Search results

This paper examines accounting harmonisation and determinants explaining accounting measurement policy choice decisions by Asia‐Pacific listed manufacturing companies. Using Thomas' (1991) theoretical framework, four contingent variables (country of reporting, company size, profitability and debt leverage) are examined as possible determinants of firms' accounting choices concerning non‐current asset valuation measurement base, goodwill and depreciation. 130 listed manufacturing companies' annual reports were examined from Australia, Hong Kong, Indonesia, Malaysia, and Singapore. This study involves two phases. The first phase evaluates accounting harmonisation measurement indices in comparison with the extant literature. An important innovation is the operationalisation of Archer et. al. (1995) between‐country and within‐country C indices. Computed comparability indices indicated variations in the level of harmony across the five countries for all three accounting measurement practices. The second phase employed logistic regression to examine possible determinants of accounting policy choice decisions. Such a combined research approach should lead to a better understanding of de facto accounting harmonisation and practices.

Multidisciplinary business process management (BPM) research can reap significant impact. We can particularly benefit from incorporating accounting concepts to address some of the key BPM challenges, such as value-creation and return on investment of BPM activities. However, research which addresses a relationship between BPM and accounting is scarce. The purpose of this paper is to provide a detailed synthesis of the current literature that has integrated accounting aspects with BPM. The authors profile and thematically describe existing research, and derive evidence-based directions to guide future research.

A multi-staged structured literature review approach to search for the two broad themes, accounting and BPM, supported by NVivo (to manage the papers and the coding and analysis processes) was designed and followed.

The paper confirms the dearth of work that ties the two disciplines, despite the synergetic multidisciplinary results that can be attained. Available literature is mostly from the management accounting perspective and relates to describing how performance management, in particular performance measurement, can be applicable to process improvement initiatives together with tools such as activity-based costing and the balanced scorecard. There is a lack of research that examines BPM in relation to any financial accounting perspectives (such as external reporting). Future research directions are proposed together with implications for practitioners with the findings of this structured literature review.

The paper provides a detailed synthesis of the existing literature on the nexus between accounting and BPM. It summarizes the implications for practitioners and provides directions for future research by identifying key gaps and opportunities with a sound contextual basis for extension and new work.

Effective literature reviews create strong foundations for future research and accumulate the otherwise scattered knowledge into a single place. This is the first structured literature review that provides a detailed synthesis of the research that ties together the accounting and BPM disciplines, providing a basis for future research directions together with implications for practitioners.

The aim of this paper is to bridge the gap between the organizational effectiveness (OE) models developed in the field of organizational theory and the performance measurement models presented within the management accounting literature. The specific evolution of these two complementary streams of research stemming from two different fields of research are reconciled and integrated by analyzing their convergences and divergences. As a response to theoretical and practical pressures, the evolution of OE models reflects a construct perspective, while the evolution of performance measurement models mirrors a process perspective. Performance measurement models have moved from a cybernetic view whereby performance measurement was based mainly on financial measures and considered as a component of the planning and control cycle to a holistic view based on multiple nonfinancial measures where performance measurement acts as an independent process included in a broader set of activities. This paper contributes to the performance measurement literature by establishing the origins of the performance measurement models and by shedding light on unexplored fertile areas of future research.

This study examines (1) the extent of key audit matters (KAMs) reported by auditors is related to accounting estimates, (2) whether measurement uncertainty and management bias affect auditors to do so and (3) whether the use of accounting estimates, given the measurement uncertainty and management bias reported in KAMs adversely affects the decision usefulness of accounting information.

Data on key audit matters, accounting estimates, measurement uncertainty, management bias, etc. were collected from the auditor's reports of 351 sample Chinese listed firms. It employs regression analyses to assess the hypotheses on issues affecting the report of these key audit matters and the impacts on the decision usefulness of accounting information.

Fair value and impairment loss estimations make up of 2.6 and 44.1% of the 606 KAMs identified, respectively. Measurement uncertainty is positively, while management bias is negatively, affecting auditors report KAMs related to accounting estimates. The use of accounting estimates in firms where their auditors reported the KAMs related to accounting estimates does not enhance the value and predictive relevance of reported earnings. The assurance works on, and reporting of, KAMs served as a “red flag” about the accounting estimates.

The use of accounting estimates does not always lead to enhanced decision-useful accounting information. Auditors, in their stewardship role, shall ensure that the measurement uncertainty issue is appropriately identified, addressed and verified. In addition, they shall provide an effective check-and-balance to the accounting discretion managers have in providing decision-useful information from opportunistic reporting.

This study examines the proposition that while the use of estimates can enhance the decision usefulness of accounting information, it can also induce measurement uncertainty and management bias into financial reporting.

This study seeks to explore the powerful role(s) of institutionalised performance measurement systems or metrics in smart city governance in a politically and militarily sensitive developing country.

This study extends the application and contribution of a multi-level institutional framework to previous management accounting literature on the potential relationship between performance measurement and smart city governance. The value of utilising a multi-level framework is to broaden and deepen theoretical analyses about this relationship to include the effect of political pressure from the military regime at the macro level on the institutionalisation of a performance measurement system at the micro-organisational level. Taking the New Cairo city council smart electricity networks project (Egypt) as an interpretive qualitative single-case study, data collection methods included semi-structured interviews, direct observations and documentary readings.

Performance measurement systems or metrics, especially in politically and militarily sensitive smart cities, constitutes a process of cascading (macro-micro) institutionalisation that is closely linked to sustainable developments taking place in the wider arena of urban policies. Going a step further, accounting-based performance metrics, arising from political and military pressures towards public-private collaborations, contribute to smart city management and accountability (governance). Institutionalised measurement systems or performance metrics play a powerful accounting role(s) in shaping and reshaping political decisions and military actions in the city council.

Theoretically, this study goes beyond the cascading institutionalisation process by arguing for the powerful role(s) of institutionalised accounting and performance measurement systems in smart city decision-making and governance. Empirically, it enriches previous literature with a case study of a developing Arab Spring country, characterised by an emerging economy, political sensitivity and military engagement, rather than developed and more stable countries that have been thoroughly investigated. It is also among the first politically engaged accounting case studies to highlight public-private collaborations as a recent reform in public sector governance and accountability.

This paper aims to examine whether the level of harmonization of accounting measurement practices in three South Asian countries – Bangladesh, India and Pakistan – has improved since 1998 as a result of the changes, in recent years, globally in accounting measurement practices due to the substantial efforts of the International Accounting Standards Board (IASB). South Asian countries have taken a number of steps and made changes in accounting regulations to support the IASB’s harmonization programme.

In all, 370 non-financial companies for the financial years 1997-1998 and 2007-2008 were used, and consistent with Ali et al. (2006), Van der Tas’s (1988) I index and Archer et al.’s (1995) modified C index were used to measure the extent of harmonization.

It was found that the level of measurement harmonization has significantly improved over the years in selected South Asian countries.

The results suggest that the harmonization of accounting will most likely ensure a greater level of transparency and uniformity in corporate reporting practices (measurement) in South Asian countries and throughout the world as promoted by the IASB.

The purpose of this paper is to examine and depict the advantages and disadvantages connected to the fair value, providing the reader with objective information and thorough insight into the problems and benefits of fair value. Partial objectives of this paper are to define the concept of fair value, to provide information about theoretical background and evolution of fair value and to examine and describe the possible future development of fair value.

Findings in the paper are based on study of existing literature and also on study using the open-ended approach of grounded theory, including 50 interviews and two group discussions with professional accountants dealing with the fair value accounting in practice.

According to the advantages and disadvantages of the concept of fair value in accounting, it is quite obvious and clear that this concept is far from being perfect. It is very difficult to determine whether its contribution to the improvement of accounting is really beneficial. Although the fair-value discussion seems to be far from over now, the current crisis provided an interesting setting to further explore these issues, understand them better and hopefully urge responsible institutions to fix the imperfections within the system to make it work correctly and more effectively.

Because of the chosen research approach, the research results may lack generalisability. Therefore, researchers are encouraged to test the proposed propositions further.

This paper highlights that historical cost and fair value accounting must not be considered as competitors, as they serve different purposes. Knowledge of fair value is important, although it is not enough. Users also need to know the cost of the investment. In fact, knowing how much resources have been sacrificed to obtain that fair value, they could effectively evaluate stewardship. As a consequence, the adoption of a dual measurement and reporting system should be considered and discussed at a standard setting level.

This paper fulfils an identified need to study how fair value accounting can be useful in the future.

This introductory chapter elaborates on the tricky issue of measurement in public sector financial reporting, which arises due to the particular features of the public sector when compared to the private sector. It provides a summary of the book chapters, highlighting the theoretical/practical frameworks used, methodologies and conclusions. Three themes are identified in the book, namely, (a) frameworks and methodologies; (b) measuring and reporting the elements in financial statements; and (c) heritage. This chapter identifies important avenues for further research.

Accounting comparability has been the subject of significant interest in empirical financial accounting research. Recent literature, particularly that following De Franco et al.’s (2011) influential study, has focused on utilizing the output of the financial reporting process to measure accounting comparability. In this paper, we conduct an early survey of studies using output-based measures of comparability. We provide two distinct contributions to the literature. First, we describe and comment on four important measurement concepts as well as the studies that introduced them. With this methodological contribution, we aim to facilitate the measurement choice for empirical accounting researchers engaged in comparability research. Second, we classify the sub-streams of literature and related studies. In providing this content-related contribution, we sum up what has already been achieved in output-based accounting comparability research and highlight potential areas for prospective research. As a whole, our study attempts to guide empirical researchers who (plan to) undertake studies on accounting comparability in selecting relevant topics and choosing adequate approaches to measurement.