A Perspective on the Canadian Accounting Standards Board Exposure Draft on Generally Accepted Accounting Principles for Private Enterprises

2010 ◽  
Vol 24 (1) ◽  
pp. 129-137 ◽  
Author(s):  
Karim Jamal ◽  
Robert Bloomfield ◽  
Theodore E. Christensen ◽  
Robert H. Colson ◽  
Stephen Moehrle ◽  
...  
Keyword(s):  
Conceptual Framework ◽  
Accounting Standards ◽  
Cost Benefit ◽  
Private Enterprises ◽  
Generally Accepted Accounting Principles ◽  
Historical Cost ◽  
Disclosure Requirements ◽  
Emerging Issues ◽  
Key Issues ◽  
Differential Reporting

SYNOPSIS: The Canadian Accounting Standards Board (hereafter, AcSB) recently issued an exposure draft to adopt separate GAAP for private enterprises. This new GAAP is justified as being consistent with the current FASB/IASB conceptual framework, but is sensitive to the different cost-benefit considerations facing private entities. We view this proposal as being innovative and responsive to the differential reporting needs of private entities. In this article we explain our reasoning and conclusions on several issues raised by the exposure draft starting with a discussion about the need for a separate conceptual framework for private enterprises. We sketch a preliminary conceptual framework that could be used to develop and justify the type of changes proposed in this exposure draft. We then discuss key issues raised in the exposure draft such as reliance on historical cost as the key basis of measurement, the significant reduction in disclosure requirements for private enterprises, and stopping the emerging issues committee from providing implementation guidance (no EICs). We also comment on the mechanism for financing the standard-setting board, the need to ensure compatibility between accounting and auditing standards, and a process for adjusting the education system to support this new private enterprise GAAP.

Comments on Canadian Accounting Standards Board Exposure Draft on Generally Accepted Accounting Principles for Private Enterprises

2009 ◽  
Author(s):  
Karim Jamal ◽  
Robert J. Bloomfield ◽  
Theodore E. Christensen ◽  
Robert H. Colson ◽  
Stephen R. Moehrle ◽  
...  
Keyword(s):  
Accounting Standards ◽  
Private Enterprises ◽  
Generally Accepted Accounting Principles ◽  
Accounting Principles

Big Gaap/Little Gaap: Is Accounting for Small Business in the Balance?

1979 ◽  
Vol 3 (3) ◽  
pp. 16-24 ◽  
Author(s):  
E. James Burton ◽  
William Hillison
Keyword(s):  
Small Business ◽  
Certified Public Accountants ◽  
American Institute ◽  
Generally Accepted Accounting Principles ◽  
Reporting Practices ◽  
Reporting Requirements ◽  
Disclosure Requirements ◽  
Accounting Principles ◽  
Differential Reporting ◽  
Explicit Criteria

Big GAAP/Little GAAP (Generally Accepted Accounting Principles) discusses the rationale of applying uniform accounting and reporting practices to vastly diverse businesses. It incorporates a synopsis of previous discussions and a summary of findings and opinions of the American Institute of Certified Public Accountants (AICPA) committee appointed to study pertinent aspects of accounting for smaller businesses. The paper focuses on the CPA's role in the plight of the smaller and/or closely held businesses against supposedly unneeded but required disclosure and the authors ask, “Should disclosure requirements prescribed by GAAP be applied to all entities or should application be made on specific (and explicit) criteria?” This paper also critically evaluates the committee's report, discusses the need for differential reporting requirements for smaller and/or closely held businesses, and recognizes accomplishments to date in the area.

An Exploratory Study of the Valuation Properties of Cross-Listed Firms' IAS and U.S. GAAP Earnings and Book Values

2002 ◽  
Vol 77 (1) ◽  
pp. 107-126 ◽  
Author(s):  
Hollis Ashbaugh ◽  
Per Olsson
Keyword(s):  
Exploratory Study ◽  
Accounting Standards ◽  
Equity Market ◽  
Residual Income ◽  
International Accounting Standards ◽  
Generally Accepted Accounting Principles ◽  
Listed Firms ◽  
Valuation Model ◽  
Accounting Principles ◽  
Book Values

Despite the increasing integration of global capital markets, there is little evidence on the valuation properties of cross-listed, non-U.S. firms' accounting variables. We use the relative performance of the earnings capitalization, the book value, and the residual income valuation models to explore the valuation properties of International Accounting Standards and U.S. Generally Accepted Accounting Principles earnings and book values reported by non-U.S., cross-listed firms trading in a common equity market. Using non-U.S./non-U.K. firms whose shares trade on the International Stock Exchange Automated Quotation system in London, we find that the earnings capitalization model is the dominant accounting-based valuation model when crosslisted firms report under International Accounting Standards. In contrast, we find that when cross-listed firms report under U.S. Generally Accepted Accounting Principles, the residual income model is the dominant accountingbased valuation model. Our exploratory study provides insights into the valuation implications of allowing a dual reporting system for foreign registrants trading in a common equity market.

scholarly journals Costa, cancer and coronavirus: contractualism as a guide to the ethics of lockdown

2021 ◽  
pp. medethics-2020-107103
Author(s):  
Stephen David John ◽  
Emma J Curran
Keyword(s):  
Moral Theory ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Benefit Analysis ◽  
Life And Death ◽  
The Third ◽  
The Core ◽  
Key Issues ◽  
Moral Distinction ◽  
Self Defence

Lockdown measures in response to the COVID-19 pandemic involve placing huge burdens on some members of society for the sake of benefiting other members of society. How should we decide when these policies are permissible? Many writers propose we should address this question using cost-benefit analysis (CBA), a broadly consequentialist approach. We argue for an alternative non-consequentialist approach, grounded in contractualist moral theorising. The first section sets up key issues in the ethics of lockdown, and sketches the apparent appeal of addressing these problems in a CBA frame. The second section argues that CBA fundamentally distorts the normative landscape in two ways: first, in principle, it allows very many morally trivial preferences—say, for a coffee—might outweigh morally weighty life-and-death concerns; second, it is insensitive to the core moral distinction between victims and vectors of disease. The third section sketches our non-consequentialist alternative, grounded in Thomas Scanlon’s contractualist moral theory. On this account, the ethics of self-defence implies a strong default presumption in favour of a highly restrictive, universal lockdown policy: we then ask whether there are alternatives to such a policy which are justifiable to all affected parties, paying particular attention to the complaints of those most burdened by policy. In the fourth section, we defend our contractualist approach against the charge that it is impractical or counterintuitive, noting that actual CBAs face similar, or worse, challenges.

A conceptual framework for product service system design for machine tools

2016 ◽  
Vol 23 (5) ◽  
pp. 1227-1248 ◽  
Author(s):  
Pankaj U. Zine ◽  
Makarand S Kulkarni ◽  
Arun K. Ray ◽  
Rakesh Chawla
Keyword(s):  
Machine Tool ◽  
Conceptual Framework ◽  
Machine Tools ◽  
Business Models ◽  
Service System ◽  
Product Service System ◽  
Content Type ◽  
Business Context ◽  
Product Service ◽  
Key Issues

Purpose – The purpose of this paper is to propose a conceptual framework for product service system (PSS) design for machine tools and discuss the PSS implementation issues focusing on the Indian machine tool business sector. Design/methodology/approach – The paper opted for an exploratory survey conducted in the Indian machine tool sector including 39 in-depth interviews with employees of different organizations representing middle and senior management having decision-making authority. It also involves proposing a framework to address the stakeholder’s requirements for services that offers foundation for PSS designers. Findings – The paper helps get an insights about key issues for PSS implementation by the Indian machine tool sector. The hybrid PSS model proposed in the paper can address the stakeholder’s requirements for flexibility in business models through different business phases. Practical implications – The paper offers suggestions for the development of PSS for machine tools for designers and identify issues to be considered particularly in Indian machine tools business context. Originality/value – This paper provides an insight to judge the feasibility of PSS concept for machine tools in Indian context and offers framework for PSS designers.

Insurance accounting: a new era?

2012 ◽  
Vol 17 (3) ◽  
pp. 562-615 ◽  
Author(s):  
K. Foroughi ◽  
C. R. Barnard ◽  
R.W. Bennett ◽  
D. K. Clay ◽  
E. L. Conway ◽  
...  
Keyword(s):  
Solvency Ii ◽  
Black Box ◽  
Supplementary Information ◽  
New Era ◽  
Insurance Contracts ◽  
Life Insurers ◽  
Reporting Requirements ◽  
Disclosure Requirements ◽  
Recent Developments ◽  
Key Issues

AbstractInsurance accounting has for many years proved a challenging topic for standard setters, preparers and users, often described as a “black box”. Will recent developments, in particular the July 2010 Insurance Contracts Exposure Draft, herald a new era?This paper reviews these developments, setting out key issues and implications. It concentrates on issues relevant to life insurers, although much of the content is also relevant to non-life insurers.The paper compares certain IFRS and Solvency II developments, recognising that UK insurers face challenges in implementing new financial and regulatory reporting requirements in similar timeframes. The paper considers resulting external disclosure requirements and a possible future role for supplementary information.

scholarly journals The landscape of fear conceptual framework: definition and review of current applications and misuses

2017 ◽  
Author(s):  
Sonny S Bleicher
Keyword(s):  
Conceptual Framework ◽  
Predation Risk ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Future Research ◽  
Common Framework ◽  
Dimensional Distribution ◽  
History Of ◽  
Energetic State ◽  
The Cost

Landscapes of Fear (LOF), the spatially explicit distribution of perceived predation risk as seen by a population, is increasingly cited in ecological literature and has become a frequently used “buzz-word”. With the increase in popularity, it became necessary to clarify the definition for the term, suggest boundaries and propose a common framework for its use. The LOF, as a progeny of the “ecology of fear” conceptual framework, defines fear as the strategic manifest of the cost-benefit analysis of food and safety tradeoffs. In addition to direct predation risk, the LOF is affected by individuals’ energetic-state, inter- and intra-specific competition and is constrained by the evolutionary history of each species. Herein, based on current applications of the LOF conceptual framework, I suggest the future research in this framework will be directed towards: (1) finding applied management uses as a trait defining a population’s habitat-use and habitat-suitability; (2) studying multi-dimensional distribution of risk-assessment through time and space; (3) studying variability between individuals within a population; and (4) measuring eco-neurological implications of risk as a feature of environmental heterogeneity.

scholarly journals Impact of Changes in Accounting Standards on Earnings Management

2020 ◽  
Vol 2 (2) ◽  
pp. 166-175
Author(s):  
Kawa W. Muhamad ◽  
Subhi M. Saleh ◽  
Kees van Paridon
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Accounting Standards ◽  
Reporting Quality ◽  
Quality Standards ◽  
Financial Reporting Quality ◽  
High Quality ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards ◽  
Accounting Principles

This study considers the question whether the changes in Accounting Standards has led to companies making less use of earnings management. The paper is an attempt to investigate whether the application of high quality standards like International Financial Reporting Standards (IFRS) is related to high financial reporting quality. This study addresses this issue empirically. Furthermore, this research examines whether German companies that have applied IFRS have less earnings management compared to German companies that report according to the German Generally Accepted Accounting Principles (GGAAP). The sample, consisting of two equally large listed companies in Germany (Südzucker Group and Henkel Group) from 2003-2014. The study suggests that IFRS-adopters show different earnings management performance compared to companies reporting under German GAAP. This finding contributes to the discussion on whether high quality standards are appropriate and operational in countries with weak investor protection rights. The result shows that adopters of IFRS in Germany can be related with less use of earnings management as a result of changes in accounting standards. This result is contradictory with previous research that was done by Van Tendeloo and Vanstraelen, (2005), and consistent with the previous research conducted by Ball et al. (2003).

scholarly journals Relevance of financial reporting quality - Theory and practice in Vietnamese enterprises

2017 ◽  
Vol 1 (Q2) ◽  
pp. 119-128
Author(s):  
Thuan Quoc Pham
Keyword(s):  
Conceptual Framework ◽  
Financial Reporting ◽  
Accounting Standards ◽  
Reporting Quality ◽  
Professional Associations ◽  
Financial Statements ◽  
Theory And Practice ◽  
Financial Information ◽  
Financial Reporting Quality

Financial reporting quality is one the most interesting topics which draw a great deal of attention to researchers and scientists in the field of accounting (Céline Michailesco, 2010). In the review of research on financial information from 1980 to 2016, Pham (2016) found that characteristics of useful financial information are relatively diverse with as many as 15 attributes being identified. In addition, he also found that all research in any period has employed the characteristics published by professional associations such as American Institute of Accountants, Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB as theoretical basis. Research on the quality of financial information is diverse yet have many things in common, above all is the Relevance characteristic which considered to be the basic qualitative component of the quality of financial information in financial statements. Conceptual Framework officially issued by FASB & IASB in 2010 (FASB & IASB 2010) has further confirmed Relevance is the basic quality component of financial information. Compared with previous announcements, there has been a considerable change in the criteria and attributes used to evaluate the appropriateness of Relevance characteristic of financial information in financial statements. This study aims at confirming the importance of the Relevance component in evaluating the quality of financial information, clarifyingg the characteristics of Relevance measurement before and after Conceptual Framework 2010 and constructing relevant scales as well as measuring the qualitative characteristic of Relevance among enterprises in Vietnam.

Bridge over troubled water: Is it possible to define other comprehensive income?

2021 ◽  
pp. 61-87
Author(s):  
Thomas Ryttersgaard
Keyword(s):  
Conceptual Framework ◽  
Balance Sheet ◽  
Accounting Standards ◽  
The Core ◽  
Comprehensive Income ◽  
Accounting Principles ◽  
Income Statement ◽  
Other Comprehensive Income ◽  
Definition Of ◽  
Gains And Losses

Although other comprehensive income did not exist in the conceptual framework until 2018, it has been a part of IFRS for many years, and it has not been defined based on accounting theory. This paper considers arguments for the current use of other comprehensive income under IFRS and finds that matching and prudence are at the core of other comprehensive income in IFRS despite not being elements of the conceptual framework. This suggests that the concept of other comprehensive income exists because the IFRS standards are founded on a mix of balance sheet-based and income statement-based accounting principles. Based on the characteristics of other comprehensive income and the IASB's arguments for the recognition of gains and losses in other comprehensive income, this paper proposes a definition of other comprehensive income that can be used to ensure a uniform application of the concept across accounting standards and to reduce risks of inconsistency.

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