-
Kinked accounting? Small loss avoidance in Europe and (not) the US Accounting in Europe Pub Date : 2024-02-29 Patrick Chardonnens, Martin Wallmeier
For a long time, the most vivid evidence of earnings management has been a discontinuity of earnings distributions at the threshold of profits and losses, indicating loss-avoidance behavior. In the...
-
An Overview of Corporate Sustainability Reporting Legislation in the European Union Accounting in Europe Pub Date : 2024-02-09 Katrin Hummel, Dominik Jobst
In recent years, sustainability disclosure has increasingly become mandatory in many countries. The European Union (EU) is at the forefront of this change by adopting legislation that governs discl...
-
Value Relevance Research in Accounting and Reporting Domains: A Bibliometric Analysis Accounting in Europe Pub Date : 2023-12-12 Giuseppe Nicolò, Serena Santis, Alberto Incollingo, Paolo Tartaglia Polcini
This review systematically investigates the body of scientific knowledge on value relevance in accounting and reporting fields through a mixed method integrating bibliometric and systematic literat...
-
The effect of mandatory extraction payment disclosures on corporate tax avoidance: evidence from the United Kingdom Accounting in Europe Pub Date : 2023-12-13 Sameh Kobbi-Fakhfakh, Fatma Driss
The study investigates whether mandatory extraction payment disclosures (EPD), a policy intervention involving Country-by-Country Reporting (CbCR) in extractive industries, affects corporate tax av...
-
Auditors’ Carbon Risk Consideration under the EU Emission Trading System Accounting in Europe Pub Date : 2023-09-20 Isabell Keller, Brigitte Eierle, Sven Hartlieb
This paper addresses the effects of clients’ carbon risk on audit pricing. Using data from 438 EU companies for the period 2013–2019, we find a positive relationship between carbon risk (measured b...
-
Classification and Measurement under IFRS 9: A Commentary and Suggestions for Future Research Accounting in Europe Pub Date : 2023-09-07 Erlend Kvaal, Edgar Löw, Zoltán Novotny-Farkas, Argyro Panaretou, Annelies Renders, Peter Sampers
Abstract This paper discusses several issues that were raised by the International Accounting Standards Board (IASB) in their request for information for the post-implementation review (PIR) of the International Financial Reporting Standard (IFRS) 9: Financial instruments – Classification and Measurement. In doing so, we first review the related academic literature and present empirical evidence on
-
Does mandatory recognition of derivatives and hedging activities influence investors’ uncertainty and diversity of opinion? The moderating role of product market competition Accounting in Europe Pub Date : 2023-08-27 Abiot Tessema
The International Accounting Standard No. 39 and the Statement of Financial Accounting Standard No. 133 were issued to address investors’ concerns regarding the reporting requirements for derivativ...
-
What exactly do we mean by audit quality? Accounting in Europe Pub Date : 2023-08-20 Jere R. Francis
Published in Accounting in Europe (Ahead of Print, 2023)
-
Auditors’ perceptions of alternative performance measures – alternative truths and professional skepticism Accounting in Europe Pub Date : 2023-08-13 Antti Rautiainen, Jani Saastamoinen, Kati Pajunen
ABSTRACT Alternative performance measures (APMs) may increase uncertainty and perceived risks concerning the audit, and rouse the auditor’s professional skepticism (PS), for example in case the APMs and official reporting diverge (e.g. one shows a profit and the other a loss). In this paper, using a survey of Finnish certified public auditors (N = 220), we study how auditors perceive relationships
-
Small and Medium-Sized Accounting Practices (SMPs): Explaining Financial Performance based on Human Capital and Organisational Resources Accounting in Europe Pub Date : 2023-08-11 Frederik Verplancke, Stefanie De Bruyckere, Patricia Everaert, Carine Coppens, EVA BLONDEEL
Small- and medium-sized accounting practices (SMPs) offer clients – small and medium-sized entities – support to comply with statutory services (financial statements, tax file preparation) and prov...
-
International Accounting Convergence and Divergence: Towards a Framework for Understanding De Jure Adoption of IFRS Accounting in Europe Pub Date : 2023-07-19 Maria Bengtsson, Daniela Argento
By bridging the two main approaches examining de jure adoption of IFRS, namely, convergence and divergence studies, we provide a framework that more fully captures the totality, dynamics, and compl...
-
Family identification and earnings management in listed firms Accounting in Europe Pub Date : 2023-07-13 Cédric Poretti, Tiphaine Jérôme, Carl Brousseau
In this paper, we investigate the earnings management behavior of listed family firms holding the name of the family (eponymous FF). Specifically, we use a Swiss sample of 1,544 firm-year observati...
-
Sustainability Reporting: A Financial Reporting Perspective Accounting in Europe Pub Date : 2023-06-03 Alfred Wagenhofer
This paper examines incentive effects of sustainability reporting, based on proposals for mandatory sustainability reporting standards in the EU, the US, and the IFRS Foundation, and highlights con...
-
Executive communication with stakeholders on sustainability: the case of Poland Accounting in Europe Pub Date : 2023-06-03 Karol Marek Klimczak, Dominika Hadro, Marcel Meyer
Abstract Sustainability reporting is rapidly developing in the European Union – from voluntary Corporate Social Responsibility (CSR) disclosure over to mandatory non-financial reporting (NFR), then over to Economic, Social and Governance (ESG) – with the ambition of becoming as important as financial reporting. This paper investigates whether executives act as change agents in this process by setting
-
Audit in Europe – A Comparison of Access Requirements into the Audit Profession Across the European Union Accounting in Europe Pub Date : 2023-05-22 Philipp Jahn, Thomas Loy
ABSTRACT Within the EU, various measures have been taken to harmonize access to the audit profession. Nevertheless, only minimum access requirements are defined by EU regulation. Our results show considerable remaining differences between the member states. They are the basis for an Access Requirements Index (ARI) which makes it possible to easily assess and compare requirements placed on prospective
-
Reconciling Competing Reporting Objectives Through Deferred Tax Accounts: Evidence on Private Italian Firms Accounting in Europe Pub Date : 2023-05-20 Alessandro Mura
This paper contributes to the growing literature on earnings management in private firms by focusing on deferred taxes. This accounting treatment requires sophisticated use of accruals that provide...
-
A Commentary on Who ‘Owns’ the University Accounting Curriculum?: And on Why That ‘Ownership’ Matters Accounting in Europe Pub Date : 2023-04-29 Willem Buijink
The issue raised in this commentary is: who determines, who owns, the accounting curriculum in universities, and does it matter who does? The question has a clear answer. But the answer is not what...
-
The Value Relevance of Accounting Numbers in Presence of the Equity Method Before and After IFRS 11: Evidence from France Accounting in Europe Pub Date : 2023-04-25 Frédéric Pourtier, Frédérique Bardinet-Evraert, Veronique Darmendrail
ABSTRACT This article studies the effects of IFRS 11 on the value relevance of accounting numbers (VRAN) in France. In 2014, IFRS 11 made the equity method (EM) mandatory to account for joint ventures (JVs) and disallowed proportionate consolidation, the method previously preferred by French groups. Panel method regressions are used to examine the evolution of value relevance in listed groups’ financial
-
Arm's Length Principle vs. Formulary Apportionment in BEPS Action 13: Stakeholders’ Perspectives Accounting in Europe Pub Date : 2023-04-03 Zakir Akhand, Amin Mawani
ABSTRACT This paper analyses comment-letter lobbying by different stakeholders to influence OECD’s documentation rules on transfer pricing within the Base Erosion and Profit Shifting (BEPS) project. Using a content analysis of stakeholders’ comments to a discussion draft on documentation requirements of Action 13 of OECD’s BEPS policies, we offer some evidence that professional accounting firms may
-
Sustainability Reporting: Is Convergence Possible? Accounting in Europe Pub Date : 2023-03-19 Hervé Stolowy, Luc Paugam
Abstract In this essay, we discuss the factors influencing the likelihood of convergence in corporate sustainability reporting. We identify several factors that negatively influence the probability of convergence in the short term. The first factor is the heterogeneity of concepts and definitions surrounding sustainability (e.g. ESG, CSR). This heterogeneity of definitions is pervasive at three levels:
-
Multiple Capitals Disclosure in European Companies’ Integrated Reports: The Role of Organisational Complexity Accounting in Europe Pub Date : 2023-03-06 Abubakar Ahmed, Mutalib Anifowose, Suleiman Salami, Nuhu Abubakar
ABSTRACT This paper examines the association between organisational complexity and the extent of multiple capital disclosure in European companies’ integrated reports. The study uses content analysis to collect data from 81 European companies that adopted the integrated reporting framework for the period 2014–2020. We proxy the extent of multiple capital disclosure by an aggregate score of natural
-
The Italian depreciation suspension policy during the COVID-19 pandemic: consequences on private firms’ borrowing capacity Accounting in Europe Pub Date : 2023-02-15 Marco Maria Mattei, Matteo Merlo, Eleonora Monaco
ABSTRACT We investigate the consequences of adopting a new accrual-based relief mechanism on private firms’ borrowing capacity. During the COVID-19 pandemic, the Italian government implemented a temporary change in accounting rules that allowed firms to suspend up to the entire amount of their depreciation and amortisation charges. Using a sample of Italian firms from 2018 to 2021 and a difference-in-differences
-
Corporate Sustainability Reporting in Europe: A Scoping Review Accounting in Europe Pub Date : 2022-12-30 Tami Dinh, Anna Husmann, Gaia Melloni
ABSTRACT This paper provides a scoping review of European sustainability reporting studies. Previous sustainability studies do not offer a comprehensive discussion of features key to the European setting. Despite their important role in the European economy, research on small and medium-sized enterprises (SMEs) and financial institutions (i.e. insurers and banks) is limited. Furthermore, regions in
-
Revisiting Constituents’ Reflections on the Incorporation of Day-one Losses into IFRS 9 Accounting in Europe Pub Date : 2022-11-06 Selina Orthaus, Daniel Rugilo
ABSTRACT IFRS 9 requires the recognition of expected credit losses from the inception of a financial instrument, resulting in so-called day-one losses. The incorporation of day-one losses caused considerable controversy among the IASB members and its constituents. With a focus on the constituents’ positions and reasoning, this study portrays the discussions held in the comment letters received by the
-
Blockholder Heterogeneity and Audit Fees: Does Private Information Matter? Accounting in Europe Pub Date : 2022-07-24 Raúl Barroso, Chiraz Ben Ali, Cédric Lesage, Daniel Oyon
ABSTRACT We analyze the impact of Small Blockholders’ (SBH – with 5% to 10% of voting rights) heterogeneity and their access to private information on the demand for audit services. By promoting enhanced audit services, we expect SBH to have a moderating effect on the relation between Large Blockholders (LBH – more than 10% of voting rights) and audit fees in a context of low shareholder protection
-
Disclosure of Information and Transparency in Public-private Partnerships: a Comparative Study Between Portugal and the UK Accounting in Europe Pub Date : 2022-07-08 Luís Cracel Viana, José António C. Moreira, Paulo Alves
ABSTRACT This paper studies the adequacy of financial and non-financial disclosures in the government’s consolidated annual report for political accountability of public-private partnerships (PPPs). The empirical evidence from the comparative study shows that neither the UK nor Portugal complies with the information needs of the parliament because several disclosures deemed necessary for the functioning
-
Capitalising or Expensing Development Costs? – Mixed Methods Evidence on the Determinants and Motives of the Accounting Policy in the context of UK Private Companies Accounting in Europe Pub Date : 2022-06-20 Annika Brasch, Brigitte Eierle, Robin Jarvis
ABSTRACT Following calls for further research, this study evaluates the determinants and motives behind private companies’ decision to capitalise development costs by using mixed methods. While prior literature and expert interviews indicate initially that private firms may be motivated opportunistically, subsequent archival analyses show that development costs are capitalised to meet benchmarks and
-
The Comparability of Non-Financial Information: An Exploration of the Impact of the Non-Financial Reporting Directive (NFRD, 2014/95/EU) Accounting in Europe Pub Date : 2022-05-06 Ries Breijer, René P. Orij
Abstract This study explores the impact of the implementation of Directive 2014/95/EU on the comparability of non-financial information across listed European firms, focusing on the usage of non-financial reporting (NFR) frameworks – those developed by the SASB, IIRC, OECD, EFFAS, GRI, UNGC, ISO, AA, and FEE. Using computer-aided text-analysis software (MAXQDA 2022), we analysed the annual reports
-
Innovative Information Technology in Auditing: Auditors’ Perceptions of Future Importance and Current Auditor Expertise Accounting in Europe Pub Date : 2022-04-25 Cristiano Feliciano, Reiner Quick
ABSTRACT Innovative information technology (IT) could help to improve the effectiveness and efficiency of audits. Accordingly, we investigate the future importance, and current auditor expertise, regarding 18 technologies identified from a comprehensive literature review and interviews with Big 4 audit technology experts. We then surveyed German auditors and received 433 usable responses. Respondents
-
Determinants of Accounts Level and Entity Level Key Audit Matters: Further Evidence Accounting in Europe Pub Date : 2022-04-21 Md Khokan Bepari, Abu Taher Mollik, Shamsun Nahar, Mohammad Nazrul Islam
ABSTRACT We examine firm-specific factors (firm life cycle, firm size, complexity, litigation risks, intangible intensity), audit-specific factors (audit firm, audit fee, non-audit fee) and auditor-specific factors (auditor’s experience, specialization, gender and accounting degree), as determinants of the number of KAMs, account-level KAMs (ALKAMs), and entity-level KAMs (ELKAMs) for a sample of Australian
-
In Search of a Wider Corporate Reporting Framework: A Critical Evaluation of the International Integrated Reporting Framework Accounting in Europe Pub Date : 2022-04-12 Neelam Setia, Subhash Abhayawansa, Mahesh Joshi
ABSTRACT We investigate whether the Integrated Reporting () Framework is suitable as an overarching framework to enable organisations to engage with and report on the Sustainable Development Goals (SDGs). The investigation is carried out through a thematic analysis of different stakeholders’ opinions expressed in the 359 responses received by The International Integrated Reporting Council (IIRC) for
-
IFRS 16 Incremental Borrowing Rate: Comparability Issues and a Methodology Proposal for Loss Given Default Adjustment Accounting in Europe Pub Date : 2022-04-12 David Delgado-Vaquero, Jose Morales-Diaz, Constancio Zamora-Ramírez
Abstract Under the IFRS 16 capitalization model for lessees, entities should measure both the lease liability and the ‘right of use’ (the lease asset) by discounting future lease payments over the lease term. For the most part, entities are using the Incremental Borrowing Rate (IBR) to perform said discounting. IFRS 16 establishes that the IBR must consider the underlying leased asset as collateral
-
US comment Letter Writing to the IASB and Evolving SEC Views on the Use of IFRS Accounting in Europe Pub Date : 2022-04-04 Robert K. Larson, Mark Myring, Raf Orens
ABSTRACT This paper investigates drivers of US lobbying on the International Accounting Standards Board (IASB) before, during, and after the Securities and Exchange Commission’s (SEC) active consideration to adopt International Financial Reporting Standards (IFRS). Examining comment letters (CLs) for 148 IASB proposals from 2001 through 2014 finds that while a variety of US stakeholders lobbied, the
-
The Future of Corporate Reporting Accounting in Europe Pub Date : 2022-03-01 Charles H. Cho, Peter Kajüter, Riccardo Stacchezzini
(2022). The Future of Corporate Reporting. Accounting in Europe: Vol. 19, No. 1, pp. 1-6.
-
Climate Change Risk Disclosure in Europe: The Role of Cultural-Cognitive, Regulative, and Normative Factors Accounting in Europe Pub Date : 2022-02-20 Silvia Panfilo, Joanna Krasodomska
ABSTRACT Climate change is a key issue faced by the contemporary world. Through the lens of neoinstitutionalism and the normativity concept, this study examines whether cultural, regulative, and normative dimensions affect the quality of climate change risk disclosures. This paper uses a sample of 653 European companies and measures the quality of their disclosures based on Carbon Disclosure Project
-
The Effect of Business Strategy on Risk Disclosure Accounting in Europe Pub Date : 2022-01-06 Véronique Weber, Anke Müßig
ABSTRACT For a sample of nonfinancial and non-utility firms from the European Economic Area in 2005–2017, we find that a firm’s business strategy is a determinant of the amount of risk factor information in the annual report. Firms with an innovation-oriented prospector strategy report more about their risk factors than firms with an efficiency-oriented defender strategy. This is because, first, these
-
The Predictors of Non-Financial Reporting Quality in Romanian State-Owned Enterprises Accounting in Europe Pub Date : 2022-01-06 Voicu-Dan Dragomir, Madalina Dumitru, Liliana Feleaga
ABSTRACT This paper focuses on the predictors of non-financial reporting (NFR) quality by state-owned enterprises (SOEs). The predictors under consideration are the quality of the corporate governance system (assessed through a comprehensive index), state ownership concentration, industry sector characteristics, and company size. Our cross-sectional sample consists of data for 63 state-controlled enterprises
-
Non-Financial Disclosure and Corporate Financial Performance Under Directive 2014/95/EU: Evidence from Italian Listed Companies Accounting in Europe Pub Date : 2021-10-20 Marisa Agostini, Ericka Costa, Blerita Korca
Abstract This paper investigates the impact of Directive 2014/95/EU on both the quantity and quality of non-financial disclosure (NFD) and its relationship with corporate financial performance (CFP) in 20 Italian listed companies. The current study considers both the annual reports (AR) and social and environmental reports (SER) released two years prior (2015–2016) and two years after (2017–2018) the
-
Board of Directors and Corporate Social Reporting: A Systematic Literature Network Analysis Accounting in Europe Pub Date : 2021-10-03 Giovanna Afeltra, Alireza Alerasoul, Berto Usman
ABSTRACT Over the last decade, the body of literature on the relationship between corporate governance mechanisms (board composition and its characteristics) and ‘corporate social reporting’ has seen increasing attention from academics. However, no significant studies attempt to systematise the body of literature highlighting the advancement of knowledge in this field. The main objective of this study
-
On Translating Goodwill Accounting in Europe Pub Date : 2021-07-16 Christopher Nobes
Abstract The IASB’s plans to reform accounting for goodwill prompt this paper’s discussion of the translation of the signifier ‘goodwill’ (and the related terms: depreciation, amortisation and impairment). As a translation problem, this is unusually interesting because there are at least three different types of goodwill but all with the same signifier in English. The paper begins by noting the difficulties
-
What motives shape the initial accounting for goodwill under IFRS 3 in a setting dominated by controlling owners? Accounting in Europe Pub Date : 2021-05-21 Peter Frii, Mattias Hamberg
Abstract We investigate how different motives shape the initial accounting for goodwill in a setting dominated by controlling owners, using data from 1112 acquisition analyses reported by Swedish listed acquiring firms. In contrast to prior studies, we find no evidence that earnings-based compensation affects the proportion of the purchased price accounted for as goodwill. Instead, we find that when
-
Do Risk Disclosures Matter for Bank Performance? A Moderating Effect of Risk Committee Accounting in Europe Pub Date : 2021-07-01 Shamsun Nahar, Mosammet Asma Jahan
Abstract This study examines whether risk disclosure and risk committee are associated with major banks’ performance worldwide. We also test whether the composition of a risk committee moderates (i.e. strengthens or weakens) this relationship. Using 1760 bank-year observations of 160 banks across 45 countries for the years 2006–2016, we find that risk disclosure and risk committees are associated with
-
From voluntary to mandatory non-financial disclosure following Directive 2014/95/EU: an Italian case study Accounting in Europe Pub Date : 2021-05-30 Blerita Korca, Ericka Costa, Federica Farneti
Abstract This study investigates the non-financial disclosure in an Italian banking group following Directive 2014/95/EU over a period of eight years, from its voluntary (2013–2017) to mandatory (2018–2020) implementation. The paper relies both on primary and secondary data sources. It first adopts a content analysis on non-financial reports while considering other relevant available material. Second
-
Exploring the Going Concern Statement, Readability and Length Cues as Indicators of Distress at Italian Companies Accounting in Europe Pub Date : 2021-05-27 Cristina Gianfelici, Nourhene Benyoussef, Giuseppe Savioli
ABSTRACT This study explores the going concern statement, readability and length cues as indicators of Italian private companies in default. The results indicate that the disclosures of defaulting companies contain (1) low readability; (2) greater uncertainty and confusing information; and (3) a lengthy going concern statement compared to non-defaulting firms. This is the first study to analyse the
-
Start-up Firms and Discretion Over Deferment of Disclosure: An ex Ante and an ex Post Perspective Accounting in Europe Pub Date : 2021-05-23 Vasileios Zisis
Abstract We examine deferment in the reporting of financial statements using an alternative measure of reporting delay based on start-up firms’ discretion over the length of the first reporting period. We explore discretion, exercised both by local GAAP adopters and by IFRS adopters, for a sample of Greek start-up firms using both an ex-ante and an ex-post research design. In addition to various factors
-
Convergence in Motion: A Review of Fair Value Levels’ Relevance Accounting in Europe Pub Date : 2021-04-27 Andrei Filip, Ahmad Hammami, Zhongwei Huang, Anne Jeny, Michel Magnan, Rucsandra Moldovan
ABSTRACT The IFRS 13 post-implementation review by the IASB motivates our investigation on the value relevance of fair value (FV) measurement hierarchy (i.e. level 1, level 2, and level 3). First, using a meta-analysis, which allows us to summarize inconsistent empirical findings, we synthesize studies on the value relevance of the FV hierarchy. Overall, value relevance is lower for level 3 than for
-
Auditor’s Reporting in the Dutch Market of Public Interest Entities: Exploring New Developments in a Diverse Market Accounting in Europe Pub Date : 2021-04-23 Jan Woudenberg, Lisette van der Hel – van Dijk, Robert Kamerling
Abstract As of 2014, the extended auditor’s report has been introduced for all Dutch PIEs, including but not limited to listed entities. With this explorative study, we provide early insights into how reporting on key audit matters and materiality are applied in practice and whether this differs per category of Dutch PIEs. It appears that the Dutch PIE market is a rather heterogeneous market, including
-
The Value Relevance of Fair Value Levels: Time Trends under IFRS and U.S. GAAP Accounting in Europe Pub Date : 2021-04-18 Andrei Filip, Ahmad Hammami, Zhongwei Huang, Anne Jeny, Michel Magnan, Rucsandra Moldovan
ABSTRACT The IASB's post-implementation review of IFRS 13 Fair Value Measurement motivates our analysis of the evolution of the value relevance of fair value (FV) levels over time on banks that report under IFRS and U.S. GAAP. For both sets of standards, results provide evidence that is consistent with (1) an increase in value relevance across all three FV levels over time, and (2) a convergence of
-
Narrative Reporting: State of the Art and Future Challenges Accounting in Europe Pub Date : 2021-04-02 Giovanna Michelon, Grzegorz Trojanowski, Ruth Sealy
Abstract Narrative reporting, both in relation to financial and non-financial information, is increasingly used and often mandated, with significant managerial discretion regarding content. As policy makers consider reporting as a tool for regulation to steer the behaviour of companies towards improving practices and performance upon which they have to disclose, the aim of this paper is to provide
-
Disclosure on the Sustainable Development Goals – Evidence from Europe Accounting in Europe Pub Date : 2021-03-14 Katrin Hummel, Manuel Szekely
Abstract This study examines disclosure on the sustainable development goals (SDGs) in firms’ annual reports. For a sample of European firms listed in the STOXX Europe-600 index and a reporting period of four years, we use textual analysis to assess both firms’ explicit reference to the SDGs in their annual reports as well as the implicit prevalence of SDG topics. In addition, we use content analysis
-
Special Issue on Accounting and Politics Accounting in Europe Pub Date : 2020-12-03 Begoña Giner, Ann Jorissen
(2020). Special Issue on Accounting and Politics. Accounting in Europe: Vol. 17, Accounting and Politics, pp. 239-242.
-
Did the International Financial Reporting Standards Increase the Audit Expectation Gap? An Exploratory Study Accounting in Europe Pub Date : 2021-02-01 Pierre Astolfi
Abstract I examine the role of IFRS on the Audit Expectation Gap (AEG). Past research, mostly based on Porter [(1993). An empirical study of the audit expectation-performance gap. Accounting and Business Research, 24(93), 49–68. https://doi.org/10.1080/00014788.1993.9729463]’s work, does not identify the contribution of accounting standards to the AEG. Yet, IFRS may play a crucial role in an auditor’s
-
The use of Public Interest Arguments in the European Accounting Field Accounting in Europe Pub Date : 2020-11-27 Costanza Di Fabio
Abstract This paper explores how the global standard setter and the European Union (EU) use public interest arguments; the study discusses these in relation to the perceptions of the actors included in the ‘public sphere’. The study examines texts expressing actors’ positions, revealing that the standard setter and the EU employ these arguments rhetorically to safeguard their political position. The
-
Management Reports of Dutch Companies: Their Availability and Compliance with Legal Disclosure Requirements Accounting in Europe Pub Date : 2020-11-27 Ruud G. A. Vergoossen, Ferdy Van Beest
Abstract Unlike the vast majority of the EU member states, the Netherlands incorporated an option provided by the EU Accounting Directive that exempt companies from the obligation to file the management report with the trade register when a copy of it can be obtained from the company upon request. About 60% of the companies use this filing exemption option, but the availability of the management reports
-
Legitimacy of Private Accounting Standard Setters: Literature Review and Suggestions for Future Research Accounting in Europe Pub Date : 2020-11-17 Masatsugu Sanada
Abstract The purpose of this study is to critically synthesize extant research on the legitimacy of private accounting standard setters in order to inform future research opportunities. This study presupposes that legitimacy is an important issue for the survival of private accounting standard setters who face legitimacy claims from stakeholders and regulatory competition from other standard-setting
-
Alternative Performance Measures: Determinants of Disclosure Quality – Evidence from Germany Accounting in Europe Pub Date : 2020-11-17 Stephanie Jana, Kevin McMeeking
ABSTRACT Alternative performance measures (APMs) might be used to improve the information environment or strategically to mislead the market. The recently introduced European Securities and Markets Authority APM guidelines are intended to enhance corporate financial disclosures. We analyse the disclosure quality and determinants of all types of APMs in management reports of German listed firms for
-
Cost and Informativeness of Regulatory Reports: Evidence from the UK Accounting in Europe Pub Date : 2020-11-10 Shuai Yuan
Abstract The 2006 EU Directive established an EU-wide system for public oversight of the audit profession. In the UK, since 2008 the Financial Reporting Council (FRC) has published inspection reports for major audit firms, which include overall quality ratings for the individual audit engagements of each audit firm under review. This study examines the FRC’s ratings, and measures their impact on audit
-
The Evolution of the European Public Good Assessment in the EU Endorsement Process of IFRS Accounting in Europe Pub Date : 2020-10-03 Christopher Hossfeld, Yvonne Muller-Lagarde, Lionel Zevounou
Abstract Although legally the criteria to adopt IFRS in the EU have not changed since the adoption of the 2002 IAS-Regulation, the way they are assessed evolved over time. The purpose of this paper is to analyse how the European public good (EPG) criterion has been interpreted since the beginning of the EU endorsement process and how it is interpreted today. After retracing the origin of the European
-
IFRS in National Regulatory Space: Insights from Sweden Accounting in Europe Pub Date : 2020-10-03 Berit Hartmann, Jan Marton, Josefin Andersson Sols
Abstract Based on two empirical cases, this paper illustrates and comments on the complexities of implementing and enforcing International Financial Reporting Standards (IFRS) in a national setting. The paper sheds light on the difficulties that arise in the local regulatory space when IFRS requirements start to shape national accounting legislation and regulations. The findings suggest that the investor
-
Accounting Standards for European Non-profits. Reasons and Barriers for a Harmonisation Process Accounting in Europe Pub Date : 2020-08-27 Francisco J. Lopez-Arceiz, Ana J. Bellostas, Jose M. Moneva
Abstract Non-profits (NPOs) are one of the key agents in implementing socio-economic policies, financial reporting being relevant for their stakeholders. Different accounting regulations exist in Europe, with no required, common accounting standards to promote these entities’ participation in diverse countries and societies. We analyse the current differences among local accounting regulations related