From totalitarianism to capitalism – the case of IFRS adoption in Vietnam

We investigate the strategic process of contextualisation of International Financial Reporting Standards (IFRS) in an economy transitioning from totalitarianism to capitalism – Vietnam – paying attention to tensions between actors involved in the process. This study employs the framework suggested by Puxty et al. to analyse the behaviour of actors of the State, Market, and Profession. We find that Market's needs trigger the IFRS contextualisation, which is institutionalised by the state. IFRS‐oriented rules undergo ‘reality tests’ and are tailored to fit the local context. Despite active interactions between the actors, the dominant role of the State results in some tensions.     

The impact of mandatory IFRS adoption on foreign mutual fund ownership: The role of comparability

Proponents of IFRS argue that mandating a uniform set of accounting standards improves financial statement comparability that in turn attracts greater cross-border investment. We test this assertion by examining changes in foreign mutual fund investment in firms following mandatory IFRS adoption in the European Union in 2005. We measure improved comparability as a credible increase in uniformity, defined as a large increase in the number of industry peers using the same accounting standards in countries with credible implementation. Consistent with this assertion, we find that foreign mutual fund ownership increases when mandatory IFRS adoption leads to improved comparability.     

The pattern of prediction 1763–1973 Methods of prediction 1918–1939

The experience of the First World War and the social and technological changes that followed in consequence demonstrated an entirely new range of possibilities for governments, scientists and industrialists. It was in the 20's and 30's that government action and the general economic debate about means and ends supplemented the predictive fiction in highlighting the need for well informed planning based on accurate analysis and careful forecasting.     

Towards a critical understanding of accounting: The case of cost accounting in the U.K., 1914–1925

Management accounting is commonly understood to be a set of techniques for collecting and processing useful facts about organisational life. The information obtained is viewed as an objective form of knowledge untaited by social values and ideology; the practitioners as technically skilled professionals whose political and social allegiances have no bearing on their practices. In this paper these views are brought into question through the “genealogical” method of looking in detail at one period in the history of accounting, examining the interplay between knowledge, techniques, institutions and occupational claims. In the period and place chosen — Britain during the First World War and the immediately following years, society was in a state of turmoil and this provides an ideal context for considering one part of the genealogy of management accounting.     

Succeeding in managerial accounting. Part 2: a structural equations analysis

Does the type of knowledge, and levels of ability and experience needed, depend on rank in managerial accounting? Are the knowledge, ability, and experience needed for managerial accounting success, consistent with the Libby & Luft (L&L) model (1993) of the determinants of judgment performance in accounting? We explore these questions using structural equation models of the performance evaluations of 2941 practicing managerial accountants. Results indicate that technical managerial accounting knowledge, ability, and experience predict job performance success for junior managerial accountants; industry knowledge, tacit managerial knowledge (TMK) and experience predict success for seniors; and, industry and TMK predict success for managers. The results suggest significant (though not identical) commonality in the predictors of success in managerial accounting and the determinants of judgment performance identified in the L& L model.     

Determining the insolvent estate – A comparative analysis

This article is part of a comparative research project in which the provisions of several different jurisdictions concerning the determination of the insolvent estate are examined. In particular, this part of the project examines those provisions which enable the administrator of the insolvent estate to seek to increase the size of the estate by (a) setting aside pre‐insolvency transactions and (b) seeking compensation from those who allegedly were negligent or fraudulent in the management of the debtor prior to the onset of the latter's insolvency. The overall purpose of the research study is to establish a basis for the possible substantive harmonization of the different provisions in those countries, which constitute the European Union. Copyright © 2011 John Wiley & Sons, Ltd.     

The impact of total quality management adoption on small and medium enterprises’ financial performance

This paper examines whether the management accounting practice of total quality management (TQM) positively impacts on the financial performance of small and medium enterprises (SMEs). While research has investigated the impact of TQM on larger firms, to date, there has been no comprehensive analysis of the impact of TQM on SMEs’ financial performance. Our analysis of Australian Bureau of Statistics financial data for 3776 SMEs found no evidence that TQM improved financial performance after controlling for size and risk. Our results contribute to literature by highlighting that management accounting practices developed for larger companies may not necessarily be transposable to SMEs.     

Corporate performance, managerial ownership and endogeneity: A simultaneous equations analysis for the Athens stock exchange

This paper investigates the relationship between managerial ownership and firm performance by considering the endogenous nature of the ownership variables. We conducted our analysis by applying a simultaneous equations framework. We empirically controlled the direction and significance of this relationship, using a panel comprised of 146 firms quoted on the Athens Stock Exchange between 2000 and 2004. The main findings of our analysis indicated that when managerial ownership is treated as endogenous, there is a positive impact on corporate value. Given the particularly high degree of managerial ownership that is observed in the firms listed in the Athens Stock Exchange, we argue that the estimated positive relationship can be mainly explained by the existing high levels of managerial ownership.     

The great war that never was — 1871–1914

I.F. Clarke concludes his two-part study of the forecasts of future warfare in the half-century before the outbreak of World War I. He argues that the experts failed to foresee trench warfare and the long stalemate on the Western Front, precisely because they were experts, and that the devastating effects of the new military technologies ended the old-style belief in the uninterrupted forward march of mankind.     

The role of foreign currency debt in financial crises: 1880–1913 versus 1972–1997

We show that exposure to foreign currency debt does not necessarily increase the risk of having a financial crisis. Some countries do not suffer from financial fragility despite original sin. Before 1913 British offshoots and Scandinavia afflicted with it avoided financial meltdowns. Today many advanced countries have original sin, but few have had crises. In both periods, aggregate balance sheet mismatches are associated with a greater likelihood of a crisis. The evidence suggests that foreign currency debt is dangerous when mis-managed. This is part of the difference between developed countries and emerging markets both of which borrow in foreign currency.     

Bitcoin – Its Economics for Financial Reporting

Despite its increasing popularity, no official guidance on the financial reporting of Bitcoin transactions has been provided by standard setters, although tax accounting guidance began to appear in 2014. Designed as a decentralised currency, Bitcoin is not intended to become a reporting currency and will instead complement fiat money. We argue that in the case of Bitcoin the accounting principle of faithful representation requires interpretation of the economic substance for financial reporting that varies with reporting entity: trading firms recognise Bitcoin like a foreign currency and measure the revenue, or expense, at the equivalent amount of the reporting currency and digital currency exchanges recognise Bitcoin as goods in line with tax accounting treatment. An Economica paper by Radford (1945), which describes the use of cigarettes as commodity money in a prisoner of war camp alludes to this economic basis. This paper applies accounting principles to a practical issue and contributes to the process by which standard setters may issue an interpretation.