Index Of Conservatism Research Articles

A Comparative Study of Corporate Reporting Under Indian GAAP and IFRS Using Gray Index of Conservatism

A Comparative Study of Corporate Reporting Under Indian GAAP and IFRS Using Gray Index of Conservatism

Effects of the implementation of IFRS 16 leases in companies listed in the Colombian Stock Exchange

The purpose of this research is to analyze possible effects associated with the initial application of International Financial Reporting Standards (ifrs) to the financial statements of 68 companies listed on the Colombian Stock Exchange. This study uses a content analysis technique and the Gray index of conservatism to measure the changes produced by the standard for the years 2019 and 2018. The outcomes show that there is a financial effect for 16.18% of the adopting entities and an impact on indicators such as ROE, debt, and leverage, the latter having an average negative impact. In terms of disclosures, lessees provide more information (with 65% compliance) than lessors (with 55%). Even so, the total of the requirements established in ifrs 16 are not achieved, evidencing how the disclosure objectives of the standard are not fully met for the entities listed in the BVC. Nevertheless, not all the criteria established in ifrs 16 are satisfied. This article contributes to the analysis of the microeconomic effects of the ifrs (specifically ifrs 16), on adopting companies, for which few studies have been conducted in Latin America.

Corporate Governance and Leverage Mechanisms on Integrity of Financial Report: Conservatism Index Approach in BUMN

The integrity of financial statements is related to one of the characteristics required by IFRS, namely faithful representation. The financial statements that are presented must contain information that is relevant and reliable so that it has high integrity and can be used by stakeholders in making decisions. In reality, realizing the integrity of financial statements is a difficult thing. There have been several cases that cast doubt on the level of integrity of financial statements. One of them happened to PT Jiwasraya (Persero) recently. This research is aimed to examine the effect of corporate governance mechanisms proxied by (institutional ownership, proportion of independent commissioners, and audit committee meetings) and leverage on the integrity of financial statements using a conservatism index approach in the market book value. Firm size as a control variable. The population is BUMN listed on the Indonesia Stock Exchange from 2016 to 2018 with a sample of 22 companies. The data analysis method used is panel data regression. The results of the common effect model test that only the audit committee meeting variable has a significant influence on the integrity of the financial statements, while the variable institutional ownership, the proportion of independent commissioners and leverage has an effect but is not significant on the integrity of the financial statement

A conservatism index based on structural reliability and model errors

Engineering models are known to be approximate representations of reality. When approximate models are employed in design, it is usually better when they are (slightly) conservative, rather than the contrary. Out of many recent publications addressing and discussing model uncertainty, we could not find any general method for classifying if a model is conservative, or not; and how conservative it is. In this paper, we propose a model conservatism index which is based on structural reliability theory and aims at quantifying the degree of conservatism of a given structural model. Computation of the proposed conservatism index requires the same data employed for computing model error statistics. The method can be employed to evaluate models used in structural design, and corrected models used in structural reliability analysis. The method is applied to several examples, involving different kinds of simplified models, and shown to accurately classify models as conservative/non-conservative. A simple practical case study is also presented, which includes a nonlinear finite element model, to show that the proposed index may be applied in real-world situations.

Impact of IFRS convergence on financial statements with special reference to IT sector

The convergence of Ind-AS with IFRS in phased manner has led Indian companies to make suitable changes in the financial statements. This is done to ensure high quality information, transparency and comparability of financial figures. The present study assesses the impact of Ind-AS on the reported net income and equity of sample companies by taking into account seven major key impact areas. The Gray's index of conservatism is also used on the reported equity to quantify the level of conservatism between previous IGAAP with new Ind-AS. Based on the financial results shown by ten samples IT companies, the study finds that there is steep rise and fall in their net income and equity during Ind-AS transition process. It also finds that both Ind-AS and IGAAP are equally conservative in the reporting of equity.

Impact of IFRS convergence on financial statements with special reference to IT sector

The convergence of Ind-AS with IFRS in phased manner has led Indian companies to make suitable changes in the financial statements. This is done to ensure high quality information, transparency and comparability of financial figures. The present study assesses the impact of Ind-AS on the reported net income and equity of sample companies by taking into account seven major key impact areas. The Gray's index of conservatism is also used on the reported equity to quantify the level of conservatism between previous IGAAP with new Ind-AS. Based on the financial results shown by ten samples IT companies, the study finds that there is steep rise and fall in their net income and equity during Ind-AS transition process. It also finds that both Ind-AS and IGAAP are equally conservative in the reporting of equity.

Impacto total da implementação do IFRS no lucro e patrimônio líquido das empresas brasileiras

This study aims at measuring the total impact of the IFRS ( International Financial Reporting Standards ) implementation on Brazilian firms’ income and equity, by using the inverse of Gray- Weetman’s (1980, 1998) conservatism/comparability index. The study analyzed all non-financial BM&FBovespa listed firms and encompassed both the voluntary anticipation of IFRS adoption in 2008/2009 financial statements and the mandatory adoption in 2010 financial reports. In line with similar studies about countries with Euro-continental accounting influence, it was verified that both net income and equity of firms increased with IFRS adoption, so corroborating the Gray’s hypothesis of comparative conservatism of the Brazilian previous accounting system, with implications for both time series research and firms’ financial analysis. Keywords : Index of Comparability, Index of Conservatism, IFRS, culture, code law x common law, Gray, Brazil.

Os Impactos da Fase Final de Transição para o IFRS no Brasil

Objective – This article aims to measure the impacts of the final phase of mandatory convergence to IFRS on net income, in equity and total assets of Brazilian publics companies. Design/methodology/approach – It is applied to the inverse of Gray (1980)’s Conservatism Index – which allows you to compare the results between different accounting systems – to determine the impacts of the transition between the two phases of the convergence process in Brazil, covered by the law 11,638 and their CPCs. It was compared the 2009 financial results disclosed in BR GAAP and IFRS. Findings – The results show that the final stage of mandatory convergence to IFRS led to significant increases in both net income and the shareholders’ equity of the companies analysed: a mean increase of about 21% in earnings and about 11% in equity, as well as generating an increase, though somewhat less significant, about 7%, the total assets. Practical implications – This research helped to improve understanding of the impacts of convergence of Brazilian accounting to the international standard; as well as to assist business managers and users of financial information, especially those from the capital markets, regulators and academia, about the ultimate effects on the results reported in 2011, after the implementation of the final phase of convergence. Originality/value – The fiscal year of 2009 was a special year for understanding the impact of accounting system in the financial results disclosed in Brazil. The Brazilian publics companies reported their results in BR GAAP and IFRS and this research analysed and compare both reports and improve understanding of the impacts of convergence of Brazilian accounting to the international standard.

Impact of IFRS on Accounting Data – Gray Index of Conservatism Applied to Some European Listed Companies

Abstract The Gray index of conservatism (also called index of comparability) is a good instrument to assess differences between two or more sets of accounting standards. We use this index to measure the impact of the compulsory application of IFRS in Europe, in 2005. The sample contains data from almost 600 companies listed on Euronext markets in 2005 (Amsterdam, Brussels, Lisbon, and Paris). The paper analyzes some accounting figures such as equity, net income, leverage, return on equity and return on assets. The results confirm that former Belgian, French, and Portugal GAAP were more conservative than IFRS. In some cases, for all the countries the IFRS numbers seem to be much less conservative.

Allocating CSR plant functional types: the use of leaf economics and size traits to classify woody and herbaceous vascular plants

Summary Three main directions of adaptive specialization are evident in the world flora, reflecting fundamental trade‐offs between economics (conservative vs. acquisitive investment of resources) and size. The current method of ordinating plants according to these trade‐offs, CSR classification, cannot be applied to the woody species that dominate many terrestrial ecosystems. We aimed to produce a novel CSR classification method applicable to vascular plants in general. Principal components analysis (PCA) of variation in a range of plant traits for 678 angiosperm, gymnosperm and pteridophyte species was used to determine the limits to multivariate space occupied by functionally diverse species. From this calibration, correlations between PCA axes and values of leaf dry matter content (LDMC; as an index of conservatism in life history), specific leaf area (SLA; indicative of acquisitive economics) and leaf area (LA; photosynthetic organ size) were used to produce predictor regressions from which target species could be compared against the multivariate space. A spreadsheet was developed that returned ternary coordinates and tertiary CSR strategies for target subjects based on LA, LDMC and SLA values. The method allowed classification of target species within a triangular space corresponding to Grime's theoretical CSR triangle and was sufficiently precise to distinguish strategies between species within genera and within populations of species. It was also largely in agreement with previous methods of CSR classification for herbaceous species. Rapid CSR classification of woody and herbaceous vascular plants is now possible, potentially allowing primary plant functional types and ecosystem processes to be investigated over landscape scales.

US GAAP x Contabilidade na América Latina: Impacto das diferenças de normas no lucro reportado das empresas com ADRs na NYSE

The goal of this study is to measure how many differences between accounting norms of the United States and of Latin American countries impact the profit reported by firms of these latter countries. The Gray’s “Conservatism Index”, which measures the degree to which a national accounting system – in this work, Argentina, Brazil, Chile and Mexico – reports lower (“conservative”) or higher (“optimist”) profits than the US GAAP, was calculated. The study encompasses all firms of these countries with ADRs in the NYSE in the period 2001-2005, and is based on published data of SEC’s 20F Forms and on the Economatica’s databank. Mean and median measurements indicate that, in general, the accounting practices of Latin American countries result in profit values that are lower than those reported as per US GAAP. However, mean tests and the frequency distribution show that there is no representative homogeneous pattern, except for Chile, with a mean IC significant at 10% in the sub-periods 2001-2002 and 2003-2005, and for Brazil only in the last studied triennium. Key words: International Accounting, US GAAP, Latin American Accounting Norms, Conservatism Index.

Análise dos impactos dos CPCs da primeira fase de transição para o IFRS no Brasil: Um exame dos ajustes aos resultados nas DFPs de 2008

In regard to the Brazilian international accounting convergence to the international standards, according to the Law 11.638/07, this work aims to measure and analyze the impact on the companies’ results of each new norm proceeded from the first transition phase to the IFRS (International Financial Reporting Standard). 175 public companies that published the reconciliation table of the effects of the new Law on the Explanatory Notes of their 2008 Financial Reports were examined. The impact of each norm was measured by the inverse of Weetman et al. (1998)’s “Partial Comparability Index”, according to Gray’s (1980, 1988) “accounting values” and “Index of Conservatism”. The most proeminent impacts were: the exclusion of transaction costs and premiums for the bonds issued, which in average tripled the profits of the companies that reported this adjustment in 2007; and the impairment of assets , wich led to a 260% average decrease in the profits of the companiesreporting it in 2008.

A cross‐country analysis of IFRS reconciliation statements

PurposeOne of the most fundamental changes to affect financial reporting in recent years has been the introduction of International Financial Reporting Standards (IFRS). This paper aims to examine the nature of the Income Statement and Net Equity IFRS adjustments for a sample of companies from the UK, Ireland and Italy following the introduction of IFRS.Design/methodology/approachA sample of IFRS Reconciliation Statements are examined to identify the most significant IFRS adjustments. Using an index of conservatism, these amounts are further analysed to assess their impact on the accounting numbers reported under previous national GAAP.FindingsFor all three countries, the IFRS profit was greater than that reported under previous national GAAP. IFRS also had a significant effect on net worth; while UK and Italian companies experienced an increase in equity upon the adoption of IFRS, the Irish firms in the sample recorded a decrease. The analysis also indicated that the impact of IFRS on profit and net worth was primarily attributable to a few core standards including IFRS 2, IFRS 3, IFRS 5, IAS 10, IAS 12, IAS 16, IAS 17, IAS 19, IAS 38 and IAS 39.Practical implicationsA multi‐country perspective for future IFRS research is required as the impact of individual IFRS varies in importance from one country to another.Originality/valueBy analysing the IFRS that have had a significant impact on accounting numbers prepared under previous national GAAP, opportunities for future research are identified.

Swept Sine Vibration Test Conservatism

The excessive overtest associated with the swept sine vibration test method was measured quantitatively using the index of conservatism and the associated overtest factor for a dynamic mass model of a typical spacecraft component. The response to a fixed amplitude sine sweep test was compared with the flight transient vibration environment for sweep rates of 2, 4, and 6 octaves/min and 300 Hz/min. A response-limited test was also conducted at 6 octaves/min. The conservatism was measured using several characterizations; namely: number of peaks exceeding, ranked peaks, shock response spectrum, shock intensity, three-dimensional shock response spectrum, and ranked peaks. Overtest factors exceeding an order of magnitude were measured for the test response with the number of peaks exceeding and the three-dimensional shock response spectrum.

Reconciling national with international accounting standards

The IASC has suggested a number of ways by which listed companies could present financial statements that conform with International Accounting Standards (IAS). This paper considers the feasibility and usefulness of those options. In particular, the reconciliation of domestic financial statements to IAS, and the degree of harmonization likely to be achieved as a result, is examined by means of an empirical study of Finnish corporate reports. The reconciliations and other IAS information provided by the unique case of seventeen Finnish companies are examined in detail over a three-year period. Gray's index of conservatism (Gray, 1980) is used to examine the impact on profit and shareholders' equity of the various adjustments in the reconciliations.It is concluded that the insight provided by the IAS information is limited due to: the reduced quality of information provided regarding the Finnish (FAS) and IAS accounting policies followed; the combination of adjustments, some of which are material, included ...

Questionnaires for Belief and Morality

For use in Lutheran and other Protestant samples this author has evaluated Batson & Ventis' Doctrinal Orthodoxy Scale and Woodrum's Moral Conservatism Index, and developed and evaluated Kaldestad's Liberal Belief Scale, and Kaldestad's Humanistic Morality Scale. The content validity, the discriminant validity, the internal consistency, the factor structure and the inter-correlations of the scales have been investigated in three Norwegian samples. Only subjects with some positive attitude to Christianity were included in the samples. These two scales for assessment of doctrinal belief and these two scales for assessment of moral attitudes are found to be satisfactory and fruitful for use in the empirical research in the psychology of religion in Lutheran and other Protestant samples in Norway, and they should also be considered for use internationally.

Q uEstionnaires for Belief and Morality

AbstractFor use in Lutheran and other Protestant samples this author has evaluated Batson & Ventis' Doctrinal Orthodoxy Scale and Woodrum's Moral Conservatism Index, and developed and evaluated Kaldestad's Liberal Belief Scale, and Kaldestad's Humanistic Merality Scale. The content validity, the discriminant validity, the internal consistency, the factor structure and the inter-correlations of the scales have been investigated in three Norwegian samples. Only subjects with some positive attitude to Christianity were included in the samples. These two scales for assessment of doctrinal belief and these two scales for assessment of moral attitudes are found to be satisfactory and fruitful for use in the empirical research in the psychology of religion in Lutheran and other Protestant samples in Norway, and they should also be considered for use internationally.

Religious orientation, personality, mental health, and religious activity

A sample of 471 subjects, 303 women and 168 men, with 392 nonpatents and 79 nonpsychotic psychiatric inpatients, was studied. Only subjects who had a positive attitude to Christianity and who prayed to God were included in the sample. They answered a questionnaire with 358 items about sociodemographic information, their gender, age and education, religious activity, religious orientation (Intrinsic, Extrinsic, and Quest Scales), belief (Doctrinal Orthodoxy and Liberal Belief Scales), and morality (Moral Conservatism Index and Humanistic Morality Scale), the psychiatric Symptom Check-list-90 (SCL-90), and Basic Character Inventory (BCI) Oral, Obsessive, and Hysterical Scales. Cronbach's alphas were high or satisfactory for most of the scales. In hierarchic multiple regression analysis with the SCL-90 Global Symptom Index (SCL-90 GSI) as dependent variable, education, BCI Oral, Obsessive, and Hysterical Scales, Extrinsic and Quest Scales, and Moral Conservatism Index together explained 38.8% of the variance of the SCL-90 Global Symptom Index. Education and BCI Hysterical scores were negatively related to and the other independent variables were positively related to SCL-90 Global Symptom Index score. In hierarchic multiple regression analysis with religious activity as the dependent variable, age, Intrinsic orientation, and Liberal Belief together explained 40.2% of the variance. Liberal Belief was negatively related to, and age and Intrinsic orientation were positively related to the respondents' religious activity.

CONSERVATIVE VOTING AND PERSONALITY

The major purpose of the present investigation was to reconsider some of the research on the personality correlates of liberalism-conservatism (b-C) by employing a criterion-index measure of L-C, the Conservatism Index (CI). The CI was derived from the subjects' preferences for political candidates with liberal to conservative leanings. Six hundred and four questionnaires were completed in four surveys. Questionnaires for each survey consisted of one or more inventories followed by a straw ballot representing the CI. The ballot included all announced candidates in the 1972 United States presidential primary campaign, plus Edward Kennedy. The CI correlated significantly with two conventional measures of L-C, and showed a similar pattern of correlates. Conservatism, especially as measured by the CI, also correlated significantly with low self concept, conformism, materialism, provincialism, intolerance for ambiguity, traditional family ideology, and authoritarianism. The conservative was not found to be less trustful of people, nor less socially responsible, as reported by previous research. The possibility of the CI serving as a substitute measure of b-C with advantages of brevity, currency, uniformity, and unobtrusiveness, was discussed.