Purpose: This paper aims to analyse accounting development in Indonesia towards IFRS full adoption and its Shari'ah implication on accounting standard for Islamic business entity (PSAK 101-107).Design/methodology/approach: The methodology of this study refers to Statement of Financial Accounting...

We examine whether financial reporting quality improves after firms voluntarily adopt a compensation clawback provision. Clawback provisions allow companies to recoup excess incentive pay in the event of an accounting restatement, and are intended to ex ante deter managers from publishing...

Using the current financial crisis as a natural quasi-experiment, we test whether and to what extent conservative accounting affects shareholder value. We find that there is a positive association between conservatism and firm stock performance during the current crisis. The result holds for...

We experimentally explore how common knowledge provided by accounting systems affects investors' decision and shapes the formation of security prices over time. We design alternative accounting structures and run experiments in artificial security markets framed by these structures. In sessions...

In recent years, reporting under International Financial Reporting Standards (IFRS) became mandatory in many countries. The capital-market effects around this change have been extensively studied, but their sources are not yet well understood. This study aims to distinguish between several...

This paper reviews the principal candidates for bases of measurement in financial reporting - historical cost, value to the business (also known as deprival value or current cost), fair value, realisable value, and value in use - explains how they work, and discusses their advantages and...

The paper summarises the development of the economic theory of the firm, with particular reference to the work of Knight, Coase and Williamson, and examines its potential relevance to questions of measurement in financial reporting. Based on differences between firms' business models, and...

Within the European Union, the IAS-Regulation has harmonized applicable accounting standards for consolidated financial statements of capital market oriented companies by requiring IFRS since 2005. Regarding enforcement of financial reporting, the IAS-Regulation offered only small guidance for...

We investigate the way auditor characteristics (i.e., reputation and industry specialization) interact on the consequences of mandatory IFRS adoption in Europe in terms of accounting conservatism. Indeed, a mandatory adoption setting may control for firm-level reporting incentives when gauging...

In this paper there has been made a comparison between the amortisation and the impairment methods for accounting for goodwill, with regards to their associated effects on accounting quality. Based on two qualitative characteristics of accounting information, as formulated by the International...