The purpose of this paper is to examine the effects of a principles-based accounting standard with guidance (principles-with-guidance approach), stringency…
The purpose of this paper is to examine the effects of a principles-based accounting standard with guidance (principles-with-guidance approach), stringency (conservativeness) of numerical thresholds, and incentives (high or low debt-equity ratio environment) on the judgments of Japanese auditors in a lease accounting setting.
To reflect Japanese auditors’ judgmental features, this study adopts a quasi-experiment that uses both manipulation for different environments (i.e. stable or critical financial condition) and perceptions about the importance of “principles” and “guidance” in different types of lease accounting standards (i.e. substantially all, approximately 90 and 88 percent).
“Principle” (substantially all) has a positive effect, while “guidance” (approximately 90 percent) has a negative effect on encouraging Japanese auditors to capitalize lease transactions. “More stringent guidance” (approximately 88 percent) has a positive effect only when clients are in critical financial conditions. Other findings indicate that judgments of Japanese auditors are strongly influenced by their colleagues’ perceived judgments.
This is the first quasi-experiment to examine Japanese auditors’ professional judgments using a lease accounting setting. To find out whether Japanese auditors interpret and apply International Financial Reporting Standards (IFRS) in the similar manner as their counterparts in other countries will be important when Japanese policymakers make their final decision regarding the adoption of IFRS. The discussion and findings also contribute to the International Accounting Standards Board (IASB) with regard to enhancing global convergence of financial reporting.
The purpose of this paper is to provide an overview of the evolving role of the Advisory, Conciliation and Arbitration Service (Acas) across a 40-year period against a backdrop of changing workplaces and institutional frameworks.
The paper draws on the statistical and evaluation evidence together with policy commentary and employment relations literature to provide a commentary on the changing world of employment relations.
Two areas have dominated policy concerns over the period: patterns of employment disputes and the question of employment regulation. The paper argues that such a focus has stimulated some dramatic changes in the way disputes manifest in Britain, and at the same time left something of a policy vacuum in relation to the wide challenges and opportunities for improving conflict handling and the employment relationship. Through the prism of Acas’ work the paper identifies some of the enduring features that are common to improving both collective and individual relationship at work.
The paper brings together evidence from different sources combined with the unique perspectives of Acas and its service users to draw and provide explanations for aspects of the changing face of the work.