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21 – 30 of over 44000This chapter explores the link between virtue and representational faithfulness in making judgments in a principles-based environment. The motivation for the chapter is the…
Abstract
This chapter explores the link between virtue and representational faithfulness in making judgments in a principles-based environment. The motivation for the chapter is the impending adoption of International Financial Reporting Standards (IFRS) in the United States and its principles-based approach to accounting. Even in a rules-based system, there are principles that provide a foundation for making decisions about the selection and implementation of accounting standards, financial statement presentation, estimates, and the sufficiency of evidence. A model is presented that reflects these judgments informed by virtue considerations that support substance over form decisions and a true and fair view. Implications for accounting education are discussed including the readiness of faculty to incorporate IFRS into the curriculum.
The purpose of this paper is to analyse the current developments to “mainstream” and standardise sustainability reporting and the consequences of those changes. Those changes give…
Abstract
Purpose
The purpose of this paper is to analyse the current developments to “mainstream” and standardise sustainability reporting and the consequences of those changes. Those changes give rise to the colonisation of sustainability reporting through the adoption of financial reporting concepts.
Design/methodology/approach
This research draws on critical theory, particularly the work of Foucault, to understand the dynamics of accounting change. This approach provides an alternative to the current narrative that the concepts that underpin reporting are universal and timeless.
Findings
It is suggested that if the aim of mandatory sustainability reporting is to promote companies adopting sustainable business models, then it must properly reflect the context of the company. Both transactive and relationship information is critical to providing an account that can be used to judge the performance of the corporation beyond its production of short-term net positive cash flows.
Practical implications
The design of standard setting arrangements for sustainability reporting needs to recognise that it may be unhelpful to simply adopt financial reporting concepts for the purposes of directing corporate behaviour towards sustainable development.
Social implications
Continuing to adopt a view of the corporation as a nexus of contracts with no clear accountability to stakeholders is likely to stymie efforts to deal with the environmental and social crisis facing people and planet.
Originality/value
Whilst other works have considered the development of sustainability reporting, to the best of the author’s knowledge, this is the first study to consider the impacts of “mainstreaming” it within mandatory corporate reporting.
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Timothy Eccles and Andrew Holt
The unique characteristics of property are being recognised by those who create accounting standards. The purpose of this paper it to discuss the process by which standards are…
Abstract
Purpose
The unique characteristics of property are being recognised by those who create accounting standards. The purpose of this paper it to discuss the process by which standards are created and the opportunities for the involvement of property professionals, owners and users within the standard‐setting regime. In particular the paper seeks to draw attention to the shift towards International Accounting Standards.
Design/methodology/approach
The paper is an explanation and discussion of the UK standard‐setting regime.
Findings
The paper explains the UK standard‐setting regime, introducing the shift towards International Accounting Standards.
Research limitations/implications
The work explains the ideologies and principles forming the theoretical foundations of the conceptual framework of UK accounting. Specific issues are not discussed, and are the subject of further work by the authors.
Practical implications
It is imperative for the surveying profession and wider property owners to be involved with the creation of accounting standards in order to ensure that property issues are reflected within them. This paper establishes the basic framework to assist them to do this.
Originality/value
Property professionals have traditionally tended to have been overlooked or ignored the consultation processes to establish new accounting standards. The paper establishes a platform to encourage them to become more involved.
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Indrit Troshani, Joanne Locke and Nick Rowbottom
Corporate reporting infrastructure and communication are being transformed by the emergence of digital technologies. A key element of the digital accounting infrastructure…
Abstract
Purpose
Corporate reporting infrastructure and communication are being transformed by the emergence of digital technologies. A key element of the digital accounting infrastructure underpinning international corporate reporting is the IFRS Taxonomy, a digital representation of international accounting standards that is required by firms to produce digital corporate reports. The purpose of this paper is to trace the development, governance and adoption of the IFRS Taxonomy to highlight the implications for accounting practice and standard-setting.
Design/methodology/approach
The authors mobilise Actor Network Theory and a model of transnational standardisation to analyse the process surrounding the formation and diffusion of the IFRS Taxonomy as a legitimate “reference” of the IFRS Standards. The authors trace the process using interview, observation and documentary evidence.
Findings
The analysis shows that while the taxonomy enables IFRS-based reporting in the digital age, tensions and detours result in the need for a realignment of the perspectives of both accounting standard-setters and taxonomy developers that have transformative implications for accounting practice and standard-setting.
Originality/value
The study explains how and why existing accounting standards are transformed by technology inscriptions with reflexive effects on the formation and diffusion of accounting standards. In doing so, the paper highlights the implications that arise as accounting practice adapts to the digitalisation of corporate reporting.
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Frias Aceituno, José Valeriano, Rodriguez Bolivar and Manuel Pedro
The majority stockholders are not the same as parent company stockholders in a consolidated entity when one or more subsidiaries own parent company’s shares. In this milieu, the…
Abstract
The majority stockholders are not the same as parent company stockholders in a consolidated entity when one or more subsidiaries own parent company’s shares. In this milieu, the allocation of income could be performed: a) among majority and minority stockholders; b) among parent company stockholders and minority stockholders. Considering minority interest as a component of the consolidated equity, this paper demonstrates how the criterion used to allocate income can influence on the consolidated financial statements and, thereby, analysis based these financial statements.
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The purpose of this article is to develop a nonprofit integrated social accounting (NISA) model that takes into account the particular objectives of nonprofit organizations…
Abstract
The purpose of this article is to develop a nonprofit integrated social accounting (NISA) model that takes into account the particular objectives of nonprofit organizations (achieving their mission and remaining viable as an organization), their specific characteristics (e.g., the engagement of volunteers), and their economic, social and environmental impacts. The conceptual framework includes defining social accounting, setting the boundaries of the reporting entity, identifying the objectives of nonprofit reporting, identifying the users of the accounts and their information needs, and considering the questions that have to be answered in order to know if the organization is achieving its goals. From the conceptual framework, the NISA model is developed, incorporating four elements: (1) economic and human resources; (2) economic, social and environmental value creation; (3) internal systems and processes; and (4) organizational learning, growth and innovation. Overall, the model provides a mechanism to address both functional and strategic accountability concerns of the organization, its effectiveness and efficiency, and to drive behavior through feedback and readjustment. In this way, accounting plays an important role in shaping the ‘reality’ of the organization.
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Jeltje van der Meer‐Kooistra and Ed Vosselman
The purpose of this paper is to discuss how practical relevance of management accounting knowledge relates to research paradigms and theoretical pluralism.
Abstract
Purpose
The purpose of this paper is to discuss how practical relevance of management accounting knowledge relates to research paradigms and theoretical pluralism.
Design/methodology/approach
The paper is conceptual in nature.
Findings
As the management accounting discipline is considered to be an applied discipline, a number of authors claim that management accounting research should develop relevant theory that can be used in practice. This call for increased practical relevance of management accounting knowledge interrelates with a debate on the desirability of theoretical pluralism and paradigm diversity in management accounting research. Drawing on the work of Nicolai and Seidl, the paper distinguishes different forms of practical relevance, and analyses the effects of theoretical pluralism on these different forms. The paper argues how theoretical pluralism particularly enhances relevance in a conceptual sense rather than an instrumental sense. The conceptual relevance of research may further be enhanced by interpretive research that acknowledges complexity and that has the potential to challenge the performativity of mainstream management accounting knowledge, without challenging the pursuit of efficiency as such. This is different from critical research. The instrumental relevance stemming from mainstream management accounting research entails de‐contextualization and simplification, and might create unintended self‐fulfilling prophecies.
Research limitations/implications
The paper broadens the concept of relevance so that it includes conceptual relevance and legitimative relevance. It links these concepts of relevance to three research paradigms: a mainstream paradigm, an interpretive paradigm and a critical paradigm. For each paradigm, relevance is related to the use of theory.
Originality/value
The paper broadens the concept of relevance and advocates the pursuit of conceptual relevance, particularly through interpretive research.
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Sanjaya Chinthana Kuruppu, Dinithi Dissanayake and Charl de Villiers
The purpose of this paper is to explore how blockchain and triple-entry accounting technologies may improve non-governmental organisation (NGO) accountability by amplifying the…
Abstract
Purpose
The purpose of this paper is to explore how blockchain and triple-entry accounting technologies may improve non-governmental organisation (NGO) accountability by amplifying the social and economic outcomes of aid. It also provides a critique of these technologies from an accountability perspective.
Design/methodology/approach
An in-depth case study of a large NGO, relying on semi-structured interviews, document analysis and non-participant observation, provides an understanding of current issues in existing NGO accountability and reporting systems. A novel case-conceptual critical analysis is then used to explore how blockchain and triple-entry accounting systems may potentially address some of the challenges identified with NGO accountability.
Findings
An empirical case study outlines the current processes which discharge accountability to a range of stakeholders, emphasising how “upward” accountability is privileged over other forms. This provides a foundation to illustrate how new technology can improve upward accountability to donors by enabling more efficient, accurate and auditable record-keeping and reporting, creating space for an NGO to focus on horizontal accountability to partner organisations and downward accountability to beneficiaries. Greater accountability exposes NGOs to diverse views from partner organisations and beneficiaries, potentially enhancing opportunities for learning and growth, i.e. greater impact. However, blockchain and triple-entry accounting can also create “over-accounting” and further entrench the power of upward stakeholders, such as donors, if not implemented carefully.
Research limitations/implications
A novel case-conceptual critical analysis furnishes new insights into how existing NGO accountability systems can be improved with technology. Despite the growing excitement about the possibilities of blockchain and triple-entry accounting systems, this paper offers a critical reflection on the limitations of these technologies and suggests avenues for future research.
Practical implications
Examples of how blockchain and triple-entry accounting systems can be integrated into NGO systems are presented. This research also raises the importance of creating a strong nexus between humans and technology, which ensures that “socialising” forms of accountability that empower vulnerable stakeholders, are embedded into international aid.
Originality/value
This research provides insight into present challenges with NGO accountability, using empirical evidence, furnishing potential solutions using novel blockchain and triple-entry accounting systems. Greater accountability to partner organisations and beneficiaries is important, as it potentially enables NGOs to learn how to be more impactful. Therefore, this paper introduces rich, contextually embedded perspectives on how NGO managers can exploit such technologies to enhance accountability and impact.
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