Business Commons^™

The Relationship Between Competition And Business Segment Reporting Decisions Under The Management Approach Of Ias 14 Revised, Nancy Nichols, Donna Street

Donna L. Street

This research addresses the relationship between industry competition and managers’ choice regarding whether to separately disclose a business segment following the adoption of International Accounting Standard 14 Revised (IAS 14R) and the management approach to segment determination. Logistic regression reveals a significant negative relationship between disclosure and company returns in excess of the industry average.

Prior research indicated a significant relationship between disclosure and abnormal returns under the industry approach to segmentation. Our results provide evidence that this flexibility persists as managers maintain their ability to aggregate segments to protect excess returns under IAS 14R and the management approach. Our …

The G4'S Role In The Evolution Of The International Accounting Standard Setting Process And Partnership With The Iasb, Donna Street

Donna L. Street

Between 1992 and 2001, representatives of the G4 national accounting standard setting bodies and the International Accounting Standards Committee (IASC) participated in a working group known as the G4+1. Immediately following the formation of the International Accounting Standards Board (IASB), the G4 announced that the working group would no longer meet. Alternatively, the G4 national standard setters would form a partnership with the IASB via liaison representatives.

This paper focuses on the objectives and mission of the G4+1, the G4's relationship with the IASC, the impact of the G4 on the restructuring of the IASC to establish a quality independent …

Large Firms Envision Worldwide Convergence Of Standards, Donna Street

Donna L. Street

Currently, the largest accounting firms1 are working diligently in conjunction with their partners in the International Forum on Accountancy Development (IFAD) to achieve their vision of raising national accounting and auditing standards worldwide to meet or exceed internationally recognized benchmarks. An awareness of the ongoing activities of the firms and their IFAD partners to improve financial reporting, accountability, and transparency worldwide is crucial if other members of the accounting community, including educators, are to support and, more importantly, actively participate in these efforts. IFAD was formed in 1999 on “the premise that the expertise of the accounting profession and the …

Convergence With Ifrs In An Expanding Europe: Progress And Obstacles Identified By Large Accounting Firm's Survey, Robert Larson, Donna Street

Donna L. Street

The International Accounting Standards Board (IASB) acquired greater legitimacy and stature when the European Union (EU) decided to require all listed companies to prepare consolidated accounts based on International Financial Reporting Standards (IFRS) beginning in 2005. This study examines the progress and perceived impediments to convergence in 17 European countries directly affected by the EU's decision. These include: (1) the 10 new EU member countries, (2) EU candidate countries, (3) European Economic Area (EEA) countries, and (4) Switzerland. We utilize data collected by the six largest international accounting firms during their 2002 convergence survey. Additionally, we analyze subsequent events and …

Disclosure Level And Compliance With Iass: A Comparison Of Companies With And Without U.S. Listings And Filings, Donna Street, Stephanie Bryant

Donna L. Street

This research investigates the extent to which the disclosure requirements of the IASC are complied with or exceeded for companies claiming to use International Accounting Standards (IASs). Additionally, the research seeks to identify significant differences between those companies with U.S. listings, U.S. filings, and those with no U.S. listings or filings with regard to (1) compliance with IASC-required disclosures, and (2) level of disclosure (including both mandatory and voluntary items). The findings reveal the overall level of disclosure is greater for companies with U.S. listings. Additionally, greater disclosure is associated with an accounting policies footnote that specifically states that the …

Framework-Based Teaching Of Ifrs Judgements, Christopher Hodgdon, Susan Hughes, Donna Street

Donna L. Street

International Financial Reporting Standards (IFRS) are principles-based accounting standards that provide less prescriptive, interpretive and implementation guidance than do some national standards. Thus, considerable judgement in the application of IFRS is often required. We suggest a three-step approach to teaching IFRS judgments (concepts, to principles/rules, to the judgments required in the application of those rules), and provide accounting educators with guidance and resources that will help them create and enhance students' awareness of the importance of making professional judgments in the application of IFRS. We consider pervasive issues, such as the going concern assumption, materiality and related disclosures, and issues …

Lob And Geographic Segment Disclosures: An Analysis Of The Impact Of Ias 14 Revised, Donna Street, Nancy Nichols

Donna L. Street

To better satisfy important information needs of users of financial statements, as set forth in the IASC Framework, the IASC issued IAS 14 revised (IAS 14R), Segment Reporting, in 1997. IAS 14R became effective for fiscal years beginning on or after July 1, 1998. This research examines the pre-IAS 14R and post-IAS 14R line of business (LOB) and geographic disclosures of a global sample of companies that refer to IAS to ascertain the impact and effectiveness of IAS 14R in practice. Specifically, this research considers whether the new requirements resulted in (1) a greater number of LOB segments for some …

The Impact Of Segment Reporting Under The Ifrs 8 And Sfas 131 Management Approach: A Research Review, Nancy Nichols, Donna Street, Ann Tarca

Donna L. Street

This paper evaluates the impact of adopting the management approach for segment reporting. We review studies of the effect of the application of SFAS 131 and IFRS 8 on the number of reported operating segments and items of disclosure, segment reporting gaps and reconciliations, entitywide geographic disclosures, and competitive harm and decision usefulness of segment information. We report on the advantages and disadvantages of the management approach and explore whether the concerns of critics of adopting the management approach in IFRS 8 have been realized. We also identify opportunities for important and policy-relevant research in the area of segment reporting …

The Impact In The United States Of Global Adoption Of Ifrs, Donna Street

Donna L. Street

This paper presents the pros and cons of the use of IFRS by US companies. The quest for one set of high-quality accounting standards recognised globally is clearly the ideal goal. However, before making a decision on the use of IFRS in the United States (US), the Securities Exchange Commission (SEC) should develop a blueprint to ensure that prerequisites for achieving a true global standard are satisfied and that convergence will continue. An ‘improve and then adopt’ approach appears to represent the best way forward for the US.

An Interview With Sir David Tweedie, Chair, International Accounting Standards Board, Donna Street

Donna L. Street

At their first meeting in June 2000, the International Accounting Standards Board (IASB) Trustees selected Sir David Tweedie to serve as chairman of the newly restructured IASB. Tweedie held several significant positions prior to assuming the Chairmanship of the IASB. Tweedie was appointed Technical Director of the Institute of Chartered Accountants of Scotland in 1978 and moved from there in 1982 to the position of national Technical Partner of the then Thomson McLintock & Co. In 1987, his firm merged with Peat Marwick Mitchell & Co. at which time he was appointed national Technical Partner of KPMG Peat Marwick McLintock. …

Factors Influencing The Extent Of Corporate Compliance With International Accounting Standards: Summary Of A Research Monograph, Donna Street, Sidney Gray

Donna L. Street

This report provides a summary of a research monograph sponsored by the ACCA (2001). The objective of the research is to examine the financial statements and footnotes of a worldwide sample of companies referring to the use of International Accounting Standards (IAS) to assess the extent of compliance and most importantly to provide evidence of the factors associated with compliance. The major findings are that there is a significant extent of non-compliance with IAS, especially in the case of IAS disclosure requirements. Further, as regards factors associated with compliance with IAS disclosure requirements, there is a significant positive association with …

An Interview With Sir David Tweedie: Reflections On Ten Years As The Iasb’S First Chair, Donna Street

Donna L. Street

In a prior paper published in the Journal of International Financial Management and Accounting, Donna Street (2002) focused on a March 28, 2001 interview where Sir David Tweedie reflected on his outlook for the International Accounting Standards Board (IASB) and his forthcoming role as the Board’s first Chair. During a May 21, 2013 inter- view, Sir David and I met again. This time, Sir David looked back on his ten years as the IASB’s first Chair. The interview, summarized in this paper, began with a discussion of the Board’s greatest achievements and Sir David’s biggest regrets. We went on to …

Adoption Of Ias 19r By Europe's Premier Listed Companies: Corridor Approach Versus Full Recognition: Summary Of An Acca Research Monograph, Jan Fasshauer, Martin Glaum, Donna Street

Donna L. Street

This report provides a summary of a research monograph sponsored by the Association of Chartered Certified Accountants (ACCA) [Fasshauer, J., Glaum, M., & Street, D. L. (2008). Adoption of IAS 19R by Europe's premier listed companies: Corridor approach versus full recognition. An ACCA research report, London] and is based on our in-depth analysis of the defined benefit pension plan disclosures provided in the year 2005 by companies constituting the premier segments of 20 European exchanges. Most importantly, the study identifies the method these companies selected under International Accounting Standard (IAS) 19 for the recognition of actuarial gains/losses, provides insight into …

Assessing The Acceptability Of International Accounting Standards In The Us: An Empirical Study Of The Materiality Of Us Gaap Reconciliations By Non-Us Companies Complying With Iasc Standards., Donna Street, Nancy Nichols, Sidney Gray

Donna L. Street

With the International Accounting Standards Committee (IASC) reaching the completion of its core standards program, the International Organization of Securities Commissions (IOSCO) is considering its response to the IASC's application for endorsement of International Accounting Standards (IASs). A critical aspect of IOSCO's acceptance of IASs is likely to be the extent to which such standards are compatible with US Generally Accepted Accounting Principles (US GAAP). This issue is explored by an empirical study of US GAAP reconciliations by non-US companies complying with IASC standards. The results indicate that the impact of accounting differences between IASs and US GAAP is narrowing …

Ifrs In The United States: If, When And How, Donna Street

Donna L. Street

This paper provides an overview of the convergence efforts of the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board. It begins with their 2002 Memorandum of Understanding and traces developments up to the December 2011 announcement by the IASB Chair that convergence has come to a close, and it is now time to incorporate IFRS into the US financial reporting system. The paper then assesses approaches being considered by the SEC for incorporating IFRS into the US financial reporting model. The conclusion calls on the SEC to ‘make a decision’ and set a date for US adoption …

An Analysis Of The Impact Of Adopting Ifrs 8 On The Segment Disclosures Of European Blue Chip Companies, Nancy Nichols, Donna Street, Sandra Cereola

Donna L. Street

Amidst the IASB's post-implementation review of IFRS 8, we examine how the standard's adoption changed the reporting of segments by European blue chips (i.e. companies comprising the top tier index of 14 European stock exchanges). We focus on anticipated benefits articulated in the IASB's Basis for Conclusions and concerns expressed by IFRS 8 opponents.

In addition to convergence with U.S. GAAP, IFRS 8 results in the reporting of significantly more operating segments on average. However, most companies report the same number or fewer segments. Refuting claims regarding the loss of geographic data at the entity-wide level, we identify an improvement …

Compliance With Ifrs 3 And Ias 36 Required Disclosures Across 17 European Countries: Company-Level And Country-Level Determinants, Martin Glaum, Peter Schmidt, Donna Street, Silvia Vogel

Donna L. Street

In this study, we analyse compliance for a large sample of European companies mandatorily applying International Financial Reporting Standards (IFRS). Focusing on disclosures required by IFRS 3 Business Combinations and International Accounting Standard 36 Impairment of Assets, we find substantial non-compliance. Compliance levels are determined jointly by company- and country-level variables, indicating that accounting traditions and other country-specific factors continue to play a role despite the use of common reporting standards under IFRS. At the company level, we identify the importance of goodwill positions, prior experience with IFRS, type of auditor, the existence of audit committees, the issuance of …

Production Planning And Control Systems-State Of The Art And New Directions, V. Sridharan, John Kanet

John J. Kanet

This chapter begins with a description of the role of production planning and control (PPC) within the manufacturing function. After discussing the impact of the operating environment on the choice a system for PPC, we describe some recent empirical evidence regarding the use and performance results of various PPC systems. This is followed by a brief overview of the two most widely used systems for production planning and control. We then describe a recent development in the area of short-term detailed scheduling exploiting the latest developments in computing technology. The chapter concludes with a discussion of an emerging paradigm for …

Operations Research For Freight Train Routing And Scheduling, Steven Harrod, Michael Gorman

Michael F. Gorman

This article describes the service design activities that plan and implement the rail freight operating plan. Elements of strategic service design include the setting of train frequency, the routing of cars among trains, and the consolidation of cars, called blocking. At the operational level, trains are dispatched either according to train paths configured in advance, called timetables, or according to priority rules. We describe the North American and European practice along with selected modeling and problem solving methodologies appropriate for each of the operating conditions described.

Operations Research Approaches In Asset Management In Freight Rail, Michael Gorman, Steven Harrod

Michael F. Gorman

This article describes operations research methodologies as they apply to asset management in freight rail. We describe state-of-the-art methods for locomotive, crew, rail-car, line and yard planning and management. We conclude with emerging areas of research in rail.

Does The Fire Station Have A Glass Ceiling? Perceptions Of Female Firefighters, John Griffith, James Schultz, Ronald Wakeham, Marian Schultz

John Griffith

Electronic Prescribing And Its Implementation In The United States, Kate Englebert, Amber Porterfield, William Willis, Alberto Coustasse

William K Willis

Introduction: Electronic prescribing (e-prescribing) is an important part of the nation’s push to create an electronically accessible national health system. E-prescribing allows providers to send prescriptions electronically to the pharmacy and can be stand-alone systems or part of an integrated electronic health record system. Methodology: The methodology for this study was a literature review. Electronic databases accessed include EBSCOhost, PubMED, and Google Scholar. Additionally, government websites and a semi-structured interview were used. A total of 39 sources were referenced for the review. Results: The results of the literature review demonstrated that e-prescribing reduces prescribing errors, increases efficiency, and helps save …

Some Simpler Methods Of Accounting For The Effects Of Changing Prices, Surendra Agrawal, Kenneth Rosenzweig

Kenneth Y. Rosenzweig

The complexities of accounting for the effects of changing prices on financial statements could be lessened with the use of simpler accounting methods. Because of existing complexities, even industrialized countries require only their larger business entities to provide inflation-adjusted information. Such information is prepared by making numerous adjustments to the traditional, historical cost-based data. For example, in the United Kingdom, inflation-adjusted income is calculated in two stages: operating profit and profit attributable to shareholders. These calculations are based on the concept of value to the business and require complicated adjustments with respect to cost of goods sold, depreciation, monetary working …

A Nondisclosed Cpa Examination: Implications For Education And The Accounting Profession, Kenneth Rosenzweig, K. Geary

Kenneth Y. Rosenzweig

The Board of Examiners of the American Institute of Certified Public Accountants (AICPA) has proposed that the Uniform CPA Examination change from a disclosed to a nondisclosed examination in the Year 1996. A disclosed examination is available to candidates and others after its administration, whereas a nondisclosed examination is kept secret. In this article, we develop the case that nondisclosure is undesirable. Consideration is given to the impact of nondisclosure on question quality, examination security, public confidence in the examination, accounting instruction in universities, and the costs of examination administration.

An Exploratory Field Study Of The Relationships Between The Controller’S Department And Overall Organizational Characteristics, Kenneth Rosenzweig

Kenneth Y. Rosenzweig

This paper describes an exploratory field study which applies organizational research perspectives to the study of the relationship between the controller's department and characteristics of the overall organizations of a sample of 18 manufacturing companies. Correlation analysis is used to assess the extent of association between a wide variety of controller's department and overall organization variables. The findings point to a number of significant relationships between the nature of the controller's department and characteristics of the overall organization.

Is Managing Earnings Ethically Acceptable? Surveys Show Age And Seniority Affect Attitudes On Earnings Management, Kenneth Rosenzweig, Marilyn Fischer

Kenneth Y. Rosenzweig

Is managing earnings through accounting methods ethically acceptable? That's the question we recently asked a sample group of management accountants. The response to the survey was enlightening. Our survey was designed as a follow-up and extension of the research done by Bruns and Merchant and published in Management Accounting in August 1990. They found that managers disagreed considerably on whether earnings management is ethically acceptable. They also found that in general the respondents thought manipulating earnings via operating decisions was more ethically acceptable than manipulation by accounting methods. Bruns and Merchant were disturbed by these findings. They were concerned that …

An Economic Analysis Of The Earnings Of Industrial Accountants., Kenneth Rosenzweig, Elizabeth Gustafson, Lawrence Hadley

Kenneth Y. Rosenzweig

This paper explores hypothesized determinants of accountants' earnings using a conventional Mincer earnings function. Findings indicate that the CPA credential, MBA degree, and years of work experience increase earnings. Also presented is a more detailed analysis of the earnings gap between accountants employed in traditional accounting positions and those in finance-related positions.

Attitudes Of Students And Accounting Practitioners Concerning The Ethical Acceptability Of Earnings Management, Marilyn Fischer, Kenneth Rosenzweig

Kenneth Y. Rosenzweig

There are many ways that accountants and managers can influence the reported accounting results of their organizational units. When such influence is directed at changing the amount of reported earnings, it is known as earnings management. The purpose of this paper is to present the results of surveys of undergraduate students, MBA students, and practicing accountants concerning their attitudes on the ethical acceptability of earnings management. Analysis of the survey results reveals how the attitudes of the three groups differ and what variables are associated with these differences. Based on the analysis, the authors suggest changes in accounting education curriculum …

How Institutions And Business Strategies Affect Wages: A Cross-National Study Of Call Centers, Rosemary Batt, Hiroatsu Nohara

Rosemary Batt

This paper, drawing on a 2003-2006 establishment-level survey of 1,819 call centers in 15 countries, examines effects of industrial relations institutions and employer strategies on wage variation across coordinated, liberal, and emerging market economies. The authors find several contradictory patterns, which confirm theoretical predictions for some countries and contradict them for others, suggesting diverse institutional reactions to the emergence of a new economic activity. Consistent with prior research, Denmark, France, and Sweden exhibit patterns of low wage dispersion and no union wage premium, and the United States, Canada, and emerging market economies exhibit quite high levels of dispersion. Contrary to …

Human Resource And Employment Practices In Telecommunications Services, 1980-1998, Rosemary Batt, Jeffrey Keefe

Rosemary Batt

[Excerpt] In the academic literature on manufacturing, much research and debate have focused on whether firms are adopting some form of “high-performance” or “high-involvement” work organization based on such practices as employee participation, teams, and increased discretion, skills, and training for frontline workers (Ichniowski et al., 1996; Kochan and Osterman, 1994; MacDuffie, 1995). Whereas many firms in the telecommunications industry flirted with these ideas in the 1980s, they did not prove to be a lasting source of inspiration for the redesign of work and employment practices. Rather, work restructuring in telecommunications services has been driven by the ability of firms …