Volume 5 No 2 2006
FRRaG: The electronic journal of the Accounting Standards Interest Group of AFAANZ
ISSN 1449-2318
Index
Refereed articles
João C. Neves and Ana Filipe, "Accounting standards in the property development sector: Are financial statements comparable?"
View abstract and download article
Mercedes Palacios Manzano, Isabel Martínez Conesa, and Jose García Clavel, "Comparability of Latin American Fundamental accounting variables with US GAAP: What are the determinants?"
View abstract and download article
Greg Tower and Zhu Xiao Yan, "Asset impairment disclosure in China"
View abstract and download article
Professional comments
John A. Purcell and Janice A. Loftus, "Regulatory developments in corporate social responsibility: Directors' and officers' duties and the role of reporting"
View abstract and download article
Refereed articles
João C. Neves and Ana Filipe, "Accounting standards in the property development sector: Are financial statements comparable?"
Abstract:
Real estate accounting raises a number of issues that accounting standards, such as IAS/IFRS or those issued by most national accounting bodies, usually do not address properly, based on the required comparability of financial data by the users of accounting. This study analyzes four real estate issues under the IAS/IFRS and the Portuguese Accounting Standards and, using a survey methodology, shows that the intent to produce comparable financial statements in the same industry, stated by the Framework for the Preparation of Financial Statements adopted by the IASB, cannot be achieved in the real estate industry, unless the accounting standards take into consideration the specificities of the sector. This study and its conclusions have practical implications for financial analysts and investors, by making them aware of the limitations of the financial statements for comparative analysis, and for regulators, by identifying potential improvements in accounting standardization.
Mercedes Palacios Manzano, Isabel Martínez Conesa, and Jose García Clavel, "Comparability of Latin American fundamental accounting variables with US GAAP: What are the determinants?"
Abstract:
The objective of this research is to identify which factors could determine differences between fundamental accounting variables calculated according to Latin American and US GAAP, by means of an empirical analysis focusing on information include in 279 Form 20-F provide by Argentinean, Brazilian, Chilean and Mexican companies during the period 1997-2001. While differences in generally accepted accounting principles explain some of the differences between earnings and shareholders’ equity measures calculated under domestic and US GAAP, the study provides evidence that other national variables, reflecting economic conditions, and certain company specific characteristics, such as income smoothing, size and profitability, also contribute to explaining differences in these fundamental accounting variables.
Greg Tower and Zhu Xiao Yan,"Asset impairment disclosure in China"
Abstract:
This study empirically examines the influence of firm characteristics, governance attributes and firm ownership structures on Chinese domestically listed manufacturing companies’ asset impairment disclosure levels. Companies with a unitary leadership structure are more transparent than those with the two crucial positions (CEO and Chairman) held by different people. Thus, corporate governance is not totally functioning as an external corporate control as it is with their Western counterparts. Company-specific characteristics (i.e., company size, leverage level and profitability) also influence Chinese listed manufacturing companies’ disclosure levels in terms of asset impairment.
Professional comments
John A. Purcell and Janice A. Loftus, "Regulatory developments in corporate social responsibility: Directors' and officers' duties and the role of reporting"
Abstract
The interconnections of corporate social responsibility, the Corporations Act, particularly as it concerns duties of directors and officers, and corporate social responsibility reporting have recently been the subject of high profile debate in Australia. A primary concern in the debate is whether, indeed, directors can engage in social responsibility-based decision making within the confines of corporate law in Australia. The paper argues that while the law of directors’ duties does not, and indeed should not, compel corporate decision-making towards overriding social and environmental ends, it does not act as an impediment, provided directors’ undertakings are reconcilable within an evolving understanding of the interests of the company. The paper then considers the utility of corporate social and environmental performance disclosure as an alternative basis for advancing corporate social responsibility. Issues considered include the appropriateness of mandatory versus soft regulation and the relative merits of rules-based and principle-based requirements. In that context, the paper reviews social and environmental performance reporting requirements in Australia and New Zealand.
FRRaG is hosted by the School of Accounting, Curtin Business School.