Estimating Current Cost Depreciation Expense Using Numerical Analysis and the STAPOL Technique: A Pedagogic Exposition

Current cost accounting (CCA) recommendations have led to complex measurement problems. This paper aims to provoke discussion of the use of numerical analysis and the STAPOL technique as a method for measuring current cost depreciation expense. The measurement method analysed has a scientific foundation, is simple to apply, and yields accurate results. With slight modification, the method analysed is also applicable to other areas of CCA characterized by intractable measurement problems. Unlike other papers which have used differential calculus to analyse the use of numerical analysis in accounting, the exposition in this paper depends on only a rudimentary knowledge of algebra.     

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.     

A Survey of Accountants' Opinions on Cash Flow Reporting

The results of a survey of members of the Institute of Chartered Accountants of Scotland is reported. The survey gives evidence of the views of professionally qualified accountants concerning their support for, and the feasibility of reporting on, a cash flow basis. Considerable support was discerned for preparing company annual financial reports on a cash flow basis.     

The Trade-off Between the Selling Price of Residential Properties and Time-on-the-Market: The Impact of Price Setting

When a house is placed on the market, the seller must choose the initial offer price. Setting the price too high or too low affects the marketability of the property. While there is near universal agreement that the seller faces a trade-off between selling at a higher price and selling in less time, there is less agreement about how to measure this trade-off. This paper offers a framework for analysis and shows that an increase in the list price increases expected time-on-the-market (TOM). Because house buyers must solve a type of signal extraction problem, the effect of a higher list price is magnified for houses in a market segment having a low predicted variance of the list price. This paper also shows that the list price of houses which are withdrawn before sale has a higher mean and variance, and that the possibility of withdrawal censors information about the time-on-the-market.     

Auditing,Reasoning Systems,Reporting Frameworks,and Accounting Policy Risk: A Response to Alexander

This response to Alexander (2010 ) clarifies the approach taken in Smieliauskas et al. (2008 ). Here we elaborate further on the significance of the accounting risk concept for fairness of presentation in financial reporting. In the process we show how Alexander's potentially important concept of accounting policy risk can be made operational via the concept of accounting risk.     

Value to the Owner: A Review and Critique

This paper examines the conceptual basis underlying the concept of value to the owner and the contributions to the debate by Solomons (1966) and Baxter (1971, 1975). It is argued that the concept is deficient in a number of respects and it is therefore not surprising that it has been rejected by businessmen. The paper argues that the concept is an unnecessary appendage to the case for reporting some form of replacement cost information. The paper then examines the merits and more general limitations of replacement cost data.     

The Withdrawal of Current Cost Accounting in the United Kingdom: A Study of the Accounting Standards Committee

Evidence from the archives of the U.K. Accounting Standards Committee (ASC) is used to trace the events leading to the withdrawal of the current cost accounting standard, SSAP 16, from 1980 to 1988. Three central issues are addressed. First, the ASC's role as a regulatory body is considered in the light of the failure to obtain compliance with SSAP 16 and to find an acceptable replacement. Second, the decline in support for SSAP 16 is explained in terms of changes in the economic environment. Third, the roles of different interest groups in the process are analysed.     

Achieving High Quality, Comparable Financial Reporting: A Review of Independent Enforcement Bodies in Australia and the United Kingdom

This article provides a review of the activities of two quite different types of national enforcement body, the U.K.'s Financial Reporting Review Panel (FRRP) and the Australian Securities and Investments Commission (ASIC). We present material (some not available elsewhere) about their activities over the period 1998–2004 and show that both types of body can fulfil an enforcement role, albeit subject to political forces. We also assess the relevance of the bodies' past activities for comparable international enforcement following the adoption of International Financial Reporting Standards (IFRS) in 2005. A review of cases reveals that for both bodies approximately half were related to recognition and measurement issues, where interpretation can be crucial. Although there is potential for cross-country differences to arise, they may be mitigated by the participation of both bodies in international enforcement coordination activities. Past activities suggest that the scope of the bodies' activities and the extent of comparability of enforcement decisions are likely to reflect political views held within the government, corporate sector and accounting profession.     

The Value of Housing Characteristics: A Meta Analysis

This paper provides a meta regression analysis of the nine housing characteristics that are appear most often in hedonic pricing models for single-family housing: square footage, lot size, age, bedrooms, bathrooms, garage, swimming pool, fireplace, and air conditioning. Meta regression analysis is useful for comparing the estimated regression coefficients from different studies. The goal in this study is to determine if the estimated coefficients vary by geographical location, time, type of data, and model specification. The results show that the estimated coefficients for some characteristics vary significantly by geographical location. These include square footage, lot size, age, bathrooms, swimming pool, and air conditioning. Controlling for time shows that the effects of these housing characteristics on house price have not changed over time. Controlling for type of data produces differences in coefficients for bathrooms. Controlling for wealth as measured by median household income has no significant impact on the coefficients for the housing characteristics. If the study controlled for square footage, the coefficients for lot size decrease. Controlling for the size of the hedonic model affects the coefficient for square footage.     

蔬菜价格指数保险的有效性研究--金乡大蒜价格指数保险案例

近年来大蒜价格大幅波动,蒜农面临种植风险,政府面临调控难题。在此困局下,山东省金乡县出台的大蒜价格指数保险,具备了突出的产业规模基础、价格信息透明度高、政府补贴以及政保农合作共赢的要素,实现了有效运作,为稳定价格、保证供给、化解价格风险和保障蒜农收益发挥了一定的作用,具有较为广阔的推广前景。     

A journey towards a safe harbour: The rhetorical process of the International Integrated Reporting Council

This paper investigates the rhetoric deployed by the International Integrated Reporting Council (IIRC) to legitimise itself and Integrated Reporting (<IR>) and establish its ideology. We draw on Aristotle's rhetorical appeals – ethos, logos, and pathos – and the rhetorical theory of diffusion to conduct a rhetorical analysis of the IIRC's initial documents. Our findings demonstrate how the IIRC's rhetorical strategies serve to: authorise and moralise the IIRC's actions through ethos and pathos; contrast certain social interests and privilege a capitalist ideology through logos; and establish and maintain the IIRC's authority in a way that reflects the interests of the financial community and investors, again, through ethos. We demonstrate how the IIRC has strategically used rhetoric to gain support and develop its authority by contrasting and resisting competing ideological pressures. We also show how a capitalist ideology emerged from this struggle as the shaping force behind <IR> at the cost of marginalising wider social interests. Examining the IIRC's rhetorical process contributes to understanding the ideological struggle surrounding <IR> and enriches our empirical understanding of the ideological turn of rhetorical strategies. Our study contributes to theory and practice by advancing knowledge on the rhetorical strategies that shape and establish dominant ideologies in accounting practice.     

Extractive Industries Reporting: A Review of Accounting Challenges and the Research Literature

While the extractive industries (EI) are of major significance economically, the reporting of their activities has been the subject of contentious debate posing dilemmas for regulators and standard setters over many decades. In order to ensure alignment with the International Accounting Standards Board (IASB) research project on EI, we first identify some important economic characteristics of EI and associated accounting challenges together with an overview of how current accounting standards deal with these challenges using International Financial Reporting Standards as the focus. Second, we conduct a review of extant research on EI reporting analyzed around the key areas of: (a) international diversity of accounting practices and the challenges facing information users; (b) standard-setting processes and lobbying behaviour that deals with why the IASB (and other standard setters) have not succeeded in developing rigorous standards for extractive activities; (c) the reporting of oil, gas, and mineral reserves, given that large proportions of the assets of EI firms (the reserves) are off-balance sheet; (d) environmental, social, and governance (ESG) reporting dealing with how EI firms have increased their reporting of ESG information in response to regulatory demands and pressure for voluntary disclosures; and (e) other EI related topics such as earnings management, risk disclosures, and voluntary disclosure behaviour. Finally, we present some conclusions together with suggestions relating to key areas for future research on EI reporting.     

Why Consistency of Accounting Standards Matters: A Contribution to the Rules-Versus-Principles Debate in Financial Reporting

A cross-firm consistent application of accounting standards is sought in all major accounting regimes. Since many transactions and events are only vaguely or not explicitly addressed in the standards managers must often use judgment when applying accounting standards to particular transactions or events. This analysis concludes that a consistent application of accounting standards can only be ensured if the accounting standards themselves are internally consistent. By contrast, inconsistent standards—in the absence of clear guidance—permit managers to (more or less arbitrarily) choose between different accounting methods. Moreover, it is found that a consistent application presupposes the existence of specific guidance ('rules') in order to frame management's judgment. It is argued that the reliance on principles only—as requested by many in the accounting literature—fails to ensure a consistent application because it allows management to exert judgment differently in identical cases. The assessment includes arguments and propositions from the international discussion in the accounting literature and also refers to other related fields of research, such as legal theory.     

A Note on the Proprietary and Entity Perspectives in Financial Statements: The Implications for two Current Controversial Issues

Financial statements can portray the financial position and performance of an entity from different perspectives. Two dominant perspectives are the proprietary and entity perspectives. These perspectives also feature in recent discussions by the IASB and the FASB in relation to their conceptual framework project. The adopted perspective will yield different presentations for a number of issues. This paper illustrates the implications for two controversial issues currently under discussion by the IASB and the FASB: accounting for changes in a reporting entity’s own credit risk when liabilities are measured at fair value, and the classification of certain obligations as either equity or liabilities. The paper explains why the adoption and consistent application of one perspective are important for standard setting and financial reporting to ensure the consistent presentation of an entity’s performance and financial position that can be correctly interpreted by users of financial statements against the background of the chosen perspective.     

A Possibilitarian History of Price Change Accounting in the UK: 1971-1985

This paper offers a 'possibilitarian' analysis of the history of price change accounting in the UK, exploring how events might have turned out differently at a number of key nodal points. It argues that a stable current cost accounting regime could have been established significantly before SSAP16 was in fact adopted or, alternately, that the retreat from SSAP16 could have been managed in a way that would have maintained compliance with current cost accounting. Had a substantial period of widespread compliance within a stable regime eventuated, a quite different dynamic might have emerged, including significant user pressure to maintain current cost accounting, thereby underpinning the regime and leading to its long-term survival.     

Sample Size and the Strength of Evidence: A Bayesian Interpretation of Binomial Tests of the Information Content of Qualified Audit Reports

Lindley (1957) demonstrated that, from a Bayesian standpoint, a given level of statistical significance P carries less evidence against the null hypothesis H _o the larger (more powerful) the test. Moreover, if the sample is sufficiently large, a result significant on H _o at 5% or lower may represent strong evidence in support of H _o, not against it. Contrary to Lindley's argument, a great many applied researchers, trained exclusively in orthodox statistics, feel intuitively that to'reject' the null hypothesis H _o at (say) α= 5% is more convincing evidence, ceteris paribus , against H _o the larger the sample. This is a consistent finding of surveys in empirical psychology. Similarly, in accounting, see the principles for interpreting statistical tests suggested by Burgstahler (1987). In econometrics, 'Lindley's paradox' (as it has become known in statistics) has been explained in well known books by Zellner (1971), Leamer (1978) and Judge, Hill, Griffiths, Lutkepohl and Lee (1982), but is not widely appreciated. The objective of this paper is to reiterate the Bayesian argument in an applied context familiar to empirical researchers in accounting.     

Current accounts and oil price fluctuations in oil-exporting countries: The role of financial development

Oil-exporting countries usually experience large current account improvements following a sharp increase in oil prices. In this paper, we investigate this oil price-current account relationship on a sample of 27 oil-exporting economies. Relying upon the estimation of panel smooth transition regression models over the 1980–2010 period, we provide evidence that refines the traditional interpretation of oil price effects on current accounts. While current accounts are positively affected by oil price variations, this effect is nonlinear and depends critically on the degree of financial development of oil-exporting economies. More specifically, oil price variations exert a stronger impact on the current account position for less financially developed countries, this influence diminishing with financial deepness.     

Carbon Price in China: A CO2 Abatement Cost of Wind Power Perspective

As a result of rapid development of industrialization and urbanization, energy (especially fossil fuels) demand growth is increasing. Hence, China is facing the huge pressure of environmental protection and CO₂ emission reduction. The feed-in tariff (FIT) policy that promotes more wind power to substitute for thermal power and a well-functioning carbon price mechanism can significantly affect CO₂ abatement, and both can work in coordination to achieve emission reduction. Using panel model, we prove that FIT policy is more effective than other policies in promoting more wind power. Also the slowdown of economic growth, energy substitution, technological progress, and CO₂ mitigation requirement can stimulate the expansion of wind power. Additionally, based on the calculation of real abatement cost of wind power, we obtain the provincial and national average of carbon prices (239 CNY/ton and 242 CNY/ton). Specifically, 233-251 CNY/ton will be the range for reasonable carbon price in the future. We find that the carbon prices in this article are higher than those of the emissions trading scheme pilots in 2014 and 2015, due to the relatively high proportion of free allowance. Based on the above conclusions, we proposed some policy suggestions.     

The Effects of Oil Price on the Korean Economy: A Global VAR Approach

This article empirically explores the effects of oil price on the Korean economy using a Global VAR model. First, we evaluate the average connectedness of oil price with the Korean domestic variables over the precrisis period. We then investigate the time-varying contribution of oil price to the Korean financial and real sectors during and after the global financial crisis through recursive estimation. It is found that the contribution of oil price becomes very large in the case of real exports, equity prices, and real output, but plays a much less prevalent role in the remaining cases. In the meantime, the time-varying contribution of oil price to the Korean economy has not changed during and after the global financial crisis. Interestingly, we find that the Korean economy is affected mostly by overseas financial conditions in the short-term but it becomes more susceptible to oil price fluctuations in the long run, suggesting that Korea’s reliance on energy imports leaves the economy exposed to volatility in energy prices.     

Developments in accounting regulation: A synthesis and annotated bibliography of evidence and commentary in the 2016 academic literature

In this paper key regulation-related findings and commentaries in the 2016 academic literature are synthesized in annotated form. This paper is one in a series of previously published annotated bibliographies published in this journal. Papers published in academic outlets including The Accounting Review, Journal of Accounting Research, Journal of Accounting and Economics, Contemporary Accounting Research, Accounting Horizons, The Journal of Accounting, Auditing & Finance, Journal of Accounting and Public Policy, Journal of Business, Finance & Accounting, The Journal of Financial Reporting, Auditing A Journal of Practice and Theory, and Research in Accounting Regulation were reviewed for potential inclusion. The 2016 literature featured strong regulation-related threads as follows: financial accounting regulation, analysis of individual pronouncements, SEC regulatory activity and its impact, international financial reporting standards, income tax reporting, and auditing.