Accounting Perspectives最新文献

Wilson Drilling Inc. is a leading Canadian provider of contract drilling rigs and well services to the oil and gas industry. This case exposes students to important financial reporting issues relevant to fixed assets, such as asset impairment and decommissioning and changing the accounting method for depreciation, as well as reporting of deferred income taxes in a real-world situation. This case is suitable for use in undergraduate Intermediate Accounting or Advanced Financial Accounting classes.

This paper reviews the literature pertaining to the effects of the characteristics of top executives on firms' decisions and outcomes. We focus particularly on research related to executives' individual characteristics, including their demographic, psychological, and other characteristics. Thereafter, we discuss the literature related to the relationship among executives, particularly the CEO and the CFO, which may affect corporate performance and accounting outcomes. Finally, we identify the gaps in the literature and provide directions for future research.

In this study, we review the extant literature on factors affecting the level and structure of executive compensation, with a specific focus on the power dynamic between firms and their executives. In doing so, we explore the competing effects of corporate tax planning and managerial power on executive compensation structure. We consider the theoretical underpinnings and related empirical findings regarding executive compensation structure and propose new avenues for future research that may deepen our understanding of factors influencing executive compensation structure.

This research aims to advance the literature by identifying the association between four advertising media vehicles (Internet, press, outdoor, television) and contemporaneous sales. Previous research highlights the influence of advertising on firm value but does not delve into the effects of advertising media vehicles. Employing primary data, which detail the advertising expenditures of 88 publicly traded companies over 11 years, we empirically show a positive association between television and outdoor advertising expenditures and contemporaneous sales. However, we do not find any significant results for press and Internet advertising. We investigate the moderating effect of the growth opportunities, industry sectors, and firm size. Our study offers important evidence that the contemporaneous relationship between sales and advertising expenditures varies by media vehicle. We discuss the implications of our findings for the matching principle, a principal concept in accrual accounting.

We highlight how complying with detailed professional accounting rules can lead to lies and undermine the overall objectives of financial reporting. We do so by conducting a retrospective analysis (using the argumentation concepts of premise, qualifier, data, and conclusions) of the reasoning of the two expert accounting witnesses in the criminal trial in 2006 of Enron's president (Lay) and CEO (Skilling). We make two recommendations that are intended to elevate financial reporting beyond a mere compliance instrument and to help it conform better with the idea of fair presentation. First, we call for the objectives of financial reporting to be installed as the overarching premise in a conceptual framework (CF) for GAAP-based financial reporting. The remainder of the CF should provide essential guidance to meet those objectives. Second, we recommend that the needs of users of financial reports should be prioritized by developing ethical forecasting principles and better ways of assessing and reporting the accounting estimation uncertainties that are identified in the IASB's (2018) revised CF. We contend that a CF with the more detailed standards should guide professional judgment on the concept of accounting risk and provide guidance on an acceptable level of this risk for various line items on the financial statements. Ideally, accounting risk should be less than 0.50 so that the probability that the reported number is materially accurate is at least 0.50. This requirement is necessary for the various types of accounting estimates to be sufficiently truthful for ethical financial reporting. This will render GAAP and financial reporting more reliant on cogent reasoning and argumentation.

The value relevance research in accounting offers robust analyses about how the market views accounting information. Although significant work has been done to date in this mature research area, the literature does not fully explain or agree upon the changes in value relevance over time, and the impact of economic conditions on the value relevance of accounting information is a relatively understudied research stream. We review three streams of the value relevance literature: (i) the value relevance of earnings and book values, (ii) the value relevance of other accounting information, and (iii) the role of economic conditions on the value relevance of accounting information. Further, we review the various explanations put forth in the literature to try to explain the variation in value relevance over time. Finally, we provide a limited baseline for the current state of scholarly work and offer insight for future value relevance research.