Given the uncertain and difficult economic environment over the 2009-2013 period, the french companies of SBF 120 had to record, for the all, significant impairments of their goodwill. Nevertheless, ...the companies which depreciate regularly communicate better about their goodwill than the companies which account impairment of their goodwill suddenly in only one year or two.
Comprehending Comprehensive Income Hodgson, Allan; Russell, Mark
Australian accounting review,
June 2014, Letnik:
24, Številka:
2
Journal Article
Recenzirano
Comprehensive income (CI) contains a mixture of realised, unrealised, temporary, persistent and recyclable elements. How, when and where these elements should be reported in income and equity have ...been issues intensively debated (and changed) by international regulators over the last 20 years. This article traces the major threads of the debate and places changes within the context of empirical academic research. Our contention is that the recent IAS 1 (AASB 101) Presentation of Financial Statements, effective 1 July 2012, has benefited from past academic research that focused on the value relevance from disaggregation and presentation of unrealised other comprehensive income (OCI). We conclude by outlining the equity posting and recycling to profit or loss (P&L) issues and assert that, because of the inconsistent nature and complexity of OCI, it would benefit from further research.
The EU-member States have long intended to harmonise their respective accounting rules in order to facilitate the comparison between European companies. This process was brutally accelerated by a ...2002 regulation announcing that as of 2005, listed companies would be required to comply with the accounting standards enacted by the IASB (International Accounting Standards Board), a private body which, until then, had no public mandate.
After having tried to harmonise internally the respective standards of its members, the EU has thus decided to resort to private subcontracting, an even more puzzling decision when one realizes that at the time, the EU had simply no statutory control means on the IASB.
Building on this striking episode of privatisation of the regulatory process, we first examine the structure and governance of the IASB, and the process leading to the transplantation of its norms into EU law. In a second part, we argue that while diverse, the reasons behind such relinquishment of public authority lie primarily within the EU itself. In a third part, we show that in the area of accounting, such transfer of competences went well beyond known forms of delegation to private sector. In a final part, we discuss the subsequent—and so far successful attempt of the EU to reassert its authority as well as its agenda in this area.
Despite a substantial move toward convergence between principles-based International Financial Reporting Standards (IFRS) globally, there has been little research examining the differences between ...national standards and IFRS. The purpose of this study is to investigate the differences between IFRS and Saudi accounting standards (Saudi GAAP) issued by the Saudi Organization for Certified Public Accountants (SOCPA). Saudi Arabia is a member of G20 and the largest oil exporter in the world. The study finds that there are major differences between Saudi GAAP and the 15 IFRS standards studied: IAS 1 Presentation of Financial Statements; IAS 7 Statement of Cash Flows; Zakat and IAS 12 Income Tax; IAS 16 Property Plant and Equipment; IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors; IAS 17 Leases; IAS 19 Employee Benefits; IAS 21 The Effects of Changes in Foreign Exchange Rates; IAS 24 Related Party Disclosures; IAS 34 Interim Financial Reporting; IAS 36 Impairment of Assets; IAS 38 Intangible Assets; IAS 40 Investment Property; IAS 41 Agriculture; and IFRS 9 Financial instruments. To the best of our knowledge, this is the first study on differences between Saudi GAAP and IFRS, and the findings thus make a valuable contribution to accounting regulation literature. The findings are innovative and will be helpful to local standard setters (SOCPA), international standard setters (IASB), and preparers and investors. The findings suggest that urgent training is required for the effective implementation of IFRS in Saudi Arabia.
Whereas empirical studies suggest that firm hedging is influenced by accounting standards such as SFAS 133 and IAS 39, the nature of earnings risk management remains a puzzle. I develop a model that ...shows how non-financial firms that prefer predictable earnings jointly optimize their hedging strategy and the choice between fair-value and hedge accounting. I also examine the implications of these decisions for earnings predictability under SFAS 133/IAS 39. In this model, which has two accounting periods, earnings uncertainty arises from economic shocks and accounting mismatches. The specific influence of accounting mismatches is isolated with two benchmarks, one for firm hedging (cash flow hedging) and another for an accounting system that fully complies with the matching principle. In this forward-looking analysis, most firms significantly decrease the hedging of long-term earnings when faced with persistent price dynamics. Under non-persistent price dynamics, the levels of long-term earnings hedging are only slightly reduced. Therefore, the influence of accounting mismatches on firm hedging is highly dependent on the economic environment in which a firm operates, which suggests that the potential influence of accounting on firm hedging may be difficult to identify in archival studies. The analysis also offers a forward-looking perspective on the changing properties of earnings since the late 1970s that supplements the existing body of archival accounting studies. For example, under persistent price dynamics, forward-looking short-term earnings volatility may increase tenfold or more for cash flow hedging under fair-value accounting compared with a perfectly matched accounting system.
Devido à convergência das normas brasileiras com as normas internacionais de contabilidade e a adoção do Pronunciamento Técnico CPC 29 - Ativos Biológicos e Produtos Agrícolas para as empresas de ...capital aberto em 2010, o presente artigo tem como objetivo verificar se existe conformidade do conteúdo das notas explicativas das empresas com o referido regulamento. Uma das principais mudanças foi à forma de mensuração dos ativos biológicos que passa a ser pelo valor justo e não mais pelo método custo. Tendo uma amostra limitada de 33 empresas listadas BM&FBOVESPA, configurou-se analisar todas essas empresas num período de 2010 até o segundo trimestre de 2014, no qual a pesquisa foi realizada através de exames das notas explicativas das referidas organizações, conforme exigido no CPC 29. O resultado obtido com a análise das demonstrações financeiras das empresas observadas foi possível constatar que as mesmas não estão atendendo a totalidade das exigências trazidas pelo pronunciamento, bem como alguns dos quesitos trazidos pela norma não foi apresentado nas notas explicativas. As informações contidas nos relatórios administrativos são de suma importância para que os stakeholders possam tomar decisões com base nesses relatos. Sendo que se as demonstrações financeiras não possuam informações suficientes, elas podem dificultar no entendimento dos usuários externos, fazendo com que suas decisões não sejam eficientes.
In the prospective study of organizations it becomes necessary to consider and handle the uncertainty and subjectivity characteristic of economic and financial phenomena. This paper aims to establish ...the procedures and contributions of the use of a methodology based on the theory of the fuzzy subsets which would allow, specifically, treating a specific type of uncertainty in the estimation of the value of use of an asset or cash-generating unit. For this purpose, three key elements are used: the establishment of a typology on the existence of uncertainty; the tools particular to fuzzy subsets; and the guidelines given by the International Accounting Standard 36. The possible relationships between the concepts discussed are established and we highlight the contributions and advantages of this relationship.
This paper illustrates the influence of powerful players in the setting of IFRS 6, a new International Financial Reporting Standard (IFRS) for the extractive industries. A critical investigative ...inquiry of the international accounting standard setting process, using Critical Discourse Analysis (CDA), reveals some of the key players, analyses the surrounding discourse and its implications, and assesses the outcomes. An analysis of small cross-section of comment letters submitted to the International Accounting Standards Committee (IASC) by one international accounting firm, one global mining corporation and one industry group reveal the hidden coalitions between powerful players. These coalitions indicate that the regulatory process of setting IFRS 6 has been captured by powerful extractive industries constituents so that it merely codifies existing industry practice.
This article illustrates, based on a case study, the steps that companies should follow in order to substantiate the compliance of their related party transactions with the arm's length principle (as ...required by I.A.S. 24). The case study takes into consideration the provisions of the O.E.C.D. transfer pricing guidelines, and where the application was required of domestic legislation, we applied the Romanian one. We found that the most important step is represented by a comparability analysis between related party transactions and comparable market transactions. Further on, in relation to the comparability analysis, in practice two situations are met: the use of comparable entities' information from the year under analysis and the use of this information from previous years. In this context we selected a sample of comparables and analysed if these two practical approaches impact the final conclusion regarding the compliance with the arm's length principle. We found that there can be a small difference among the results obtained in the two situations. Mainly, the article presents important findings for professionals from the accounting and finance area in order to understand the mechanism of the arm's length principle.
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