Changing from German GAAP to IFRS or US GAAP: A Survey of German Companies

Since 1993 an increasing number of listed German companies have been publishing their consolidated financial statements in accordance with either IFRS or US GAAP. In 1998 this was approved as a substitute for the consolidated German GAAP financial statements of listed companies (§292a HGB). Our study surveys the motives that led these companies to opt for international reporting systems (IFRS or US GAAP) rather than German GAAP and considers whether these objectives have been achieved. Rather surprisingly, we find that even though companies state that their overall expectations have been met to a satisfactory degree, a detailed analysis shows that several of the ex-ante objectives have not been achieved from an ex-post point of view. Additionally, we use logistic regression analysis to show that companies choosing IFRS rather than US GAAP and vice versa differ distinctly in the objectives they pursue with their choice of international GAAP.     

美国房地产泡沫、世界经济不平衡与金融危机——兼驳金融危机根源外部论

对于世界经济不平衡与金融危机的关系,存在两种不同的观点:一种观点认为世界经济不平衡是金融危机产生的根源,顺差国庞大的过剩储蓄最终引发了金融危机;而另一种观点则认为愈演愈烈的世界经济不平衡却并不必然造成金融危机,而是同金融危机一样,根源于美国国内经济的某些扭曲。两者差别在于将危机的根源归于外因还是内因。本文通过理论分析与格兰杰因果实证检验,否定了危机根源外部论,并证明了后一种观点:美国房地产泡沫(美国国内经济扭曲的重要表现)在造成金融危机的同时,促进了世界经济不平衡的扩大。     

企业内部控制的建立和实施战略探析

近几年中国上市公司对内部控制监管要求的意识和了解有所增强。但是,并没有相应地加大其对实施内部控制机制的投入。鉴于企业内部控制的建立和实施情况,当前我国企业在实施内部控制的时候,应当重点加强以财务报告内部控制为主线的相关标准建设,首先实现财务报告目标,待会计信息系统达到内部控制的要求后,再创造实现其他目标。     

The impact of introductory accounting courses on student perceptions about the purpose of accounting information and the objectives of business: A comparison of the UK and Japan

This paper is concerned with the impact of introductory financial accounting courses on student perceptions of business objectives. The paper reports the results of a questionnaire survey of UK and Japanese university students which investigated their views at the start and end of an introductory financial accounting module. The views of Japanese students, in comparison with those from the UK, are of particular interest given evidence in the literature that traditional “social market” traditions in Japan are being influenced by Anglo-American “stock market” values. Our results are consistent with such a phenomenon in that Japanese students’ values regarding business objectives show significant changes that are not mirrored by changes in the perceptions of their UK counterparts. We suggest that accounting education is acting as a conduit for views more commonly held in Anglo-American societies.     

Knowledge and opinions about banking supervision: Evidence from a survey of Dutch households

What does the general public know about banking supervision? What objectives does the public think bank supervisors should pursue? We investigate these issues using a survey among Dutch households. First, we find that the public's knowledge about banking supervision is far from perfect. We also find that respondents often expect more from supervisors than they can realistically achieve. Finally, our findings suggest that better-informed people have more realistic views on banking supervision. Realistic views on banking supervision lead to more prudent financial behavior, which, in turn, contributes to financial stability. Therefore, the communication policies of banking supervisors should aim to improve the public's knowledge about banking supervision.     

Do banks have a future?: A study on banking and finance as we move into the third millennium

Are banks special intermediaries? Do they play any unique role in the economy? And if so, will they retain their specialness in the ever-faster changing world of finance? The rapid evolution of finance over the last two decades and the breathtaking “e-age” revolution have persuaded many that, eventually, banks will be indistinguishable from other financial intermediaries since all their functions can, at least as efficiently, be carried out by nonbanks. This study re-explores the issue of the specialness of banks in light of the large existing literature on the subject, and presents an approach which identifies the banks' specialness with their unique capacity to lend out claims on their own debt which the public accepts and uses as money. The study discusses various structural and policy implications deriving from the approach, and draws on it to point to the continuing relevance of banking in a world where nonbanks are taking business away from banks, lending to production has become relatively less important, and the use of e-money may soon be dominating financial transactions.     

Fair Value and the IASB/FASB Conceptual Framework Project: An Alternative View

This paper analyses various controversial issues arising from the current project of the IASB and FASB to develop a joint conceptual framework for financial reporting standards. It discusses their possible implications for measurement and, in particular, for the use of fair value as the preferred measurement basis. Two competing world views are identified as underlying the debate: a Fair Value View, implicit in the IASB's public pronouncements, and an Alternative View implicit in publicly expressed criticisms of the IASB's pronouncements. The Fair Value View assumes that markets are relatively perfect and complete and that, in such a setting, financial reports should meet the needs of passive investors and creditors by reporting fair values derived from current market prices. The Alternative View assumes that markets are relatively imperfect and incomplete and that, in such a market setting, financial reports should also meet the monitoring requirements of current shareholders (stewardship) by reporting past transactions and events using entity-specific measurements that reflect the opportunities actually available to the reporting entity. The different implications of the two views are illustrated by reference to specific issues in recent accounting standards. Finally, the theoretical support for the two views is discussed. It is concluded that, in a realistic market setting, the search for a universal measurement method may be fruitless and a more appropriate approach to the measurement problem might be to define a clear measurement objective and to select the measurement method that best meets that objective in the particular circumstances that exist in relation to each item in the accounts. An example of such an approach is deprival value, which is not, at present, under consideration by the IASB.     

All customers are not treated equally: Financial exclusion in isolated Greek islands

Most of the previous research on banking examined only the banking needs of core customers. The views of people experiencing financial exclusion are unknown, but some of the excluded customer segments may have been habitually overlooked by financial service providers. This study investigated the financial needs and the views on ATM usage of a sample of 359 people living in remote Greek islands, who have never experienced financial inclusion. Furthermore, the views of inhabitants who have always lived in the area and are used to this situation are contrasted with the views of those who have lived for a part of their lives in other regions. The results show that they all express some dissatisfaction about the financial services provided. Moreover, those who have lived elsewhere express more dissatisfation with the provided services.     

Determinants and consequences of timely asset impairments during the financial crisis

U.S. firms recorded an unprecedented number of asset impairments during the recent financial crisis. We investigate the timing of these losses in the context of two competing views on how firms use discretion over asset impairments. The first view posits that firms record impairments to convey private information as part of their commitment to a conditionally conservative reporting strategy. The second view argues that firms use their discretion to report opportunistically by delaying the recording of bad news. Consistent with the first view, we find that firms recorded timelier asset impairments during the financial crisis if they reported more conservatively in the five years preceding the crisis. Further tests show this relation is greater for firms with strong corporate governance, industry‐specialist auditors, and high leverage, indicating the importance of monitoring mechanisms in determining how firms handle the discretion involved in impairment decisions. We also test for the consequences of timely asset impairments during the financial crisis and find that firms reporting conservatively both before and during the crisis were able to acquire more debt financing, and their publicly traded bonds suffered smaller increases in illiquidity. Collectively, our study highlights the role of asset impairments in firms’ accounting choices over time.     

Foreign affiliates of the world largest financial groups: Locations and governance

This paper has two objectives. The first is the documentation of the relative importance of the largest financial groups in the world. The list of top 50 financial groups ranked by total assets in 2003 is compared to a similar list available for 1986. The second objective is to examine where financial firms are expanding their operations and to document some of the factors that may explain the most-favoured locations of these financial groups.The results of this study have two important implications. First, they indicate that location-specific advantages such as size, human capital and cultural distance, do provide an explication of the internationalization of financial firms. Second, they show that good governance has a strong impact on the choice of countries by firms.     

金融资源论:对金融功能观与金融机构观的综合研究

金融资源论的提出是对金融基础理论研究的一次重大挑战.从金融机构观向金融功能观的演进是金融理论对现实世界变化的一种回应,金融资源论的提出同样是如此.金融资源的三个层次其实可以分为实体部分和功能部分,这两部分的主要内容和研究思路分别与金融机构观和金融功能观相对应.由此可见,在金融资源论与金融机构观和金融功能观之间存在着某种逻辑联系,即金融资源论是对金融机构观与金融功能观的一种综合,具有更为开阔的理论研究视角.这既为金融资源论构建了更为坚实的理论基础,也为金融资源论的进一步完善拓展了空间.     

Australian – USA Federal Government Accounting: Convergence or Divergence?

Despite moves toward international harmonisation of accounting standards, there is evidence that standards regulating government accounting in various countries are diverging. This paper argues that, despite their similar federal systems and ostensibly similar objectives for federal government reporting, the accounting standards of the USA and Australia differ significantly in detail. A comparison of their objectives and standards reveals that the standards particularly differ in relation to accounting for assets, and in determining the performance of a reporting entity. Although these divergences emanate from differing philosophies underlying the standards of the two countries, they have implications for international harmonisation of accounting standards, and for reciprocity agreements.     

对货币政策和宏观审慎政策双支柱调控框架内在逻辑的思考

本轮国际金融危机以来,金融稳定在中央银行政策目标中的重要性再次得到强化。随着具有顺周期波动特征的金融市场和金融资产规模显著增大,金融管理政策需要更加关注金融稳定和系统性风险问题,货币稳定和金融稳定“双目标”的重要性凸显出来。政策目标的变化相应要求优化和完善政策工具箱,需要健全宏观审慎政策框架作为应对系统性风险的工具,并与货币政策相互配合,形成由货币政策和宏观审慎政策“双支柱”支撑起“双目标”的基本框架,共同维护好货币稳定和金融稳定。在此框架中,货币政策和宏观审慎政策都不可或缺,须相互补充,形成合力,产生“一加一大于二”的政策效应增进效果。健全货币政策和宏观审慎政策双支柱调控框架,有利于把经济周期和金融周期更好地结合起来,把维护经济稳定与促进金融稳定更好地结合起来。下一阶段应进一步健全宏观审慎政策框架,并完善货币政策和宏观审慎政策协调配合的体制机制。     

Fair Value: Your Value or Mine? An Observation on the Ambiguity of the Fair Value Notion Illustrated by the Credit Crunch

Current International Financial Reporting Standards (IFRSs) define fair value as a transaction price. In imperfect markets, buyer's and seller's marginal prices, at which they are rationally willing to transact, differ. The transaction price can be any amount within the range between those prices. However, scenarios are conceivable in which no such range exists because the seller's marginal price exceeds the buyer's. In this scenario, no arm's length transactions between knowledgeable, willing parties are possible. Such a scenario can be likely characterised by low liquidity and/or high information asymmetry and seems to be broadly consistent with what is recently referred to as the ‘credit crunch’. Under this scenario, the IFRS definition of fair value is not readily applicable. Two views are possible: under view 1, fair value refers to the potential buyer's marginal price. Although fair value does always exist conceptually, it negates the notion of two rationally acting parties. View 2 acknowledges that no arm's length transaction is possible, resulting in the fair value notion not being applicable. If these two views are applied to the IFRS definition of an active market, view 1 results in markets that are always active. Only view 2 allows distinguishing between active and inactive markets.     

基于数据包络分析：决策树的企业财务评价与预警--以西部四省上市企业为例

目前,对于企业财务状况评价与预警的研究主要依据ST与非ST两类企业进行分组,类别过于笼统,从而评价结果较为单一,难以衡量企业财务状况的变化过程。本文首先依据数据包络分析理论对上市公司的财务状况进行评估,将其划分为五个层次,进而引用C5.0决策树算法学习企业财务状况等级的划分规则,从而得到更加连续的企业财务评估方法,也适用于财务决策的检验与修正,使得对企业财务状况的研究更加贴近实际,评价与预警效果更加准确、实用。     

Pursuing financial stability under an inflation-targeting regime

We evaluate two main views on pursuing financial stability within a flexible inflation-targeting regime. It appears that potential gains from an activist or precautionary approach to promoting financial stability are highly shock dependent. We find support for the conventional view that concern for financial stability generally warrants a longer target horizon for inflation. The preferred target horizon depends on the financial stability indicator and the shock. An extension of the target horizon favoring financial stability may contribute to relatively higher variation in inflation and output.      

货币政策十大理论问题辨析

采取对比分析的研究方法,讨论了当前流行的有关货币政策10大理论问题,得出了有别于传统观点的新的结论:货币政策不等同于金融政策;存款准备金政策的真正价值不在于"存在"而在于"实际应用";货币政策与金融监管之间不是平行关系而是主从关系;货币政策4大目标之间不是并存关系而是继起关系等.在此基础上,结合中国实际提出了充分发挥货币政策结构性调控功能、财政政策与货币政策的组合搭配应审时度势、灵活运用的对策思路.     

The Nature and Rationale of a Conceptual Framework for Financial Reporting by Islamic Banks

Islamic banks have to abide by the revealed doctrines in Islam in conducting their business and financial transactions. They employ in-house religious advisers—often referred to as Shari'a Supervisory Board (SSB)—who issue a special report to inform users of financial statements whether or not the bank has adhered to the Islamic principles. Recently, a private standard-setting body—the Financial Accounting Organization for Islamic Banks and Financial Institutions (FAOIBFI)—has been set up to externally regulate the financial reporting by Islamic banks. The FAOIBFI has published two statements on the objectives and concepts of financial reporting to act as a framework in setting accounting standards for Islamic banks. This paper examines the FAOIBFI's approach for developing objectives and concepts of financial accounting and investigates its need for such a theoretical framework. It is argued that the FAOIBFI's objectives and concepts would not be useful in mandating accounting standards on issues that are affected by religious ruling. This does not necessarily mean that such a framework may not be useful in legitimating the FAOIBFI's role and in setting accounting standards for issues that are not governed by revealed moral doctrines although it will be subject to similar limitations to those found by other standard-setting bodies in utilising and applying their framework. However, it implies that the more the FAOIBFI sets accounting standards that incorporate religious ruling, the less it would tend to find its own objectives and concepts useful. The ambiguities that may arise from different interpretations of the religious rules will require resolutions primarily by reference to religious rather than accounting authority.     

Financial accounting return on investment and financial leverage

This note presents a method for teaching the concept of financial leverage and its relationship to accounting rates of return. Typically, financial leverage is only briefly mentioned in introductory accounting textbooks, and it is rarely related explicitly to rates of return on total assets and on common stockholders' equity. Yet the concept is an important one for financial managers. We have developed and class tested a numerical illustration to explain in a conceptually sound manner why the two rates of return differ. Accounting instructors who share our view that financial leverage should be covered more thoroughly in the introductory accounting course will find this example to be a useful supplement. The example can also be used as a way to develop critical thinking skills or to enhance a user orientation.     

Commentary: On the Desirability of Common Financial Reporting Standards for Business and Government

An important financial reporting issue relates to the extent, if any, to which financial reporting standards should differ for businesses and governments. At a high level of abstraction little dispute exists that common financial reporting concepts for both types of organisations are appropriate (for example, financial reporting should provide useful information). As one focuses on more specific financial reporting objectives, however, the issue becomes more contentious. This paper addresses this issue by considering differences in financial reporting objectives between the types of organisations and evaluating whether such differences are of sufficient import to warrant substantially different financial reporting standards.