The mainstream theoretical and empirical research presented in the study is a comparative analysis of comprehensive income reporting by groups listed in the Polish and German capital markets. The theoretical part of the article is dedicated to a scientific discussion on the determinants of the...

This study investigates discretionary earnings management practices, tracing the changes over the years in selected top performing and highly liquid listed Indian firms. It empirically measures the impact of corporate governance, financial legislation and global reporting standards on the firms'...

Purpose - The study aims to identify whether international financial reporting standards (IFRS) or local generally accepted accounting principles (GAAP) reporting provides investors and senior management of acquirer banks with superior information on target banks under post-merger bank...

The Financial Accounting Standard Board (FASB) recently issued Accounting Standards Update No. 2016-01 which requires firms to report unrealized gains and losses on available-for-sale (AFS) equity securities in net income, thus reducing firms’ ability to manage or smooth earnings. Previously,...

The aim of this historical account is to set forth the background behind the three petitions that Arthur Andersen & Co. submitted to the Securities and Exchange Commission (SEC) between 1954 and 1965 – two rejected and one accepted – to reform GAAP for SEC registrants. This is the first time...

We propose a dynamic bank theory with a delayed loss recognition mechanism and a regulatory capital constraint at its core. The estimated model matches four facts about banks' Tobin's Q that summarize bank leverage dynamics. (1) Book and market equity values diverge, especially during crises;...

We hypothesize that firms required by SFAS No. 131 to begin disclosing segment information attempt to counteract potential competitive harm by increasing information redaction. Using a difference-in-difference setting, we find that firms increasing the number of reported segments after the rule...

This study investigates discretionary earnings management practices, tracing the changes over the years in selected top performing and highly liquid listed Indian firms. It empirically measures the impact of corporate governance, financial legislation and global reporting standards on the firms'...

This paper argues that disclosure theory can provide novel and counterintuitive insights to scholarly debates on the relation between transparency, accountability, and accounting standard-setting. Through a brief summary of the main tenets of the theory, it will be recalled that whenever...

The study investigates the value relevance of accounting information for Islamic, conventional and hybrid banks. It also investigates the moderation impact of IFRS adoption and AAOIFI mandatory adoption on value relevance of accounting information. Using value relevance models, we run panel data...

IFRS 7 and 9 have requirement, for recognition, measurement and disclosure of derivatives. Derivatives include futures and options for hedging foreign currency risks, interest rate risk, price risk etc. Derivatives include financial and commodity derivatives, commodity derivatives are of recent...

We study the optimal level of commonality of accounting standards when firms' investments exhibit beauty-contest features as in, e.g., Arya and Mittendorf (2016). We model more commonality of accounting standards as more correlated noises in firms' reports, consistent with the "more harmonized"...

The purpose of this study is to empirically examine the relations between audit outcomes and accounting standard design (principles-based vs. rules-based) for US firms. Considering that audit outcomes may vary with audit risk, which may differ under different accounting standards, we examine and...

In this paper, we offer a novel contribution to Islamic accounting literature by examining the determinants of Investment Account Holder (IAH) disclosure in Islamic banks' annual reports. Using data from Islamic banks around the world, our regression analysis shows that the level of IAH funds,...

The purpose of this paper is to examine the effect of the adoption of converged to IFRS national standards on accounting conservatism (AC) and to investigate the effect of corporate governance (CG) attributes (government ownership, management ownership, concentration of ownership, board size,...

We propose a dynamic bank theory with a delayed loss recognition mechanism and a regulatory capital constraint at its core. The estimated model matches four facts about banks' Tobin's Q that summarize bank leverage dynamics. (1) Book and market equity values diverge, especially during crises;...

We document five facts about banks: (1) market and book leverage diverged during the 2008 crisis, (2) Tobin's Q predicts future profitability, (3) neither book nor market leverage appears constrained, (4) banks maintain a market-leverage target that is reached slowly, and (5) precrisis, leverage...

Since the formation of the International Accounting Standards Board (IASB), the use of International Financial Reporting Standards (IFRS) has spread and they have become global standards for financial reporting. However, they are not used unanimously all over the world. This paper focuses on...

The aim of this paper is to provide a stochastic model useful for assessing the capital requirement for demographic risk in a framework coherent with the Solvency II Directive. The model extends to the market consistent context classical methodologies developed in a local accounting framework....

While federal administrative agencies are authorized to coordinate with private entities, it is outside their authorization to delegate their authority to the private entity. Accounting standards, which affect how publicly traded companies disclose their financial information to stockholders and...

Quantitative investing relies on historical data and limited day-to-day human involvement, which could create short-term inflexibility in the face of changing economic conditions. In this study, we examine quantitative investors’ ability to navigate a common and occasionally material change to...

The paper explores the use of accounting standards for insurer solvency assessment in the context of the implementation of IFRS 17. The paper is based on the results of a survey of 20 insurance supervisors. Overall, IFRS 17 is a welcome development but there will be challenges of implementation....

The purpose of our paper is to investigate whether any differences between International Financial Reporting Standards (IFRS) and local Generally Accepted Accounting Principles (GAAP) impact the transparency of financial reporting of non-listed companies through bankruptcy prediction. This...

Financial statement preparers often make accounting judgments with considerable uncertainty about what future accounting standards will require. We conduct a study in the experimental economics tradition to investigate how such uncertainty affects preparers’ current period accounting...

While comparability across firms and consistency over time are generally held to be fundamental goals of financial reporting, I provide an analytic representation of a concept that explains why concepts-based accounting standards cannot assure comparability and why their induced consistency may...

This study examines whether financial accounting standards moderate the effectiveness of tax policy. Specifically, we examine whether myopic managers’ focus on short-term financial reporting reduces the effectiveness of tax subsidies that incentivize innovation. We employ a novel setting, the...

We propose a dynamic bank theory with a delayed loss recognition mechanism and a regulatory capital constraint at its core. The estimated model matches four facts about banks’ Tobin’s Q that summarize bank leverage dynamics. (1) Book and market equity values diverge, especially...

We examine the association between I/B/E/S's disclosure of non-GAAP earnings and investor uncertainty around earnings announcements. On one hand, investor uncertainty may decrease with I/B/E/S's non-GAAP disclosure because these disclosures make investors aware of alternative performance...

The aim of this paper is to knowledge the problems faced by toward Islamic banks in Jordan adherence the s to AAOIFI accounting standards. And to study the problems faced with adherence to AAOIFI accounting standards, a meticulous market survey was conducted from banking (employees of the...

The regulatory landscape for non-GAAP reporting has been evolving due to changes in the U.S. SEC’s interpretations of regulations affecting non-GAAP disclosures. I examine whether the regulation of non-GAAP disclosures constrains efficient compensation contracting. I use the regulatory shock...

We examine how the qualitative characteristics of a non-GAAP earnings disclosure reveal the quality of the non-GAAP performance metric itself. We measure the qualitative aspects of the non-GAAP disclosure using an index of 12 hand-coded characteristics and presentation choices that provide...

We compare non-GAAP earnings and segment earnings determined by ASC 280’s Management Approach, both of which afford managers flexibility in defining performance. This comparison is relevant because (1) standard setters are considering expanding the use of internally viewed information in...

In Incomprehensible!, Wendy Wagner highlights a blind spot in the design of many legal programs: they demand that market players share as much information as possible, but neglect to demand that the information be conveyed comprehensibly. Wagner shows how the neglect of comprehensibility...

Researchers often do not distinguish non-GAAP exclusions that increase earnings from those that decrease earnings, overlooking the fact that EPS-decreasing exclusions (about one fifth of all analysts’ exclusions) could have different properties and valuation implications. Using both...

We examine whether the Financial Accounting Standards Board (FASB) Codification reduced financial reporting complexity by making it easier for preparers to locate and apply relevant accounting guidance. We find that areas of U.S. GAAP with more dispersed and voluminous guidance before the...

New economy companies often use convertible and redeemable preferred shares with equity and debt characteristics as financing tools to reduce risk during their early stages of growth. According to relevant accounting standards, such preferred shares should be classified as financial liabilities...