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No description available.

No description available.

No description available.

No description available.

This study provides evidence on accounting conservatism based on a large sample of publicly-quoted UK companies over the period 1969-2001. The effects of conservation accounting are studied both indirectly and directly by using earnings measures containing varying levels of accruals and by further decomposing earnings into its operating cash flows and distinct accruals components. The analyses are also separated according to the sign of earnings and earnings components, and account for the effects of asset-recognition rules. Even though conservatism is an accruals phenomenon, this is the first study to provide direct empirical evidence on the role of accruals in accounting conservatism. The thesis addresses the following issues. First, under conservative accounting, earnings-decreasing changes in performance measures (reflecting economic losses) that contain more accruals mean-revert more and earnings-increasing changes (reflecting economic gains) are persistent. Working capital accruals and special items are particularly strongly mean-reverting when they are earnings-decreasing. Depreciation accruals are persistent. Second, direct tests by earnings components show that operating cash flows exhibit low timeliness overall and, given that they contain no accruals, no asymmetry in reflecting bad news. Earnings figures with more accruals exhibit more asymmetry in reflecting bad news. Working capital accruals and special items are important in this asymmetry, but depreciation is not. Interestingly, good news results in a small earnings-decreasing charge, consistent with smoothing. Lagged tests on accruals reveal that bad news from as much as three previous periods is reflected in current earnings through special items, inconsistent with conservatism. Evidence indicates that conservatism is increasing through time. The sensitivity to good news has decreased over time. To capture these changes, higher-moments measures are developed. Third, the analysis by the sign of “bottom-line” earnings does not reveal any differences in reflecting good/bad news for the profit/loss firms. Separating earnings observations by sign of cash flow also reveals no differences. In contrast, separating observations by the sign of accruals (other than depreciation) reliably shows that the asymmetric timeliness is significantly higher in the negative-accruals groups, as expected. The accruals components determine this asymmetry, rather than the operating cash flow (or, earnings by itself). Finally, less conservative recognition rules lead to stronger responsiveness of earnings to bad news, as reflected in working capital accruals and special items. Asset-specific measures of conservative recognition rules reinforce these findings. A puzzling result is that operating cash flows reveal a significant asymmetric response to bad news in the group of observations where it is least-likely to be observed (low book to market). A selection of other results by size, industry, extremity of news, methods, accounting year-ends, market-wide returns, yields, method of estimation, etc., not only corroborates, but generally strengthens the results obtained.

The purpose of this study is to examine what factors have been affecting the implementation of IFRSs in Bangladesh from 1998 to 2010. The study seeks to answer these specific research questions: (1) What is the relative impact of accounting regulatory frameworks and politico-institutional factors on the implementation of IFRSs in Bangladesh?; 2(a): How do (i) training opportunities in the accounting profession and (ii) the state of corruption, as outcomes of culture in Bangladesh, affect the implementation of IFRSs?; 2(b): What other country specific factors are affecting implementation of IFRSs?; (3) How does a study of implementing IFRSs help to build an understanding of a theory of the role of the state in accounting change in a developing country such as Bangladesh? This study adopts a mixed methodology in which interviews over two years (2010-2011) are conducted and documentary analyses of IFRSs-related enforcement documents (1998-2010) are evaluated to identify the possible obstacles for implementing IFRSs in Bangladesh. In relation to RQ-1, the study finds that politico-institutional factors are stronger and more dominant factors than accounting regulatory frameworks for impeding IFRSs implementation in Bangladesh. A lack of co-operation among the institutional bodies has existed in both democratic and military-backed government eras (the military-backed government ruled for 19 years out of 40 years of independence in Bangladesh). However, the military-backed government was effective compared to the democratic government in terms of taking action against companies identified as being corrupt. There is evidence of ‘blaming culture’ with the state institutions and the professional bodies blaming each other regarding the IFRSs implementation process. With respect to RQ-2(a), deficiencies in the training opportunities in accounting profession and high levels of corruption are inhibiting IFRSs implementation. Interviewees comment that professional curricula contain limited content on IFRSs and there are limited training opportunities for accountants in the majority of companies. Looser enforcement of the laws is found during the periods of democratic government. However, the levels of corruption were lower during the military-backed government. Regarding RQ-2(b), some country specific factors are also identified in this study: a lack of qualified accountants; a lack of interest in IFRSs by managers of some companies; a culture of secrecy; and higher costs of IFRSs compliance with lower benefits for small companies. In terms of RQ-3, this study contributes to IFRSs implementation as an example of accounting change in a developing country by applying a Weberian view of the theory of the role of the state. Additionally, this study considers the state-society relationship employing institutional dynamics (Dillard et al., 2004). In particular, outcomes of accounting change in Bangladesh are observed from state and individual organisation levels. However, the influence of the organisation field level is unknown in this research because industry lobbying groups were not interviewed. Since the role of the state is vague in prior accounting research, this study discusses roles of the state (i.e. the state approves experts to write rules; it consults with various stakeholders; it enforces outcomes; it is accountable to its citizens; and it engages with donor agencies) in a developing country’s experience during the process of accounting change. Extending Weber’s (1958)[1904], (1968)[1922] argument on state-society, the study finds that for a state in an era of democratic government, politico-institutional factors and corruption (as an indication of societal values) may be more important and concentrated factors than for a state under a military-backed government in terms of impeding IFRSs implementation. The study reveals that all roles of the state have negative influences on accounting change. However, interviewees’ initial concerns about the roles of donor agencies are transformed into concerns about the democratic government’s failure to implement IFRSs. The implications of the study are relevant to policy makers, practitioners and users of financial information. Although the study is based on Bangladesh, the results of the study are expected to be relevant to other developing countries experiencing similar phases of IFRSs implementation.

The principal goal of this research study was to critically evaluate the current accounting treatment of purchased goodwill in terms of a theoretical framework established, including an evaluation of the true nature of goodwill. The main conclusion of this study is that goodwill is an intangible asset representing various intangible factors contributing to the enterprise's earning capacity and providing returns in excess of a normal return on assets employed for which an acquiring enterprise is willing to pay an amount in excess of the fair value of the identifiable net assets acquired. The cost of purchased goodwill is measured as the difference between the total purchase price and the fair value of the net assets acquired after ensuring that all assets, tangible and intangible, had been properly identified. Purchased goodwill should be amortised over the estimated period that the enterprise is expected to benefit from the acquisition of the goodwill. / Financial Accounting / M. Com. (Accounting Science (Applied Accountancy))

The principal goal of this research study was to critically evaluate the current accounting treatment of purchased goodwill in terms of a theoretical framework established, including an evaluation of the true nature of goodwill. The main conclusion of this study is that goodwill is an intangible asset representing various intangible factors contributing to the enterprise's earning capacity and providing returns in excess of a normal return on assets employed for which an acquiring enterprise is willing to pay an amount in excess of the fair value of the identifiable net assets acquired. The cost of purchased goodwill is measured as the difference between the total purchase price and the fair value of the net assets acquired after ensuring that all assets, tangible and intangible, had been properly identified. Purchased goodwill should be amortised over the estimated period that the enterprise is expected to benefit from the acquisition of the goodwill. / Financial Accounting / M. Com. (Accounting Science (Applied Accountancy))