International Accounting Regulation Research Articles

A longitudinal analysis of financial instruments disclosure in an emerging capital market: the case of Qatar

This study explores the extent of financial instruments (FI) information that is supplied by Qatari listed companies under International Accounting Standards (IAS) 30, IAS 32 and International Financial Reporting Standards (IFRS) 7 for the period between 2005 and 2012. The study adopts the unweighted disclosure approach to measure the extent of FI-related information provided by a sample of 282 Qatari firm observations between 2005 and 2012. The results of the study indicate that the implementation of IFRS 7 statistically improved FI-related information. Specifically, the quantity of FI disclosure rose from 24% in 2005 (under IAS 30/32) to greater than 28% in 2007 (under IFRS 7) and this rise was sustained, reaching 47% in 2012. Also, the results of the study reveal that the level of FI disclosure varies among companies by year, category of information and industry type. The current paper provides a great insight into the accounting profession and is of interest to both national (Qatari) and international accounting regulators regarding the implications of applying IFRS 7 in an emerging capital market.

A longitudinal analysis of financial instruments disclosure in an emerging capital market: the case of Qatar

This study explores the extent of financial instruments (FI) information that is supplied by Qatari listed companies under International Accounting Standards (IAS) 30, IAS 32 and International Financial Reporting Standards (IFRS) 7 for the period between 2005 and 2012. The study adopts the unweighted disclosure approach to measure the extent of FI-related information provided by a sample of 282 Qatari firm observations between 2005 and 2012. The results of the study indicate that the implementation of IFRS 7 statistically improved FI-related information. Specifically, the quantity of FI disclosure rose from 24% in 2005 (under IAS 30/32) to greater than 28% in 2007 (under IFRS 7) and this rise was sustained, reaching 47% in 2012. Also, the results of the study reveal that the level of FI disclosure varies among companies by year, category of information and industry type. The current paper provides a great insight into the accounting profession and is of interest to both national (Qatari) and international accounting regulators regarding the implications of applying IFRS 7 in an emerging capital market.

La repercusión económico-contable de la baja del socio en la sociedad cooperativa: la incidencia de la NIC 32

En aras al principio de adhesión voluntaria y abierta, las cooperativas presentan singularidades en torno a la figura del capital social, que las diferencia de otras entidades mercantiles. Dichas peculiaridades comportan un tratamiento contable especial del capital cooperativo. Las normas internacionales de contabilidad prevén la calificación contable del capital cooperativo como pasivo financiero o como fondo propio, según la regulación legal y/o estatutaria del derecho de baja del socio. Este planteamiento se ha traspuesto al derecho contable de la Unión Europea y de España, afectando a un buen número de cooperativas europeas, incidiendo en su imagen financiera. En este trabajo tratamos las peculiaridades contables que emanan de la posibilidad de la baja del socio en el marco de la normativa contable internacional, nacional y los últimos posicionamientos de organismos reguladores.Recibido: 12 junio 2017Aceptado: 14 octubre 2017Publicación en línea: 22 diciembre 2017

Earning Per Share Under International Accounting Regulations and Based on the Example of Companies Listed on the Warsaw Stock Exchange

Earnings per share is one of the most important financial ratios facilitating investors make decisions about the choice of a company to invest in. To fulfill this role, it should be calculated according to the same rules by all companies, so that the results can be compared correctly. Therefore, the IASB (International Accounting Standards Board) issued a special standard comprehensively regulating the rules of its calculation and presentation in financial statement. It is International Accounting Standard 33 – Earning per share, which was released in December 2003. It was first applied to financial statements prepared for the reporting period starting after January 1, 2005. The standard was revised once – in 2008. This standard requires calculation and presentation in financial statement basic and diluted earnings per share and accurately specifies how to do it. The aim of this paper is to describe the rules of calculating, presenting and disclosure information about earning per share under IAS 33 as well as to analyze the presentation of such information in financial statements of the largest companies listed on the Warsaw Stock Exchange. The main methods used include the analysis and evaluation of legal acts and subject-related literature as well as the analysis of information disclosed in financial statements of the largest companies listed on the Warsaw Stock Exchange.

Responsiveness as a Challenge for the Legitimacy of the IASB - An Evaluation of Current International Accounting Regulation and of Alternative Approaches

The article addresses the legitimacy of global accounting regulation. In line with other approaches, we relate the legitimacy of standard setting by the IASB to the process of standard development. We argue that the provision of procedural elements in the standard setting process that assure responsiveness vis-a-vis constituents is the key to legitimacy. While this perception is still in line with other, particularly economic, approaches we further elaborate a clearer conception of what is meant by responsiveness. We therefore utilize a sociological framework that analyses standard setting processes as stable social systems and is based on the work of Luhmann (1983). Against this backdrop, we analyse the current due process of the IASB as well as the endorsement process for IFRS within the EU. We further discuss whether specific market approaches to standard setting offer process alternatives that comply with our theoretical framework. Each of the market approaches offers different procedural elements to assure responsiveness. However, we will show that a distinguishing element of stable regulation processes in this regard is missing in most of the analysed procedures. Since this element requires to tie norm development to the political process, we carefully draw sceptical conclusions for the future of global accounting regulation.

Investment Property in the Financial Statements of Capital Groups Listed on the Warsaw Stock Exchange

In recent years, investing in property has become very popular. It is related to a significant decrease in interest rates, which has resulted in a decrease in interest rates on bank deposits and risk-free securities. What is more, this kind of investment seems to be less risky than investing in shares or raw materials due to a steady increase in property prices in Poland in the recent years. Investment property owned by an entity conducting business activity must be properly presented in financial statements, which is next reflected in the evaluation of financial position. Recognition, measurement and presentation of investment property in financial statements have been comprehensively prescribed in International Accounting Standard 40 – Investment Property, which was released in December 2003. It was first applied to financial statements prepared for the reporting period starting after January 1, 2005. The standard was revised twice – first in 2008 and then in 2013. The aim of this paper is to describe the recognition, measurement and disclosure of investment property under polish and international accounting regulations as well as to analyze the presentation of such information in financial statements of the largest companies listed on the Warsaw Stock Exchange. The main methods used include the analysis and evaluation of legal acts and subject-related literature as well as the analysis of information disclosed in financial statements of the largest companies listed on the Warsaw Stock Exchange

La formación del Contador Público. Una revisión desde los objetos

La reflexión en torno de los desarrollos científicos y la formación del conocimiento a través de la academia, ha dejado serios indicios de su impacto transformador de la realidad; la sociedad avanza a velocida-des más vertiginosas que el conocimiento mismo, situación a la que no escapa el conocimiento contable, que es impartido en las instituciones educativas, sólo a través de la formación para el trabajo, fun-dado en la vocación para el registro, con criterios y conceptos terminados desde la regulación contable local o internacional, para un solo modelo o sistema sin más opciones y no formado para la reflexión del conocimiento ni del avance de éste.Por tanto, se estructura una propuesta académica que refleje un plan de forma-ción para el Contador Público, determina-do para una sociedad global, desde una concepción epistemológica del ser de la contabilidad, donde se privilegia la estruc-tura desde los objetos de conocimiento, de estudio y de aprendizaje en contabilidad, en procura de formar un Contador Público que se apropie de la problemática del co-nocimiento científico y genere propuestas para el avance en la solución de necesi-dades de la sociedad global.

Ewolucja międzynarodowych i polskich regulacji w zakresie rachunkowości instrumentów finansowych

Ewolucja międzynarodowych i polskich regulacji w zakresie rachunkowości instrumentów finansowych

"Implications Of Ifrs Adoption On Earnings Quality, Empirical Case For Romanian Environment "

Globalization process has determined visible changes on international accounting regulation, describing a predictive direction of financial reporting development towards IFRS adoption. IFRS is perceived, within the international accounting convergence project, as the unique financial reporting language which lead to more comparable financial information, a higher transparency and an improvement of value relevance. Romanian IFRS adoption case is a specific as the main reasons determining IFRS adoption were mainly defined by the pressure of the international financial institutions and the political factor, not by market-driven motivations. Mandatory IFRS adoption hasn’t generated the expected economic benefits as the incentives for a real adoption did not cover the high implementation costs. Our study is aimed to check earnings quality ex-ante and ex-post IFRS adoption. Overall, there is evidence that earnings quality increase, but not in a spectacular proportion as the differences between local GAAP and IFRS regarding the main controversial accounting topics are significantly reduced along the last ten year.

"Research On The Financial Transparency Into The Healthpublic System In Romania. Case Of Hospitals Subordinated To The Health Ministry "

The complexity of the public hospital activity, generated by the high resourceconsumption, high number of actors involved into the medical act, technological innovation,heterogenous healthcare services offered, typology of hospitals, diversity of financing sources andsuppliers of financial resources as potential patients, demands a high degree of financialtransparency. In this context, by the qualitative research performed, we identify the degree offinancial transparency at the level of public hospitals subordinated to the Health Ministry fromRomania. This study takes into consideration a synthesis of the ideas published on this theme into theprofessional literature, as well as of the regulations issued by the national and internationalaccounting regulators, by accounting entities. The results of the research pointed out that thefinancial transparency promoted by hospitals through the agency of official web sites is low. Formost of hospitals the financial transparency is limited to the publication of revenue and expenditurebudget. Only three hospitals display the completed financial statements and a reduced number ofhospitals limits financial transparency at the individual level of the budgetary execution account,ballance sheet and patrimony outcome account. Also, we observe that in geographical terms, thereare no significant differences regarding the hospital financial transparency. In respect of thetemporal view, the published financial information is heterogenous both at individual level and globallevel, fact diminishing the comparison in time and space. The difficulty of investigating financialtransparency of hospitals is increased by the difficulty of identifying the official sites of hospitalswhen lacking a database at the level of Health Ministry.

Integrating Prediction Markets into the Due Process of International Accounting Standard Setting - A Possible Path to Achieve Legitimate Accounting Standards

The authors present the idea of integrating prediction markets into the IASB’s due process of accounting standards development in order to assure the legitimacy of IFRS. They refer to the constitutional economics concept of hypothetical consent and further substantiate literature claims that the legitimacy of any regulation with a lack of governmental control should be linked to adequate processes of rule development. The authors argue that standard-setting procedures which integrate market solutions into the search process for legitimate standards outperform pure discourse solutions that dominate contemporary accounting regulation. The prediction market approach is of particular interest because it addresses the identified major legitimacy concerns regarding the IASB’s current due process. Compared to other market solutions, prediction markets could be integrated relatively easily into the current institutional setting of global accounting regulation. The authors therefore suggest a basic design of a due process for the IASB that utilises a prediction market. The main contributions of the article are as follows: (1) it expands literature on the legitimacy of global standard setting in accounting; (2) it offers a new market approach to international accounting regulation and (3) it generally furthers the theoretical foundation for proposing prediction markets for regulatory purposes. The authors finally provide arguments as to how a prediction market approach could (re-)align standard setting and academic accounting research.

"The Relationship Between Accounting And Taxation Insight The European Union: The Influence Of The International Accounting Regulation "

In this paper it is realized an overview of the impact of IFRS over European accounting environment in terms of tax-accounting link. Based on previous studies conducted regarding the relationship between accounting and taxation to individual financial statements, it is developed a theoretical framework regarding the differences between accounting profit and tax profit as starting point of this link. The adoption of IAS/IFRS in the European Union had an important impact over the accounting environment in countries where it is a binding link between accounting and taxation, this impact being in the sence of decreasing the link. The last part of this paper is focus on the Romanian accounting environment, the analysis concludes that in Romania, the adoption of IAS/IFRS had a strong influence, in the present the accounting regulation being conforming with the European Directives but with important influence of IAS/IFRS.

Interferences And Limits Of The Accounting Policies Specific To Fixed Tangible Assets Into The Public Sector Entities In Romania

The convergence and compliance process initiated at international level hasinfluenced also the accounting system of the public sector entities from Romania. Taking intoaccount the fact that the fixed tangible assets represent an important part of the total assets ofthe public sector entities, and therefore, they are indicative in presenting the financialposition, by this essential research we structure the issue of the fixed tangible assets in termsof the accounting policies applicable into the public sector from Romania. By dual analysis,that is national regulations versus International Public Sector Accounting Standards, weidentify the interferences and limits of the accounting policies specific to the fixed tangibleassets from the public sector in Romania and we propose alternatives to answer the realneeds of the national public sector entities. This research is based upon a synthesis of theideas on this theme published into the professional literature, the regulations issued by thenational and international accounting regulators, by organisms belonging to the accountingprofession.

Accrual Accounting, Foundation For The Financial Reporting Into The Public Sector Entities

The development of the accounting system of the public sector entities atmondial level has focused on taking up the accrual accounting as foundation for the financialreporting and totally or partially giving up the cash accounting. Within this context, by thisresearch, we define the coordinates of the accrual accounting, we analyse the adoption of itas a financial reporting basis into the public sector at international level and also theimplications of completing the cash accounting with the accrual accounting into theRomanian public sector. The research takes into consideration a synthesis of the ideaspublished upon this topic into the professional literature, the regulations issued by thenational and international accounting regulators, by accounting bodies.

Empirical research on the internal audit into public hospitals from Romania

This study employs a dual approach, in that it first considers a synthesis of the studies run by researchers in the field of internal audit within the public sector, ideas on this topic published into the professional literature, and regulations drawn up by national and international accounting regulators and accounting professional bodies. Secondly, it uses an empirical survey based on a questionnaire to get responses from public hospitals in Romania. All respondents consider that internal audit has its contribution to the improvement of public hospitals performance and it is a partner to their management. They consider the deficiencies identified by the internal audit within hospitals to be prevented in the future to a great extent, as well as the fact that the assessment of internal control and the elimination or diminution of unjustified expenses are the ways through which internal audit adds value to public hospitals. Nevertheless, it is reckoned that the absence of the internal audit function as a result of its conditioning by the number of hospital beds and the traditional role it plays in hospitals, imposes a resizing of the regulations and approaches into the field, in accordance with the existing realities, in order to contribute to the improvement of public hospitals performance in Romania. Key words: Romania, public sector, public hospital, internal audit, performance.

„The Control” in View of International Accounting Regulation and Romanian Accounting Regulation

In Romania, financial reporting accountant is governed by Accounting Low number 82/1991, republished, and O.M.F.P. 3.055/2009 approving the accounting regulation in accordance with European Directives. To these are added the International Financial Reporting Standards (IFRS, IAS and IFRIC) of which must take into account certain Romanian legal persons in accordance with applicable regulations. Therefore this paper presents the main points of the control from the two types of accounting regulations perspective (national and international) applied in our country.

A evidenciação dos ativos intangíveis nas empresas brasileiras: empresas que apresentaram informações financeiras à bolsa de valores de São Paulo e Nova York em 2006 e 2007.

Business development has led intangible elements to play an important role in determining the value of companies. Currently, the market value of great corporations is superior to their book value and, in the literature, this fact is related to the existence of Intangible Assets. Thus, the aim of this study is to analyze information about Intangible Assets (IAs) disclosed in the financial reports of the Brazilian companies that presented financial information to BM&FBOVESPA and to NYSE in 2006 and 2007. The results of this descriptive study, which includes qualitative data analysis, indicate that: ((i) premium (73.94%), software (15%) and contractual rights (8.66%) were the IA elements most frequently disclosed by companies; (ii) AMBEV was the company with the largest amount (above 49.23%) of IA information in relation to total assets in both years, while TAM was the company with the lowest percentage (0.20%); (iii) the companies disclosed their financial reports both in Brazil and in the US following the current regulations; and (iv) Copel was the company that disclosed items belonging to both national and international regulations regarding the disclosure of IAs in the reports presented to BM&FBOVESPA. In conclusion, there was no privileged information regarding IAs in the reports analyzed. This suggests that the Brazilian regulations are becoming effectively aligned with the international Accounting regulations.

A evidenciação dos ativos intangíveis nas empresas brasileiras: empresas que apresentaram informações financeiras à bolsa de valores de São Paulo e Nova York em 2006 e 2007

Business development has led intangible elements to play an important role in determining the value of companies. Currently, the market value of great corporations is superior to their book value and, in the literature, this fact is related to the existence of Intangible Assets. Thus, the aim of this study is to analyze information about Intangible Assets (IAs) disclosed in the financial reports of the Brazilian companies that presented financial information to BMF (ii) AMBEV was the company with the largest amount (above 49.23%) of IA information in relation to total assets in both years, while TAM was the company with the lowest percentage (0.20%); (iii) the companies disclosed their financial reports both in Brazil and in the US following the current regulations; and (iv) Copel was the company that disclosed items belonging to both national and international regulations regarding the disclosure of IAs in the reports presented to BM&FBOVESPA. In conclusion, there was no privileged information regarding IAs in the reports analyzed. This suggests that the Brazilian regulations are becoming effectively aligned with the international Accounting regulations.

International Accounting Regulation and IFRS Implementation in Europe and Beyond – Experiences with First-time Adoption in Europe

Ladies and gentlemen, I consider it a privilege to be invited to address you today in Dublin at this 29th Annual EAA Congress. The topic of International Financial Accounting Standards (IFRS) imple...

Las sociedades cooperativas de vivienda. Especial referencia al País Vasco

The accounting regulation of co-operative societies have been recently reinforced with the approval of the ORDER ECO/3614/2003. The objective of this rule is to adapt the content of the Plan General de Contabilidad to the characteristics of these entities. In this work, I study the economic and accounting consequences of the special characteristics of co-operative societies on concepts like the result, capital, reserves or own equity, among others. The work combines the content of the state regulatory scheme on cooperative with the applicable legislation in the Basque Autonomous Community, as well as the national and international accounting regulation.