/jurnalpengurusan Wed, 12 Oct 2022 03:23:57 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 /jurnalpengurusan/article/recognition-of-actuarial-gains-and-losses-under-ias-19-among-uk-listed-companies/?utm_source=rss&utm_medium=rss&utm_campaign=recognition-of-actuarial-gains-and-losses-under-ias-19-among-uk-listed-companies Wed, 12 Oct 2022 03:23:57 +0000 /jurnalpengurusan/?post_type=article&p=5752 The requirement for UK listed companies to prepare their financial statements in accordance with IFRS for accounting periods beginning on or after January 1, 2005 provided these companies with an accounting policy choice in the area of pension accounting. Probit models indicate that the characteristics of size of firm and interest coverage are significant determinants influencing the choice of accounting policy. Therefore, managers are likely motivated to make the income-smoothing accounting choice (the use of the “corridor” method) when size of firm and interest coverage are large, while the more volatile full recognition policy is more likely to be chosen when size of firm and interest coverage are small. These findings support the argument that the retention of options in IFRS may operate to the detriment of key stakeholders, in particular equity investors, by providing opportunities for earnings management.

]]> /jurnalpengurusan/article/international-financial-reporting-standards-and-financial-information-quality-principles-versus-rules-based-standards/?utm_source=rss&utm_medium=rss&utm_campaign=international-financial-reporting-standards-and-financial-information-quality-principles-versus-rules-based-standards Sat, 08 Oct 2022 20:31:54 +0000 /jurnalpengurusan/?post_type=article&p=3791 The objective of the present study is to examine whether the adoption of International Financial Reporting Standards (IFRS) increases financial information quality. The IFRS brings about substantial changes in accounting standards. One of the prominent features of the system is that it results in the production of financial information of higher quality. Most extant studies in this area are performed at firm-level. The present study, on the other hand, examines the impact of IFRS adoption at the country-level. Environmental determinism theory states that accounting is a function of environmental variables, such as ownership structure, information environment and capital market condition. Therefore, the impact of IFRS adoption could be different across different countries. The present study addresses the existing lack of research that compares the outcomes of IFRS adoption between countries. Besides comparing the quality of financial information before and after the adoption of IFRS, the present study also compares the effects of IFRS adoption between countries with different accounting bases prior to the adoption. The results show that financial information quality, measured by five indicators, improves after IFRS adoption; and that the impact is more prevalent in a rules-based country compared to a principles-based country.

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