This study examines the links between corporate governance, income smoothing, and informativeness in financial reporting. Firms’ strong corporate governance is measured by variables employed in other studies – the presence of a financial expert serving on the audit committee; whether the audit committee consists entirely of independent directors; whether the members of the audit committee meet at least four times annually; and the percentage of outsiders serving on the board of directors. Income smoothing is measured by the Albrecht-Richardson (AR) and Tucker-Zarowin (TZ) income smoothing measures. The AR measure encompasses four definitions of earnings that include accrual and cash-based transactions. The TZ measure includes only accrual-based transactions. The degree of informativeness is measured by association with two opposing ends of the spectrum. On the one hand, firms that are the most informative are predicted to have a greater association between earnings and one period ahead operating cash flows. Prior researchers have defined in a similar manner the information content of earnings to predict cash flows. On the other hand, the existence of a regulatory violation clearly indicates firms’ lack of informativeness (i.e., deceptiveness) in financial reporting. The results do not show a strong relationship between strong corporate governance and degree of income smoothing. First, results for the link between income smoothing and informativeness show only a strong, positive association between accrual-based income smoothing (i.e., TZ measure) and informativeness. Second, results for the links between deceptiveness, corporate governance, and income smoothing are weak. The corporate governance variables show no significant association with deceptiveness. A negative relationship between corporate governance and deceptiveness was predicted. For the link between income smoothing and deceptiveness, only the AR measures show the predicted negative relationship. The TZ measure shows no significant association with deceptiveness. Taken together, the results of this study provide unique insights into the links between corporate governance, income smoothing, and informativeness in financial reporting. The results confirm the informativeness of accrual accounting, but do not resolve the debate of whether corporate governance measures impact the quality of financial reporting.

During the 20th century, numerous philosophers of science pointed out several problems afflicting scientific communication. Communication in accounting is also problematic. In both cases (science and accounting) there seems to be a tension between objectivism and subjectivism. The former emphasizes the objects of knowledge while the latter prefers to rely on the human subject. In science one of these approaches seems to prevail in different periods. In accounting there seems to be an oscillation or ambiguity between the two tendencies (subjectivism and objectivism) which remain side by side. A polarity seems to emerge as statutory disclosures are influenced by objectivism, while contextual disclosures are inclined towards subjectivism. With reference to the philosophy of Herman Dooyeweerd subjectivism and objectivism are interpreted as emphasizing certain modal aspects to the detriment of others. Although this problem can be regarded as the cause of many difficulties in annual reports, this article focuses on communication problems. It is suggested that a better approach can be adopted by paying attention to all the modal aspects, in particular to those which tend to be neglected under a certain approach (objectivism or subjectivism). The final sections of this article provide a few concrete examples of how to improve communication in corporate reports by taking into account the neglected modal aspects. / MPhil, North-West University, Potchefstroom Campus, 2014

This study examines issues relating to the mandatory adoption of International Financial Reporting Standards (IFRS) by Greek listed companies. Initially, the impact of transition, as a result of differences between IFRS and Greek GAAP, on the first IFRS financial statements in 2005 is assessed. Then, a disclosure index is constructed, containing all the disclosure items mandated by the IFRS extant at the end of April 2006. Based on this research instrument, and two disclosure index methods, compliance with IFRS mandatory disclosures in their first year of implementation is examined. A review of disclosure theories, the features of the Greek financial reporting system, and considerations regarding the timing of the research are used as a basis for establishing a priori expectations and testing the potential factors explaining compliance with IFRS mandatory disclosures. Subsequently, any change in the value relevance of accounting information before and immediately after IFRS mandatory implementation is examined. Whether the reconciliation statements required by IFRS 1 provided value relevant information to investors is also explored. Finally, the valuation implications of IFRS mandatory disclosures are explored. The above analyses indicate the following. Greek listed companies’ financial statements were affected significantly by the adoption of IFRS. The average level of compliance with IFRS mandatory disclosures approximates to 80%. The impact on net income and shareholders’ equity, as a result of the transition to IFRS, as well as audit firm size, are significantly associated with the extent to which companies comply. No change in the value relevance of accounting information between 2004 and 2005 is identified. Reconciliation adjustments are incrementally value relevant and levels of mandatory disclosures do have valuation effects. Based on the findings of the above analyses, the study contributes to the relevant literature and discusses policy implications. It also concludes with suggestions for further research and recommendations on the methods for measuring compliance with IFRS mandatory disclosures.

Hochsch., Master-Thesis--Pforzheim, 2008.

During the 20th century, numerous philosophers of science pointed out several problems afflicting scientific communication. Communication in accounting is also problematic. In both cases (science and accounting) there seems to be a tension between objectivism and subjectivism. The former emphasizes the objects of knowledge while the latter prefers to rely on the human subject. In science one of these approaches seems to prevail in different periods. In accounting there seems to be an oscillation or ambiguity between the two tendencies (subjectivism and objectivism) which remain side by side. A polarity seems to emerge as statutory disclosures are influenced by objectivism, while contextual disclosures are inclined towards subjectivism. With reference to the philosophy of Herman Dooyeweerd subjectivism and objectivism are interpreted as emphasizing certain modal aspects to the detriment of others. Although this problem can be regarded as the cause of many difficulties in annual reports, this article focuses on communication problems. It is suggested that a better approach can be adopted by paying attention to all the modal aspects, in particular to those which tend to be neglected under a certain approach (objectivism or subjectivism). The final sections of this article provide a few concrete examples of how to improve communication in corporate reports by taking into account the neglected modal aspects. / MPhil, North-West University, Potchefstroom Campus, 2014

Zugl.: Münster (Westfalen), Universiẗat, Diss., 2007.

Zugl.: Sankt Gallen, University, Diss., 2006 u.d.T.: Lohwasser, Ekaterina: Ein Beitrag zur Effizienz der Kapitalmärkte durch Enforcement von IFRS.

Universiẗat, Diss., 2006 u.d.T.: Ranker, Daniel: HGB und endorsed IFRS--Saarbrücken.

Zugl.: Augsburg, Universiẗat, Diss., 2007.

Mannheim, Univ., Diss., 2008.