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This study aims to evaluate Islamic bank compliance with the accounting and auditing organisation for Islamic financial institutions (AAOIFI), assess the impact of multiple accounting standards in Islamic banking, examine the need for private accounting standards and assess international financial reporting standards (IFRS) compatibility with Islamic banking and analyse financial leasing accounting in Islamic banking compared to IFRS 16.

A combination of comparative theoretical analysis, physical examination, and semi-structured interviews has been used as a research methodology. These methods are interconnected and complement each other to provide a comprehensive approach to address the research questions.

Islamic banks in various countries show varying compliance with AAOIFI accounting standards. Some fully comply, while others adopt a hybrid approach combining AAOIFI and IFRS. Differences in accounting treatments can result in conflicts, asset inflation and financial statement discrepancies. Challenges and criticisms faced by AAOIFI standards include violating the matching principle and lacking faithful representation. Collaboration among academics, standards-setting bodies and organisers is crucial for guiding the reporting of Islamic financial statements.

The research identifies gaps in implementing Islamic accounting standards and proposes strategies to enhance compliance, improve performance and increase transparency in Islamic financial institutions. It highlights the importance of a harmonised and universally accepted accounting framework for Islamic banking, considering the compatibility between IFRS and Islamic principles.

Social implications have arisen regarding the global acceptance of Islamic finance, which leads to an increase in socially Islamic finance exchange.

This research examines the consequences of using multiple accounting standards in the Islamic banking industry and discusses the need for private accounting standards and compatibility with IFRS.

This literature review aims to portray the thematic landscape of the Pacific Accounting Review (PAR) from 2013 to 2023. This paper also synthesises the special issues in PAR and identifies the main research streams that facilitate contemplating the dialogic interactions between PAR and real-world challenges. Furthermore, this paper aligns these streams with the emerging concerns in Sustainable Development Goals (SDGs) and technological disruptions to propose impactful future directions for publications in PAR.

This review adopts bibliometric analysis to establish the main research streams and objective measures for directing future publications. This paper acquires the data of 310 PAR articles from the Web of Science and ensure the data integrity before the analysis. Based on this technique, this paper also analyses PAR’s productivity, authorship and local and global impacts.

Our bibliometric analysis reveals three key research streams: (1) ESG practices and disclosures, (2) informal institutions in accounting and (3) accounting in transition. This finding affirms PAR’s relevance to real-world accounting challenges. Using a thematic map, this paper portrays the current state of PAR’s topics to identify potential directions for future publications. Further, this paper proposes three future paths for PAR: (1) the research agenda for non-financial reporting, (2) research relating to and from diverse countries considering both formal and informal contemporary contextual factors and (3) the future of the evolving accounting profession.

This study adds value to the existing PAR reviews by extending our knowledge with the latest publications, demonstrating an objective and replicable approach, and offering future directions for PAR publications.

This paper examines the relationship between heterogeneous political connections and corporate overinvestment.

Based on a comprehensive Malaysian dataset of 834 publicly listed companies from 2000 to 2022, the authors employed multivariate ordinary least squares regression to test the relationship.

Despite different types of political connections, the findings demonstrate a positive relationship between political connections and corporate overinvestment. In particular, the association is more profound in government-linked companies (GLCs) but weaker in firms that developed political ties through family members of ruling elites. Further analysis reveals that the “helping hand” effect is only observed in GLCs and firms with politically connected directors and businessmen, whereas the “grabbing hand” effect is observed among firms connected through board, businessmen, and family ties. Moreover, the relationship is more persistent among firms with politically connected directors and businessmen around the regime change.

Regardless of the types of political connections, the findings show that politically connected firms tend to engage in rent-seeking through political patronage networks and high levels of government interference in resource allocation. Therefore, a more sophisticated monitoring system should be developed within the political patronage networks to reduce the likelihood of different types of political-business collusion. In terms of research limitations, the research design does not consider the influence of financial constraints and management efficiency. Future research could explore these facets to comprehensively understand the dynamics between political connections and corporate investment decisions.

The evidence informs market participants about the relationship between heterogeneous political connections and corporate overinvestment, reinforcing previous findings that crony capitalism, political patronage, agency problems, and weak governance are well-entrenched in Malaysia’s emerging economy. The government should acknowledge these concerns by enacting anti-corruption campaigns and promoting a fair business environment. In the meantime, policymakers might redesign regulations and revise corporate governance frameworks to substantially reduce the value of political connections, thereby diminishing the bargaining power of politicians.

As corporate investment efficiency has a considerable impact on firm value, investment decisions that enhance firm value will increase share price and maximise shareholder value. Conversely, firms may damage shareholder value if they overinvest or undertake projects that do not yield sufficient. Hence, the findings of this study may assist investors in making more informed judgements, particularly by understanding different types of business-government relations, as political connections are one of the determinants of corporate overinvestment.

This study reveals that the degree to which overinvestment issues manifest within firms is influenced by the nature of the political connections those firms possess. This indicates that politically connected firms should not be regarded as a homogenous group of firms.

Ordinary direct capitalization is normally considered procyclical in its present form (De Lisle Grissom, 2011); for this reason, an alternative approach to direct capitalization may be useful in the determination of a robust opinion of value. The valuation standards propose an alternative determination of terminal value in the discounted cash flow analysis, recommending that for cyclical assets, the terminal value should consider … “the cyclical nature of the asset and should not be performed in a way that assumes “peak” or “trough” levels of cash flows in perpetuity” (IVS 105 Valuation Approaches and Methods para 50.21 lett e).

The introduction in International Valuation Standards (IVS) of Cyclical Assets raises several questions for the community of real estate professionals and academicians (IVS, 2022, 105 Valuation Approaches and Methods para 50.09 lett d). Cyclical assets can be defined as property whose value is “influenced by upturn and downturn of the market in a significant way” (d’Amato et al., 2019).

The paper proposes different solutions to the problem. The determination of the exit value using cyclical capitalization allows for a prudent assessment of the value and may be used either as a valuation procedure or a risk analysis method.

The valuation comparison with the traditional valuation techniques will be based on an iteration of exit value in order to determine the effects of the valuation procedure on the opinion of value.

The implication of the valuation procedure is the introduction of a countercyclical valuation method to determine the exit value in order to reach stable and reliable valuations for income-producing properties.

These models may have a social implication, providing valuation for income-producing properties that may deal with the property market cycle in a more efficient way, providing efficient valuation for banks and institutions.

The paper is the first application of such a valuation procedure to the determination of exit value.

This paper aims to conduct an experiment that investigates the effect of the ambiguity present in international financial reporting standards (IFRS) on the judgments of auditors. This paper also examine the effects of the personality trait of ambiguity tolerance on judgments of auditors.

This paper conduct an experiment in which experienced Australian-based auditors are placed in hypothetical revenue recognition and lease classification decision contexts. The participants are members of the Australian accounting profession who are familiar with applying IFRS.

This paper find support for the perception that when the relevant IFRS are more ambiguous, auditors make less aggressive reporting judgments compared to when the IFRS are less ambiguous. The results also unveil a novel finding that auditors who are more tolerant of ambiguity are likely to choose the accounting treatment that best reflects the economic substance of a transaction when interpreting IFRS compared to those who are less tolerant of ambiguity.

These results would be of interest to policymakers and accounting researchers as they continue to contemplate a shift to more principles-based IFRS.

To the best of the authors’ knowledge, this study is the first to examine the influence of an individual’s ambiguity tolerance on financial reporting quality in jurisdictions that have adopted IFRS.

This paper aims at developing a multi-objective mathematical model of circular economy that integrates key concept of leasing as a strategy in addition to reuse, refurbishing, primary recycling, secondary recycling and disposal.

This paper proposes multi-objective fuzzy mixed integer linear programming mathematical model considering multi-product, multi-echelon and multi-capacitated concepts of the circular economy. The three objectives of the proposed model, namely, economic, environmental and social are solved simultaneously using constraint approach to obtain balanced trade-off between the objective functions. The model is validated by solving a case study from the literature. The proposed model is made pragmatic for industrial application by considering multi-external suppliers multi-customer zones, multi-disassembly centers, multi-collection centers and multi-refurbishing centers and accounting for purchasing, processing, transportation, set-up costs and capacity constraints at the same time.

The results show that the leasing of the products improves the economic function in addition to the known environmental improvements. The proposed model also shows that the circular economy can generate the jobs for the unskilled people at different locations.

The proposed model can be further improved by considering the non-linearity due to economy of scale at various centers and in transportation. The model can be further extended to make it multi-period model.

The proposed model of circular economy can be used by the organizations as a policy tool to decide the optimum number of collection centers, disassembly centers, refurbishing centers, recycling centers and disposal centers and their optimum locations and allocations. The organizations can also trade-off among economic, environmental and social benefits of their proposed decisions in circular economy.

The originality of the proposed mathematical model is consideration of leasing as a strategy to have better control over the supply chain for circularity; considering the training of unskilled people for backward supply chain jobs and accounting for primary recycling and secondary recycling separately for economical computation.

This paper aims to advance recent literature on the performativity of accounting by examining how project accounting affects a project organization’s ability to deliver a relevant project outcome, such as a product or a building, for a receiving client organization.

The paper draws on a longitudinal case study of a 41.4-billion-kroner (5.5-billion-euro) Danish project of constructing 16 new public hospitals. Its objective was to reduce the average unit costs and improve the quality of patient care. Each hospital construction was managed by a separate project organization and handed over to a separate receiving hospital organization. The project organizations applied a common approach to project accounting. The paper relies on Michel Callon’s concepts of performativity and sociotechnical agencement – approaching project accounting as an arrangement of devices.

The paper shows that the project-accounting agencement simultaneously supported and undermined the project organizations’ ability to deliver hospitals relevant to the receiving hospital organizations. The agencement performed hospital designs, disciplined project actors and guided decision-making, thus supporting the overall work of the project organizations. It also, however, compelled the project organizations to compromise on hospital designs when unexpected events occurred. These compromises led to the delivery of hospitals, which largely prevented the receiving hospital organizations from achieving the project’s objective.

This paper advances our limited understanding of the dynamic and complex relationship between project accounting and the relevance of project outcomes. It introduces the concept of a “contronymity device” to capture the way project accounting simultaneously produces two opposing consequences, both supporting and undermining the enactment of a particular reality. The paper lastly enriches our understanding of how project-accounting devices impact hospital organizations’ operating cost structures and challenge patient care capabilities.

The retail investment landscape in the UK has drastically changed. Understanding owners’ responses to this structural change is critical to gain insight into protecting investment performance. This paper identifies and evaluates the tactics and strategies being adopted.

This paper employs a mixed methods research approach, using data collected from semi-structured interviews with professionals involved in the retail investment process. This is supplemented by secondary market data analysis.

The paper assesses the practical responses made by retail property owners/managers, structured around emerging sub-themes. Actions include mitigating short-term risks through greater use of temporary tenants/licensees and independent retailers, preparing generic “white box” retail space to capture remaining tenant demand, exploiting the tenant mix to provide “the retail experience,” and applying new technologies and processes in a sector where systematic risk remains high. A new framework for retail asset management has been developed.

This study contributes to the retail asset management literature and understanding of the way the contemporary retail landscape is shaping investment management behaviour.

The developed framework provides guidance to real estate managers developing a retail real estate management strategy and will help them recognise tactics to better support the evolving retailing market.

The new framework adds new insights to understanding the process for managing retail assets and the actions necessary for asset managers to address economic/functional obsolescence and sustain asset investment values.

This paper aims to compare the Islamic financial accounting standards (IFAS) prevailing in Pakistan declared by the Securities and Exchange Commission of Pakistan (SECP) with accounting standards of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).

Both standards related to Islamic financial accounting have been thoroughly reviewed, compared and discussed to find out the differences and similarities, along with the depth needed to meet the needs of Islamic finance. 

AAOIFI accounting standards provide a comprehensive view of complex transactions, whereas SECP standards have limitations. The proposed recommendations aim to bridge the gap by conducting periodic reviews and revisions of IFAS prevailing in Pakistan to keep up with the dynamic nature of the Islamic finance industry.

The regulators should establish institutional arrangements for adapting AAOIFI accounting standards, enabling efficient and effective upgrading of existing accounting standards for Islamic financial institutions and alignment with international best practices.

There is a dearth of studies related to Islamic financial accounting in the context of Pakistan; this is one that contributes to this area.

This study aims to examine whether there are differences between financial statements prepared in accordance with International Financial Reporting Standards (IFRS) and financial statements prepared in accordance with local accounting standards in terms of its ability to present the financial conditions of companies listed on the Saudi Stock Exchange as one of the emerging markets.

Data on study variables were obtained from the published financial statements of 67 of listed companies in the Saudi Stock Exchange during the period 2014–2019. The study addressed the research hypotheses by using Altman Z-score model. Both the T-test and Wilcoxon rank test were used to investigate the significance of differences between the values of Z-score and the individual variables included in the model in the pre- and post-IFRS mandatory adoption periods.

The results revealed a decrease in the values of Z-score as well as the values of the individual variables included in the model in the period following the adoption of IFRS than it was before the adoption of IFRS, which indicates the ability of IFRS to show the financial conditions of companies more transparently than local accounting standards. However, the results of the T-test and Wilcoxon test showed that these decreases were not statistically significant.

This study has some limitations, including the small sample size as a result of the small size of the Saudi Stock Exchange, As well as the reliance of this study only on the Altman model with its five variables in assessing financial conditions without examining the impact of other factors that may affect the financial conditions of companies.

Financial conditions of the companies have important implications for multiple parties such as management, government, investors and others as an early warning sign that enables them to take the necessary measures early before the actual bankruptcy occurs and what results in costs.

Although assessing financial conditions of the companies is one of the basic uses of accounting information, this topic has not received sufficient attention as a means to test the benefits of adopting IFRS, especially in emerging markets such as Saudi Stock Exchange. This is the first study to examine the impact of adopting IFRS on the transparency of financial reporting in assessing financial conditions in Saudi Arabia.