Accounting In Countries Research Articles

Comparison of Domestic and Foreign Accounting Regulatory Systems from the Perspective of China

The purpose of this article is to compare the accounting supervision system of China and other countries, to reveal their characteristics, advantages and shortcomings, and to discuss how to use the international experience to improve China's accounting supervision system. This paper summarizes the basic framework of accounting supervision system at home and abroad. Through comparative analysis, it points out the deficiencies of our country's accounting supervision system and the advantages of foreign systems. In addition, the paper also discusses the common challenges facing the accounting supervision system at home and abroad. Based on the results of comparative analysis, this article puts forward countermeasures and suggestions to improve our accounting supervision system. Through these measures, the aim is to build a more efficient, transparent and adaptable accounting supervision system.

The effect of environmental factors on accounting systems: a comparison between South Korea and Australia

As globalization of the business environment increases, cross-national accounting differences have been the main focus of international accounting research. Specifically, the relationship between accounting and environmental factors has been the subject of many debates over the last decade. In comparative studies of accounting history, culture and practices, researchers have become increasingly aware of the importance of environmental factors in shaping a country's accounting system. This study explores whether environmental factors influence accounting systems by comparing South Korea and Australia. Although both South Korea and Australia were colonies, they had different cultural backgrounds and different legal/judicial systems. Australia's accounting standards-setting process is based on business practices and is relatively open to public opinion, while Korea's accounting standards tend to be enforced by the government and harmonized to tax law. Many prior studies suggest that environmental factors can be a valuable tool in explaining and understanding differences in the way in which accounting operates in countries with different environments. Based on environmental factors, this study found that cultural factors and institutional structures have a significant influence on the development of accounting systems and cause their differences. This study is expected to provide a systematic framework for differences in the development of accounting systems by analyzing the effects of environmental factors on accounting systems.

PRİNCİPLES OF ACCOUNTİNG ORGANİZATİON AND REPORT FORMATİON İN SMALL AND MEDİUM-SİZED BUSİNESS ENTİTİES İN MODERN CONDİTİONS

According to international accounting theory, intangible assets represent various rights to intellectual property objects and the use of natural resources. In accounting terminology, the phenomenon of intangible assets is characterized as long-term assets that do not have a physical form, but have value and bring profit to small and medium-sized enterprises. The concept of intangible assets such as “business image of the enterprise”, “company value” or “goodwill”, which shows the difference between the book value of the property of small and medium enterprises purchased and its market (sale) price, is considered completely new for practicing accountants. The existence of certain differences of opinion on the procedures for assessing the business image of small and medium-sized enterprises and gradually erasing its value in both national and international accounting practice proves once again that the above-mentioned terms have a complex nature. However, in modern times, the study of this phenomenon, the correct understanding of its essence and its application in the country’s accounting practice, the development of a single terminology, and the adaptation of financial statements to international standards are considered relevant. As a rule, intangible assets are reflected in accounting with actual costs, and in statistical reports with residual value. During the analysis of the financial situation of small and medium-sized enterprises, that item of the asset of the accounting balance is defined as a “risky” asset due to its intangible nature and the relativity of the concept of “useful life” (depreciation is calculated for intangible assets taking into account their useful life) is done. In contrast to the phenomenon of intangible assets, the nature of fixed assets in the accounting literature is interpreted as long-term assets that ensure the profitability of production activities of small and medium-sized enterprises. It is necessary to emphasize one fact that in both national and international practice, the accounting of fixed assets is carried out according to a similar scheme. This type of assets is reflected in accounting and reporting at its initial cost (taking into account the costs of acquisition, construction and commissioning of fixed assets), and at the time of revaluation at its replacement cost. In the process of systematic analysis of financial statements, especially the accounting balance, paying special attention to the item “Fixed Assets” can be explained by the fact that, according to our conclusions, they have the ability to generate profit in the conditions of their efficient use. According to the country's accounting standards, “long-term financial investments” are characterized as investments directed to income-generating assets, authorized capital, government securities and debts issued by other subjects of small and medium-sized enterprises established on the territory of the republic and outside of it. In international practice, the essence of the concept of “long-term financial investment” is added to the above, as well as their long-term goals, which are characterized by providing income and control over other small and medium-sized enterprises. It is considered more appropriate to start the comprehensive analysis of that indicator of the financial report, both in the country and in the Western accounting practice, from the review of its evaluation procedure. In accordance with national accounting standards, long-term financial investments are valued at the actual cost of their acquisition, which, in turn, leads to an increase in their price. In contrast, in foreign practice, in relation to long-term financial investments, the valuation rule is applied with the least of two quantities, such as purchase price and market value. In the article, it was discussed about the principles of accounting organization and report formation in small and medium business subjects in modern conditions. It was noted that the results of the production and financial activities of small and medium economic entities have a direct impact on the financial situation of small and medium enterprises. It was pointed out that the formation of financial results and profits of small and medium-sized economic entities is considered an important characteristic of financial activity. In the research work, information on the development of a new aspect of the methodology of accounting, analysis and evaluation of accounting and financial results of small and medium-sized enterprises and the development of a package of scientifically based proposals of theoretical and practical importance on its improvement from the point of view of international experience have been reflected. It was concluded that in modern times, the financial report with new content acts as a means of interaction between business entities and the market. According to international accounting theory, intangible assets are reflected in intellectual property objects and various rights to use natural resources. The article evaluates the place and role of the financial report, which is considered the main source of information in the management system of small and medium-sized enterprises. Keywords: business entity, small and medium entrepreneurship, financial reporting, international accounting, economic entity.

The lag of my country's accounting annual report and its solution

With social progress and rapid economic development, more and more companies use accounting statements for analysis to reflect the company's asset accumulation, cost structure, operating results and capital use in the past period of time to dig out problems and analyze them, solve problems, and continuously improve the internal management level of enterprises. However, in actual work, there are many problems in corporate accounting reports, such as the timeliness and authenticity of report data. This paper believes that there is a lag problem in the annual accounting statements, which will lead to managers unable to obtain the required effective accounting information from the accounting information system in time. The traditional accounting information system provides lagging information which not only affects the quality of the information but also reduces the It's relevant and is gradually losing its value.

Perkembangan Akuntansi Thailand dan Analisis Shenanigans pada Perusahaan Group Lease

Thailand is ASEAN country that managed to escape colonialism. However, like Anglo American countries, the country's accounting system emphasizes the transparency and information needs of investors. After the 1997 financial crisis, Thailand reformed to improve government cooperation and investment competition. Thailand's economy is recovering rapidly and is showing good growth. Due to economic growth, the poverty rate also fell. There are types of Thai state accounting standards namely International Financial reporting standards (IFRS) and Thai accounting standards (IFAC). The current development of accounting has to do with manipulation in the company's financial statements. A financial shenanigan is a false statement about the status and financial performance in a financial statement. Financial fraud can be a minor violation, such as through the free interpretation of accounting principles where it has 7 categories of shenanigans. In this discussion, the author presented an analysis of accounting progress in Indonesia with Thailand and analyzed 7 shenanigans to manipulate financial statements in Thai state companies. In this article take the company that makes the selected object that is the Group Lease company. This Group Lease is one of the companies originating from Thailand which is engaged in financing services. This method of research shows that group lease companies manipulate shenanigans 2.

Conceptual comparison of Turkish and Russian accounting systems

Purpose- International Accounting Reporting Standards (IARS) brought a global perspective to accounting reporing. With those standards financial reporting have turned into a common jargon in the world and have become easily understandable by relevant persons around the world. Even though standards provided a common reporting possibility, the application of basic concepts of accounting differs according to countries. The formation of each country's accounting system has emerged as a result of the historical developments of the countries. Revealing these differences provides ease in understanding the accounting systems of countries. In this study basic concepts of Turkish and Russian accounting have been compared. Basic concepts of Turkish and Russian accounting were examined and similarities and differences were revealed. Methodology - As a method, the related sources were examined by scanning the literature. Obtained data were compared. The comparison results are evaluated in the conclusion part. Findings- As a result of our evaluation, it was revealed that although there are more similarities in the accounting perspective of the two countries, there are different concepts, and there are also similar concepts although they are expressed differently. Conclusion- As a result, there are similarities in basic concepts such as Pecuniary and periodicity. Although expressed differently between the two countries, it has been observed that there are similar concepts. Finally, it was concluded that there are concepts that do not show similarity.

Some Aspects of IAS Harmonization Process

The International Accounting Standards Committee (IASC) was established in 1973 to harmonize international accounting standards. The IASC's standards (IASs) are now accepted in some form by numerous stock exchanges, including those in London, Germany, Hong Kong, Singapore, and Switzerland. The US SEC already accepts use of three IASs and has indicated that it may accept all IASs in late 1998. Though accepted by a growing number of stock exchanges, this may not represent individual country's accounting standards. This article investigates the recent progress of international accounting harmonization by examining whether countries' official standards are in compliance with the IASs in the 1990s. Overall, harmonization via IASs appears to increase from 1991 to 1993. However, when the results of the "Comparability of Financial Statements" program became effective in 1995, at least initially, the level of harmonization decreased. This drop is not unexpected given that the 1995 changes eliminated previously approved and practiced accounting methods. This paper provides an introduction to the topic "The Process of International Harmonization of Accounting Standards". Keywords: Harmonization, International Accounting Standard Board (IASB), International Accounting Standards (IAS), Accounting Standards etc. DOI: 10.7176/RJFA/11-17-04 Publication date: October 31 st 2020

Using institutional multiplicity to address corruption as a collective action problem: Lessons from the Brazilian case

Abstract The academic literature has traditionally framed corruption as a principal-agent problem, but recently scholars have suggested that the phenomenon may be more accurately described as a collective action problem, especially in cases of systemic and widespread corruption. While framing corruption as a collective action problem has proven useful from a descriptive point of view, it has not offered many helpful suggestions for policy reforms. This paper tries to address this gap by suggesting that “institutional multiplicity” (a concept used other areas of research but not in the corruption literature) could be a feasible reform strategy to deal with corruption as a collective action problem. The paper distinguishes between proactive and reactive institutional multiplicity, and argues that the latter's creation of separate institutions could potentially reduce the costs for those who are inclined to engage in principled behavior to deviate from the standard corrupt behavior that prevails in society. This allows for incremental, but potentially very transformative change. Also, institutional multiplicity allows for the creation of new institutions without dismantling the existing ones. It is therefore less likely to face political resistance from interests who benefit from the status quo. We provide some anecdotal evidence to support this claim by analyzing Brazil's recent surge of anti-corruption efforts which could be, at least in part, attributable to the existence of institutional multiplicity in the country's accountability system. In addition to offering a hypothesis to interpret recent experiences with combating corruption in Brazil, the paper also has broader implications: if the hypothesis proves correct, institutional multiplicity could help reformers in other countries where corruption is systemic.

Measuring Country Differences in Enforcement of Accounting Standards: An Audit and Enforcement Proxy

AbstractIn this paper we present an index designed to capture differences between countries in relation to the institutional setting for financial reporting, specifically the auditing of financial statements and the enforcement of compliance with each country's accounting standards. The use of a common set of standards such as International Financial Reporting Standards (IFRS) aims, in broad terms, to promote the comparability and transparency of financial statements and to improve the quality of financial reporting. However, the effectiveness of IFRS adoption may be hampered by differences, across countries, in the institutional setting in which financial reporting occurs. Studies of outcomes from adopting IFRS use a range of legal system proxies to capture these country differences, but the proxies are deficient in that they seldom focus explicitly on factors that affect how compliance with accounting standards is promoted through external audit and the activities of independent enforcement bodies. To address this deficiency, we calculate measures of the quality of the public company auditors’ working environment (AUDIT) and the degree of accounting enforcement activity (ENFORCE) by independent enforcement bodies. We do this for 51 countries for each of the years 2002, 2005 and 2008, using publicly available data provided by the International Federation of Accountants (IFAC), the World Bank and the national securities regulators. Preliminary tests suggest our indices have additional explanatory power (over more general legal proxies) for country‐level measures of economic and market activity, financial transparency and earnings management. We expect they will prove useful to researchers and other interested parties who require country‐level measures that focus on the degree of enforcement of financial reporting practices.

STANDAR AKUNTANSI INTERNASIONAL: HARMONISASI VERSUS KONVERGENSI

<p><em>Globalization brings changes to the capital markets and business operations across borders. State sector in a multinational company is required to make financial reports that can be received throughout the world, but in every country have their own accounting standards are of course different between a country's accounting standards with other countries. For it requires the international accounting standards, so that financial disclosures made by a company in a country multinational globally acceptable. Application of international accounting standards is very difficult because of differences in both legal, environmental, social and economic conditions between one country to another and to bridge it then requires the process of harmonization and convergence. There is a difference between the process of harmonization and convergence of international accounting standards. Only at the stage of harmonization, alignment of accounting standards issued by standard-setting bodies in each country with International Accounting Standard (IAS), while convergence is the next stage of the harmonization of accounting standards which are expected in the context of international standards aimed at eventually there would be only one standard. The process of harmonization and convergence of international accounting standards is not easy to just run, many obstacles and criticisms of the process of harmonization and convergence in which the harmonization and convergence is only suitable for large companies are multinational companies rather than small and medium enterprises, although there are also advantages that can be obtained from the harmonization and convergence of international accounting standards, among others comparable financial reporting, increase transparency, reduce costs and increase global investment capital. </em></p> <p><em> </em></p> <p><strong><em></em></strong><em></em></p>

Hedge Accounting and Impact on the Financial Market

As published by the Vietnamese Chamber of Commerce and Industry (VCCI) and the World Bank (WB), in 2011 Vietnam had 622,977 entities in which 79,014 entities were bankrupted. This problem is concerned with financial risks or not and why?. Thus, the article reviews the use of derivative financial instruments for financial hedge and their effects to minimize the financial risks of the entities and bankrupt entities as well as their impacts on financial markets through decisions of investors and managers because their decisions are based on analysis results of financial statements. A country's accounting policy has not applied the derivative financial instruments for financial hedging, leading to affect that country’s economy or not? Especially, the financial markets of Vietnam or countries with similar economies have not also applied the hedge accounting to their hedge activities. The article uses the accounting theories of international accounting standards and Generally Accepted Accounting Principles in the United States and applies the methods of data analysis in the financial statements to show the results of hedge accounting that are concerned with bankruptcy, financial risks and economy decline.

Capital Allocation and Timely Accounting Recognition of Economic Losses

Abstract: This paper explores direct relations between corporate investment behavior and the timeliness of accounting recognition of economic losses (TLR) reflected in a country's accounting regime. We explicitly investigate the extent to which TLR influences investment decisions of firm managers. Given the asymmetric emphasis on negative outcomes inherent in TLR, we hypothesize that TLR will most strongly influence investment behavior when managers face deteriorating investment environments. We conjecture that TLR will have an asymmetric impact on investment behavior whereby TLR impacts firms’ investment decisions in the face of declining investment opportunities, but not in the face of increasing in investment opportunities. Using firm‐level investment decisions spanning twenty five countries, we find that investment responses to declining opportunities increases with TLR, while we find no evidence that TLR influences the sensitivity of investment to increasing investment opportunities. Our results are robust to alternative estimates of TLR, alternative estimates of investment responses to changing investment opportunities, and to controls for important country‐level, industry‐level, and firm‐level variables that may impact firms’ investment decisions.

Globalization of Professional Accounting: The Big 8 Entering New Zealand

The Big 4 accounting firms (previously Big 8, Big 6 and Big 5) have spread around the world and dominate the market for auditing services in most countries. Until relatively recently, this was not the case, and each country's accounting profession was led by local firms. The spread of these partnerships throughout the world is a phenomenon worthy of research, and we examine the spread of these firms to New Zealand. Previous literature on this and related issues is consistent in suggesting that such changes are driven by globalization of business generally; technology; and deregulation. Our evidence finds some support for globalization, and strong support for technology as a factor, but little support for deregulation. We also find that affiliation came at some cost to Big 8 partners in loss of autonomy, but was unavoidable if an audit firm was to remain significant.

Individual investors’ attitudes towards listing requirements for foreign entities on U.S. stock exchanges and the promulgation of international accounting standards

The Securities and Exchange Commission (SEC) currently requires foreign issuers of securities listed on U.S. securities exchanges to either employ U.S. generally accepted accounting principles (U.S. GAAP) or include a statement of reconciliation to U.S. GAAP if they use their home country's accounting standards. With some exceptions, they are also required to comply with the provisions of the Sarbanes-Oxley Act of 2002 (SOA). John Thain, CEO of the New York Stock Exchange, states that these requirements hamper U.S. investments, economic growth, and employment opportunities. The Chairman of the International Accounting Standards Board (IASB), Sir David Tweedie, echoed Thain's comments. An important stakeholder who is affected significantly by the U.S. listing requirements is the U.S. individual investor. Accordingly this study examines their attitudes involving the extant rules for foreign listings on U.S. exchanges and other aspects of the issue. The study also examines their perceptions regarding accounting standard promulgation authority and the use of a global set of accounting principles. The results indicate that although U.S. investors are very much in favor of the listing of foreign companies on U.S. exchanges, they also endorse the current rule requiring either employment of U.S. GAAP or reconciliation to it as well as mandatory adherence to the SOA. In the area of accounting standards, although a large majority believed that the U.S. should control the accounting standards for U.S. listings, a smaller majority also believed that there should be a universal set of accounting principles for all stock exchanges.

Evidências da globalização na educação contábil: estudo das grades curriculares dos cursos de graduação em universidades brasileiras e portuguesas

A formação dos contadores tem sido uma preocupação constante dos organismos internacionais de contabilidade como o IFAC - International Federation of Accountants e o IASB - International Accounting Standards Board, bem como da ONU - Organização das Nações Unidas, por meio de setores como o ISAR - Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting/ UNCTAD - United Nations Conference on Trade and Development. Por sua vez, as instituições de ensino contábil dos diversos países são estimuladas a adequar-se às mudanças provocadas pela globalização, Assim, entende-se que quanto maior a similaridade entre o currículo adotado por um certo país e o currículo internacional, maior será a evidência de harmonização na educação contábil desse país, Para efeito de comparação, os autores consideram que a proposta feita pelo ISAR/UNCTAD/ONU de um Curriculum Mundial (CM) é a que contém a estrutura conceituai ideal ou os blocos de conhecimentos a serem ministrados pelas universidades em suas grades curriculares de Contabilidade. O estudo compara o resultado da análise de 25 Universidades Brasileiras e 25 Portuguesas em relação ao CM, Analisando-se o posicionamento em relação ao CM, percebe-se que o Bloco de Conhecimentos Administrativos e Organizacionais - tanto do Brasil como de Portugal - é o que apresentou maior aproximação. O que mais se distanciou foi o bloco de conhecimentos gerais. Outra característica notada nos resultados é a quantidade ainda baixa de disciplinas de Tecnologia de Informação na maioria das grades curriculares.

Shareholder‐ Versus Stakeholder‐Focused Japanese Companies: Firm Characteristics and Accounting Valuation*

AbstractRecent research has found that the value‐relevance of accounting variables depends not only on whether a country's accounting rules are code‐law oriented or common‐law oriented, but also on the reporting incentives created by the legal and business environment in which a firm operates. Therefore, for example, the earnings of firms in some countries with common‐law oriented rules but with code‐law incentives have more code‐law‐type characteristics. We further this research by examining whether this is true for firms facing the same accounting regime and institutional environment but different stakeholder‐related incentives. We find significant stakeholder‐related incentives across 23 Japanese firms listed in the United States and 23 Japanese firms not listed in the United States that are matched by industry and size. Although these firms face the same institutional environment and the same accounting regime, consistent with the differences in stakeholder‐related incentives, the earnings and book values of the firms listed in the more shareholder‐oriented U.S. markets have significantly more explanatory power for market value than those for firms not cross‐listed in the United States. These findings are unaffected by whether the reports are based on consolidated or parent‐only accounting or whether they are based on U.S. or Japanese GAAP, emphasizing the potential influence of reporting incentives at all levels on the effect of standardization, conversion, or harmonization of accounting methods globally.

An American View on CLERP

Problems of interpretation and acceptability do not appear to have deflected the Australian government from its determination to impose international accounting standards as the basis of the country's accounting practice. This analysis finds no persuasive explanation for the government's approach.