Jump to ContentJump to Main Navigation
Show Summary Details
More options …

Studia Universitatis „Vasile Goldis” Arad – Economics Series

4 Issues per year

Open Access
Online
ISSN
2285-3065
See all formats and pricing
More options …

Standard-Setters Versus Big4 Opinion, Concerning Iasb Revision Project of the Conceptual Framework for Financial Reporting. the Case of Presentation and Disclosures Chapter

Valentin Burca / Professor Dorel Mates / Adriana Puscas
Published Online: 2015-07-29 | DOI: https://doi.org/10.1515/sues-2015-0014

Abstract

On the last decades the accounting system haven‘t been able to follow the dynamics of the economic systems generated by the globalization process. In order to reduce the lag between the demand of financial information and the offer of financial information, IASB has started numerous initiatives aiming the increase on the quality of the financial information. Among the current list of current IASB major projects there is also the project of revising the actual conceptual framework for financial reporting. This study is designed to give some directions that will be considered on the exposure draft of this project, analyzing the comment letters submitted by the members of ASAF and the Big4 as well. The study reveals the increasing importance the preparers and users give to the disclosures included on the notes to the primary financial statements. Moreover, on this study we emphasize several challenges that IASB has to face on issuing the exposure draft for this important project. Some of the main challenges refer to the narrow scope of the financial statements, the criteria used on classification, aggregation and offsetting, or the use of the materiality concept

Keywords: IFRS; convergence; standard-setting; deferral; revenue

References

  • 1. Armstrong C.S., Guay W.R., Weber J.P. (2010), The role of information and financial reporting in corporate governance and debt contracting, Journal of Accounting and Economics, vol. 50, issue 2-3;Google Scholar

  • 2. Baker C.R. & Barbu E.M. (2009), Trends in research on international accounting harmonization, Accounting Theory, vol. 4;Google Scholar

  • 3. Barth M.E. (2007), Research, Standard Setting, and Global Financial Reporting, Foundations and Trends in Accounting, vol. 1, issue 2;Google Scholar

  • 4. Burlaud A. (2013), Should Financial Statements Represent Fairly or be Relevant? Considering the IASC/IASB Conceptual Framework, working paper;Google Scholar

  • 5. Capkun V., Hammeri A., Weiss L. (2009), Does Adoption of IAS/IFRS Deter Earnings Management, available on http://hal-hec.archives-ouvertes.fr/hal-00675047;Google Scholar

  • 6. Christensen H.B., Lee E., Walker M., Zeng C. (2014), Incentives or Standards: What Determines Accounting Quality Changes around IFRS Adoption?, European Accounting Review, vol. 24, issue 1;Web of ScienceGoogle Scholar

  • 7. Christensen J. (2010), Conceptual framework of accounting from an information perspective, Accounting and Business Research, vol. 40, issue 3;Google Scholar

  • 8. EFRAG (2012), Towards a Disclosure Framework for the Notes to the financial statements, available on www.efrag.org;Google Scholar

  • 9. EFRAG (2014), Getting a Better Framework. Complexity Bulletin, available on www.efrag.org;Google Scholar

  • 10. ESMA (2013), Feedback Statement. Considerations of materiality in financial reporting, available on www.esma.europa.eu;Google Scholar

  • 11. FASB (2014), Memorandum. Conceptual Framework-Presentation, available on www.fasb.org;Google Scholar

  • 12. Gebhardt G., Mora A., Wagenhofer A. (2014), Revisiting the Fundamental Concepts of IFRS, Abacus, vol. 50, issue 1;Web of ScienceGoogle Scholar

  • 13. Hirshleifer D. & Teoh S.H. (2003), Limited attention, information disclosure, and financial reporting, Journal of Accounting and Economics, vol. 36;Google Scholar

  • 14. IASB (2004), Conceptual framework proposal, available on www.ifrs.org;Google Scholar

  • 15. IASB (2010), IFRS Practice Statement Management Commentary. A framework for presentation, available on www.ifrs.org;Google Scholar

  • 16. IASB (2013), Discussion Forum-Financial Reporting Disclosure Feedback Statement, available on www.ifrs.org;Google Scholar

  • 17. IASB (2014), Conceptual Framework: High level overview of feedback on the Discussion Paper, available on www.ifrs.org;Google Scholar

  • 18. IASB (2015), Effect of Board redeliberations on DP A Review of the Conceptual Framework for Financial Reporting, available on www.ifrs.org;Google Scholar

  • 19. IIRC (2013), The International Integrated Reporting Framework, available on www.iirc.org;Google Scholar

  • 20. Jayaraman S. & Verdi R.S. (2013), The Effect of Economic Integration on Accounting Comparability: Evidence from the Adoption of the Euro, working paper, available on www.ssrn.com;Google Scholar

  • 21. Jorissen A., Lybaert N., Orens R., van der Tas L. (2014), Constituents’ Participation in the IASC/ IASB’s due Process of International Accounting Standard Setting: A Longitudinal Analysis, chapter included on Accounting and Regulation. New Insights on Governance, Markets and Institutions, Springer, New York;Google Scholar

  • 22. KPMG (2013), The future of corporate reporting: towards a common vision, available on www.kpmg.com; Google Scholar

  • 23. Le Manh A. & Ramond O. (2011), Determining a Consistent set of Accounting and Financial Reporting Standards. A research note based on the IASB-FASB Conceptual Framework revision project, working paper presented to the 32th Congres of AFC, Montpellier, France;Google Scholar

  • 24. Nobes C. & Parker R. (2008), Comparative International Accounting, Prentice Hall, Edinburg;Google Scholar

  • 25. Nobes C.W. & Stadler C. (2014), The qualitative characteristics of financial information and managers’ accounting decisions: evidence from IFRS policy changes, working paper presented to IFRS Research Forum 2014, held on 2 October 2014;Google Scholar

  • 26. Ohlson J.A., Penman S., Bloomfield R., Christensen T.E., Colson R., Jamal K., Moehrle S., Previts G., Stober T., Sunder S., Watts R.L. (2010), A Framework for Financial Reporting Standards: Issues and Suggested Model, Accounting Horizons, vol. 24, issue 3;Web of ScienceCrossrefGoogle Scholar

  • 27. Pompian M.M. (2006), Behavioral Finance and Wealth Management. How to build Optimal Portfolios that Account for Investors Biases, Wiley New Jersey;Google Scholar

  • 28. Ramanna K. & Sletten E. (2014), Network Effects in Countries’ Adoption of IFRS, Accounting Review, vol. 89, issue 4;CrossrefWeb of ScienceGoogle Scholar

  • 29. Stephen A. Zeff (2012), The Evolution of the IASC into the IASB, and the Challenges it Faces, The Accounting Review, vol. 87, issue 3. Google Scholar

About the article

Received: 2015-04-01

Accepted: 2015-06-01

Published Online: 2015-07-29

Published in Print: 2015-07-01


Citation Information: Studia Universitatis „Vasile Goldis” Arad – Economics Series, ISSN (Online) 1584-2339, DOI: https://doi.org/10.1515/sues-2015-0014.

Export Citation

© 2015. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License. BY-NC-ND 3.0

Comments (0)

Please log in or register to comment.
Log in