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Full-Text Articles in Accounting
Business Combinations Under Common Control (Part 2), Pearl Hock-Neo Tan, Chu Yeong Lim, Tracey Chunqi Zhang
Business Combinations Under Common Control (Part 2), Pearl Hock-Neo Tan, Chu Yeong Lim, Tracey Chunqi Zhang
Research Collection School Of Accountancy
In Part 1 of the article, published in the March issue of this IS Chartered Accountant Journal, we explained the conditions for a BCUCC and the two methods of accounting for BCUCC. We also explained how accounting standards need to address the gap in accounting for the BCUCC from the receiving entity’s perspective. In this Part 2 of the article, we propose a contextual approach in determining the accounting method on BCUCC for the receiving entity (that is, the entity which receives control of the transferred entity from another group entity). We propose that a BCUCC that has commercial substance …
Mandatory Financial Reporting And Voluntary Disclosure: The Effect Of Mandatory Ifrs Adoption On Management Forecasts, Xi Li, Holly I. Yang
Mandatory Financial Reporting And Voluntary Disclosure: The Effect Of Mandatory Ifrs Adoption On Management Forecasts, Xi Li, Holly I. Yang
Research Collection School Of Accountancy
This study examines the effect of the mandatory adoption of International Financial Reporting Standards (IFRS) on voluntary disclosure. Using a difference-in-difference analysis, we document a significant increase in the likelihood and frequency of management earnings forecasts following mandatory IFRS adoption, consistent with the notion that IFRS adoption alters firms' disclosure incentives in response to increased capital-market demand. We find the increase to be larger among firms domiciled in code-law countries, suggesting a catching-up effect among firms facing low disclosure incentives pre-adoption. We then propose and test three channels through which IFRS adoption could alter firms' disclosure incentives: improved earnings quality, …
Mandatory Financial Reporting And Voluntary Disclosure: The Effect Of Mandatory Ifrs Adoption On Management Forecasts, Xi Li, Holly I. Yang
Mandatory Financial Reporting And Voluntary Disclosure: The Effect Of Mandatory Ifrs Adoption On Management Forecasts, Xi Li, Holly I. Yang
Research Collection School Of Accountancy
This study examines the effect of the mandatory adoption of International Financial Reporting Standards (IFRS) on voluntary disclosure. Using a difference-in-difference analysis, we document a significant increase in the likelihood and frequency of management earnings forecasts following mandatory IFRS adoption, consistent with the notion that IFRS adoption alters firms' disclosure incentives in response to increased capital-market demand. We find the increase to be larger among firms domiciled in code-law countries, suggesting a catching-up effect among firms facing low disclosure incentives pre-adoption. We then propose and test three channels through which IFRS adoption could alter firms' disclosure incentives: improved earnings quality, …
Fair Value Hierarchy Measures: Post-Implementation Evidence On Ifrs 7, Pearl Tan
Fair Value Hierarchy Measures: Post-Implementation Evidence On Ifrs 7, Pearl Tan
Research Collection School Of Accountancy
Using a balance sheet valuation model, this study examines if information on the fair value hierarchy of on-balance sheet financial assets and financial liabilities are incorporated in the market’s valuation of companies’ equities in Singapore. The results of the study show significant associations between as-reported Level 1 and Level 2 fair value measures of financial assets and market values. However, the results are not significant for Level 3 fair value measures of financial assets and each of the three levels of fair value measures of financial liabilities. The results also show that returns are more positively associated with as-reported gains …
R&D Reporting Rule And Firm Efficiency, Nilabhra Bhattacharya, Yoshie Saito, Ram Venkataraman, Jeff Jiwei Yu
R&D Reporting Rule And Firm Efficiency, Nilabhra Bhattacharya, Yoshie Saito, Ram Venkataraman, Jeff Jiwei Yu
Research Collection School Of Accountancy
US GAAP (SFAS 2) requires immediate expensing of research and development (R&D) expenditure. Critics of this rule contend that the current treatment incentivizes managers to cut essential investments in R&D to manage short-term profits, and such actions could lead to longer-term adverse consequences for firms and investors. While other observers argue that there is little rigorous research that suggests that the current accounting treatment has harmful consequences. In this study, we exploit a setting in Germany when the accounting rule for R&D reporting changed from immediate expensing (as in the U.S.) to partial capitalization when Germany adopted International Financial Reporting …