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This study reports the results of experimental laboratory markets designed to test two propositions set forth by Verrecchia 1982 . The first proposition addressed the change in the level of private information acquisition given a change in the level of public information in a competitive market. The second proposition considered the amount of informedness in the market given an increase in the level of public information and the resultant change in private information. The development of these propositions was motivated by the ambiguous results produced from the market-based accounting research investigating the impact on market price of mandated accounting disclosures. A limitation of the market based research is the inability to control for changes in the level of private information acquisition given a change in the level of public information which may explain the ambiguous results. A laboratory markets method was used to test the propositions because of the control provided by this research method. The market mechanism employed was a version of the PLATO computerized double-auction mechanism described by Smith, Suchanek, and Williams 1985 . This trading mechanism allows traders to communicate bids and offers and to form contracts to buy and sell assets in a computerized market which provides a high degree of control. In addition to the market for assets, a posted offer market for private information was used to allow traders to acquire private information. The results show significant decreases in private information acquisition in markets with higher levels of public information. Thus, public and private information appear to be substitute goods in this experimental setting. The results also indicates that the variance of contract prices around the true dividend value is significantly greater in markets with lower levels of public information. This remains true when controlling for possible confounding variables including market day, the contract number, the dollar value of private information, and the number of informed traders that executed the contract.

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M.Com. (International Accounting) / The definition of control and the non-consolidation of special purpose entities in group annual financial statements became a topic of concern and focus to investors, securities exchange regulators and accounting professionals after the global financial crisis. The global financial crisis began in 2007 and was caused in part, by investors not being able to access reliable information about the risk levels of entities in which they had invested. Organisations from around the world began to focus on financial reporting and auditing standards in order to determine how the crisis had occurred and how it could be prevented in the future. The focus has highlighted the definition of control, which would determine whether an entity would be consolidated into a group of companies or not, and the disclosure of the decisions, judgements and assumptions made by management when determining whether to consolidate an entity. Stakeholders have pushed for a framework for consolidation to ensure that entities would not be able to hide poorly performing investments and be able to easily determine the risks that the group is exposed to as a result of management’s investment policies. The International Accounting Standards Board (IASB) has responded to the requirements of stakeholders and the critiques of the previous definitions of control by releasing International Financial Reporting Standard 10: Consolidated Financial Statements (IFRS 10) in 2011, which prescribes the latest definition thereof. The research study will establish the historical international development of the definition of control in various accounting contexts as prescribed by the IASB and its predecessors. The definition of control as prescribed by other financial reporting standards will be analysed, but as IFRS 10 is the first financial reporting standard to be released with a significantly different definition, it will form the main focus of the study. Definitions and opinions as stated by the Financial Accounting Standards Board (FASB) will be assessed for comparability and context. The study will assess whether the latest definition of control is considered to be complete and sufficient to apply to all situations where the question of control has to be evaluated. A qualitative research design in a critical framework has been adopted for this research. The research traces the origins of the definition of control and makes a critical assessment of each definition prescribed by the IASB and its predecessors. The research is structured in chapters dedicated to specific decades, which detail the definition prescribed at the time, the reasons for any changes to definitions prescribed in previous periods and an assessment thereof. This research has found that the IASB’s definition of control has changed significantly over the past 60 years, the most significant change being the way in which control relating to investments in other entities has been defined. The IASB has moved away from the concept of control being based on majority share ownership, to a definition based on risk and reward exposure and the decision making capabilities of the investor. IFRS 10 is effective for companies with a financial year beginning on or after 01 January 2013 and the effects of the new definition of control have yet to be analysed. The definition of an asset has followed suit, and is no longer based on the property rights to an asset, but is rather based on flows of economic benefits to an entity with the latest working definition being ii based on control. The new definition of an asset is in line with the objective of the IASB to create a principles-based financial reporting framework, rather than a rules-based framework which prescribes the required accounting methods for assets and investments. The new definition of an asset is currently a working definition contained in an exposure draft, the purpose being to allow users of IFRS to comment until the cut off date in 2014. Once formal feedback has been considered, the IASB will determine whether the new definition of assets should be adopted or not. The Conceptual Framework within which the new definition is to be contained forms the base on which all other financial reporting standards are structured and other exposure drafts have been released. All the new definitions of control that have been released in new financial reporting standards, exposure drafts and discussion papers are more in line with a decision making framework for control rather than a rules-based or risks and rewards framework. These are however limited to the financial reporting standard in which they have been released, and are not interchangeable or applicable to other types of transactions. The IASB has not released any statements which indicate that the development of a universally applicable definition of control is a priority or an objective at this time.

Over the last twenty years, there has been a rapid expansion of Islamic financial institutions that do not deal in interest-based transactions. The financial information of Islamic financial institutions issued in their annual reports is different in certain features from the annual reports offered by conventional financial institutions. This study attempts to investigate the usefulness of annual reports produced by these institutions to investors. In particular, the study is concerned with the perceptions of both institutional investors and customers in Kuwait about the annual reports of Islamic financial institutions. In addition, the study investigates the opinions of the preparers of annual reports of Islamic financial institutions in GCC countries regarding various aspects of the annual reports that could help investors make their investment decisions. To achieve the above objective, two types of questionnaires and interview were designed. The first type of questionnaire was carried out to solicit the investors' perceptions of annual reports, the importance they attached to them and the uses of these reports in their investment activities. The second type of questionnaire was specifically used to investigate the opinions of the preparers of annual reports regarding various aspects of annual reports that could help investors make their investment decisions. The interview method was mainly used to identify the customers' perceptions of Islamic financial institutions in Kuwait about the usefulness of these annual reports. The results of the questionnaire and the interviews indicated that the annual reports are considered by customers and investors to be the main source of information for investment decisions. The results also revealed that the timeliness and credibility of information were perceived by respondents as the most important qualitative characteristics that might affect the usefulness of information sources about the performance of Islamic financial institutions. Regarding the accounting regulation of financial information of Islamic financial institutions, the results indicated that there is a need for accounting information to be regulated in order to enhance the credibility of financial statements produced by these institutions and increase their comparability and transparency to the users.

Over the years, there has been a lot of discussion about the audit expectations gap. Research on the expectations gap has focused exclusively on the audit aspect, with limited attention being given to the possibility of the existence of other elements that may in fact contribute to an even wider expectations gap. This study has focused on the financial statements expectations gap. Financial statements are the public face of an organisation. It is therefore crucial that users understand their objective, message, scope and limitations. This study explores and evaluates the existence of a financial statements expectations gap in a small state economy, namely Malta. The data for this study was collected from shareholders and auditors in Malta using a mixed methods approach with a sequential explanatory design through the use of a survey questionnaire and semi-structured interviews. The findings have shown that the financial statements expectations gap exists in various areas, some of which are fundamental to the understanding of financial statements. There is a clear lack of clarity, or confusion, about the objective of financial statements. This appears to be the result of the over-emphasis on decision-usefulness as an objective of financial statements, the imprecision of the word stewardship and the failure to communicate clearly the scope and limitations of financial statements. The study has shown that the attempts by standard setters to satisfy various user needs with the same set of financial statements were unsuccessful in Malta. Communicating financial information has been identified as the primary purpose of financial statements. However, the understandability of financial statements was negatively impacted primarily by the complexity of information, the frequent changes to standards, information overload and the use of technical jargon. The study has accordingly identified those factors that are considered to be conducive to the understandability of financial statements in Malta. Based on the research findings, the study has provided recommendations to the accountancy profession and policy makers on how to address the financial statements expectations gap. Potential areas for future research were also identified.

Thesis (Ph. D.)--University of Oregon, 2006. / Typescript. Includes vita and abstract. Includes bibliographical references (leaves 63-65). Also available for download via the World Wide Web; free to University of Oregon users.

Thesis ( Ph.D. ) -- University of Texas at Arlington, 2008.

Thesis (Ph. D.)--University of Washington, 2003. / Vita. Includes bibliographical references (leaves 63-69).

Thesis (Ph. D.)--Ohio State University, 2003. / Title from first page of PDF file. Document formatted into pages; contains xii, 108 p.; also includes graphics (some col.). Includes abstract and vita. Advisor: René M. Stultz, Dept.of Business Administration. Includes bibliographical references (p. 65-70).