Pub Date : 2018-04-13DOI: 10.1504/IJAAPE.2018.10012073
Sharad Asthana, Rachana Kalelkar, K. Raman
The Big 4 audit firms currently dominate the US audit market. We investigate whether the extent of a Big 4 local office's dependence on industry specialist clients impacts audit effort/earnings quality for the office's specialist as well as non-specialist clients. Our findings suggest that greater dependence on specialist clients is associated with higher audit effort/earnings quality for specialist clients but also with lower audit effort/earnings quality for the office's non-specialist clients. Our results hold when we propensity-match specialist and non-specialist clients to control for client characteristics as a possible confounding explanation. Our study is important, because it: 1) contributes to prior research that is largely silent on whether cross-sectional variations in reputation for industry-expertise are associated with variations in audit quality (DeFond and Zhang, 2014); 2) suggests that, it would be appropriate for PCAOB inspectors to focus on non-specialist clients at audit offices with greater dependence on specialist clients as an area representing higher risk of lower audit effort/quality.
{"title":"Unintended consequences of Big 4 auditor office-level industry specialisation","authors":"Sharad Asthana, Rachana Kalelkar, K. Raman","doi":"10.1504/IJAAPE.2018.10012073","DOIUrl":"https://doi.org/10.1504/IJAAPE.2018.10012073","url":null,"abstract":"The Big 4 audit firms currently dominate the US audit market. We investigate whether the extent of a Big 4 local office's dependence on industry specialist clients impacts audit effort/earnings quality for the office's specialist as well as non-specialist clients. Our findings suggest that greater dependence on specialist clients is associated with higher audit effort/earnings quality for specialist clients but also with lower audit effort/earnings quality for the office's non-specialist clients. Our results hold when we propensity-match specialist and non-specialist clients to control for client characteristics as a possible confounding explanation. Our study is important, because it: 1) contributes to prior research that is largely silent on whether cross-sectional variations in reputation for industry-expertise are associated with variations in audit quality (DeFond and Zhang, 2014); 2) suggests that, it would be appropriate for PCAOB inspectors to focus on non-specialist clients at audit offices with greater dependence on specialist clients as an area representing higher risk of lower audit effort/quality.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":"14 1","pages":"254-289"},"PeriodicalIF":0.0,"publicationDate":"2018-04-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41347723","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2018-01-24DOI: 10.1504/IJAAPE.2018.10010453
Zane L. Swanson, Yinghong Zhang
We investigate the impact of covenant violations on audit report timeliness. We argue that the existence of covenant violations might motivate clients or banks to seek waivers or renegotiations of current lending contracts. Otherwise, auditors might perform more audit tests before issuing audit opinions. Ultimately, auditors will increase the number of days to complete the audit. Our major findings are consistent with our prediction. In addition, we find that the presence of early covenant violations further increases audit delays. Our findings identify another factor affecting the audit report timeliness and one economic consequence of covenant violations.
{"title":"Do covenant violations affect audit report timeliness","authors":"Zane L. Swanson, Yinghong Zhang","doi":"10.1504/IJAAPE.2018.10010453","DOIUrl":"https://doi.org/10.1504/IJAAPE.2018.10010453","url":null,"abstract":"We investigate the impact of covenant violations on audit report timeliness. We argue that the existence of covenant violations might motivate clients or banks to seek waivers or renegotiations of current lending contracts. Otherwise, auditors might perform more audit tests before issuing audit opinions. Ultimately, auditors will increase the number of days to complete the audit. Our major findings are consistent with our prediction. In addition, we find that the presence of early covenant violations further increases audit delays. Our findings identify another factor affecting the audit report timeliness and one economic consequence of covenant violations.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":"14 1","pages":"1-23"},"PeriodicalIF":0.0,"publicationDate":"2018-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49011956","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2018-01-24DOI: 10.1504/IJAAPE.2018.10010454
W. ElKelish, Robert Rickards
This paper investigates the impact of organisational culture on management accounting and control (MAC) practices in the United Arab Emirates (UAE). Data were collected using a self-administered survey of companies and multiple regression analysis (ordinary least squares) was employed to test the study's hypotheses. Empirical results show internal organisational cultures characterised by high levels of adhocracy (adaptability) or low levels of hierarchy appear to be more conducive to the adoption of MAC practices. On the other hand, organisations with a more market-oriented culture seem to be less reliant on budgeting as a means for exerting management control. In addition, the service industry displays significant differences in its MAC practices relative to other sectors' behaviour. This investigation thus yields new insights into the influences affecting implementation of MAC practices, which is useful for researchers, corporate managers, and other stakeholders.
{"title":"Organisational culture's impact on management accounting and control practices in the United Arab Emirates","authors":"W. ElKelish, Robert Rickards","doi":"10.1504/IJAAPE.2018.10010454","DOIUrl":"https://doi.org/10.1504/IJAAPE.2018.10010454","url":null,"abstract":"This paper investigates the impact of organisational culture on management accounting and control (MAC) practices in the United Arab Emirates (UAE). Data were collected using a self-administered survey of companies and multiple regression analysis (ordinary least squares) was employed to test the study's hypotheses. Empirical results show internal organisational cultures characterised by high levels of adhocracy (adaptability) or low levels of hierarchy appear to be more conducive to the adoption of MAC practices. On the other hand, organisations with a more market-oriented culture seem to be less reliant on budgeting as a means for exerting management control. In addition, the service industry displays significant differences in its MAC practices relative to other sectors' behaviour. This investigation thus yields new insights into the influences affecting implementation of MAC practices, which is useful for researchers, corporate managers, and other stakeholders.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":"14 1","pages":"24-46"},"PeriodicalIF":0.0,"publicationDate":"2018-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42626506","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2018-01-24DOI: 10.1504/IJAAPE.2018.10010457
Y. Hutagaol-Martowidjojo, Felita Widyanto
This research aims to examine the changes in earnings quality of Indonesian firms transitioning from private to public companies by examining accounting-based attributes of earnings; accrual quality, earnings persistence, and earnings predictability, before and after IPO. Accrual quality is assessed using the abnormal accrual model and Dechow and Dichev (DD) model; earnings persistence and predictability are assessed through net income autoregressive model. Using 103 Indonesian non-finance IPO firms, this research concludes that earnings quality of IPO firms changed along with the alteration of their status from private to public firms. Post-IPO (after becoming public firms), the sample shows a higher quality of earnings in terms of accrual quality and earnings persistence increases after IPO. However, this research could not reject the hypothesis of decreasing post-IPO earnings predictability due to the nature of IPO firms.
本研究旨在通过检验基于会计的盈余属性，检验印尼公司从私营公司向上市公司转型时盈余质量的变化;应计质量、盈余持续性和盈余可预测性，IPO前后。采用异常应计模型和Dechow and Dichev (DD)模型对应计质量进行评价;通过净利润自回归模型对盈余持续性和可预测性进行评估。本文以103家印尼非金融类IPO企业为研究对象，发现IPO企业的盈余质量随其从民营企业到上市公司的转变而发生变化。上市后(成为上市公司后)，样本在应计质量和盈余持续性方面显示出更高的盈余质量。然而，由于IPO公司的性质，本研究不能拒绝IPO后收益可预测性降低的假设。
{"title":"Earnings quality of Indonesian firms surrounding initial public offerings","authors":"Y. Hutagaol-Martowidjojo, Felita Widyanto","doi":"10.1504/IJAAPE.2018.10010457","DOIUrl":"https://doi.org/10.1504/IJAAPE.2018.10010457","url":null,"abstract":"This research aims to examine the changes in earnings quality of Indonesian firms transitioning from private to public companies by examining accounting-based attributes of earnings; accrual quality, earnings persistence, and earnings predictability, before and after IPO. Accrual quality is assessed using the abnormal accrual model and Dechow and Dichev (DD) model; earnings persistence and predictability are assessed through net income autoregressive model. Using 103 Indonesian non-finance IPO firms, this research concludes that earnings quality of IPO firms changed along with the alteration of their status from private to public firms. Post-IPO (after becoming public firms), the sample shows a higher quality of earnings in terms of accrual quality and earnings persistence increases after IPO. However, this research could not reject the hypothesis of decreasing post-IPO earnings predictability due to the nature of IPO firms.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":"14 1","pages":"47-62"},"PeriodicalIF":0.0,"publicationDate":"2018-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45399592","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2018-01-24DOI: 10.1504/IJAAPE.2018.10010458
A. Owusu, C. Weir
This paper analyses the relationship between agency costs, ownership structure and corporate governance mechanisms in Ghana for the study period 2000-2009. Our results show that smaller board size and the presence of audit and remuneration committees decrease agency costs. We also find that higher managerial and institutional ownership reduces agency costs. However, duality and the proportion of non-executive directors on the board have no effect on agency costs, suggesting that not all board structure governance mechanisms are effective in mitigating agency costs. Interestingly, the non-board structure code recommendations such as improved shareholder voting rights, the adoption of International Financial Reporting Standards and auditor quality have also reduced agency costs. Overall, we find that the introduction of the Ghanaian Code played significant role in reducing agency costs.
{"title":"Agency costs, ownership structure and corporate governance mechanisms in Ghana","authors":"A. Owusu, C. Weir","doi":"10.1504/IJAAPE.2018.10010458","DOIUrl":"https://doi.org/10.1504/IJAAPE.2018.10010458","url":null,"abstract":"This paper analyses the relationship between agency costs, ownership structure and corporate governance mechanisms in Ghana for the study period 2000-2009. Our results show that smaller board size and the presence of audit and remuneration committees decrease agency costs. We also find that higher managerial and institutional ownership reduces agency costs. However, duality and the proportion of non-executive directors on the board have no effect on agency costs, suggesting that not all board structure governance mechanisms are effective in mitigating agency costs. Interestingly, the non-board structure code recommendations such as improved shareholder voting rights, the adoption of International Financial Reporting Standards and auditor quality have also reduced agency costs. Overall, we find that the introduction of the Ghanaian Code played significant role in reducing agency costs.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":"14 1","pages":"63-84"},"PeriodicalIF":0.0,"publicationDate":"2018-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46643394","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2018-01-24DOI: 10.1504/IJAAPE.2018.089418
S. Pichler, Michela Cordazzo, Paola Rossi
The EU regulation 1606/2002 enhances the financial statement comparability by requiring the IFRS mandatory application. In Italy, the implementation of EU regulation states that listed firms are required to prepare their financial statements in accordance with IFRS, then extended to private firms on a voluntary basis. The study aims to examine the influence of some firm-specific characteristics on voluntary IFRS adoption by analysing a selected sample of Italian private firms over 2006-2010. The results show that firms are more likely to adopt IFRS in their separate financial statements if there is the presence of ownership diffusion and a Big-4 along with greater profitability. Such adoption is not influenced by whether firms register a high level of capital intensity and leverage, and it does not increase with the firm size or level of foreign sales. Our findings may also represent a primary approach to investigate whether IFRS adoption could be beneficial for SMEs, as a large part of sampled firms may be classified according to the EU definition of SME.
{"title":"An analysis of the firms-specific determinants influencing the voluntary IFRS adoption: evidence from Italian private firms","authors":"S. Pichler, Michela Cordazzo, Paola Rossi","doi":"10.1504/IJAAPE.2018.089418","DOIUrl":"https://doi.org/10.1504/IJAAPE.2018.089418","url":null,"abstract":"The EU regulation 1606/2002 enhances the financial statement comparability by requiring the IFRS mandatory application. In Italy, the implementation of EU regulation states that listed firms are required to prepare their financial statements in accordance with IFRS, then extended to private firms on a voluntary basis. The study aims to examine the influence of some firm-specific characteristics on voluntary IFRS adoption by analysing a selected sample of Italian private firms over 2006-2010. The results show that firms are more likely to adopt IFRS in their separate financial statements if there is the presence of ownership diffusion and a Big-4 along with greater profitability. Such adoption is not influenced by whether firms register a high level of capital intensity and leverage, and it does not increase with the firm size or level of foreign sales. Our findings may also represent a primary approach to investigate whether IFRS adoption could be beneficial for SMEs, as a large part of sampled firms may be classified according to the EU definition of SME.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":"14 1","pages":"85-104"},"PeriodicalIF":0.0,"publicationDate":"2018-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/IJAAPE.2018.089418","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44962569","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-10-16DOI: 10.1504/IJAAPE.2017.087239
Eman Farag, M. El-kady, K. Hussainey
We have developed a set of appropriate performance evaluation measurements for the private higher education (PHE) sector, based mainly on the integration between the third generation balanced scorecard (third GBSC) and a students' loyalty model (SLM). We describe the process of the development of customers' (students') loyalty, taking into consideration the improvement of the quality of the education process by increasing students' satisfaction, loyalty and financial performance respectively, by improving key performance indicators (KPIs) of the third GBSC. Furthermore, we pursue a case study methodology of the application of the third GBSC integrated with a SLM at Egypt's Canadian International College (CIC). We also investigate students' satisfaction of the CIC's Faculty of Engineering. We find that the application of the suggested model has a significant association with the improvement of the CIC's KPIs related to education quality (EQ). Furthermore, the application of this integration model increases the anticipation of profitability.
{"title":"The integration of the third generation balanced scorecard with a student loyalty model to enhance financial performance in higher education","authors":"Eman Farag, M. El-kady, K. Hussainey","doi":"10.1504/IJAAPE.2017.087239","DOIUrl":"https://doi.org/10.1504/IJAAPE.2017.087239","url":null,"abstract":"We have developed a set of appropriate performance evaluation measurements for the private higher education (PHE) sector, based mainly on the integration between the third generation balanced scorecard (third GBSC) and a students' loyalty model (SLM). We describe the process of the development of customers' (students') loyalty, taking into consideration the improvement of the quality of the education process by increasing students' satisfaction, loyalty and financial performance respectively, by improving key performance indicators (KPIs) of the third GBSC. Furthermore, we pursue a case study methodology of the application of the third GBSC integrated with a SLM at Egypt's Canadian International College (CIC). We also investigate students' satisfaction of the CIC's Faculty of Engineering. We find that the application of the suggested model has a significant association with the improvement of the CIC's KPIs related to education quality (EQ). Furthermore, the application of this integration model increases the anticipation of profitability.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":"13 1","pages":"339-360"},"PeriodicalIF":0.0,"publicationDate":"2017-10-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/IJAAPE.2017.087239","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48901600","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-10-16DOI: 10.1504/IJAAPE.2017.10007827
C. Gray, Zane L. Swanson
US generally accepted accounting principles (GAAP) permit publicly held oil and gas exploration and development companies (OGEs) to report exploration and development costs under either the successful efforts (SE) or the full cost pool (FC) method, which results in a lack of comparability of financial statements of FC and SE companies. In an attempt to eliminate information asymmetry, OGEs must disclose detailed information about proved reserves, including the discounted present value of future cash flows from proved reserves. This study investigates whether these reserve disclosures enhanced comparability between firms using FC and SE accounting. Quantitative research methods utilising multiple regression analysis techniques examine whether the present value of future cash flows from proved reserves discounted at 10% (PV10) and reserve quantity disclosures predict changes in market capitalisation. Although the various reserve disclosures required by the FASB (2014b) reduce information asymmetry between management and investors, the findings from this research indicate that investors in FC and SE companies use different data to determine the prices they are willing to pay for the companies' stocks. Therefore, these disclosures have not provided investors with a uniform set of criteria that can be used to compare a FC company with an SE company.
{"title":"Market impact of proved reserves disclosures by US publicly held oil and gas exploration and development companies","authors":"C. Gray, Zane L. Swanson","doi":"10.1504/IJAAPE.2017.10007827","DOIUrl":"https://doi.org/10.1504/IJAAPE.2017.10007827","url":null,"abstract":"US generally accepted accounting principles (GAAP) permit publicly held oil and gas exploration and development companies (OGEs) to report exploration and development costs under either the successful efforts (SE) or the full cost pool (FC) method, which results in a lack of comparability of financial statements of FC and SE companies. In an attempt to eliminate information asymmetry, OGEs must disclose detailed information about proved reserves, including the discounted present value of future cash flows from proved reserves. This study investigates whether these reserve disclosures enhanced comparability between firms using FC and SE accounting. Quantitative research methods utilising multiple regression analysis techniques examine whether the present value of future cash flows from proved reserves discounted at 10% (PV10) and reserve quantity disclosures predict changes in market capitalisation. Although the various reserve disclosures required by the FASB (2014b) reduce information asymmetry between management and investors, the findings from this research indicate that investors in FC and SE companies use different data to determine the prices they are willing to pay for the companies' stocks. Therefore, these disclosures have not provided investors with a uniform set of criteria that can be used to compare a FC company with an SE company.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":"13 1","pages":"361-379"},"PeriodicalIF":0.0,"publicationDate":"2017-10-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47976081","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-10-16DOI: 10.1504/IJAAPE.2017.10007828
B. Nghiêm-Phú, T. Nguyen
This study focuses on the images (perceptions) of accountants and accounting in Vietnam. The first objective of the study is to compare the perceptions of the three groups of respondents, including first- and fourth-year accounting students and practising accountants. It was revealed that the respondents' perceptions differed in 12 out of the 17 traits of accountants, and four out of the six characteristics of accounting. Fourth year students held the least favourable images, while practitioners were the most positive evaluators. The images of the accountants were positively perceived, while those of the accounting profession only received neutral evaluations. The second objective of the study is to verify the relationships between perceptions of accountants/accounting and other demographic and attitudinal variables. Using the data gathered from the practising accountant sample, the analysis revealed that the respondents' perceptions could be significantly affected by their sex, education and position on the one hand, and could significantly influence their intention on the other. Implications for accounting education in Vietnam are discussed based on these findings.
{"title":"An intra-cultural study on accounting students' and practitioners' perceptions of accountants and accounting in Vietnam","authors":"B. Nghiêm-Phú, T. Nguyen","doi":"10.1504/IJAAPE.2017.10007828","DOIUrl":"https://doi.org/10.1504/IJAAPE.2017.10007828","url":null,"abstract":"This study focuses on the images (perceptions) of accountants and accounting in Vietnam. The first objective of the study is to compare the perceptions of the three groups of respondents, including first- and fourth-year accounting students and practising accountants. It was revealed that the respondents' perceptions differed in 12 out of the 17 traits of accountants, and four out of the six characteristics of accounting. Fourth year students held the least favourable images, while practitioners were the most positive evaluators. The images of the accountants were positively perceived, while those of the accounting profession only received neutral evaluations. The second objective of the study is to verify the relationships between perceptions of accountants/accounting and other demographic and attitudinal variables. Using the data gathered from the practising accountant sample, the analysis revealed that the respondents' perceptions could be significantly affected by their sex, education and position on the one hand, and could significantly influence their intention on the other. Implications for accounting education in Vietnam are discussed based on these findings.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":"13 1","pages":"380-397"},"PeriodicalIF":0.0,"publicationDate":"2017-10-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45789147","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-10-16DOI: 10.1504/IJAAPE.2017.10007823
Ika Sari Wahyuni-TD
The purpose of this paper is to explore the emerging issues of fair value accounting (FVA) from Islamic perspective. Previous literature is reviewed to identify the issues of fair value accounting from Islamic perspective. In this paper, the reliable and objective issues, gharar issue, unethical issue, zakah issue and three-tier hierarchy issue are discussed in FVA. In order to avoid Shari'ah issues in accounting measurement, the valuation basis used for the measurement of assets and liabilities should consider the types and the nature of assets and liabilities. Moreover, accountants in doing their professional duties are required to have the code of ethics based on Holy Quran and Shari'ah principles in order to get paramount rewards from Allah SWT in the hereafter. Therefore, the discussion of Shari'ah issues in this paper is expected to be useful as a sharing knowledge of the matters and challenges faced by Muslims when dealing with FVA.
{"title":"Assessment of fair value accounting from the Islamic perspective","authors":"Ika Sari Wahyuni-TD","doi":"10.1504/IJAAPE.2017.10007823","DOIUrl":"https://doi.org/10.1504/IJAAPE.2017.10007823","url":null,"abstract":"The purpose of this paper is to explore the emerging issues of fair value accounting (FVA) from Islamic perspective. Previous literature is reviewed to identify the issues of fair value accounting from Islamic perspective. In this paper, the reliable and objective issues, gharar issue, unethical issue, zakah issue and three-tier hierarchy issue are discussed in FVA. In order to avoid Shari'ah issues in accounting measurement, the valuation basis used for the measurement of assets and liabilities should consider the types and the nature of assets and liabilities. Moreover, accountants in doing their professional duties are required to have the code of ethics based on Holy Quran and Shari'ah principles in order to get paramount rewards from Allah SWT in the hereafter. Therefore, the discussion of Shari'ah issues in this paper is expected to be useful as a sharing knowledge of the matters and challenges faced by Muslims when dealing with FVA.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":"13 1","pages":"325-338"},"PeriodicalIF":0.0,"publicationDate":"2017-10-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45731235","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：