• Phanor Montoya-Maya asked a question:
    Correct GLMM model for unreplicated factorial design?

    My experimental design is as follows: Three sites (Treatments) that were not replicated (Healthy Control [HC], Untreated [U], and Treated [T]). Six independent measurements (Samples) of a response variable (RV) were taken randomly at each site. The exercise was repeated at two different times (before and after treatment). Thus my dataset looks something like this:

    • SampleID = unique identifier
    • Site: Factor with three levels
    • Time: Factor with two levels Site
    • RV: Count data

    I would like to know if treating the site had an effect on RV. Due to the lack of replicability and correlation between the measurements, I consider running a GLMM. This is where I need some help. I don't know how to build the correct model to test the site effect accounting for the lack of replicability.

    m1 = RV ~ Time + Site + (Time|SampleID))

    Will this model provide a fixed-effects estimate for site that tells you whether site had an effect on RV values?

    m2 = RV ~ Time + Site + Time*Site +(Time|SampleID)

    Will this model provide a fixed-effects estimate for the interaction between change over time and site that tells me whether the rate of change with respect to RV is significantly different between sites? Is this possible to test at all with my data?

  • Ahmed A.A. Khalifa added an answer:
    Can anyone help me to measure the social responsibility as quantitative financial or economic method?

    Can anyone provide me the methods of financial and economic quantitative methods (ratios) or (factors) to measure social responsibility or social behavior?

    Ahmed A.A. Khalifa

    Dear Farris

    It will be a great contribution if you can construct an index for social responsibility using several indicators with different weights. In such this case, you need to go the steps of making an index of qualitative variables. It might be hard at the beginning , but it open the market in front of you

    Good luck


  • Tahir Awan added an answer:
    Can anyone suggest a good accounting research topic for my phd which is new and can be applicable in the Middle East?
    Tahir Awan

    Thanks to All for their valued comments.

    I am looking for research topic for my MS thesis. I am considering IPSAS, Integrated reporting [Thanks to Seyedmahmoud] and Green Accounting for research purpose. I need a suggestion, which one I should take?

  • Mehdi Nikravesh added an answer:
    On a 1 to 10 scale (10=very likely) how likely is the U.S. to accept IFRS for financial reporting by U.S.-based publicly traded corportions?
    IFRS (International Financial Reporting Standards) are now required or accepted in over 120 countries. The U.S. Securities and Exchange Commission revised its rules in December 2007 permitting non-U.S. companies to file financial statements prepared according to IFRS without reconciliation to U.S. generally accepted accounting principles (GAAP) if the financial statements are prepared in accordance with IFRS as issued by the International Accounting Standards Board (IASB). On a 1 to 10 scale (1=very unlikely, 5=neutral, 10=very likely) how likely is the U.S. to accept IFRS for financial reporting by U.S.-based publicly traded corporations?
    Mehdi Nikravesh

    In my opinion, SEC will not accept this change. If we review history of standard setting in both the US and international context, we comprehend FASB has an undeniable effect of standard setting over all the world. Even one of the main causes of forming IASC and IASB are EC and other developed nation's reaction to US standard setting. In my opinion, norwalk committee was a phase to achieve an agreement between US and international standard setter (agreement between anglo- saxon and continental approach). I don't expect more agreement in near future. As a person lives in Asia and  knows  US financial reporting regime from his studies, my opinion is 2.

  • Kenji Katsuragi added an answer:
    Any opinions on Sector Neutrality of Accounting Standards for NGOs and the Public Sector ?

    Do u think that the NGOs and the Public Sector using the accounting standards which are sector neutral.

    Kenji Katsuragi

    In Japan we have next  accounting format  for MPO/NGO.

  • Roland Bardy added an answer:
    I have been following sustainability accounting for some time, and I recently published on connecting this to public goods. Does anyone have any experience with that?
    The publication is,id=14462/
    and I would be highy interested in your comments.
    • Source
      [Show abstract] [Hide abstract]
      ABSTRACT: Within ecological economics there is recognition of the need for new approaches to decision-making to support sustainable development initiatives. There is an increasing acknowledgement of the limitations of cost–benefit analysis approaches as a measure of the (un)sustainability of organizational activities. These are viewed as particularly inappropriate within the participatory settings that sustainable development proponents seek to foster. They also fail to deal with the highly contested nature of sustainable development discourse in contemporary pluralist democracies. While advances have been made in the field of multi-criteria decision-making, there is still a relative dearth of versatile models that accommodate monetization in a way that recognizes the limits of calculative technologies. This article introduces readers to developments within the accounting discipline designed to support sustainable development decision-making and evaluation. In particular, it proposes sustainability assessment models as a viable alternative to cost–benefit analysis. Sustainability assessment models are based on an inter-disciplinary approach that recognizes the need for “accountings” that facilitate more participatory forms of decision-making and accountability. As such, they address many of the weaknesses in current approaches to cost–benefit analysis. The authors’ first experiences with sustainability assessment models were with BP and the United Kingdom oil and gas sector, where models were developed as a means of making previously external costs more central to organizational decision-making. Later work has included exploration of a range of decision-making situations in private and public sector organizations in both the United Kingdom and New Zealand. This has involved more explicit attention to plural values and issues of participation, dialogue and democracy.
      Ecological Economics 02/2007; 61(2-3):224-236. DOI:10.1016/j.ecolecon.2006.10.021
    Roland Bardy

    Dear John Ikponwosa Otalor,

    thank you for referring me to this article. I have an acquaintance in Geneva, who is Professor Beat Burgenmeier and he is also publishing about the issue if how to improve cost-benefit analyses on public goods. I will try to download one of his papers and then give you the UYL.


  • Brian Phiri Kampanje added an answer:
    Is IFRS convergence significantly different from Harmonization?

    The 2 words are used in connection with IFRS and may not mean the same thing.It appears the word HARMONIZATION has been replaced by convergence as convergence is the term used more by the standard setters. According to FASB (2012), the international convergence of accounting standards refers to the goal of establishing a single set of high-quality accounting standards to be used internationally, and the efforts of standard-setters towards achieving that goal. Has anyone come across any literature why these words are used interchangeably or why harmonization appears to be replaced with Convergence?

    Brian Phiri Kampanje

    My understanding is that Harmonization and Convergence mean the same and one thing. Two accounting standards meet at a certain point so that like transactions are treated the same way and not necessarily one accounting standard like IFRSs conquering USA GAAPs. This is because of the sticky issues surrounding changing Company's Act which will be more difficult in the next thirty years.

  • Ishola Rufus Akintoye added an answer:
    I would like to know the state of forensic accounting in China and how it could set about to improve?
    Details mainly regarding how forensic accountants lack the skills required to detect and prevent fraud early and quickly compared to the US and UK.
    Ishola Rufus Akintoye

    Your question is incomplete.  Improve What? send complete question please.

    Ishola Akintoye

  • Poonam Rani added an answer:
    How to treat the expense of environmental activities in a company's accounting: in assets, liabilities or both?
    Need to clarify the classification of costs based on environmental activities for eg. Recycling process
    Poonam Rani

    for the recycling process if you have purchased a machine then it is a capital expenditure, and the material consumed for the process will be treated as revenue expenditure related to CSR. on the other hand  if the recycling of material takes place in the premises of second party, then the expenditure again will be revenue expenditure but the unpaid part  ( out standing part) of the same will be treated as liability.  

  • Muhammad Arslan added an answer:
    Is there anyone interested in China accounting standard problem?

    I am working on the effect of prohibiting assets impairment reversal on the assets write-down behavior with the sample of listed firms in China. I have found some interested results. I am looking for someone interested in this problem as co-author.  Welcome to contact me, if you focus on this problem too.

    Muhammad Arslan

    Please count me in. You can send me message or email to discuss it in detail.

  • John Ikponwosa Otalor added an answer:
    Calculating capital adequacy according to Basel II, should "unaudited profits" be considered in Tier 2 Capital?
    Due to the difference between time that banks prepare its financial reports and the time that banks need to prepare capital adequacy reports, when this comes before the end of the fiscal year there is a profit that banks have on their balance sheets before auditing, the question is, is this profit considered in Tier 2 Capital ?
    John Ikponwosa Otalor

    Calculation of minimum capital requirements for operational and market risk os a regulatory function of each country's Central Bank and the Basel committee has laid down ground rules to be followed. Moreover I think the issue using unaudited financials does not arise because while some Stock demand for half year audited report,  some countries legislation require quarterly reports. 

  • Daryn Dyer added an answer:
    What are the new trends in open book accounting research?
    In our recent paper "Designing and implementing open book accounting in buyer–supplier dyads: A framework for supplier selection and motivation" we discussed a methodology to support the selection of suppliers with whom to successfully cooperate in OBA projects and the identification, for each buyer–supplier dyad, of appropriate incentives to enable cost data disclosure. However, several research opportunities exist in the field of OBA, such as the development of collaborative, two-way approaches. Which are the new trends (e.g. methodologies, industries...) and the new contributions?
    Daryn Dyer

    Dear Dr. Marco Formentini 

    There does seem to be an increased presence of Open-Book-Accounting globally over the past ten years. Generally, its application has been in response to local, cultural, public, shareholder and other concerns/objectives:

    1. Caglio, A., & Ditillo, A. (2012). Interdependence and accounting information exchanges in inter-firm relationships. Journal of Management & Governance, 16(1), 57-80.
    2. Davila, A. (2012). New trends in performance measurement and management control. Studies in Managerial and Financial Accounting, 25, 65-87.
    3. Håkansson, H., & Lind, J. (2006). Accounting in an interorganizational setting. Handbooks of Management Accounting Research, 2, 885-902.
    4. Free, C. (2008). Walking the talk? Supply chain accounting and trust among UK supermarkets and suppliers. Accounting, Organizations and Society, 33(6), 629-662.
    5. Fayard, D., Lee, L. S., Leitch, R. A., & Kettinger, W. J. (2012). Effect of internal cost management, information systems integration, and absorptive capacity on inter-organizational cost management in supply chains. Accounting, Organizations and Society, 37(3), 168-187.
    6. Kajüter, P., & Kulmala, H. I. (2005). Open-book accounting in networks: Potential achievements and reasons for failures. Management Accounting Research, 16(2), 179-204.
    7. Möller, K., Windolph, M., & Isbruch, F. (2011). The effect of relational factors on open-book accounting and inter-organizational cost management in buyer–supplier partnerships. Journal of Purchasing and Supply Management, 17(2), 121-131.
    8. Neu, D., Rahaman, A. S., & Everett, J. (2014). Accounting and Sweatshops: Enabling Coordination and Control in Low‐Price Apparel Production Chains. Contemporary Accounting Research, 31(2), 322-346.
    9. Rahaman, A. B. U., Neu, D., & Everett, J. (2010). Accounting for Social‐Purpose Alliances: Confronting the HIV/AIDS Pandemic in Africa*. Contemporary Accounting Research, 27(4), 1093-1129.
    10. Suomala, P., Lahikainen, T., Lyly-Yrjänäinen, J., & Paranko, J. (2010). Open book accounting in practice-exploring the faces of openness. Qualitative Research in Accounting & Management, 7(1), 71-96.
    11. Timming, A. R., & Brown, R. (2015). Employee Voice through Open-Book Accounting: The Benefits of Informational Transparency. Social and Environmental Accountability Journal, (ahead-of-print), 1-10.

    I hope this helps,

    Daryn Dyer


    Also, if you have a moment, I would appreciate your participation in my graduate survey study about ethics/intentions and behaviour in the workplace. The following link will take you to the questionnaire which takes about 3-4 minutes:

    Thank you in advance


  • H Gin Chong added an answer:
    What do you know about the forensics accounting?
    The forensics accounting and the its relationship by auditing
    H Gin Chong

    In many cases, forensic auditing is similar to conduct an investigation for achieving a specific purpose or report. This could be meant for an investigation on fraudulent transactions, accounting manipulations, cheating and even overriding internal control systems.

  • Andriy Boyar added an answer:
    How do I apply a simulation analysis in tracking an optimal taxation system?

    I am conducting a study on optimal tax systems and I'm willing to apply a simulation analysis on existing systems to see the differences and to move towards a system of taxation that best meets governments' interests!

    Andriy Boyar

    If you want to start from the very initial point and/or develop your own model of optimal taxation you might start from these basic works. Say, the Dalton’s principle of maximum social advantage could be helpful to model an optimal tax(es) burden(s) in a particular community.

    Wicksell, K. (1896) ‘Ein neues prinzip der gerechten besteuerung’. In Wicksell, K. (ed.) Finanztheoretische Untersuchungen nebst Darstellung und Kritik des Steuerwesens Schwedens (London: MacMillan), pp. 72–118.

    Lindahl, E. (1919) ‘Die Gerechtigkeit der Besteuerung. Eine Analyse der Steuerprinzipien auf Grundlage der Grenznutzentheorie.’ In Musgrave, R. A. and Peacock, A. T. (eds) Classics in the Theory of Public Finance (London: MacMillian), pp. 68–176.

    Dalton, H. (1923) Principles of Public Finance (New York: A.A. Knopf).

  • Amit Mittal added an answer:
    Is there an analysis on the IFRS10 the consolidated financial statements?

    I would like to know the new definition on the control and power less 50%.

    Amit Mittal

    There is a new title on Corporate Finance by Prof Jonathan Berk et al from Stanford, who deal with post crises issues and IFRS accounting impacts throughout the textbook. 

  • Md Shamimul Hasan added an answer:
    How can you get financial information on Egyptian companies?
    Md Shamimul Hasan

    Member organization can extract financial information of listed companies from the database of Bloomberg or Data-stream. If your university is a member of any database companies then you can extract financial information of listed companies from their source.

  • Alexander V. Ilyin added an answer:
    Which cloud computing services have had the highest impact on improving the efficiency and effectiveness of small and medium enterprises ?

    SME's have an opportunity to engage with several promising services from cloud providers and so cost-effectively improve their business performance. These include DNS services, Directory Services, data backup, CRM, email,  accounting etc.  What is the actual research evidence ? 

    Alexander V. Ilyin

    Great, Silburn, thanks.

  • Ahmed Mohsen Al-Baidhani added an answer:
    How can I achieve compatibility between the environmental requirements of the States, and the International Accounting Standards?

    Necessarily known; that international standards of accounting and auditing are issued without taking into account; internal environmental requirements of the States, on the basis that it is difficult to achieve environmental compatibility between countries; therefore, each state must take into account their own environmental conditions.

    Ahmed Mohsen Al-Baidhani

    I believe the Environment Protection Agency (EPA) law of each country (or state) should be applied within the country's borders. In countries where there is no such law or the relevant law does not cover a specific environmental issue, other similar rules found in IAS, GAAP, etc. may be applied. That is, the priority is for the respective country's EPA law to be considered.

  • Marco Bisogno added an answer:
    Analysis of comment letters to an exposure draft?
    I'm studying the Exposure Draft no. 49 recently issued by the IPSASB, concerning consolidated financial statements of public sector entities; more specifically, my aim is to investigate the concept of "control". From a methodological point of view, what is the approach I can refer to in order to better investigate the comment letters to the ED? Content analysis or other approaches?
    Marco Bisogno

    Thank you, Mahesh. I tried to use content analysis but, in my specific case, the number of response was quite low. Thus, I decided to adopt a different approach, based on a thorough reading and investigation of all the comment letters submitted by respondents. By this way, I classified them according to different criteria as well as I evaluated what issues respondents supported ( or not) and why.

  • Elewechi Okike added an answer:
    How may one measure/operationalize accountants' role-performance?

    This question is informed by the view that  accountants’ role-performance may be shaped by the desire to produce valid/or true information

    Elewechi Okike

    Measuring or operationalising accountants' role/performance would depend on, or can be viewed from a number of perspectives, some of which have already been identified in previous responses. However, it is always important to examine 1) the institutional/environmental context in which the accountants you're referring to, operate - developing economy or a developed economy, and the variations in between. 'Desire to produce valid/or true information' in one environment, will not necessarily be the same in another environment; 2) the type of industry been reported upon. This also will vary depending on the aforementioned; 3) the regulations/standards governing what the accountant can or cannot report. For instance, each category of accountant (management, auditor (internal or external), taxation expert, etc. etc.) all have their differing reporting requirements and standards, depending on whom they are reporting to. For example, we know that the information which the external auditor will produce for management will be different from that to be produced for shareholders, or external agencies, and they have standards guiding what each type of report should contain. So how do you measure the role/performance of the external auditor? The list can go on and on. Therefore, for research purposes, it is better to be clear, which type of accountant is being referred to, then it'll be much easier to measure or operationalise the role/performance. I hope this helps!

  • James R Knaub added an answer:
    Can budgets influence decision making?
    Can budgets influence decision making, for instance, risk taking and decision bias? If so, then how can managers prevent it? What tools do managers have to increase performance? In many countries, especially in emerging countries, the use of frugal innovation is widely used to solve problems. Can there be any benefits of frugal innovation to smaller budgets?
    James R Knaub

    Competent decision making must consider resource constraints.  Efficient use of resources is important to do "more with less."  However, a huge problem I have seen as a statistician occurs when a manager thinks that this means they can get "something for nothing."  Managers often do not understand what they need to understand to be able to make an informed decision - I've heard statistics referred to as "magic" - so they think they can just wish for something, and it will happen.  It is irresponsible to think you do not have to understand and be limited by reality.  It is highly desirable to make the best use of all available information for decision making, but it is also important to know the limitations of your available information and to estimate uncertainties as best you can.  This is required for responsible use of a budget. If budget constraints prevent collection of proper information for making decisions, then this becomes a case of false frugality: being "penny wise and pound foolish." 

  • Nikolay Kolev added an answer:
    What is the expected impact of fair value accounting on accounting theory?

    The impact on historical cost, full disclosure, objectivity, and other accounting beliefs, which have been accessed through accounting practices over periods of time.

    Nikolay Kolev

    Significantly still Aurelius Augustine (353-430) wrote about the fair market price as the only real measure of value. So the theory is not new, but rather old and unregistered until now benefits. Well, now will have a lot of conservative accountants and auditors to sweat over textbooks in financial mathematics, but such is life!

  • Andre Wesendonck added an answer:
    Does anyone has any information about the State-of-Art for Accounting Audit Automation? (Continuous Audit Paradigm)

    How is automation in Accounting Audit performed?

    Can it be fully automated and be replaced by a Continuous Audit Paradigm with BPMS technology?

    Andre Wesendonck


    • Source
      [Show abstract] [Hide abstract]
      ABSTRACT: A nova teoria gerencial Business Process Management engloba ferramentas de re-engenharia de processos com foco em melhoria e otimização dos mesmos. Ao se observar que grande parte das atividades de um Processo de Auditoria concentra-se no cruzamento de dados e de dados com suas fontes de origem (documentos) este trabalho focou seus esforços em mapear o Processos de Audoria Contábil no Brasil em notação BPMN. O foco foi construir um mapa visual em nível de execução do Processo de Auditoria no Brasil. O resultado desse trabalho é um Mapa as-is do Processo de Auditoria Contábil no Brasil em notação BPMN. Nossos achados abriram espaço para inúmeros trabalhos relacionados a Uniformização da Informação Operacional, Contábil e Bancária, Aplicação da Teoria da Hiper-especialização para re-engenharia do processo em 2 processos: Processo de Auditoria Pura e Processo de Evidenciação Contábil; Proposta do Processo de Embolso e Desembolso que permitiria a criação de um sistema único de Gestão de Operações e Controle Contábil, Financeiro, Fiscal, etc. O objetivo da construção de um mapa do processo de auditoria no Brasil foi atingido e os desdobramentos desta pesquisa restam promissores para a consolidação da teoria BPM e evolução da auditoria no Brasil por abrir portas para desenvolvimento de sistemas baratos na nova tecnologia e funcionar como um passo a passo de fácil entendimento a todos os profissionais e entusiastas da área.
      Clinical Audit 04/2015;
  • Amit Mittal added an answer:
    What does accounting Slack mean?

    In fair value measurement context

    Amit Mittal

    Slack refers to availability of capital and cash at your disposal in the balance sheet because it is not being immediately utilised and as such reflects a healthy balance sheet in general. The same is an official accounting term and may be applied as such

    Refer Brealey & Myers

  • Patrick Navatte added an answer:
    Can anyone suggest a good idea for research in accounting, in the areas of earnings quality and earnings management, in Asia?

    Dear respected fellow researchers,

    I am trying to find some research ideas in the areas of earnings quality and earnings management in Asia. It seems that the majority of research papers in accounting focus on earnings management in developed nations, which have very different fundamentals from businesses in Asia.

    Patrick Navatte

    You may be interested to work on real earnings management in Asia. Beyond accruals, earnings can be manipulated through underlying business activities. You may for example cut your R&D expenses to meet the predictions of analysts, or sell an asset on purpose to increase your net income. See a Review of real earnings management literature (Xu Taylor Dugan: Journal of accounting literature, 2007 , 26:195-228.

  • Yuri Biondi added an answer:
    Do financial ratios show true reflection of company performance?

    we use financial ratios to determine company performance, after this company goes into bankruptcy or liquidation. it means some hidden information that ratios can not determine. then why we use these ratios to develop bankruptcy prediction models?

  • Angel Marchev added an answer:
    What is the primary instrument to measure different fund( pension, hedge and mutual fund) performance?

    I want guidance or literature from anybody that can guide me to measurement items (questionnanires items) on measurement of pension/hedge/mutual fund or firm performance. The model I developed requires primary data and not secondary data for firm's of fund's performance. Thanks

    Angel Marchev

    (Not a full answer - just a reminder)
    I am sure you know this, but do not trust Sharpe Ratio (or any of the conceptually similar measures) as it is not a monotonous function for negative returns.

  • Ibrahim Ahmed Onour added an answer:
    How can the Beta-factor of a non-traded company be estimated, except with Comparable Company Analysis (CCA)?

    For Companies traded at the Stock Exchanges, Beta-Factors are available (CAPM). But most companies are not traded on the Stock Exchanges (many SMEs).

    So how can the risk premium of the Equity (for the cost of capital) be calculated for an non puplic-traded company?

    Ibrahim Ahmed Onour

    If a market is driven by nonfundamental speculative factors, taking GDP as a proxy for market index can yield misleading results of betas.

  • Elia Ferracuti added an answer:
    Should I include firm-fixed effects when estimating a credit rating regression model?
    I run an OLS regression with firms' S&P credit rating as my dependent variable and typical rating variables (Leverage, ROA, Size, etc) as my independent variables. I include time-fixed and industry-fixed effects because credit rating models change over time and differ across industries.
    However I wonder if I should include firm-fixed effects? On the one hand I could imagine that there might be (time-invariant) firm characteristics that drive credit ratings but for which I can not control. On the other hand, all studies I reviewed, that employ a credit rating regression, do not include firm-fixed effects (but rather cluster standard errors by firm).
    I would greatly appreciate your thoughts on that.
    Side remark:
    E.g. Kuang / Qin 2013 argue that "Prior literature and anecdotal evidence suggest the presence of firm and time effects on credit ratings. In the spirit of Cameron et al. (2011) and Thompson (2011), we address firm and time effects by estimating the models with standard errors clustering on firm and year dimensions simultaneously. In contrast to conventional fixed effect models, our approach does
    not assume constant firm or year effect. The assumption of constant firm or time effect may not fully remove the dependence between observations and therefore will produce biased standard errors if the firm or time effect is indeed not fixed (Petersen, 2009; Gow et al., 2010). Because our approach does not assume constant effects, the results are not subject to the related estimation bias."
    Elia Ferracuti

    Hello Martin, 

    I think you should check this paper. 

    Firms' use of accounting discretion to influence their credit rating

    In my opinion their methodology gets it right.

  • Abdulnaser Ibrahim Nour added an answer:
    Are there any papers on quantitative research about student performance and summative assessment in Financial Accounting?

    I'm looking for some evidence about the relationship between performance and continuous assessment when the activities developed under the continuous assessment are only periodical classroom written exams combined with online questionnaries. I've found some empirical evidences in engineering but nothing in the field of accounting.

    Abdulnaser Ibrahim Nour

    Please find out the article published in Jordanian Journal for Business about Accounting Graduates Skills and employers needs; The Saudi case may be it will be usefull for your question

About Accounting

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