Do principles-based accounting standards lead to biased financial reporting? An Australian experiment
| Autor: | Jim Psaros |
|---|---|
| Rok vydání: | 2007 |
| Předmět: |
Finance
medicine.medical_specialty Actuarial science Mark-to-market accounting business.industry Economics Econometrics and Finance (miscellaneous) Accounting Comparison of management accounting and financial accounting Accounting standard Positive accounting Fair value Accounting information system Management accounting medicine Economics Financial accounting business |
| Zdroj: | Accounting & Finance. 47:527-550 |
| ISSN: | 1467-629X 0810-5391 1467-629x |
| DOI: | 10.1111/j.1467-629x.2007.00212.x |
| Popis: | International accounting standards are deliberately designed to be principles-based (i.e. ‘substance over form’). With Australia’s recent adoption of internationalaccounting standards, a relevant question is, do principles-based accountingstandards lead to biased financial reporting? The present paper describes astudy that analysed the consolidation judgements of senior accounting officialsfrom Australian listed companies. Participants made consolidation judgementsbased on AASB 1024 Consolidated Accounts . Although AASB 1024 is notidentical to IAS 27 Consolidated and Separate Financial Statements , there aremany similarities and both follow a principles-based approach. In aggregate, thepresent study finds that principles-based accounting standards do not necessarilylead to biased financial reporting. Key words : Accounts; Consolidation; Judgement; Principles-based JEL classification : M40, M41 doi : 10.1111/j.1467-629x.2007.00212.x 1. Introduction Historically, Australian accounting standards have tended to be produced ina relatively ad hoc manner. They are diverse in terms of their writing style,content and degree of precision. As a result, Millanta and Knapp (1995) contendthat some Australian accounting standards are ‘principles-based’ |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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