Showing papers in "European Accounting Review in 1993"
TL;DR: In this article, the authors examine the true and fair view (TFV) requirement in the Fourth Directive, and in the corresponding company legislation in UK, France and Germany, and explore differences and nuances from a language and translation viewpoint and also related to pre-Fourth Directive requirements and culture.
Abstract: After a brief historical introduction, the paper examines the true and fair view (TFV) requirement in the Fourth Directive, and in the corresponding company legislation in UK, France and Germany. Differences and nuances are explore from a language and translation viewpoint and also related to pre-Fourth Directive requirements and culture. The extent of true harmonization is questionable. Recent experience and usage of TFV in the UK is critically described and related to the broader European context. The general drift of the argument is that countries are tending to interpret TFV in the context of national culture, national accounting tradition and national GAAP. From a properly European perspective there is a need for changes in attitude from all concerned. TFV and GAAP are living and dynamic concepts. They are affected by the cultures within which they are used. Homogeneous attitudes to such concepts imply homogeneous cultural contexts, and this raises questions of a most fundamental nature.
144 citations
TL;DR: In this article, the authors conducted a survey among the members of the Dutch Association of Investment Analysts by means of a postal questionnaire survey and found that three main categories of investment analysts are distin guished, viz. investment advisers, portfolio managers and directors/heads of department.
Abstract: The research findings reported in this paper focus on the use and perceived importance of annual reports by investment analysts in the Netherlands. The study was held among the members of the Dutch Association of Investment Analysts by means of a postal questionnaire survey. The research findings are compared with those of similar studies in the United States, the United Kingdom and New Zealand. Three main categories of investment analysts are distin guished, viz. investment advisers, portfolio managers and directors/heads of department. The annual report appears to be a vital, though not sufficient source of information to investment analysts. However, there are some clear differences between the three categories concerning the use and perceived importance of (parts of) the annual report. The research findings are, to a large extent, consist ent with the results of similar studies among investment analysts from abroad.
114 citations
TL;DR: In this paper, the role of lobbying in an international accounting standards setting and the IASC's process of promulgating International Accounting Standard (IAS) 31, ‘Financial Reporting of Interests in Joint Ventures' is examined.
Abstract: This paper studies the role of lobbying in an international (i.e., harmonization) accounting standards setting and examines the IASC's process of promulgating International Accounting Standard (IAS) 31, ‘Financial Reporting of Interests in Joint Ventures'. Our study begins with an examination of the Exposure Draft (ED 35, ‘Financial Reporting of Interests in Joint Ventures') preceding IAS 31 and analyses the lobbying efforts observed during the promulgation process. Consistent with prior literature, the paper analyses lobbyists and their lobbying positions. During the time frame of the study (1989 and 1990), the IASC changed its due process, which affords us the opportunity also to analyse the IASC's strategic approach to public input. Accordingly, this study incorporates aspects of institutional theory as it relates to strategic choice by organizations. The comment letters received by the IASC regarding ED 35 were analysed using a form of content analysis. The analyses generally support the hypothesized ...
92 citations
TL;DR: In this paper, the authors provide a framework against which to evaluate the true and fair view and what significance it has in the British accounting literature, how the meaning of such a term arises and how it may be transferred to other countries.
Abstract: This article sets out to provide a framework against which to evaluate the true and fair view. It poses the question as to what the true and fair view might mean, and what significance it has. It analyses what the term means in the British accounting literature, how the meaning of such a term arises and how it may be transferred to other countries. It then considers what is the significance of the term in the political arena.1
76 citations
66 citations
TL;DR: In this article, the feasibility and usefulness of the IAS-compliant reconciliation of domestic financial statements to IAS, and the degree of harmonization likely to be achieved as a result, is examined by means of an empirical study of Finnish corporate reports.
Abstract: The IASC has suggested a number of ways by which listed companies could present financial statements that conform with International Accounting Standards (IAS). This paper considers the feasibility and usefulness of those options. In particular, the reconciliation of domestic financial statements to IAS, and the degree of harmonization likely to be achieved as a result, is examined by means of an empirical study of Finnish corporate reports. The reconciliations and other IAS information provided by the unique case of seventeen Finnish companies are examined in detail over a three-year period. Gray's index of conservatism (Gray, 1980) is used to examine the impact on profit and shareholders' equity of the various adjustments in the reconciliations.It is concluded that the insight provided by the IAS information is limited due to: the reduced quality of information provided regarding the Finnish (FAS) and IAS accounting policies followed; the combination of adjustments, some of which are material, included ...
60 citations
TL;DR: In this article, the authors make a quantitative comparative analysis of differences between Swedish accounting practice and US GAAP, and find that the most material differences between Sweden profits and those calculated using USGAAP were caused by differences in treatment of foreign currency translation, income taxes, sale and leaseback transactions and business combinations.
Abstract: The purpose of this paper is to make a quantitative comparative analysis of differences between Swedish accounting practice and US GAAP. The empirical data consisted of eighty-four US GAAP reconciliations of income statements and shareholders' equity, disclosed in Swedish annual reports during 1981–90. Prior qualitative research has suggested that Swedish accounting practice is conservative compared with that in the USA. However, the empirical analysis of profits and return on equity provided little support for this hypothesis. Instead, there were indications of a less conservative accounting treatment in the Swedish accounts compared with US GAAP. The most material differences between Swedish profits and those calculated using US GAAP were caused by differences in treatment of foreign currency translation, income taxes, sale and leaseback transactions and business combinations.
56 citations
TL;DR: In this paper, the Harmonization of accounting standards in the EC was discussed and the authors propose a set of standards to be adopted in the European Accounting Review: Vol. 2, No. 2, pp 387-396.
Abstract: (1993). Harmonization of accounting standards in the EC. European Accounting Review: Vol. 2, No. 2, pp. 387-396.
51 citations
49 citations
TL;DR: In this paper, the authors present a review of the financial accounting and reporting in Finland, focusing on the following topics: financial accounting, reporting, tax, and tax law in Finland.
Abstract: (1993). Financial accounting and reporting in Finland. European Accounting Review: Vol. 2, No. 3, pp. 592-602.
44 citations
TL;DR: In this article, the authors identified and discussed some of the important questions covering the process of setting accounting regulations and discussed the role of the accounting profession in the rule-making process.
Abstract: Changes taking place in Poland and in other Central European countries mean a return to the free market economy and private ownership under democratic law. In these circumstances, new accounting regulations are necessary. In this paper some of the important questions covering the process of setting accounting regulations have been identified and discussed. The questions are as follows: - business law and accounting regulations; the sequence of changes; - the scope of accounting regulations; - EC Directives and the new Order on Accounting; - international accounting standards and their importance for changes in accounting regulations; - making use of the experience of West European nations; - Accounting regulations problems concerning the newly established Stock Exchange in Warsaw and the Securities Commission; - the recently promulgated ‘Act on Financial Statements Auditing and the Auditors' (independent institution, and standards); - the role of the accounting profession in the rule-making process.
TL;DR: In this article, the authors highlight the changes which are occurring in accounting regulation and in the accounting profession in Italy and highlight the concrete significance of those changes with reference to the day-today practice and social perception of accounting.
Abstract: The paper highlights the changes which are occurring in accounting regulation and in the accounting profession in Italy. This ‘revolution’ is analysed both in its ‘technical’ terms and in the light of the wider socio-economic context of the country. Some anomalies and contradictions affecting Italian accounting are pointed out and discussed. The concrete significance of those changes is ques tioned with reference to the day-to-day practice and social perception of accounting. In conclusion, drawing on this national situation, some methodolog ical remarks are made concerning the difficulties of an evaluatory perspective in the study of international accounting.
TL;DR: In this paper, accounting regulation in Norway is discussed and an overview of the main issues involved in this area is presented, with a focus on Norway's tax laws. European Accounting Review: Vol. 2, No. 3, pp. 617-626.
Abstract: (1993). Accounting regulation in Norway. European Accounting Review: Vol. 2, No. 3, pp. 617-626.
TL;DR: A European true and fair view of the European financial system is presented in this article, where the authors present a European accounting review with a discussion on the article by David Alexander "A European True and Fair View".
Abstract: (1993). Commentary on the article by David Alexander ‘A European true and fair view’. European Accounting Review: Vol. 2, No. 1, pp. 95-98.
KPMG1
TL;DR: In this article, a detailed study into the audit approaches of fifteen audit firms located in the Netherlands is presented, and compared to International Standards on Auditing (ISAs), finding that the degree of international influence on the audit approach of the specific firms possesses explanatory value with regard to the level of conformity with the ISAs.
Abstract: This article reports the results of a detailed study into the audit approaches of fifteen audit firms located in the Netherlands. Through using audit firm manuals, questionnaires and other materials the audit approaches were analysed and compared to International Standards on Auditing (ISAs). It was found that the degree of international influence on the audit approaches of the specific firms possesses explanatory value with regard to the level of conformity with the ISAs. Notwithstanding that most specific Dutch elements in audit approaches are disappearing, the remaining elements can be understood in the context of the historical evolution of auditing in the Netherlands.
TL;DR: In this paper, the authors present an analysis of financial reporting in the Nordic countries and compare it with the European Accounting Review (EAR) and the European Journal of Taxation (EJT).
Abstract: (1993). Financial reporting in the Nordic countries. European Accounting Review: Vol. 2, No. 3, pp. 581-584.
TL;DR: In this paper, the authors consider the impact on estimates of the IRR derived from the cash recovery rate approach to the estimation of economic performance of an inability to observe the conceptually defined CRR from accounting data.
Abstract: This paper considers the impact on estimates of the IRR derived from the cash recovery rate approach to the estimation of economic performance of an inability to observe the conceptually defined CRR from accounting data. In particular, it considers a typical proxy used in empirical applications of the CRR approach and asks the question — under what circumstances will this proxy fail to measure the true CRR? Two circumstances are identified. First, the empirical CRR will not measure the true CRR when advertising and research expenditures exist which should be treated as part of the composite investment (and, hence, as investment expenditures) but are expensed in the accounting records -referred to as the capitalize/expense case. Second, the empirical CRR will not measure the true CRR when the composite investment is made up of projects with different lives — referred to as the retirement case. For these two cases, relationships are developed between the proxy and the true CRR. From these relationships the ...
TL;DR: In this paper, accounting regulation in Denmark is discussed and an overview of the main issues in Denmark's tax system is presented. European Accounting Review: Vol. 2, No. 3, pp. 603-616.
Abstract: (1993). Accounting regulation in Denmark. European Accounting Review: Vol. 2, No. 3, pp. 603-616.
TL;DR: In this article, the use of cost information by managers when making short-term decisions is discussed, and cost information is used by managers to make shortterm decisions in a cost-sensitive setting.
Abstract: (1993). The use of cost information by managers when making short-term decisions. European Accounting Review: Vol. 2, No. 2, pp. 432-436.