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Pension rate estimates are important because they provide information to the market, and because they are useful in estimating future cash flows or for other analytical purposes. This is especially true now, because the economic environment has deteriorated to a point that many investors perceive increased uncertainty with respect to pension plans and the effect they have on future income. In fact, several authors in the popular financial press have speculated on the impact of such fundamental changes in pension assets, liabilities, and estimates. Often, however, these articles are sensational, and do not appear to appreciate fully the complexities of pension accounting. In order to model the economic impact of pension rate declines, we develop a two‐period analytical model of pension cost, which allows us to simulate future pension expense and its associated earnings impact using a triangular distribution of rate estimates. In addition, we model the incremental cash contributions required under these estimates in order to maintain the ratio of pension assets to liabilities at 100 percent. Our results indicate that while the pension expense effect is large in both periods across firms with small, mid‐sized and large pension plans, firms with large plans show the greatest increase in pension expense. Interestingly, however, the earnings impact is the smallest for firms with large plans in both periods. In addition, all firms face significantly increased cash funding requirements in order to prevent funding ratios (plan assets scaled by pension liabilities) from deteriorating. These results suggest not only future earnings reductions from pension rate declines, but also a potentially significant cash flow impact as well.

The purpose of this study is to explore the learning and teaching techniques that accounting professors use in their courses to educate students. In this chapter, we answer the following questions: (1) What methods are accounting faculty currently using in the classroom? (2) To what extent are active learning techniques being utilized relative to passive techniques? (3) What are the perceptions of accounting faculty regarding the use of active learning in the classroom?

To answer these questions, we conducted an Internet-based survey of accounting educators (n = 300). We found that, on average, passive learning methods (e.g., lectures) comprise approximately 50% of class time, active learning methods cover slightly more than 35% of class time, while assessment activities (e.g., exams) use about 15% of class time. Regarding faculty perceptions of the usefulness of various learning methods, we found that the faculty recommend the use of every learning method included in the survey at higher levels than are currently being used. Our findings provide a baseline profile of the current use of both passive and active learning methods in accounting and their perceived usefulness by accounting educators. This baseline should enable future research to track changes and trends in accounting pedagogy, particularly the learning and teaching techniques employed in the classroom.

Pressures to contain costs have given private hospitals the economic incentive to reduce provision of charity care services, shifting the burden onto governmental hospitals. Budget pressures on governmental units have produced resistance to any further shift in the charity care burden. We observe in a lawsuit (State of Texas vs. The Methodist Hospital) what appears to be a classic moral hazard situation. The government expects a certain (unspecified) level of charity care to be performed in exchange for tax exemption; hospital management allegedly consumes perquisites and overstates reported charity care figures. Both sides use accounting numbers to defend their positions.

The purpose of this paper is to review the literature concerning supply chain management technology (SCMT) and financial performance, and to present a model for evaluating the financial performance benefits of investments in supply chain management technologies. The literature review and the associated model also lead to a discussion of opportunities for future research in the area.

To develop the model, a comprehensive review of the literature investigating the financial performance benefits of SCMT and other closely‐related information technologies, such as inter‐organizational systems, was performed. Findings from the reviewed studies were assimilated and used as the basis for the proposed model and for recommended avenues of future research.

The literature reviewed suggested that financial performance improvements from SCMT investments are derived from improvements in knowledge‐intensive capabilities, which lead to improvements in operational capabilities, leading, in turn, to first‐ and second‐order benefits. The ability to realize benefits is also influenced by a firm's position within the supply chain and exogenous economic forces.

This paper contributes to the knowledge of how financial gains are realized as the result of investments in SCMT, and provides context within which future research efforts can be placed. Future research opportunities are also discussed.

Central to the Sarbanes–Oxley Act was a requirement that every company have an audit of its internal control over financial reporting. However, there were concerns that this requirement was overly burdensome, from a financial perspective, for small businesses. This concern promoted several delays in enforcing the law for small companies and ultimately caused congress to permanently exempt small businesses. Yet, there are some small companies that voluntarily elect to comply with the law. The purpose of this paper is to explore why these companies elect to incur these costly audits.

Using a sample of 5,834 non-accelerator US firms, this paper uses a robust logistic regression model to examine why some firms comply voluntary with SOX Section 404(b).

This study shows that small companies getting audits of internal controls may be doing so to restore investor confidence after reporting failures, to appear credible prior to raising funds, as a response to organizational changes, or in anticipation of being required to comply.

This study provides regulators with an improved understanding of when it is necessary to implement mandatory rather than voluntary guidance.

This study is the first to document why a client would voluntarily comply with SOX Section 404 (b).

In 1997, the Securities and Exchange Commission (SEC) issued new disclosure rules in an amendment to Regulation S‐X. This release requires the disclosure of both qualitative and quantitative information about market risk by all companies registered with the SEC for annual periods ending after 15 June 1998. Larger companies, with market capitalizations in excess of $2.5 billion, banks, and thrifts were required to apply the regulation’s provisions for annual periods after 15 June 1997. This paper presents results of an analysis of the market risk disclosures by the Dow 30 companies for 1997. The provisions of the amendment requiring the disclosure of qualitative information about market risk by were generally followed by all of the companies contained in the DOW 30. Compliance with the other aspects of the amendment was mixed. These failures might be attributed to confusion over the provisions of the amendment. The results of this study indicate that further evidence is needed on the ability of companies to follow the provisions of the amendment.

The Commission appointed jointly by the World Health Organization and the Food and Agricultural Organization continues to plod its weary way towards the establishment of Codex standards for all foods, which it is hoped will eventually be adopted by all countries, to end the increasing chaos of present national standards. We have to go back to 1953, when the Sixth World Health Assembly showed signs of a stirring of international conscience at trends in food industry; and particularly expressed “the view that the increasing use of various chemical substances had … , created a new public health problem”. Joint WHO/FAO Conferences which followed initiated inter alia international consultations and the setting up of the Joint FAO/WHO Codex Alimentarius Commission.

Drawing on the International Auditing and Assurance Standards Board (IAASB) audit quality framework and related knowledge management literature, this study aims to examine the influence of tacit knowledge sharing on audit quality inputs within small audit firms’ realm. It also investigated auditors’ social capital antecedent effect via tacit knowledge sharing on audit quality inputs.

An integrated model was developed to depict the study constructs’ relationships. The model was then tested using the partial least squares structural equation modelling based on data collected from auditors belonging to small audit firms in Jordan.

The results indicate that tacit knowledge sharing influences positively the auditors’ values, ethics, attitudes, experiences, skills and knowledge (i.e. audit quality inputs). This finding implies that active tacit knowledge sharing within a small audit firm is a strong driver for audit quality through improving its inputs. The results also demonstrate that structural, relational and cognitive social capital indirectly affect audit quality inputs through tacit knowledge sharing. Accordingly, social capital can be viewed as an audit firm resource that can smooth auditors’ tacit knowledge-sharing progress.

The IAASB encourages audit firms to explore ways to boost audit quality. This study offers empirical evidence on the influence of tacit knowledge sharing on audit quality inputs as a way to boost audit quality. It also offers insights into the value of social capital dimensions and indicates the driving forces to make auditors willing to engage in tacit knowledge sharing and, as a result, improve audit quality inputs.