This thesis examines the value relevance of goodwill that has been eliminated through reserves in the year of acquisition. Specifically, it investigates the association beiween goodwill reserve write-off and the value placed on the firm by the stock market. In so doing, the thesis describes the relationship between the implied value of purchased goodwill and that of other assets, and we seek to explain the underlying paffern of the amortisation of goodwill over time. The empirical method uses cross-sectional equity valuation models for the period 1994- 6. Based on the modified balance sheet identity, the equity valuation model parameterises purchased goodwill and other assets separately, and a more meaningful interpretation is given of the intercept term than in previous studies relating to purchased goodwill. The results confirm that the market incorporates information on the goodwill reserve write-off in the valuation of a firm, and the results also show that the market: book ratio is similar to tangible assets but its behaviour suggests a relatively higher amortisation rate. Although the present study provides evidence supporting the requirement in FRS 10 (Goodwill and Intangible Assets) to capitalise purchased goodwill, the findings also show that the incremental value of capitalised goodwill declines far more quickly than FRS1O suggests, thus placing particular importance on the impairment test required by FRS 10.

Motivation: The IASB and the UK ASB have adopted different financial reporting rules for different classes of company. The IASB have IFRS and IFRS for SMEs. In the UK, currently companies follow IFRS (for public companies), UK GAAP (for medium-sized companies) or FRSSE (for small companies). Furthermore, some companies are exempt from audit. It is difficult to evaluate the efficacy of this approach to regulation since the ASB (and IASB) do not specify what consequences should follow. Do they expect public companies have higher accounting quality than medium and small companies? Or do they expect accounting quality to be the same across different groups of companies? Objective: The main objective of this study is to examine accounting quality in order to inform the future policy and discussion about the differential reporting framework. We examine the effects of accounting standards across public, medium and small companies. However, companies also face reporting discipline from market forces, and consequently we also examine the impact of debt-holders on reporting quality across and within medium and small companies. Methodology: We measure accounting quality from different aspects. For the assessment of differential accounting standards, we use: the level of accruals (ratio of cash flows to earnings), earnings smoothing, and target beating. For the assessment of any debt-holders effect, we use aspects that are suited to their needs, namely: earnings conservatism, and earnings persistence. Main Findings: Under the discipline of accounting standards, we find that the financial reporting behaviour of medium sized entities is significantly different from public and small companies. This suggests that accounting standards do not equalise accounting quality. The impacts of debt-holders on accounting quality are generally weak within medium and small companies. This implies that accounting standards are the main discipline for financial reporting for medium and small companies, which is consistent with the suggestions of Ball and Shivakumar (2005). However, we raise a few issues concerning the interpretation of the accounting quality measurements (earnings conservatism and earnings persistence) and provide theoretical and empirical support for the discussion. Recommendations: We suggest the accounting regulations for private companies may need to be further strengthened, especially for medium-sized companies.

FASB and IASB recently decided current revenue recognition practices were in dire need of an update and released a converged standard on revenue recognition under ASU 606 and IFRS 15. The new standard hopes to improve financial reporting by removing inconsistencies, improve comparability and overall provide more useful information to financial statement users. This paper examines how the new revenue recognition standard will impact the retail industry. This is said to be the biggest accounting standard change since Sarbanes-Oxley Act in 2002 and companies across the globe are gearing up to adjust current accounting practices to be in compliance with the new requirements. Though the accounting world is aware of the potential impacts of this new standard, is it is difficult to quantify exactly how much revenues will differ due to this change. Retailers that rely on gift card breakage as a large revenue stream will see the most material effects on their financial statements. Revised standards regarding revenue from loyalty programs and returns will also change how revenue is recognized but will have less of an impact than revenue from gift cards. Retailers can also expect their accountants to spend an abundant amount of time altering their accounting systems and restating historical data using the new method to calculate new revenue figures.

The focus of the study is on financial reporting for non-U.S. firms registered with the Securities Exchange Commission (SEC) but using International Accounting Standards (IAS). This study addresses two issues, (1) whether the comparability of financial reporting among firms using IAS in credit and equity financing jurisdictions increases over time and (2) the associated capital market implications. The motivation for the study is the SEC's ongoing assessment of IAS for possible use by non-U.S. registrants for listing and capital raising in the U.S. Previous research on variations in financial reporting practices has revealed distinctly different types of financial reporting depending on country of origin. Moreover, some research suggests that such differences in financial reporting tend to persist in spite of harmonization efforts of accounting standards. This study suggests that there may be a systematic difference between credit and equity firms' financial reporting that is manifested by the fact that credit firms' adjustments to U.S. GAAP are greater than the adjustments made by equity firms. This systematic difference has had the following capital market consequences for credit firms, (1) a decreasing strength of association between accounting earnings and share prices post-1994, (2) an increased bid-ask spread post-1994, and (3) a decreased trading volume post-1994. This may be an indication that on the average firms reporting under IAS fail to meet an important part of the SEC's second assessment criterion with respect to high quality and full disclosure, namely comparability. In addition, it seems that the revisions made by International Accounting Standards Board (IASB) have not resulted in more congruent financial reporting among firms reporting under IAS over time.

This thesis examines the various impacts of the new revenue recognition accounting standard on software companies. It begins by explaining why the FASB and IASB updated the existing revenue recognition standard and then compares and contrasts the legacy GAAP to the upcoming GAAP standard. It then moves into a detailed analysis of the key changes affecting the software industry, specifically: intellectual property, the elimination of vendor specific objective evidence, and the principal versus agent consideration. Additionally, it examines software as a service in comparison to the historical model of software as a product and how the new standard will impact the direction of the software industry. Finally, it concludes with a discussion of investor considerations and how the standard will impact users of the financial statements. While there is abundant knowledge of the accounting change within the accounting industry, there is less knowledge and almost no quantifiable information for the public, which based on the various changes detailed, will result in a surprising material effect on software company financial statements.

The purpose of this study is to investigate how the effects of principles vs. rules based accounting standards and a potential change in the audit reporting model will affect investors' perceptions of management's reporting credibility.  The Securities and Exchange Commission is currently considering the adoption of International Financial Reporting Standards, which is considered to be a set of principles based accounting standards.  Whereas, U.S. Generally Accepted Accounting Principles are considered rules based.  Additionally, the Public Company Accounting Oversight Board is considering a possible change to the existing audit reporting model.  The audit reporting change currently under consideration would require the use of additional emphasis of matter paragraphs within the audit report to discuss areas of higher risk in the financial statements.  A sample of 196 nonprofessional investors completed an on-line 2 X 2 between subjects experiment that manipulated accounting standard type and level of auditor reporting.  Participants assessed direct and indirect measures of reporting credibility, obtained the experimental manipulations, and provided revised credibility assessments.  Changes in credibility served as the dependent variable.  The results suggest that expanded auditor reporting resulted in lower perceptions of management\'s reporting credibility. Additionally, the effects of expanded auditor reporting appear stronger under rules based accounting standards.  No main effects, however, of accounting standard type were observed.  These results contribute to the existing literature on accounting standard type, the information content of audit reports, and reporting credibility. / Ph. D.

This research analyzes the relationship between specific firm characteristics and firms' settlement/replacement plan decisions under Statement of Financial Accounting Standard No. 88 (FAS88). I examined firms that effected either (i) a settlement of their pension obligations without a benefit plan termination or (ii) a partial termination with a replacement benefit plan or (iii) a complete termination with no replacement of a benefit plan.

Cette recherche tente d’évaluer le pouvoir de la profession comptable dans le cadre de la normalisation internationale après la réforme des institutions en 2001. La normalisation comptable internationale, processus technique et politique, se prête à une étude à travers les relations de pouvoir. Une grille d’analyse théorique est construite sur la base du cadre du pouvoir de Lukes (1974, 2005). Elle est ensuite appliquée à l’étude du pouvoir de la profession comptable sur le normalisateur international, en privilégiant la première dimension de ce cadre, l’étude des conflits observables, et la troisième dimension, l’étude des conflits latents. La première dimension est opérationnalisée à travers l’étude du développement d’un projet particulier, la norme IFRS 3 « Regroupements d’entreprises ». Les résultats montrent que l’IASB n’a pas changé sa position sur les questions clés du projet malgré l’opposition des membres de la profession comptable. La troisième dimension est opérationnalisée par l’étude de la composition des principales instances du normalisateur international. L’étude des dispositions des statuts et l’analyse du profil effectif des normalisateurs permettent de mettre en évidence une présence renforcée des membres des grands cabinets d’audit. Les résultats de ces deux études sont enfin comparés, discutés et rapprochés / The aim of this research is to assess the power of the accounting profession on the international standard setting institutions after their reform in 2001. International accounting standard setting, technical and political process, can be studied through power relations. A theoretical framework is built on the basis of the theory of power of Lukes (1974, 2005). It is then applied to the study of the power of the accounting profession on the international standard-setter, focusing on the first dimension of the framework, the study of observable conflicts, and the third dimension, the study of latent conflicts. The application of the first dimension goes through the case-study of the development of IFRS 3 "Business Combinations". The results show that the IASB has not changed its position on the key issues of the project despite opposition from members of the accounting profession. The application of the third dimension goes through the study of the composition of the main bodies of the international standard-setter. The study of IFRS Foundation’s constitution and the analysis of the profile of the standard setters can highlight an increased presence of members of the large audit firms. The results of these two studies are finally compared, discussed and reconciled

Ce travail de recherche apporte une contribution à l’étude de la gestion des données comptables et à sa mise en évidence lors de l’utilisation du référentiel IFRS. L’objet de recherche se découpe en deux questions, le changement de référentiel comptable est-il source de plus de manipulation comptable et quels sont les moyens de mettre en évidence la manipulation comptable des comptes établis en normes IFRS ? Notre chapitre liminaire expose le contexte de la création et de l’implémentation des normes IFRS. Le chapitre 1 témoigne de leur impact sur les indicateurs de gestion des comptes consolidés des sociétés françaises cotées. Le chapitre 2 étudie le comportement des accruals à l’approche des seuils comptables, et la possible manipulation comptable des résultats. Le chapitre 3 est une étude approfondie des accruals discrétionnaires comme moyen de manipuler les données comptables. / This research aims to contribute to the study of the management of the accounting data and to its derivative using the IFRS standards. Two research questions are emerging: is the change of accounting standards a source of more accounting manipulation and what are the ways to highlight the accounting manipulation of accounts established in IFRS standards? Our introductory chapter sets out the context of the creation and the implementation of IFRS. Chapter 1 highlights their impact on the consolidated accounts of listed French companies’ management indicators. Chapter 2 studies the behavior of the accruals closed the accounting thresholds, and the possible accounting manipulation of results. Chapter 3 is a comprehensive study of the accruals discretionary to manipulate accounting data.

In May of 2014 the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) issued a long-awaited joint updated standard on revenue recognition, ASU 2014-09 – Revenue from Contracts with Customers. While almost all entities will be affected to some extent by the new standard, particularly the changes in required disclosures, this research seeks to examine the impact the new standard will specifically have on the healthcare industry. By highlighting areas of significant challenge a better understanding will be gained of the impact health care service entities will experience as they transition to a new standard.