Search results

This paper examines the effect that the introduction of the FRS 9, the general disclosure standard in New Zealand, has on the level of disclosure of certain unspecified operating expenses. Generally, a low level of operating expense disclosure was found with no overall improvement recorded after the introduction of FRS 9. In many cases, companies did not disclose any unspecified operating expenses. Firm size and overseas listing/ownership appeared to be positively associated with the disclosure of unspecified operating expenses. Most companies did disclose the mandatory expenses monitored (depreciation, audit and directors' fees). Commentary is provided on the inadequacy of the discretionary aspects of accounting standards such as FRS 9, and the inadequacy of regulatory enforcement. Given the move to international harmonisation, and the level of disclosure seemingly at odds with international practice, the adoption and enforcement of International Accounting Standard 1 (IAS 1) would provide a simple solution.

Derivatives reporting requirements are numerous and varied – from the disclosure only requirements of FRS 13, to the abolishment of hedge accounting proposed by the JWG. The present article attempts to outline the differences and similarities between the various derivatives accounting standards and proposed standards.

The past twenty years have seen a significant increase in the use of derivative financial instruments by companies throughout the world (Berkman and Bradbury 1996; Berkman, Bradbury and Magan, 1997a; Berkman, Bradbury, Hancock and Innes, 1997b; Bodnar, Hayt, Marston and Smithson, 1995; Bodnar, Hayt and Marston, 1996; 1998; Collier and Davis, 1985). This paper examines the impact of Financial Reporting Standard 13: Derivatives and Other Financial Instruments, Implementation and Disclosures, on treasury department activities. In particular, the researchers conducted interviews with UK treasury department staff to assess their general attitudes to, and the perceived impact of, FRS 13. In general, the treasurers responded favourably to the standard, and considered the narrative disclosures to be particularly useful. The numerical disclosures were considered to be very detailed and specialised; interviewees thought that users might have difficulty in understanding them. However, the implementation of IAS 39, that becomes mandatory for all EC countries from 2005, was causing treasurers far more concern.

The use of derivative instruments such as futures, options and swaps has become increasingly widespread in the last twenty years, particularly among large companies in economies with well‐developed financial markets. This paper examines the impact of Financial Reporting Standard 13: Derivatives and Other Financial Instruments – Disclosures (FRS 13 hereafter) on isues relating to corporate governance. In particular, the researchers employ an interview survey to investigate: (i) UK institutional investors’ general attitudes towards the recent introduction of FRS 13; and (ii) whether the introduction of FRS 13 has any implications for corporate governance. The results to date indicate that institutional investors may not be treated as a homogeneous group with respect to their expressed views of FRS 13.

Evidence reported by Geczy, Minton and Schrand (1997) showed that foreign exchange risk had a significant influence on the use of currency derivatives but that interest cover and financial leverage did not. In this study, we suggest that the reason why foreign exchange risk was significant but interest cover and financial leverage were not significant in the evidence was because currency derivatives were used to measure the dependent variable. We verify the validity of this suggestion by testing the influence of interest cover and financial leverage on the use of interest rate derivatives. Our sample comprises 140 firms in the UK, 48 of which use interest rate derivatives. Evidence observed shows that interest cover and financial leverage have a significant influence on the use of interest rate derivatives and that foreign exchange risk does not. We also compare the previous evidence referred to above with our results to determine whether there is a difference between the factors that motivate firms to use currency derivatives or interest rate derivatives. The result of the comparison indicates that dependence on overseas product and capital markets, tax, institutional shareholding and economies of scale are the factors that motivate firms to use currency derivatives. The result also indicates that high interest cover (i.e. interest/profit before interest and tax)or total debt ratio, economies of scale and directors’ shareholding are the factors that motivate firms to use interest rate derivatives.

Free-riding behaviour may threaten the success of teamwork, when one or more group members receive the benefits of other members’ achievements with little effort or cost of their own. The purpose of this paper is to investigate students’ collaborative behaviour to address the problem of free riders (FRs) in university settings.

The research is an 11-week field study of three senior finance classes and incorporates mobile learning employing Quip and Google Docs applications to facilitate group work. A comprehensive set of quantitative and qualitative methods analysing students’ perceptions, instructors’ reflections, peer reflections and mobile learning methods are used to answer questions pertaining to group work, the work experience, FRs and ways to minimise the last.

In this paper, the author shows that students at the university level have positive views of group work despite the presence of FRs. Students like to form their own groups; consequently, peer evaluation appears to be unreliable. The study points to free riding as a serious threat to academic productivity and calls for actions and strategies from institutions and instructors to eradicate this behaviour. Mobile applications enable instructors to track FRs and to some extent discourage their behaviour.

There are limited studies that focus on FRs in higher education and, to the researcher’s knowledge, no such investigation has been applied in the Middle East and North Africa. Likewise, there is little research available on incorporating mobile learning to assess group work in higher education. This study aims at exploring the existence and associated experiences of free riding, along with methods to curtail the problem. The findings of this study provide a good platform for inquiry into the FR phenomenon in higher education and its impact on student learning, as well as the possible roles of instructors and mobile applications. The findings of this study could be developed further through more research with a view to providing a broader perspective of the situation in Middle Eastern and North African cultures.

In recent years, three-dimensional (3D) seismic base isolation system has been studied extensively. This paper aims to propose a new 3D combined isolation bearing (3D-CIB) to mitigate the seismic response in both the horizontal and vertical directions.

The new 3D-CIB composed of laminated rubber bearing coupled with combined disk spring bearing (CDSB) was proposed. Comprehensive analysis of constitution and theoretical derivation for 3D-CIB were presented. The advantage of CDSB is that the constitution can be flexibly adjusted according to the requirements of the bearing capacity and vertical stiffness. Hence, four different combinations of CDSB were designed for the 3D-CIB and employed to isolate nuclear reactor building. A comparative study of the seismic response in terms of seismic action, acceleration floor response spectra (FRS), peak acceleration and relative displacement response was carried out.

3D-CIB can effectively reduce seismic action, FRS and peak acceleration response of the superstructure in both the horizontal and vertical directions. Overall, the horizontal isolation effectiveness of 3D-CIB was slightly influenced by vertical stiffness. The decrease in the vertical stiffness of the 3D-CIB can reduce the vertical FRS and shift the peak values to a lower frequency. The vertical peak acceleration decreased with a decrease in the vertical stiffness. The superstructure exhibited a rocking effect during the earthquake, and the decrease in the vertical stiffness may increase the rocking of the superstructure.

Although the advantage of 3D-CIB is that the vertical stiffness can be flexibly adjusted by different constitutions, the vertical stiffness should be designed by properly accounting for the balance between the isolation effectiveness and displacement response. This study of isolation effectiveness can provide the technical basis for the application of 3D-CIB into real engineering of nuclear power plants.

This paper aims to examine the extent to which performance indicators (PIs) reported by New Zealand (NZ) higher education institutions (HEIs) correspond with accounting standards and guidance and the effects issuance of principles-based authoritative guidance and early adoption of Public Benefit Entity Financial Reporting Standard 48 (PBE FRS 48) have on the PIs disclosed.

Using a content analysis index derived from accounting standards and guidance, we conduct a longitudinal assessment of the 2016 and 2019 statements of service performance published by 22 NZ HEIs.

The PIs reported extend beyond the service performance elements proposed by standard-setters. Despite few indicators on intermediate and broader outcomes, the measures disclosed by HEIs are reflective of their role in the NZ economy and the national Tertiary Education Strategy. The results show that principles-based authoritative guidance and early adoption of PBE FRS 48 influence the focus and type of measures disclosed, while there is no evidence of improvements in the reporting of impacts, outcomes and information useful for performance evaluation.

This paper provides timely insights for standard-setters and regulators on the influence principles-based accounting standards and guidance have on non-financial reporting practices.

This study contributes to the scant literature on HEIs’ service performance reporting. It presents a model for conceptualising HEIs’ PIs that can be used as a basis for future research on non-financial reporting. It also reflects on the tension between accountability and “accountingisation”, suggesting that, although the PIs reported support formal accountability, they do not communicate whether HEIs’ activities and outputs meet their social purpose.

The dynamic response of the nuclear power plants (NPPs) with pile foundation reinforcement have not yet been systemically investigated in detail. Thus, there is an urgent need to improve evaluation methods for nonlithological foundation reinforcements, as this issue is bound to become an unavoidable task.

A nonlinear seismic wave input method is adopted to consider both a nonlinear viscoelastic artificial boundary and the nonlinear properties of the overburden layer soil. Subsequently, the effects of certain vital parameters on the structural response are analyzed.

A suitable range for the size of the overburden foundation is suggested. Then, when piles are used to reinforce the overburden foundation, the peak frequencies in the floor response spectra (FRS) in the horizontal direction becomes higher (38%). Finally, the Poisson ratio of the foundation soil has a significant influence on the FRS peak frequency in the vertical direction (reduce 35%–48%).

The quantifiable results are performed to demonstrate the seismic responses with respect to key design parameters, including foundational dimensions, the Poisson Ratio of the soil and the depth of the foundation. The results can help guide the development of seismic safety requirements for NPPs.

The purpose of this paper is to examine whether the significant clustering of defined benefit (DB) pension plan freeze announcements during 2001‐2006 is motivated at least in part by accounting concerns due to the Financial Accounting Standards Board's pending adoption of Statement of Financial Accounting Standards No. 158 (SFAS 158).

Using logistic regression models, the paper compares 147 “freeze firms” with a matched sample of firms that did not announce a DB plan freeze. Empirical models control for other DB plan motives including as a response to stricter contribution requirements under the Pension Protection Act of 2006 and improving the firm's competitive position.

The potential SFAS 158 impact is significantly associated with firms' decisions to freeze their DB plans. Firm profitability is also significantly associated with the freeze decision. However, there is no significant association between cash flow positions or pension plan contributions and the freeze decision.

It is possible that economic conditions adversely affecting the funded status of DB plans also motivate the freeze decision. While this study controls for the economic environment, economic factors could exacerbate the potential effect of SFAS 158.

This paper considers potential effects of accounting policy by examining its influence on real management actions and has consequences for a variety of stakeholders including investors, creditors, and, importantly, pension beneficiaries and workers, as DB plans represent implicit contracts between firms and their employees.