Accounting Paradigm Research Articles

Extent of Disclosure in the Annual Reports of Malaysian Federal Statutory Bodies

Federal statutory bodies in Malaysia are public sector organizations that adopt a corporate style-management, where annual report serves as an important accountability medium. This study aimed at determining the extent of accountability information disclosed by these bodies in their annual reports. Using a disclosure index derived from the public accountability paradigm, 106 annual reports were analysed. Findings suggest that these bodies provided a moderate level of disclosure in their reports. The highest disclosure was found in the Performance category while the least disclosure was detected in the Governance category. In this regard, more efforts are required in ensuring that the annual reports of such federal statutory bodies serve more effectively as a mechanism by which public accountability agenda can be achieved and fulfilled. DOI: 10.5901/mjss.2016.v7n2p158

A New Accounting and Taxation Paradigm

A New Accounting and Taxation Paradigm

The Failure to Understand Expertise in Administrative Law: The Problem and the Consequences

Although expertise has a starring role in administrative law, there has been a surprisingly impoverished understanding of expertise and its role in the rulemaking process. The failure to understand expertise, which this article explains is more complex and multifaceted that generally understood, is problematic because understandings of expert public administration influence administrative law institutions and practices, and conversely these legal developments condition the creation and use of expert knowledge in public administration. This Article contends that a more complete understanding of expertise indicates how it is possible to have a more workable, and yet accountable, administrative process.More specifically, the article explains how the limited and sometimes misleading understanding of expertise has led to a “rational-instrumental” (RI) accountability paradigm, which distrusts agency expertise and seeks to narrow the policy space in which agency expertise can operate. A more accurate and complete understanding of expertise supports “deliberative-constitutive” (DC) accountability, which has the potential to increase agency effectiveness and still reconcile the administrative state with our constitutional democracy.

Fatores associados ao desenho dos sistemas de controle gerencial

Aiming to identify the factors associated with the design of the Management Control System, the predominant paradigms of management accounting were analyzed, as defined by the International Federation of Accountants (IFAC). It was considered in the analysis beyond the paradigms, the sector of the economy and the gross sales of 94 companies in southern Brazil. The results obtained from the homogeneity analysis (HOMALS) suggest that industrial companies with the highest turnover are more likely to adopt practices which position their control systems to the paradigm of value creation when compared to commercial or service companies (third and fourth stages). It was also realized that service sector companies are more associated with control practices considered traditional (first and second stages). It identified the trend of commercial companies with the highest turnover adopt the paradigm of management accounting to reduce the waste of production resources (third stage). Alone, the sector and size variables of enterprises were not enough to explain the relationship with the adoption of a particular practice of management accounting. Overall, the study contributes to the reflection about the factors that induce control practices that explain the MCS design adopted by companies.

El valor razonable y la conexión perdida entre contabilidad y auditoría

Se pretende argumentar que la relación entre contabilidad y auditoría se ha perdido porque los supuestos filosóficos básicos de la auditoría no se han desarrollado tanto como sus correspondientes en el campo de la contabilidad. En tanto que la contabilidad a valor razonable representa una realidad socialmente construida, la auditoría parece siempre estar fundada en la tradición positivista de la teoría de la evidencia (Cfr. Mautz y Sharaf, 1961; AAA, 1973; Flint, 1988). El resto del trabajo se focaliza en el análisis del problema de la relación perdida entre contabilidad y auditoría, problema que se ha planteado en la sección primera (status quæstionis). En primer lugar, la siguiente sección describirá brevemente la metodología utilizada para el análisis. En la tercera sección se dará una breve descripción del cambio histórico del paradigma principal de la contabilidad, que pasa de informar la verdad a informar en coherencia con los principios de contabilidad generalmente aceptados (PCGA) y los cambios correspondientes en el paradigma principal de la auditoría, desde los tiempos antiguos hasta la auditoría moderna en el siglo XIX, que culminó con la promulgación de ASOBAC. En la cuarta sección, se analizan los avances de la última o dos últimas décadas, más concretamente, el cambio de un enfoque contable basado en la correspondencia con criterios, a un enfoque contable basado en la construcción social de consenso, como puede constatarse en el giro contable a partir de la década de 1990 en adelante con el paradigma del valor razonable. Se argumentará que la auditoría no se ha modificado en consecuencia, y que este eslabón perdido entre el enfoque ontológico de la contabilidad y de la auditoría puede acarrear problemas a los académicos, emisores de normas y profesionales. El artículo concluye con estas implicaciones y la necesidad de investigación futura.

The Critical Aspect on Fair Value Accounting and its Implication to Islamic Financial Institutions

Recently, fair value measurement and its implication in accounting standards have been increasing (Ramanna, 2006). One of the important aspects of financial reporting is measurement (Barth, 2007). Barlev and Haddad (2003) state that the fair value accounting(FVA) paradigm replaced the historical cost accounting (HCA) in the development of accounting standards that FVA is more value relevant that HCA probably did not provide the real financial information and income. However, previously studies mention that fair value accounting suffers from some serious limitations and disadvantages such as issues in market approach, income approach, and cost approach. Al-Yassen and Al-Khadash (2011) argue that accounting standard setters such as the International Accounting Standards Board (IASB) UK and the Financial Accounting Standards Board (FASB) U.S as well as other national accountingstandard setters provide high attention and long-term ambition to use fair value accounting as full measurement in all financial instruments. Islamic Financial Institutions (IFIs) that have different objectives and principles as well as have different financial products with conventional financial institution. This paper tries to explore critical aspects of the fair value accounting andits implications to Islamic Financial Institutions implications. This study concludes that that fair value accounting measurement provides many critical aspects to be implemented to Islamic Financial Institutions (IFIs). Additionally, AAOIFI proposed cash equivalent value as respond to fair value measurement that cash equivalent value when the attribute condition are present such as the relevance, reliability and understandability of the resulting information. Furthermore, fully adopting International Financial Reporting Standards (IFRS) issued by IFRSIASB, there will no specific standards for unique functions of Islamic Financial Institutions. Inaddition, the paper may be recommended to work together among Muslim countries to unity the potential harmonizing one set accounting standards for Islamic Financial Institutions such as AAOIFI?s standards.

PUBLIC REPORTING OF THE ECONOMIC SUBJECT: NATURE AND ITS SIGNIFICANCE IN MODERN RUSSIAN ECONOMIC DEVELOPMENT

The article investigates the formation of public accountability paradigm of economic agents as a mechanism for the protection of property and economic benefits of persons (both natural and legal) having a direct financial interest in the activities of socially significant commercial organizations. Basis of the economic system of Russia traditionally form economic entities in the economic turnover involving a wide range of market relations participants. Large social significance of this type of economic actors (interdependent and interrelated to each other) cannot be accompanied by the process of creating business information flows. Information allows interested parties to access the data to control for the preservation of the property transferred into the possession of the economic subject, and compliance with their economic interests. An important tool for the implementation of the economic mechanism of protection of persons property and economic benefits having a direct financial interest in the affairs of socially significant economic entity, is a system of accounting data, which openly available to interested users of information in the form of specially prepared for public reporting.

THE CRITICAL ASPECT ON FAIR VALUE ACCOUNTING AND ITS IMPLICATION TO ISLAMIC FINANCIAL INSTITUTIONS

The Critical Aspect on Fair Value Accounting And Its Implication To Islamic Financial Institutions . Fair value accounting (FVA) paradigm replaced the historical cost accounting (HCA) in the development of accounting standards that FVA is more relevant that HCA probably did not provide the real financial and income information. This paper tries to explore critical aspects of the fair value accounting and its implications to Islamic Financial Institutions implications. This study concludes that that fair value accounting measurement provides many critical aspects to be implemented to Islamic Financial Institutions (IFIs). AAOIFI proposed cash equivalent value as respond to fair value measurement that cash equivalent value when the attribute condition are present such as the relevance, reliability and understandability of the resulting information DOI: 10.15408/aiq.v6i2.1236

Resource accountability: Enforcing state responsibilities for sufficient and equitable resources used effectively to provide all students a quality education

Darling-Hammond, Wilhoit, and Pittenger (2014) addressed the need for states to align their accountability systems with new college- and career-ready learning standards. The authors recommended a new accountability paradigm that focuses on 1) meaningful learning, enabled by 2) professionally skilled and committed educators, and supported by 3) adequate and appropriate resources. This paper explicates the provision of adequate and appropriate resources, the third of these three pillars of a comprehensive approach to accountability. Adequate resources, effectively used, are prerequisites to building the capacity of schools to deliver the two other pillars, professionally skilled and committed educators and meaningful learning. Also, the effective use of public school funding is an oft-ignored but crucial step toward ensuring equal educational opportunity for all students.

Responses to donor proliferation in Ghana's health sector: a qualitative case study.

ObjectiveTo investigate how donors and government agencies responded to a proliferation of donors providing aid to Ghana’s health sector between 1995 and 2012.MethodsWe interviewed 39 key informants from donor agencies, central government and nongovernmental organizations in Accra. These respondents were purposively selected to provide local and international views from the three types of institutions. Data collected from the respondents were compared with relevant documentary materials – e.g. reports and media articles – collected during interviews and through online research.FindingsGhana’s response to donor proliferation included creation of a sector-wide approach, a shift to sector budget support, the institutionalization of a Health Sector Working Group and anticipation of donor withdrawal following the country’s change from low-income to lower-middle income status. Key themes included the importance of leadership and political support, the internalization of norms for harmonization, alignment and ownership, tension between the different methods used to improve aid effectiveness, and a shift to a unidirectional accountability paradigm for health-sector performance.ConclusionIn 1995–2012, the country’s central government and donors responded to donor proliferation in health-sector aid by promoting harmonization and alignment. This response was motivated by Ghana’s need for foreign aid, constraints on the capacity of governmental human resources and inefficiencies created by donor proliferation. Although this decreased the government’s transaction costs, it also increased the donors’ coordination costs and reduced the government’s negotiation options. Harmonization and alignment measures may have prompted donors to return to stand-alone projects to increase accountability and identification with beneficial impacts of projects.

Do Corporate Governance Characteristics Affect Non-Financial Risk Disclosure in Government-owned Companies? The Italian Experience

While a considerable amount of research has already been carried out into the corporate governance determinants of non-financial risk disclosure in companies in the private sector, such determinants in the annual reports of listed Governmentowned Companies (LGCs) have yet to be investigated fully. This study attempts to complete the picture. Italian LGCs have been selected for analysis and agency theory has been applied in the public sector under the accountability paradigm. The research investigates whether non-financial risk disclosure provided in the Management Commentary (MC) of Italian LGCs may be affected by ownership concentration, corporate governance mechanisms and company-specific features. The issue is of particular importance in a country where Government intervention has significantly affected its economic development since the nineteenth century. Our findings show that there is a relationship between the level of non-financial risk disclosure and Board diversity, leverage and sector. Our findings also reveal some useful insights concerning policy makers and standard setters.

The Critical Aspect on Fair Value Accounting And Its Implication To Islamic Financial Institutions.

The Critical Aspect on Fair Value Accounting And Its Implication To Islamic Financial Institutions. Fair value accounting (FVA) paradigm replaced the historical cost accounting (HCA) in the development of accounting standards that FVA is more relevant that HCA probably did not provide the real financial and income information. This paper tries to explore critical aspects of the fair value accounting and its implications to Islamic Financial Institutions implications. This study concludes that that fair value accounting measurement provides many critical aspects to be implemented to Islamic Financial Institutions (IFIs). AAOIFI proposed cash equivalent value as respond to fair value measurement that cash equivalent value when the attribute condition are present such as the relevance, reliability and understandability of the resulting information DOI:10.15408/aiq.v6i2.1236

Do Stakeholder Expectations Shape Organizational Intellectual Capital Reports?

This paper positions the analysis of intellectual capital (IC) reporting within the stakeholder accountability paradigm. Within this paradigm, corporate information is seen as essential to provide an account to stakeholder groups and for management to discharge its accountability. A good relationship with various stakeholders could gain support and approval from them, which is beneficial for the organization to survive and succeed in a sustainable manner in society. IC information can be included in social accounting area including in this generic term all accounts which go beyond the economic. The research question of the paper (do stakeholders play a role in shaping organizational IC report?) is addressed through a case study of a large Italian nonprofit organization (NPO), ANPAS Piemonte, chosen because it is the only NPO producing audited IC reports in Italy from 2003. The research has been carried out under a qualitative approach and employed two qualitative tools (document analysis and semistructured interview). From the analysis of qualitative data, it emerges that ANPAS Piemonte adopts a management approach to stakeholders, trying to handle stakeholders' expectations for his managerial purposes instead of involving stakeholders in organizational decision‐making process. Copyright © 2014 John Wiley & Sons, Ltd.

Standards and Personalization in the Writing of Linguistically Diverse Students

This study examines the interplay between standards and personalization for linguistically diverse adolescents in a year-long Senior (12th grade) Exhibition project in a U.S. public high school. Focal students included a bilingual Mexican-origin immigrant, a transnational bilingual student of Mexican origin, and an English-only adolescent from California, all female. Qualitative data consisted of multiple drafts of each student’s 15–20 page research essay, interviews, writing conferences, and school-based standards documents. Analyses attended to how conceptions of personalization of learning in relation to a major research and writing assignment were operationalized in the experiences of three learners and the consequences of each approach for the student’s attention to standards in her inquiry and writing processes. Findings highlight the normative power of standards in promoting standardization within the current accountability paradigm and the potential of deep personalization to enhance learning around writing.

Goodwill under IFRS: Relevance and disclosures in an unfavorable environment

The accounting treatment of purchased goodwill under IFRS has been severely criticized due to the extensive use of fair value accounting. The purpose of this study is to enrich the ongoing debate upon this issue by drawing attention to the market valuation implications of goodwill in a country outside the Anglo-Saxon accounting paradigm, where the application of fair value accounting has been seen as more problematic. The results indicate that, in the case of purchased goodwill, fair value accounting generates relevant accounting numbers but only in companies that comply highly with IFRS disclosure requirements.

Towards a philosophy of accounting for human action

This paper introduces the beginning of the construction of a new paradigm in accounting by replacing accounting for financial (trans)actions with accounting for all human actions. Financial decision making itself is a human action. The method employed is critical social theory. The starting point is Jürgen Habermas’ concept of anti-social steering mechanisms discussed within the theme of his major 1981 work The Theory of Communicative Action.

The Effect Of Accrual Reliability On Audit Pricing

This study investigates how accrual reliability is associated with audit fees. Since the enactment of the Sarbanes-Oxley Act of 2002, financial reporting has shifted toward a more principles-based accounting paradigm, along with an emphasis on fair value accounting by standard setters. As a result, auditors are exposed to more subjective accrual estimation processes, including accounting estimates. In the current financial reporting environment, external auditors are required to pay greater attention to accrual components that are largely based on accounting estimates to evaluate the reasonableness of accrual measurements. In this study, we find a negative association between the level of accrual reliability and audit fees. That is, the greater the potential litigation risk (due to accrual components based on more subjective or less reliable estimation processes), the more the audit work, and the higher the fees paid to external auditors.

An index of best practice performance reporting for Malaysian local authorities

PurposeThe purpose of this paper is to identify stakeholders’ expectations of information to be conveyed in local authorities’ annual reports and to develop an index of best practice performance reporting.Design/methodology/approachThe paper describes the development of a disclosure index emphasizing the public interest aspect of reporting and the need to provide relevant and meaningful information to stakeholders. The index was crafted from a public accountability perspective and based on the expectations of stakeholders as reconciled and validated by a Delphi panel of experts.FindingsThe wide scope of information that was identified as being important for disclosure by local authorities is consistent with the public accountability paradigm which requires the reporting of comprehensive information (both financial and non financial), about the condition, performance, activities and progress of the entity.Originality/valueThe research posits a model of best practice performance reporting for Malaysian, and other, local authorities to meet the need for greater accountability by these entities.

Beyond bioethics: reckoning with the public health paradigm.

In the wake of scandal over troubling research abuses, the 1970s witnessed the birth of a new system of ethical oversight. The bioethics framework, with its emphasis on autonomy, assumed a commanding role in debates regarding how to weigh the needs of society against the rights of individuals. Yet the history of resistance to oversight underscores that some domains of science hewed to a different paradigm of accountability--one that elevated the common good over individual rights. Federal officials have now proposed to dramatically limit the reach of ethical oversight. The Institute of Medicine has called for a rollback of the federal privacy rule. The changing emphasis makes it imperative to grapple with the history of the public interest paradigm.

AKUNTANSI MANAJEMEN DALAM PRESPEKTIF STRATEGI KEUNGGULAN BERSAING

Dynamics business makes strategic outlook as an important paradigm in management accounting. Contemporary management accounting is ineligible to occupy only the calculation of costs and decision-making regardless of environmental factors that move fast. By combining competitive strategy, management accounting tools are expected to support the role of strategic choice taken by firm. This article discusses how far management accounting can play an active role to create a competitive advantage in the competitive business. Keyword: Akutansi manajemen, strategi, otomatisasi, keunggulan.