Showing papers on "Accounting period published in 2011"

Eco-Effective Management: An Empirical Link between Firm Value and Corporate Sustainability

Abstract: Achieving corporate sustainability requires the implementation of management practices that create long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental, and social developments. Corporations that are sustainable create value that, in the long run, exceeds their environmental impact (Figge and Hahn 2004). We examine the extent to which investors incrementally value the long-run benefits accruing from adoption of eco-effective management. We posit that adoption of eco-effective management results in increases in firms' market valuation, and that those increases persist beyond the current accounting period. Our results support this hypothesis. This study has broad public policy implications as accountants, managers, and government policymakers shift their focus toward sustainability and rely on market-based mechanisms to further environmental goals. Data Availability: All data are available from public sources.

Reporting Practice of Accounting Disclosure on Changes in Listed Companies of Bangladesh

Abstract: Consistency in accounting policy is one of the basic accounting assumptions for preparing and disclosing financial position. The presentation and classification of items in the financial statements should be retained from one period to the next period. User can use annual report to analyze their financial position for one accounting period. Financial statement can provide information about financial position, performance and cash flows of an enterprise that is useful to wide range of users in making economic decisions. Therefore, an enterprise will use the same accounting policy in the annual report for one accounting period. A change in accounting policy should be made only if required by statute, or if the change will result in a more appropriate presentation of events or transactions in the financial statements of the enterprise. This study discusses the disclosure or reporting practices of accounting changes in the annual report of finance companies listed on the main board of the Dhaka Stock Exchange (DSE) for the period of ten years from the year 2000 to 2008. Simple Random sampling technique was used in this study and companies are selected randomly by using random number table. 37 companies were selected from various industries. A number of 365 annual reports were scrutinized and used to analyze the practice of the DSE listed companies. This study examined the practice of DSE listed companies on accounting item changes in Bangladesh, and the accounting changes flow for the period of ten years beginning from the year 1999 to 2008. This study also discusses the relationship between reporting accounting changes and earnings per share, firm size and audit firm. Lastly, the research finding shows that accounting changes were done every year and the most obvious changes were evident from the year 2001 to 2003. Only at 2004, there was a significant relationship between reporting accounting changes and audit firm.

IFRS errors, CFOs’ Accounting Talent, Compensation and Turnover

Abstract: This paper builds on and contributes to the currently emerging literature on CFO’s compensation and turnover. We focus on the association between the CFO’s compensation and turnover and his/her “accounting talent.” We contend that the accounting talent of CFOs can be measured by accounting errors that occur when a country moves to the International Financial Reporting Standards (IFRS) by adopting a “big bang” approach, in which all firms have to adopt IFRS within the same accounting period without the opportunity of early or late adoption. We hand-collect eighteen different accounting errors for a sample of 280 Australian companies. These are then used to calculate the CFO’s accounting talent. We find (i) a positive relation between the CFO’s accounting talent and the CFO’s compensation ex ante in the transition year, (ii) a positive relation between the CFO’s accounting talent and the CFO’s bonus in the subsequent year (adoption year) and (iii) an inverse relationship between the CFO’s accounting talent and CFO turnover in the subsequent year (adoption year). Further tests on the Chief Executive Officer’s (CEO) accounting talent and compensation and alternative specifications of our variables confirm our results.

Implementation errors during the transition to the International Financial Reporting Standards, Chief Financial Officer's compensation and turnover and earnings quality metrics

Abstract: First, the thesis investigates the relation between the Chief Financial Officer's (CFO's) accounting talent, his/her compensation and his/her turnover. The thesis contends that accounting talent of the CFO can be measured by implementation errors, when a country moves to the International Financial Reporting Standards (IFRS) by adopting a "big bang" approach where all firms have to adopt IFRS within the same accounting period without the opportunity of early or late adoption. Eighteen different accounting errors are hand-collected for a sample of 280 Australian companies, which is used in constructing the CFO's accounting talent. The thesis finds (i) a positive relation between the CFO's accounting talent and the CFO's compensation ex-ante in the transition year, (ii) a positive relation between the CFO's accounting talent and the CFO's bonus compensation in the subsequent year (adoption year) and (iii) an inverse relation between the CFO's accounting talent and the CFO's turnover in the subsequent year (adoption year). Further tests on the Chief Executive Officer's (CEO's) accounting talent and the CEO's compensation and turnover and alternative specifications of our variables confirm our results. Overall the findings bring into question the outcomes of government intervention in setting executive compensation. Second, the thesis investigates the extent to which commonly used earnings quality metrics capture implementation errors. The metric used to measure implementation errors is the same as the measure used for the CFO's accounting talent. A positive relation is expected, between some commonly used earnings quality metrics and implementation errors as these metrics have been claimed to capture the extent to which earnings are calculated with errors. Ranging from highest to lowest in terms of explanatory power, from OLS regressions are: total accruals, earnings persistence, accruals quality and earnings predictability. Implementation errors in reported earnings however do not explain variations in "abnormal" accruals as estimated from a firm-specific time-series regressions of the modified Jones model and in earnings smoothness. Overall the results have implications for researchers and provide guidance regarding the appropriateness of earnings quality metrics selected in their research setting. The results also point to the fact that total accruals may be a "better" proxy for implementation errors compared to more "sophisticated" models.

Mobility and Long Term Equality of Opportunity

Abstract: The aim of this paper is to propose a methodology for evaluating long-term income distributions according to the equality of opportunity principle; we propose partial and complete rankings of long term income distributions and show the relationship between the inequality of opportunity in the single periods of time and inequality of opportunity in the long run. We show that this relationship can be interpreted in terms of intragenerational mobility. In general, it is possible to state that mobility can act as an equalizer of opportunities when the accounting period is extended.

Method and system for settling cross-period expenses of online user in AAA (authentication, authorization and accounting) system in real time

Abstract: The invention provides a method and system for settling cross-period expenses of an online user in an AAA (authentication, authorization and accounting) system in real time. In the method, an accounting sever is utilized to detect the accounting period end time of the online user, send AI-Request messages to an NAS (network access server) at the accounting period end time and trigger the NAS to launch an accounting reset request to the online user; and the accounting server settles the expenses of the online user in real time in accordance with the accounting reset request launched by the NAS, reckons the settlement result in the previous accounting period and restarts to carry out accounting on the online user under the condition of keeping the online user in an online state, thus the expenses in the two accounting periods are respectively reckoned in respective accounting period when the online user is in a cross-period online state, thereby settling the expenses of the online user in real time when the online user is in the cross-period online state.

Performance measurement in Juliusz Au's theory of agricultural accounting in 19th century Poland

Abstract: Before the Partitions, Poland, beside Russia, was the largest, territorially compact European state. As a result of the Partitions of Poland, which were carried out in 1772, 1793 and 1795, Polish territory was divided and annexed by the three partitioning powers: Russia, Germany and Prussia. In an attempt to resist aggressive Germanization by the invader, Poles employed, among others, the methods of “organic work” and “work at the grass roots” (a programme, launched by the Polish positivists, of economic and cultural development through spreading literacy and popularizing science among the masses). It was on Polish territories under Prussian occupation that the theoretical and practical foundations of farm accounting were developed (Bernacki 2007b, p. 116-117). The main objectives of this paper are: to place the work and theory of Juliusz Au within the social and political context of the Prussian partition; to present a theory of agricultural accounting developed by J. Au; to evaluate J. Au’s theory from present-day perspective. J. Au is the author of a comprehensive, universal theory of accounting encompassing its three cognitive levels (aspects): (1) general level, covering the concept, objectives and method of accounting; (2) procedural level, comprising principles of assets measurement, choice of accounting period and production cost calculation; (3) supporting level, comprising organization of accounting, rules for statistical data collection and audit procedures.

Applying the prudence principle in non-profit organizations and financial institutions

Abstract: The paper describes in detail the accounting principle of prudence in non-profit organizations and financial institutions. It defines its application in such organizations and based on comparison it evaluates the practical use of the prudence principle and its reflection in the accounting books. The main focus is on differences in applying the prudence principle that result from differences in the purpose, activities and methods of asset management in these organizations. The practical application of the prudence principle in accounting consists mainly in the creation and use of provisions and impairments. These methods are defined by the Implementing Regulation to the Accounting Act No. 563/1991. The paper also provides tables where the creation and use of impairments and provisions in the above-mentioned organizations is compared with how business companies proceed in creating impairments and provisions.The key legislation standardizing accounting in the Czech Republic is the Accounting Act No. 563/1991, as amended, which stipulates the general accounting principles, the so-called accounting philosophy. The accounting is built around the general accounting principles, which are perceived as the pillars of accounting. Even though they are not stipulated in any particular law, they are legally enforceable and their ignorance can be sanctioned. The general accounting principles represent a set of rules to be observed in keeping the accounting books, preparing the accounting reports and submitting the accounting reports to users. The keystone accounting principle is the principle of true and fair reflection of facts the essential goal of which is to report in the financial statement actual assets and the financial position of the accounting unit with an essential focus on reporting events that occurred during the accounting period with respect to their content.

PERFORMANCE MEASUREMENT IN JULIUSZ AU'S THEORY OF AGRICULTURAL ACCOUNTING IN 19 th CENTURY POLAND * *

Abstract: Before the Partitions, Poland, beside Russia, was the largest, territorially compact European state. As a result of the Partitions of Po land, which were carried out in 1772, 1793 and 1795, Polish territory was divided and annexed by t he three partitioning powers: Russia, Germany and Prussia. In an attempt to resist aggressive Ger manization by the invader, Poles employed, among others, the methods of "organic work" and "work at the grass roots" (a programme, launched by the Polish positivists, of economic and cultural develo pment through spreading literacy and popularizing science among the masses). It was on Polish territo ries under Prussian occupation that the theoretical and practical foundations of farm accounting were d eveloped (Bernacki 2007b, p. 116-117). The main objectives of this paper are: to place the wor k and theory of Juliusz Au within the social and political context of the Prussian partition; to pre sent a theory of agricultural accounting developed by J. Au; to evaluate J. Au's theory from present-day perspective. J. Au is the author of a comprehensive, universal t heory of accounting encompassing its three cognitive levels (aspects): (1) general level, cove ring the concept, objectives and method of accounting; (2) procedural level, comprising princi ples of assets measurement, choice of accounting period and production cost calculation; (3) supporting level, comprising organization of accounting, rules for statistical data collectio n and audit procedures.

Un análisis de contabilidad comercial del siglo xv: el libro de cuentas de joan gasull,

Abstract: This paper analyzes the accounting techniques that were used in the account book of a merchant from Barcelona, Joan Gasull. The accounting period last two stages: 1423-1424 and 1453-1458. The features of bookkeeping are similar to the characteristics detected in other account books from Barcelona. It proves that