on International Financial Reporting Standards on the Judgments of Accountants

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 decision-making, 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 Interpretations Committee.