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1 – 10 of over 5000Kamal Naser, Tawfeek Al‐Khyal, Rana Nuseibeh and Ibrahim Al‐Tweel
This study investigates the perception of users of corporate annual reports about various aspects of accounting harmonization. To serve this purpose, a questionnaire was…
Abstract
This study investigates the perception of users of corporate annual reports about various aspects of accounting harmonization. To serve this purpose, a questionnaire was distributed to four user groups (investors, government officials, auditors and academics). The results of the analysis revealed that sharing the same language, as well as sharing similar economic and cultural features are the most important factors expected to positively affect the harmonization of accounting practices in the GCC countries. However, the most important factors expected to obstruct accounting harmonization practices across GCC countries are the lack of professional and legal requirements as well as enforcement problems. The outcome of the analysis also revealed that harmonization is expected to (1) improve comparison between companies, (2) increase usefulness of financial information to decision makers, and (3) ensure consistency in the use of accounting rules over time. It was also evident from the analysis that lack of harmonization is viewed as the most likely factor to prevent some investors from investing across the GCC countries.
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Sabine Einwiller, Christopher Ruppel and Alexandra Schnauber
The purpose of this paper is to extend the theoretical discussion and empirical evidence on harmonization as well as differences in CSR reporting, and to dismantle inconsistencies…
Abstract
Purpose
The purpose of this paper is to extend the theoretical discussion and empirical evidence on harmonization as well as differences in CSR reporting, and to dismantle inconsistencies owing to the idiosyncratic methods applied in previous studies. While institutional and cultural differences suggest country-of-origin effects, the proliferation of global standards for CSR reporting is expected to promote harmonization.
Design/methodology/approach
Based on a literature review hypotheses concerning harmonization and country-of-origin effects were derived. Reports were content analyzed using the software Leximancer. Harmonization effects were examined by comparing reports of companies that adhered to the standards by the Global Reporting Initiative (GRI) and UN Global Compact and those that did not declare to do so. Country-of-origin effects were explored by comparing reports of German and US multinational enterprises (MNEs).
Findings
The study reveals that there are comparatively greater similarities between reports issued by MNEs that adhere to global standards, especially GRI. Results also reveal some country-of-origin effects. While German MNEs report more on environmental issues, US MNEs have a stronger focus on society, especially the community.
Originality/value
The study contributes to the limited evidence for harmonization in CSR reporting due to the adherence to global reporting standards. Because comparability is important for many stakeholders addressed by the reports the findings are valuable for stakeholder management, but also for the initiatives who aim to enhance transparency and comparability.
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Recent literature on firm-level heterogeneity and trade has emphasized a self-selection mechanism: only the most productive firms can recover the transaction (sunk) costs for…
Abstract
Recent literature on firm-level heterogeneity and trade has emphasized a self-selection mechanism: only the most productive firms can recover the transaction (sunk) costs for serving foreign markets and become exporters. The role of trade integration is that a productivity gap between exporters and nonexporters becomes lower when the market becomes more integrated due to a fall in trade costs. The focus of this chapter is the role of EU harmonization of food regulations in explaining the intra-EU export-productivity premium. The food industry is an interesting case to examine because many directives and regulations of the Single Market Program concern this important economic sector and have the potential to affect trade and productivity. We use data on Dutch food processing firms for the 1979–2005 period, which we link with a dataset that codes food products subject to EU harmonization. The chapter confirms that more productive firms are more likely to enter the EU export market. The result of EU harmonization is that this probability increases. Second, we find a positive and significant export-productivity premium: that is, firms that export to other EU markets are more productive than nonexporting firms. This finding is robust to the estimation technique and the way we measured TFP growth. Third, when we test whether the export-productivity premium is affected by EU harmonization, we find weak evidence that is the case for Dutch food processing firms: much depends on the estimation method, the way we measure TFP growth, and the population of exporting firms.
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Agim Mamuti, Evlia Hysa and Francesco Caputo
The increasing attention toward the so-called globalization is underlining the need to build and enforce the contact point among the multiple domains of culture, knowledge, and…
Abstract
The increasing attention toward the so-called globalization is underlining the need to build and enforce the contact point among the multiple domains of culture, knowledge, and experiences over the world. Within the specific business domain, global trends are underlying the need for linking multiple local and national accounting standards to support global activities and international collaborations. In such a domain, this chapter investigates the topic of Albanian national accounting standards for depicting opinions and perceptions of interested actors through a direct interview with 35 experts including, economists, accounting experts, tax inspectors, and businessmen. The research shows the existence of a divergent approach to the process for accounting harmonization in Albania and it opens the possibility for tracing a possible path for supporting the inclusion of Albania under the international accounting standards framework.
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Leopold Bayerlein and Omar Al Farooque
The purpose of this paper is to evaluate the changes of accounting policy choices and the harmonisation of accounting practices for two important financial reporting items within…
Abstract
Purpose
The purpose of this paper is to evaluate the changes of accounting policy choices and the harmonisation of accounting practices for two important financial reporting items within and between three IFRS adopting countries. Furthermore, it aims to address methodological shortcomings in the prior harmonisation literature through the introduction of two newly developed significance assessment methodologies.
Design/methodology/approach
The influence of the mandatory IFRS adoption in Australia (AUS), Hong Kong (HK) and the UK on deferred taxation (DT) and goodwill (GW) accounting practices as well as the within and between country harmonisation of accounting practices is investigated through an event type study. These investigations are conducted using a McNemar test with Bowker extension as well as the Split C‐Index with a newly developed bootstrapping significance testing methodology.
Findings
This study demonstrates that the mandatory IFRS adoption in the analysed countries is linked to a significant harmonisation of DT and GW accounting practices between AUS, HK and the UK. Furthermore, the increase of adequate accounting policy information in the financial reporting documents of UK firms over the period of this study is identified as an important harmonisation accelerator.
Originality/value
This study adds to the prior literature due to its focus on the mandatory IFRS adoption within the analysed countries. Furthermore, the introduction of two newly developed methodologies to evaluate the significance of accounting policy choice changes and harmonisation over time addresses an important methodological shortcoming in the prior literature.
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Steven Dellaportas, P.W. Senarath Yapa and Sivakaran Sivanantham
The purpose of this paper is to examine and evaluate the internationalisation of Australian auditing standards by analysing the submissions to the Auditing and Assurance Standards…
Abstract
Purpose
The purpose of this paper is to examine and evaluate the internationalisation of Australian auditing standards by analysing the submissions to the Auditing and Assurance Standards Board's (AUASB) strategic directions paper (SDP) and comparing the proposed and approved strategic directions frameworks of the AUASB.
Design/methodology/approach
A content analysis of the submissions to the SDP is conducted to identify the extent of support, and arguments for and against the proposed strategic directions. This study attempts to find a link, if any, between the proposed strategic directions, the views expressed by the stakeholders, and the final set of strategic directions issued by Australia's Financial Reporting Council.
Findings
Overall, the final set of strategic directions released in April 2005 are consistent with the views expressed in the submissions, which support minimal divergence from International Standards on Auditing (ISAs) and using the ISAs as the base for developing Australian auditing standards. Major changes from the SDP include a requirement for the AUASB to undertake research and monitor auditing standards issued by national standard setters. However, the AUASB is no longer obliged to contribute to the international standard arena and need only have regard to any program initiated by the International Auditing and Assurance Standards Board.
Research limitations/implications
The findings of this study provide an insight into the future of Australia's role in the international arena and increase awareness of stakeholders' views on the international harmonisation of auditing standards.
Originality/value
While there have been several studies examining the international harmonisation of accounting standards, there is comparatively little research on the international harmonisation of auditing standards. This paper attempts to address this void, in part, and contribute to the literature on the convergence of auditing standards with ISAs.
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Hervé Stolowy and Anne Jeny‐Cazavan
IAS 1 (“Presentation of financial statements”) requires that application of all international standards is necessary in order to comply officially with International Accounting…
Abstract
IAS 1 (“Presentation of financial statements”) requires that application of all international standards is necessary in order to comply officially with International Accounting Standards. This appears to be a key statement for the move towards accounting harmonization. The feasibility of this kind of harmonization could be jeopardized if even one standard is “rejected” by companies. In this context, in the wake of the publication of IAS 38 “Intangible assets”, examines the ways that 21 national and two international accounting standards approach intangibles, both in terms of definition and treatment. Shows that there is no conceptual framework commonly accepted and that there is a considerable lack of consistency both inter‐country and intra‐country. This challenges the principle of the acceptability of all international accounting standards by companies that wish to or are required to apply IASs. The disharmony highlighted by the advent of IAS 38 could be a sign of the failure of international accounting harmonization.
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Chitoshi Koga, Keith A Houghton and Alfred Van‐Ho Tran
The fundamental question on the internationalisation of accounting standards is whether a nation should harmonise with international standards or not. This paper addresses this…
Abstract
The fundamental question on the internationalisation of accounting standards is whether a nation should harmonise with international standards or not. This paper addresses this question with particular reference to the special circumstances of Japan. The discussion suggests that Japan's unique features such as stable shareholdings, the ‘Keiretsu’, and the ‘main bank’ form the conclusion that harmonisation might be unwise. However, some recent signs of change in Japan, including the breakdown of cross‐shareholding arrangements and a greater emphasis on corporate profitability, are more in keeping with the conventional business practices of the West and suggests there may be benefits to harmonisation. This paper presents some survey evidence for and against accounting harmonisation and analyses certain management attitudes in Japan and a number of other industrial nations towards adopting the IAS.
Fatma Ben Slama and Mohamed Faker Klibi
The purpose of this paper is to discuss accounting development in Tunisia, which is a developing North African country little known in the international accounting literature.
Abstract
Purpose
The purpose of this paper is to discuss accounting development in Tunisia, which is a developing North African country little known in the international accounting literature.
Design/methodology/approach
Methodologically, this paper is based on an exploratory approach. It uses the descriptive tradition of research by collecting and analyzing numerical and narrative data to identify and describe environmental factors that favor or hamper accounting development in Tunisia.
Findings
This paper indicates that Tunisian companies have been applying the Enterprise Accounting System (EAS) since 1996. This system, while keeping with the logic of a chart of accounts, represents a first attempt to harmonize with international accounting standards. Accounting harmonization in Tunisia is meant to support the strategy, launched in the early 1990s, to integrate the country into the globalization process. Accordingly, the EAS has helped to achieve macroeconomic benefits (public interests). However, it does not lead to the desired level of financial transparency (private interests), especially that of large companies. Currently, Tunisian Accounting Standards neither reflect the rapid evolution of business activity nor changes in international accounting standards. This unachieved harmonization has led some listed companies to comply with some International Financial Reporting Standards which are not included in the EAS.
Research limitations/implications
The unachieved harmonization in Tunisia is mainly related to the political system, taxation factors, the legal system, the weak state of corporate governance and governmental control over standardization.
Practical implications
This paper provides insights into the problems of developing countries that harmonize with international standards to achieve public interests. These countries may encounter many difficulties in bringing their accounting standards up to date. These difficulties seem to be associated with environmental specificities. Accordingly, international standardization bodies and developing country regulators should take into account environmental factors which are determinant for the harmonization decision to succeed.
Originality/value
This paper contributes to the existing literature on accounting development in developing countries. It implies that recent accounting development, as it is designed in Tunisia, is better suited to the needs of small businesses. Large companies would be compelled to complement local generally accepted accounting principles by standards they choose, voluntarily, among international standards.
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Alan Combs, Martin Samy and Anastasia Myachina
The purpose of this paper is to explore cultural impact on the harmonisation of Russian Accounting Standards with International Financial Reporting Standards (IFRS).
Abstract
Purpose
The purpose of this paper is to explore cultural impact on the harmonisation of Russian Accounting Standards with International Financial Reporting Standards (IFRS).
Design/methodology/approach
A theoretical review established that differences still exist between the two sets of accounting standards. For decades, Russia was a socialist state of planned economy. Accounting was a tool of centralised control, and accountants had a job of gathering information for statistical purposes of the government and tax authorities. This led to the development of a “Soviet culture” mindset. Accountants saw their jobs as following prescribed rules. Accounting is seen by Hofstede as a field in which historically developed practices are more important than laws of nature. It is therefore expected that accounting rules and the way they are applied will vary among different national cultures. Hence, Gray tried to explore how Hofstede's national cultural dimensions may explain international differences in accounting. With respect to past research in this area, Nobes argued that “national accounting traditions are likely to continue into consolidated reporting where scope for this exists within IFRS rules”. Ding et al. investigated the role of a country's culture and legal origin as an explanation for the differences between local Generally Accepted Accounting Principles (GAAP) and IAS as they were in 2001. The study gathered 53 Russian accountants' attitudes towards reporting under harmonised Russian Accounting Standards through semi structured interviews.
Findings
The findings supported the theoretical view of a “Soviet culture” which has an impact on harmonisation of Russian Accounting Standards with the IFRS. Russia's high rankings in such cultural dimensions as power distance, uncertainty avoidance and collectivism have contributed to the development of certain preferences among Russian accountants. Those preferences were for statutory control, uniformity, conservatism and secrecy. Further findings indicate that accountants in Russia display reluctance to disclose financial information to the external users. One of the main reasons was found to be fear of disclosing too much information to competitors. Based on these findings, accountants in Russia display clear signs of preference for secrecy as opposed to transparency, as identified by Gray.
Originality/value
One of the contributions of this study is to examine current perceptions of Russian accountants towards financial reporting under new harmonised Russian Accounting Standards based on Rozhnova's study.
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