Search results

1 – 10 of over 4000
Case study
Publication date: 9 December 2021

Zaimah Abdullah, Hasnah Shaari, Sitraselvi Chandren and Arifatul Husna Mohd Ariff

The teaching case is designed to be used by students in higher education institutions at the undergraduate level. This case may also be relevant for staff at the bursary…

Abstract

Study level/applicability

The teaching case is designed to be used by students in higher education institutions at the undergraduate level. This case may also be relevant for staff at the bursary departments of any public universities or public organizations that have biological assets.

Case overview

This case provides a study on agricultural activity at Universiti Pengurusan Malaysia (UNIPM). The purpose of this case is to create greater awareness for case users on the accounting framework and on methods recommended for recording specific assets in agricultural activity, i.e., biological assets. This case provides users with experience in explaining the nature of an organization’s agricultural activities and accounting for biological assets as recommended in the Malaysian accounting framework. In addition, users are exposed to some current issues in accounting standards, such as ethical issues. In this case, Fakhrul, an accountant at UNIPM and a leader of the Asset Unit, was responsible for reporting the value of all UNIPM’s assets, including biological assets. He was instructed to accurately recognize, measure, and disclose the value of biological assets according to the appropriate accounting standard. Furthermore, UNIPM had been urged to replace the existing accounting standard of the Malaysian Private Entity Reporting Standard (MPERS) with the Malaysian Public Sector Accounting Standard (MPSAS). Fakhrul was considering how to account for and report biological assets according to the new MPSAS. This case is a decision making or ‘unfinished’ case which is suitable for financial accounting and reporting courses. The names of the people and the university are fictitious, but the details were based on actual events. A series of interviews were conducted with the key players to gather the data. Other useful documents such as the university’s annual report, university’s website and the deer reports were also referred.

Expected learning outcomes

The primary objective of this teaching case is to provide an opportunity for case users to understand both the accounting framework and the methods recommended for recording specific assets in agricultural activity. More specifically, the teaching objectives of this case are to achieve the following learning outcomes: to identify the relevant accounting standard for recognizing, measuring, reporting, and disclosing biological assets by public universities in Malaysia, to apply the appropriate accounting treatment in recognizing, measuring, reporting, and disclosing biological assets in accordance with the appropriate accounting standard for public universities in Malaysia and to understand the ethical issues involved in deer valuation methods.

Supplementary materials

Teaching notes are available for educators only.

Subject code

CSS 1: Accounting and finance.

Details

Emerald Emerging Markets Case Studies, vol. 11 no. 4
Type: Case Study
ISSN: 2045-0621

Keywords

Article
Publication date: 1 February 2002

Roger L Burritt and Lome S Cummings

The purpose of this paper is to address, via a case study, some of the key measurement issues within environmental accounting, in particular the methods used to measure threatened…

Abstract

The purpose of this paper is to address, via a case study, some of the key measurement issues within environmental accounting, in particular the methods used to measure threatened and endangered wildlife. This study examines the accounts of Earth Sanctuaries Ltd, a listed conservation company in Australia over a seven year financial reporting period beginning in 1995 and ending in 2001, a period both prior and subsequent to, the implementation of Australian Accounting Standard AASB 1037 — Self Generating and Re‐Generating Assets (SGARA s), which sought to recognise the value of biological assets within financial statements. In particular the study examines these values in light of the conceptual framework qualitative characteristics of relevance and reliability. The study concludes that because of the current Commonwealth policy of non‐trade in wildlife, and the consequent absence of an active and liquid market for trade in these assets, efforts to provide legitimacy to the environmental cause are hampered, and questions raised over the surrogate measurement base used to value the assets.

Details

Asian Review of Accounting, vol. 10 no. 2
Type: Research Article
ISSN: 1321-7348

Article
Publication date: 12 November 2018

Andrain Hadiyanto, Evita Puspitasari and Erlane K. Ghani

This study aims to examine the relationship between accounting measurement method of biological asset and financial reporting quality. Specifically, this study examines whether…

1368

Abstract

Purpose

This study aims to examine the relationship between accounting measurement method of biological asset and financial reporting quality. Specifically, this study examines whether using fair value method or the historical cost method on biological asset provides different financial reporting quality.

Design/methodology/approach

This study uses data from 38 agricultural companies that are members of the Roundtable on Sustainable Palm Oil. The annual reports of 38 companies from the Palm Oil Growers over a five-year period starting from 2011 to 2014 are analysed.

Findings

This study shows that companies using historical cost measurement produce less reliable and less relevant information compared to the companies that are using fair value measurement.

Research limitations/implications

The results in this study imply that the use of fair value measurement improves the quality of financial information.

Practical implications

This study supports IASB’s justification of developing IAS 41 as the principle-based standard that better represents the financial information related to biological asset and subsequently lead to good accountability and harmonisation practices.

Originality/value

This study provides evidence on the best measurement to be used in agriculture activities using a larger sample size of few countries. In addition, this study contributes to the existing literature on the effect of accounting methods on financial reporting quality.

Details

International Journal of Law and Management, vol. 60 no. 6
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 6 February 2017

Md Moazzem Hossain

This paper aims to respond to recent calls by Jones (2014) and Jones and Solomon (Accounting, Auditing & Accountability Journal, 2013) for more studies on biodiversity accounting…

Abstract

Purpose

This paper aims to respond to recent calls by Jones (2014) and Jones and Solomon (Accounting, Auditing & Accountability Journal, 2013) for more studies on biodiversity accounting and reporting. In particular, this paper explores biodiversity reporting of the Murray-Darling Basin Authority (MDBA), an Australian public sector enterprise.

Design/methodology/approach

The paper uses content analysis of MDBA’s published annual reports over the period of 15 years (1998-2012). Archival data (from different government departments) are also used to prepare natural inventory model.

Findings

The paper finds that although specific species, such as flora and fauna, and habitats-related disclosures have increased over the time, such information still allows only a partial construction of an inventory of natural assets, using Jones’ (1996, 2003) model. However, unlike prior studies that find lack of data availability to be the main impediment for operationalising biodiversity accounting, the abundance of biodiversity data in Australia makes it comparatively easier to produce such a statement.

Research limitations/implications

Informed by the environmental stewardship framework, the results of this paper suggest that the disclosures made by MDBA are constrained potentially due to its use of traditional accounting mechanisms of reporting that only allow tradable items to be reported to stakeholders. An alternative reporting format would be more relevant to stakeholder groups who are more interested in information regarding quality and availability of water, and loss of biodiversity in the basin area rather than the financial performance of the MDBA.

Originality/value

Although there are a growing number of studies exploring biodiversity reporting in Australia, this paper is one of the earlier attempts to operationalise biodiversity (particularly habitats, flora and fauna) within the context of an Australian public sector enterprise.

Details

Pacific Accounting Review, vol. 29 no. 1
Type: Research Article
ISSN: 0114-0582

Keywords

Article
Publication date: 5 May 2015

Sue Ogilvy

The purpose of this paper is to suggest a practical means of incorporating ecological capital into the framework of business entities. Investors and shareholders need to be…

2779

Abstract

Purpose

The purpose of this paper is to suggest a practical means of incorporating ecological capital into the framework of business entities. Investors and shareholders need to be informed of the viability and sustainability of their investments. Ecological (natural) capital risks are becoming more significant. Exposure to material risk from primary industry is a significant factor for primary processing, pharmaceutical, textile and the financial industry. A means of assessing the changes to ecological capital assets and their effect on inflows and outflows of economic benefit is important information for stakeholder communication.

Design/methodology/approach

This paper synthesises a body of literature from accounting, ecological economics, ecosystem services, modelling, agriculture and ecology to propose a way to fill current gaps in the capability to account for ecological capital. It develops the idea of the ecological balance sheet (EBS) to enable application of familiar methods of managing built and financial capital to management of ecological assets (ecosystems that provide goods and services).

Findings

The EBS is possible, practical and useful. A form of double-entry bookkeeping can be developed to allow accrual accounting principles to be applied to these assets. By using an EBS, an entity can improve its capability to increase inflows and avoid future outflows of economic benefit.

Social implications

Although major efforts are under-way around the world to improve business impact on natural resources, these efforts have been unable to satisfactorily help individual businesses elucidate the practical economic and competitive advantages conferred by investment in ecological capital. This work provides a way for businesses to learn about what the impact of changes to ecological assets has on inflows and outflows of economic benefit to their enterprise and how to invest in ecological capital to reduce their enterprise’s material risk and create competitive advantage.

Originality/value

No one has synthesised knowledge and practice across these disciplines into a practical approach. This approach is the first demonstration of how ecological assets can be managed in the same way as built capital by using proven practices of accounting.

Details

Sustainability Accounting, Management and Policy Journal, vol. 6 no. 2
Type: Research Article
ISSN: 2040-8021

Keywords

Article
Publication date: 17 September 2019

Christopher Nobes

The purpose of this paper is to provide “Comments” on two previous papers in this journal about fair value in Chinese accounting. It extends those papers by considering…

Abstract

Purpose

The purpose of this paper is to provide “Comments” on two previous papers in this journal about fair value in Chinese accounting. It extends those papers by considering developments since 2006.

Design/methodology/approach

The paper analyses the contents of Chinese Accounting Standards, dividing the references to fair value into several different categories. This analysis is compared to the findings of the two previous papers. This paper then re-assesses the evidence about the alleged pressures from international institutions on Chinese accounting.

Findings

The two previous papers greatly overstate the importance of fair value in Chinese accounting, partly through misinterpreting Chinese standards and partly because of a lack of caveat that the instructions about fair value often relate to special circumstances or unusual companies. The theorising about Chinese enthusiasm for fair value is misguided: the present author suggests that China became keen to adopt international standards despite their use of fair value not because of it, and that China removed much of the fair value when it adapted international standards. The extension of the analysis beyond 2006 provides a fuller coverage but does not alter the conclusions.

Research limitations/implications

The earlier of the two papers examined has been extensively cited. Researchers need to be warned that the technical content and the conclusions of both papers are questionable. Authors should define terms clearly and should provide sufficient reference detail to enable readers to check findings.

Practical implications

Multinational companies, auditors and financial analysts should not be misled into thinking that Chinese accounting makes extensive use of fair value accounting.

Originality/value

This paper critically re-assesses two previous papers, starting with detailed technical data and moving through to the influence of international institutions. This paper also newly extends the analysis of Chinese standards beyond 2006.

Details

Accounting, Auditing & Accountability Journal, vol. 33 no. 1
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 4 October 2018

Shaul Hayoun

The purpose of this paper is to contribute to the discussion on the non-essence of accounting by focusing on financial accounting’s distinct technology: financial statements…

Abstract

Purpose

The purpose of this paper is to contribute to the discussion on the non-essence of accounting by focusing on financial accounting’s distinct technology: financial statements. Complementing the genealogical perspective on accounting’s changing socio-historical settings, it proposes a semiotic perspective on the accounting statement.

Design/methodology/approach

The paper takes an interdisciplinary approach in the theoretical framing of IFRS recognition and measurement principles that underlie the statement of financial position. It mobilises Saussure and Barthes’ sign theory – semiology, as it provides a meaningful delineation of financial accounting, bringing out its distinct numerical-linguistic knowledge-construction operation.

Findings

In addition to the justification of employing semiology as a parent discipline for accounting, it is shown how IASB’s recognition and measurement procedures manifest the interrelated non-essentialist semiological principles of reciprocal articulation and value constellation. Accounting entries (“expression”) are not representations of pre-existing economic resources (“content”), but rather both are mutually constituted by delimiting the resource/asset from its broader category. Such judgment-based articulation results with value constellations, where asset value is merely a relational product of other values.

Originality/value

To the long-established critique that accounting has no essence, the paper adds a formulation of a non-essentialist semiotic logic: the financial statement’s semio-logic. It further sheds light on the role of such logic as an epistemological presupposition to the accounting – society reciprocity, where accounting is a malleable product of, and is used to exert power over, its social surroundings.

Details

Accounting, Auditing & Accountability Journal, vol. 31 no. 7
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 1 February 2022

Xiangfeng Chen, Chenyu Wang and Shuting Li

Agriculture and cultivation firms are facing severe competition in the saturated market. Due to the characteristics of heavy assets, low investment return, long cycle and high…

1995

Abstract

Purpose

Agriculture and cultivation firms are facing severe competition in the saturated market. Due to the characteristics of heavy assets, low investment return, long cycle and high price fluctuation, agri-food firms require innovations for capital support. The purpose of this paper is to provide valuable insights on how firms in the food/agricultural industry approach innovations and reinforce their advantages through functional and structural innovations by adopting supply chain finance (SCF).

Design/methodology/approach

This research adopts a single-case study methodology to investigate the innovations and mechanisms taking place at H Corp Agriculture Group (H Corp hereafter), a Chinese egg company.

Findings

The findings of this paper indicate that SCF could have a great impact on supply chain management through functional and structural innovations throughout the supply chain and solve the capital constraint problems in the agricultural development process, promoting the implementation of the integration strategy as well as innovation in the agricultural industry chain. The research also shows that supply chain structural and functional innovations could promote corporate social responsibility (CSR) and creating shared value (CSV).

Research limitations/implications

The research contributes to the application of SCF mechanisms and the realization of CSV and CSR jointly – both in the literature and in firms’ practices. It also contributes to the extension of structural and functional innovations and vertical integration of the supply chain. However, generalizability and universality are insufficient for a single case study in the specified industry. Data collection and quantitative analysis could be extended for further research.

Originality/value

The study addresses the need for comprehensive research on SCF and its applications. It proposes effective and efficient strategies for agri-food firms applying SCF to overcome industry capital constraints and develop competitiveness. It also provides a balanced and positive circulation between economic value and social value, realizing CSR and CSV.

Details

Supply Chain Management: An International Journal, vol. 28 no. 2
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 1 February 2008

Brendan McSweeney

The purpose of this paper is to examine the claim that the pursuit of maximum value (wealth) for shareholders optimises economic and social benefits for society as a whole.

4423

Abstract

Purpose

The purpose of this paper is to examine the claim that the pursuit of maximum value (wealth) for shareholders optimises economic and social benefits for society as a whole.

Design/methodology/approach

Evidence cited in support of the claim and the methodology employed by its supporters are examined. Counter‐evidence from a wide range of disciplines, including accounting, economics, finance, and medical sociology, is considered.

Findings

The evidence does not support the claim. Bias and severe methodological flaws in its supporters' research is revealed. Considerable evidence of adverse consequences is identified.

Originality/value

This paper draws from an unusually wide range of disciplines to expose the fallacy and a number of powerful myths about the economic and social benefits of making maximizing shareholder value the primary aim of corporate governance.

Details

Critical perspectives on international business, vol. 4 no. 1
Type: Research Article
ISSN: 1742-2043

Keywords

Article
Publication date: 7 September 2010

Ioannis Tsalavoutas and Lisa Evans

The paper aims to explore the impact of the transition to International Financial Reporting Standards (IFRS) on Greek listed companies' financial statements with a focus on net…

4304

Abstract

Purpose

The paper aims to explore the impact of the transition to International Financial Reporting Standards (IFRS) on Greek listed companies' financial statements with a focus on net profit, shareholders' equity, gearing and liquidity. It also seeks to examine any differences in the impact across the sub‐samples of companies with Big 4 and non‐Big 4 auditors.

Design/methodology/approach

In line with recent literature, the paper employs Gray's comparability index. The sample consists of 238 Greek companies, representing 75 per cent of the companies listed on the Athens Stock Exchange at the end of March 2006.

Findings

Implementation of IFRS had a significant impact on financial position and reported performance as well as on gearing and liquidity ratios. On average, impact on shareholders' equity and net income was positive while impact on gearing and liquidity was negative. Only companies with non‐Big 4 auditors faced significant impact on net profit and liquidity. They also faced a significantly greater impact on gearing than companies with Big 4 auditors. A large number of companies with material negative changes is identified, suggesting that transition to IFRS and the fair value option does not necessarily result in higher shareholders' equity figures. Many companies provided inadequate transitional disclosures. This is significantly related to auditor size.

Practical implications

The findings suggest that reporting quality has improved under the new accounting regime, especially for companies with non‐Big 4 auditors.

Originality/value

Prior literature indicates that the impact revealed in companies' reconciliation statements can have significant effects on users' decision making. On that basis, the study can stimulate future research and is relevant to standard setters and regulators.

Details

Managerial Auditing Journal, vol. 25 no. 8
Type: Research Article
ISSN: 0268-6902

Keywords

1 – 10 of over 4000