International Accounting Research Articles

Informal institutions in accounting research: A structured literature review

We adopt a structured literature review methodology to review the literature on the impact of informal institutions on accounting outcomes. We address three key questions: How is research on the impact of informal institutions on accounting outcomes developing? What is the focus and critiques of the literature on the impact of informal institutions on accounting outcomes? Finally, what is the future for research on the impact of informal institutions on accounting outcomes? We contribute to the international accounting literature by producing a study that reviews this lively research area, enabling valuable and impactful future research in this field.

Examining the international political and legal accountability of states for genocide, ecocide, and weapons of mass destruction: current norms, practices, and political implications

The article reveals the international framework of political and legal liability of states for committing acts of genocide, ecocide, and using weapons of mass destruction. It is emphasized that these areas form a separate legal responsibility institution within international law. The author emphasizes the lack of unity between theoretical and practical aspects of legal regulation of using weapons of mass destruction, as well as the role that liability plays in the progressive development of law. The paper also highlights topical issues related to the paradigm shifts in modern international law due to the cases of genocide, ecocide, and WMD. The study aims to analyze international legal norms and practices of holding states accountable for the crimes of genocide, ecocide, and use of weapons of mass destruction. The following methods were employed in the course of this research: systemic, comparative legal, historical and legal, structural and functional, and generalization. The article emphasizes that most international crimes are committed with the support or under the control of collective entities, especially states. Nevertheless, international law has tended to impose responsibility for such crimes not only on certain people but also on states. The predominant response of the international community to international crimes was to impose responsibility on specific persons to the extent that it has been directed through international responsibility law. In this regard, it has been symbolized by prosecuting particular criminals through international criminal courts and tribunals.

OBSERVATIONS ON THE STATEMENT OF CASH FLOWS

Cash flow management requires clear information, which is compiled by organizations in accordance with international accounting standards. However, from the point of view of decision-making, the published cash flow reports are not always fully usable by the stakeholders. The article presents the possibilities of making decisions on cash flows and the ways of increasing companies financial stability based on it.

Journal of International Accounting Research: A Bibliometric Analysis

ABSTRACT This study utilizes bibliometric analysis to examine the research published by the Journal of International Accounting Research (JIAR). JIAR was established in 2002 to disseminate high-quality accounting research that emphasizes international relevance and implications. First, we perform publication and citation analyses to identify the leading articles, authors, institutions, and geographic affiliations. Although U.S.-based authors account for most publications, authorship from Asia, Australia, and Europe is expanding. Second, based on thematic structure analyses, we identify nine key research themes among JIAR publications. Although studies relevant to international accounting remain the mainstay of the journal’s publications, other themes like corporate governance, auditing, and corporate social responsibility are growing. Our findings of successful diversification in authorship and topic areas over time attest to the contributions of past and present JIAR editorial teams in strengthening the research in international accounting and promoting accounting research internationally. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: M21; M40; M41.

External auditors, policy transfer, accruals accounting and the United Nations

PurposeThis study asks whether external auditors enable the transfer of policies to the United Nations organizations that they audit and, if so, what types of policies are transferred.Design/methodology/approachThe empirical research is based on a content analysis of 512 external auditor recommendations from 28 pre- and post-accrual reports of 14 UN bodies.FindingsWe find that external auditors do enable policy transfer and that such involvements may, at times, veer into non-neutral policy spaces.Research limitations/implicationsWe did not analyze all UN organizations with accruals-based accounting. We also did not engage in a longer longitudinal study.Practical implicationsOur findings raise new questions about international organization accountability, the technocratic and policy-specific influences of external auditors, and open a debate about whether attempted policy transfers can be neutral.Originality/valueThe world’s largest group of international organizations is affiliated with the UN. External auditors help ensure that member-state monies are appropriately utilized. Our study is the first to compare pre- and post-accrual external auditor recommendations for 14 UN bodies. It is also the first to notate and study the attempted policy transfers from external auditors to the audited UN bodies.

Tracing the Evolution of Accounting History Research in the New Millennium: A Bibliometric Analysis of Publication Patterns in Specialist Journals

ABSTRACT This paper aims to expand the analysis of publishing patterns in specialized international accounting history journals, focusing on the period from 2000 to 2023. The objective is to shed light on how this field of accounting research has evolved throughout the new millennium, adopting a bibliometric approach. The study encompasses 1,044 documents. We examined metrics such as authorship distribution, geographical diversity, and thematic orientations, employing a methodology that quantitatively maps the intellectual landscape of accounting history for a comprehensive view. Our findings indicate widespread participation in the scientific debate, with contributions from around the globe and a growing trend in co-authored articles. Furthermore, our analysis identifies eight thematic clusters. In summary, this paper charts and systematizes these contributions, pinpointing key research areas and offering insights into the latest advancements and potential future directions in accounting history studies.

THE ROLE OF INTERNATIONAL ACCOUNTING STANDARDS IN FOSTERING CORPORATE REPORTING TRANSPARENCY

This research investigates the multifaceted impact of International Accounting Standards (IAS) on corporate reporting transparency. Amidst the interconnected global business landscape, the study aims to discern global adoption trends, financial reporting quality, stakeholder perceptions, implementation challenges, and the responsiveness of IAS to industry dynamics. Through meticulous analyses spanning the years 2010 to 2020, the research unfolds key insights.The adoption of IAS is a critical facet of global financial reporting, influencing business practices, investor decisions, and regulatory frameworks. Understanding its impact is paramount for policymakers, standard-setters, and businesses navigating an increasingly interconnected and diverse financial ecosystem.This research seeks to comprehensively examine the intricate relationship between IAS and corporate reporting transparency. By delving into adoption trends, financial metrics, stakeholder perspectives, implementation challenges, and update responsiveness, the study aims to provide a holistic view of the global accounting landscape.The analysis reveals a consistent upward trajectory in global IAS adoption, with North America and the Asia-Pacific region playing pivotal roles. Financial reporting quality experiences substantial improvements, particularly benefiting smaller enterprises. Stakeholder perceptions vary across regions and professional roles, emphasizing the need for tailored communication strategies. Implementation challenges, including legal framework complexities and cultural differences, underscore the intricate nature of global adoption. The frequency of IAS updates showcases the adaptability of standards to emerging trends, emphasizing sector-specific implications.This research concludes that IAS significantly influences corporate reporting transparency, offering a standardized framework for diverse business scales. Challenges in implementation necessitate targeted interventions, with recommendations focusing on stakeholder communication, tailored support for small enterprises, and addressing legal and cultural complexities. The adaptability of IAS to industry dynamics reaffirms its role as a responsive and evolving standard. As businesses, regulators, and standard-setters move forward, continuous collaboration and flexibility become imperative for navigating the complexities of a globally harmonized financial reporting landscape.

공시연구의 네트워크 중심성 분석

[Purpose] This study aimed to examine the direction of domestic research through text analysis using a qualitative method rather than an empirical study in the name of ‘public disclosure’, targeting domestic research that is mostly empirical research. [Methodology] This study conducted frequency analysis on the research sample, focusing on keywords from a total of 872 accounting－related public disclosure studies, and conducted four types of centrality and network analysis based on the frequency analysis. For this analysis, R and Python programs were used. [Findings] The results of this study are as follows. First, among a total of 872 domestic studies, the keywords with the highest frequency were accounting, profit, and company in that order. Second, as a result of the Degree centrality analysis, the key keywords were profit (0.0736), company (0.0664), and information (0.0564). Third, as a result of Closeness centrality analysis, the keywords showing connectivity that emphasized the distance between one node and all nodes in the entire network were profit (0.3468), company (0.3392), and information (0.3349). Fourth, as a result of Betweenness centrality analysis, the keywords shown to be most helpful in building a network of other nodes are profit (0.1499), company (0.1172), accounting (0.0990), and information (0.0842). Fifth, as a result of the Eigenvector centrality analysis, as an indicator that reflects the centrality of nodes in the weight, the keywords with the highest centrality were accounting (0.6136), international accounting standards (0.5371), and standards (0.3988). [Implications] Through this study, which is not an empirical study but a qualitative analysis using a text mining method, it is expected that later researchers will have an easier time analyzing research trends in previous studies, and furthermore, it is expected that further expansion of research topics will be possible.

DYNAMICS OF BIOLOGICAL ASSET DISCLOSURE IN AGRICULTURAL COMPANIES IN INDONESIA

In the context of global business dynamics and transparency demands, disclosing biological assets in financial statements becomes crucial for companies to navigate the complexities of evaluating and adapting to international accounting standards. This research aims to analyze the factors influencing the disclosure of biological assets. The research methodology employed is descriptive and verificative, focusing on agricultural companies listed on the Indonesia Stock Exchange. The population comprises annual reports from agricultural companies listed on the Indonesia Stock Exchange (IDX) from 2018 to 2021, totaling 41 companies multiplied by the years, resulting in 164 data points. The sampling technique used is purposive sampling, with a sample size of 27 companies from 2018 to 2021, amounting to 108 observation data points. The data analysis technique involves classical assumption tests, panel data regression, determination coefficient tests, and hypothesis testing using Eviews software. The results indicate that, partially, the intensity of biological assets and managerial ownership significantly positively affect the disclosure of biological assets, while profitability has a significant negative impact on the disclosure of biological assets.. Keywords: Intensity of biological assets, managerial ownership, profitability, disclosure of biological assets

Misappropriation in the Nigerian Oil and Gas Sector: Strategies for the Accountant General of the Federation

The study addressed the “Misappropriation in the Nigerian Oil and Gas Sector.” The paper employed a theoretical and content analysis approach, conducting an extensive review of literature from online journals and databases of standard-setting bodies such as the Auditing Standards Board and the Association of Certified Chartered Accountants (ACCA). Drawing from the Fraud Triangle Theory, the paper highlighted the three primary factors-opportunity, pressure, and rationalization-that motivate individuals to engage in fraudulent activities. The findings underscored the role of weak governance structures, political interference, and institutional deficiencies as key drivers of misappropriation and corruption within the Nigerian oil and gas sector. Moreover, the literature reviews revealed strategies to combat corruption, including strengthening regulatory frameworks, leveraging technology, and promoting a culture of integrity and ethical leadership. Effective measures to address misappropriation in the Nigerian oil and gas sector require comprehensive reforms, collaborative efforts between stakeholders, and rigorous enforcement and monitoring of policies. As the Accountant General of the Federation, it is recommended to prioritize accountability, transparency, and good governance through regular independent audits, establishment of a specialized anti-corruption unit, adoption of international accounting standards, implementation of whistleblower protection mechanisms, and ongoing capacity building and training programs for finance professionals and public officials involved in managing finances within the sector.

Modern problems of determining net realizable value in RAS and IFRS and ways to solve them

Thanks to the Federal Accounting Standard (FAS) 5/2019, net realizable value was introduced into Russian accounting for inventories. A similar value is also used in IAS 2. Despite the relatively long period of use of the specified value, its estimation still raises a number of questions when accounting and reporting according to both Russian and International Standards (hereinafter referred to as RAS and IFRS). These problems and ways to solve them are analyzed in this article. When carrying out research, methods such as analysis and synthesis, grouping method, comparison, analogy method, logical approach, systematic approach were used. As a result of the research carried out in this work, the main modern problems associated with determining the net realizable value in Russian and international accounting have been identified and proposals for their solution have been substantiated. The results obtained in this article will be useful to a wide range of readers interested in current issues relating to the regulations of RAS and IFRS, including the calculation of the net realizable value of inventories, can be used in the educational process of higher educational institutions, in the practical work of accounting departments of modern organizations, as well as in development and improvement of relevant domestic and international accounting standards.

The Impact of International Accounting and Auditing Standards on the Quality of Financial Reporting

Objective: This study aims to measure the impact of applying international standards for financial reporting and auditing on the quality of financial reports for a sample of Iraqi joint-stock companies. Methodology: The study goal is achieved by developing a special form to examine financial reports in addition to a special form to examine the reports of auditors and the extent of compliance with the adopted international standards. To achieve the research objectives, a content analysis method was used for the financial reports of a sample consisting of 18 companies listed on the Iraq Stock Exchange distributed across 8 different sectors of activity. Results: Our findings reveal that most of these companies do not adopt international accounting standards and financial reporting, except for the banking sector. Additionally, statutory auditors do not follow international auditing standards, except for those auditing companies that apply international financial reporting standards. Conclusion: The non-compliance to International Accounting and Auditing Standardsfor the most of listed companies could affect negatively the quality and reliability of financial information provided by them.

Impacts of the Transition to the Expected Loss Model on the Portuguese Banking Sector

This study addresses the implementation of the International Financial Reporting Standard 9 (IFRS 9) in the European Union as of 1 January 2018, replacing the International Accounting Standard 39 (IAS 39) to introduce a new model for recognizing Loan Loss Provisions (LLP), based on Expected Credit Loss (ECL). This model responds to criticisms of the former Incurred Credit Loss (ICL) system for its inability to reflect credit losses in a timely manner, potentially exacerbating the effects of financial crises. This study focuses on the effects of adopting the ECL model on the level of Loan Loss Allowances (LLA) in loans, own equity, and the Common Equity Tier 1 (CET1) ratio across 13 Portuguese commercial banks. A mean comparison test is used to evaluate scenarios before and after the application of the ECL model, highlighting the importance of regulator actions and the adequacy of loss recognition policies, including the effects of European Union. The results obtained demonstrate significant negative impacts on the net values of loans, own equity, and the CET1 ratio upon adopting the IFRS 9 ECL model due to the widespread increase in LLAs.

Classification and presentation of equity in IFRS financial statements

Subject. This article examines the methodological basis for the classification and presentation of an organization's equity in financial statements prepared in accordance with IFRS. Objectives. The article aims to substantiate the approach to the classification and presentation of information on the equity of an organization, ensuring its relevance and faithfulness. Methods. For the study, we used a logical analysis. Results. Based on the analysis, the article confirms the prospects for the combined use of the two features of the classification of capital items proposed in the Exposure Draft IASB/ED/2023/5 by the International Accounting Standards Board (IASB). Conclusions. As innovative financial instruments emerge, new problems will arise with the classification of financial instruments that have characteristics of both capital and liabilities. In this regard, it is necessary to continue research in the direction of the evolution of approaches to the classification of capital.

Collective institutional entrepreneurship for the EPSAS programme: The missing link

IMPACT Three categories of institutional entrepreneurs are potentially capable of accomplishing multi-level accounting change processes, such as the issuing of European Public Sector Accounting Standards (EPSAS): the supranational, national and subnational. This article shows that, if the mediating role of national institutional entrepreneurs at the interface between supranational and subnational institutional entrepreneurs is limited, international accounting harmonization halts. The lessons in this article will be of particular value to accounting standard-setters and policy-makers in the field of public sector accounting.

Size matters: When do minor discontinued operations become major?

Purpose: This paper explores the thresholds that firms apply when classifying discontinued operations in accordance with the requirement in IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (IFRS 5). Motivation: The IFRS 5 requirement, that only major operations may be classified as discontinued operations, is vague and open to interpretation. Existing literature is largely silent on what firms deem as major, whether diversity exists in practice, and whether the classification decision can be linked to earnings management. Methodology: The sample includes financial statement data of listed South African firms for the financial years ending 2016 to 2022. Univariate analyses and graphical presentations are used to address the research questions. Main findings: Diversity exists as to what firms deem as major discontinued operations. A non-negligible portion of firms classify relatively minor operations as discontinued. Evidence shows that firms’ classification decision is related to whether the discontinued operations incurred losses and whether a firm is audited by a Big Four auditor. No evidence of earnings management through meeting or beating performance benchmarks is found. Practical implications: The paper contributes to a long-standing request to the International Accounting Standards Board to provide guidance on the classification of discontinued operations. The observed thresholds can be used in the decision-making process of practitioners and tertiary educators when assessing whether an operation meets the size requirement of IFRS 5. Contribution: The paper contributes to the limited literature on the topic and relies on hand-collected data that could not be found on commonly used databases.

Summary on the Development of Accounting and Auditing Practises towards IFRS-IAS/ISA in Jordan: Historical and Theoretical Perspective

In this article, we take a look at the evolution of accounting in the Middle East [ME] region, with a focus on Jordan. We shall examine the major events in this region’s history and see how they relate to the global accounting agenda, changes in the local and international economic landscape, and other relevant developments. Pay close attention to how cultural and historical factors, in addition to worldwide accounting principles, impact the local accounting environment. The adoption of “International Financial Reporting Standards” [IFRS] by MENA nations is examined, along with the reasons and motives behind it, and the effects on the auditing and accounting professions as a whole. This marks a significant milestone in recent history. This article looks at the history of accounting and auditing in Jordan and how it has developed in relation to the International Accounting and Auditing Standards. It also discusses potential future advances in this field.

Contestation from Within: Norm Dynamics and the Crisis of the Liberal International Order

Abstract To what extent is the current “crisis of the liberal international order” a result of features of the order itself? In this article, we focus on the role of formal and informal hierarchies by comparing two cases of contestation of core norms of the liberal international order: The African states and the African Union contesting the duty to prosecute institutionalized in the International Criminal Court and the United States contesting the international prohibition of torture. The African contestation of the duty to prosecute became radicalized and diffused, leading to challenges to the broader international criminal accountability regime. The US contestation of the prohibition of torture did not spread, leaving the broader human rights regime untouched. We argue that the formal and informal hierarchies in both orders shaped their contestation dynamics more than their formal institutionalization. While the duty to prosecute is situated in a highly hierarchical setting that fueled frustration and contestation, the contestation of the prohibition of torture evolved in the less hierarchical setting of the human rights treaty bodies, which helped prevent contestation from spreading.

Decarbonization and the obstacles to carbon credit accounting disclosure in financial statement reports: the case of UAE

PurposeThis study investigated the visibility of carbon emissions allowances accounting in the financial reports of 32 clean development mechanism (CDM) projects in the UAE to uncover the obstacles to setting consistent standards for carbon emission accounting. As carbon emissions are monetized as credits, consistent accounting standards can aid decision-makers in the development of carbon emission mitigation strategies.Design/methodology/approachThis study used a grounded theoretical framework for exploring the terms used in the policy documents of international accounting bodies regarding accounting standards and guidelines for carbon emission credits. Raw qualitative data were gathered, and an inductive approach was used by analyzing documents from various sources using the qualitative data text analysis software QDA Miner 6.FindingsThe findings showed that the financial statement reports of the corporations did not include disclosure of the carbon credit account. This omission was due to the lack of global standardization of carbon credit accounts and emission allowance recognition. This may hinder the production of a comprehensive report containing accurate and valuable financial information relevant to all stakeholders.Originality/valueThe study is among the first to use a grounded theoretical framework to investigate whether corporations are applying common standards and guidelines for carbon emissions accounting.

A Comparative Study of Global Accounting and Indian Accounting

Accounting is a tool to quantify all economic and business transactions in terms of money. The economic and non-economic transactions are measured and compared from year to year and country to country with the help of accounting only. Hence, accounting is a backbone of evidence to identify the strength and weakness of any sector of the country. The accounting systems vary from country to country depending upon the nature of the business. The ancient accounting system has a narrow concept which has been followed within a country. Later in the ancient international trade, business tractions were based on the barter system. The traders followed informal accounting records for their business transactions, before the industrial revolution. Due to the industrial revolution (1760) there was mass production in the textile industries, steamindustries, and iron industries. The huge volume of production led to changes in the field of accounting. The spread of the industrial revolution across Europe, hence it requires a common accounting system among the European countries. The expansion of the volume of economic and business transactions gives the necessity of a globally accepted accounting system. Moreover, in the international trade, all countries around the world are involved in both imports and exports. Hence, the international accounting system is required to know the accuracy of global business transaction. India has its own accounting system which is based on the Indian Companies Act, 1956, later the Indian Companies Act, amended, 2013. The Indian Accounting Standard is applicable only to India, which is framed for Indian companies located in India. If any IndianCompanies located outside India have to follow the International Accounting standards.