Mind the GAAP: Cultural, Political, and Legislative Roadblocks To IFRS Integration in the U.S. (Published)
In October, 2002, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) signed the ground-breaking Norwalk Agreement. This agreement signified the two parties’ commitment to the ultimate convergence of United States Generally Accepted Accounting Principles and International Financial Reporting Standards. What appeared at its genesis as a good faith effort to speed convergence between the two respective frameworks seems to have misfired, with an emphasis which now appears to be moving away from convergence, and focused instead on the duality and plurality of co-existing frameworks. The SEC, a governmental entity who had previously issued a clarion call for convergence and had gone so far as to eliminate the required IFRS – GAAP reconciliations for overseas issuers in 2007, appeared in 2011 to do something of a U-turn, and even appeared to retreat from their initial convergence position by suggesting that a US issuer who is in compliance with US GAAP be allowed to state that their financial statements are also in compliance with IFRS. This paper examines the changing attitudes and increasing aversion toward IFRS integration in the US, and attempts to understand some of the reasons; specifically cultural, political, and legislative, which may help to explain this changing of attitudes and direction. There appears to be a litany of prior research relating to US GAAP and IFRS integration, but the research does not tend to focus on specific reasons why convergence has not occurred, and why attitudes toward it have changed. This paper attempts to fill a perceived gap in the research related to the examination of potential political, cultural and legislative drivers of non-convergence. The paper also briefly examines literature related to research conducted which questions whether IFRS has had a positive effect on global capital markets, and whether this positive effect may actually have been caused by the existence of other factors.
The Extent of Corporate Disclosure of Information by the Companies in CARs and Its Regulations: Implications in Bangladesh (Published)
The relative weight of developing countries regulations in CARs disclosures have been growing hurriedly over recent years. The study is an attempt to examine of disclosure of financial information upon adoption of International Accounting Standards (IASs) in Bangladesh. In international accounting arena disclosure is the key to understanding one country’s accounting system. As they continue integrating into the global trading and financial systems, they need to strengthen their respective national accounting infrastructures, essential to attract and provide services to international investments and institutional and technical capacities to be able to comply with international requirements, standards and codes. The accounting system of each country is affected by different influential factors. Issues concerning developing countries in relation to accounting, and in particular international accounting, have generated considerable interest among accounting scholars and practitioners in both developed and emerging countries. In this paper, the researcher has examined the impact of British colonial influence, regulation, and mandatory IASs/IFRSs on disclosure of Corporate Annual Reports (CARs) of Bangladesh. This study showed that the British colonial influence through the adopted the former British Laws is prevalent on the accounting systems of Bangladesh and has a greater impact on the financial reporting practices of the companies’ financial reporting practices. The Securities and Exchange Ordinance 1969, Bangladesh Bank Order 1972, Securities and Exchange Rules 1987, Bank Companies Act 1991, Financial Institutions Act 1993, Securities and Exchange Commission Act 1993, Companies Act 1994 and Bankruptcy Act 1997 are the most important legislations to govern the corporate financial reporting environment in Bangladesh. Since 1983, Bangladesh is trying to adopt the International Accounting Standards (IASs/IFRS) which has become mandatory from 2000 for the listed companies for preparation and auditing of financial statements. It has found that the Companies Act 1994 does not contain any provision for mandatory observance of the adopted IFRSs and ISAs in practice which has made the unlisted companies to follow IASss/IFRSs compulsorily. In addition, to ensure more transparency in accounting system and disclosure of important accounting policies of banks and financial institutions in Bangladesh, the Central Bank (Bangladesh Bank) issued a circular (BRPD) Circular No. 3/2000 dated 18/04/2000) for mandatory adoption of IAS-30. As a result, since 2000, all banks in Bangladesh are required to use the IAS-30 in the preparation of their corporate annual reports. Further, the Securities Exchange Commission (SEC) of Bangladesh has passed Corporate Governance Guidelines in February 2006 that expect to increase the level of disclosure made the listed companies in Bangladesh.
International Financial Reporting Standards: Rules Based Approach or Principles Based Approach (Published)
The reason of the study is to evaluate and converse about the good and in depth approach to develop the IFRS. This study covers the importance of the different approaches to develop the IFRS, the effect of rules whether they have some good effects on the development of International Financial Reporting Standards (IFRS) or have weaknesses in this regard. In opposition to the approach of rules these papers covers the explanation about the approach of principles and their complete and in detail effect on the development of IFRS. This research essay covers-a lot of secondary sources which provides many arguments about the IFRSs . In this study we will discuss the importance of some of the necessary factors to develop the IFRS which are very important for almost all the business. The research covers the details in the favor of each approach and also provides the weaknesses of each approach. The different arguments and discussions made by different writers arc-included in this essay that arc written and discusses by them on different occasions. Each writer has his own arguments in the same situation and gives better guidance to make the conclusion about the approach that is better to develop the IFRS.
The Impact of IFRS Application on Asymmetry Accounting Information and Quality of Earnings (Published)
This paper tried to study and analyze the impact of international financial reporting standards (IFRS) application on the asymmetry of accounting information and the impact on the quality of accounting profits. The study used the Saudi insurance sector in the application of the study due to its commitment to adapt IFRS since 2009; the study analyzing period was divided into two periods. The first period was before the application of IFRS (2007-2009), while the second period represents what after the application of IFRS (2010-2012) so it consistent with the goal of the study. The total number of the sample companies has reached (20) companies in each year. The study tested (9) variables in each company for a period of (6) connected years, bringing the total number of views (1080) Shows. Hypotheses testing finding exposed that there is a relationship between the application of IFRS and the asymmetry of accounting information, and there is a significant relationship between the application of IFRS and the quality of earnings after the application of standards and the lack of a relationship before applying the IFRS.
IFRS ADOPTION AND ACCOUNTING QUALITY OF QUOTED MANUFACTURING FIRMS IN NIGERIA: A CROSS SECTIONAL STUDY OF BREWERY AND CEMENT MANUFACTURING FIRMS (Published)
This paper investigates the differences in the quality of accounting information Pre and post IFRS adoption by manufacturing firms in Nigeria over a five year period. Multiple regression analysis was performed on accounting quality variables and t-test was carried out for equality of mean to compare pre and post IFRS. Results indicate a decline in accounting quality using earnings management, value relevance, and timely loss recognition as independent variables. Earnings and book value of equity are less value relevant and timely loss recognition is less in post-IFRS compared to pre-IFRS period
ANALYSIS THE USE OF INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) IN PT TELEKOMUNIKASI INDONESIA, TBK (Published)
This study aims to determine the use of terminology International Financial Reporting Standards (IFRS) in companies that have implemented IFRS on its financial statements. The study used a qualitative approach with a case study. The data collection was done by interviewing staff, managers, and the chairman of the implementation of IFRS or IFRS known as Task Force under the Financial Division of Logistics and Policy at the central office PT Telekomunikasi Indonesia Tbk (Telkom). The results of this study indicate that the use of IFRS terminology in PT Telkom through the phases that have been scheduled by the IFRS Task Force team. IFRS terminology used by PT Telkom is a full adoption of the transaction based. Terminology full adoption of IFRS-based transactions are implemented through four phases. The fourth phase consists of the assessment phase, design, implementation stages of implementation to sustain. Application of transaction-based terminology full adoption of IFRS has been operating effectively. Effectiveness is shown composed of four phases PT Telkom achieved in accordance with the scheduled time
IFRS-Based Results and the Readiness of Nigerian Audit Committee: The Professional Accounting Academic Standpoint (Published)
This study investigated the level of readiness of the audit committee towards understanding and interpreting IFRS based result in Nigeria. This study adopted the survey research method to garner opinion of stakeholders especially the professional accounting academic. One hundred and twenty copies of questionnaires were administered making forty copies of questionnaire to each of the three university studied. The questionnaires were analyzed with the use of One-Sample t-test. The study found that the presently constituted audit committee in Nigeria is statistically significantly weak in understanding and interpreting IFRS based results. It is therefore recommended as a matter of urgency that the audit committee members be subjected to training that will specifically tailored towards the application of IFRS in their various sectors and industry they represent. This training should not however, be one off. It should be continuous and in timely manner as changes in IFRS is still ongoing