• 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 · Prairie View A&M University

    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 · Lesya Ukrainka Eastern European National University

    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 · Indian Institute of Management, Lucknow

    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 · Accounting Research Institute

    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 · Russian Academy of Sciences

    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 · Putra University, Malaysia

    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 · Università degli Studi di Salerno

    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 · Academy for Excellence in Education

    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!

  • Fayka Elfouly 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?
    Fayka Elfouly · Alexandria University

    the effect of corporate governance on disclosure in family companies in egypt

  • 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 · N/A

    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 · Burgas Free University

    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 · Federal University of Santa Catarina


  • Amit Mittal added an answer:
    What does accounting Slack mean?

    In fair value measurement context

    Amit Mittal · Indian Institute of Management, Lucknow

    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 · Université de Rennes 1

    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 · University of National and World Economy

    (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 · University of Khartoum

    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 · University of Utah

    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 · Zarqa University

    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

  • Gerhard A. Schroeder added an answer:
    Can anyone refer me to a study on the history of consolidations standards relative to U.S. GAAP and IFRS convergence?

    I want to better understand the controversy between the IASB and FASB on the business combinations standard.  In the end the FASB and IASB could not agree on the definition of control.  Is there a study that discuss this controversy in detail? Please share this citation with me.  Thanks.


    Gerhard A. Schroeder · Private Research

    I would recommend the speech of the IASB President in Korea to start with. There seems to be a competition whose setting of accounting standards might win globally.
    The IASB in London produces the IAS/IFSR for the EU. There is a formal decision required to make them EU-Standards i. e. direct law without agreement of the individual EU-countries – thus IAS 1 til 41 and IFRS 1 til 15(?) are EU-law.
    You may know?
    The IASB in London is a subsidiary of the International Accounting Standards Foundation (IASF), a tax-exempt organization in the U.S. state of Delaware.
    Besides the EU the IASB is accepted with excemtions in Korea, Japan, South America, Hongkong, and even mainland China – they are in discussion with FASB.

    One point of discussion and concern was as in the US the fair value.
    In German the „Grundsaetze ordnungsgemaesser Buchfuehrung“ (GOB, somehow principles of proper accounting) are similar to the GAAP. The IAS/IFSR and FASB moved the discussion from the controller and traditional accounting prof‘s to the 4 major accounting firms and banking who dominate the new diskussion now - unfortunately.

    I am familiar with the German accounting (part of the Dipl.-Kfm. Studies) and working for an Int. US IT-enterprise 30 Y. with US-accounting in the 80s. „Introduction to Managemen Accounting“, 6th. Ed. By Charles Horngren. There was a picture of the twin towers on the cover but no mentioning of fair values, options or other derivatives...

    My academic interest – researching financial market models - startet with the question: How do the accounting standards refer to high maths models like Black&Scholes, fair value, volatility...
    Pls see: „Volatility ndexes seem to point to the Past“ under ResearchGate. All standards material is published by the IASB in London – costs at least 2x 90£/a – discounts for academics. Because of copyright restrictions please refer to The IFRS are supposed to replace all IAS as a final set of accounting standards. However, currently most of IAS are still valid with numerous cross references
    In particular: see Standard IAS 39, AG 82 (f) and IFRS 13 (referring also to IFRS 9)
    [AG = Application guidance – still part of EU law]

    Fore the moment I have to finish. I am very interested in the subject and like to provide further refs.

    rgs g

  • Massimo Molinari added an answer:
    What is the specific theory that explains the relationship between firm age and company performance?

    Within the context of corporate finance research, it appears logical to include ‘firm age’ as a determinant of company performance (e.g. accounting returns or stock returns), and most studies include 'firm age' as determinant of company performance. But, the theoretical motivation for including firm age as determinants of company performance seems unclear. What specific theory explains the relationship between firm age and company performance (if any)?

    Massimo Molinari · Sapienza University of Rome

    a good reference here is certainly "Like milk or wine: Does firm performance improve with age?" Check it out. Best.  Massimo

  • Erick Outa added an answer:
    Is there any evidence to show that auditors prefer following the accounting standards strictly without having to override these standards?

    Looking for evidence that indicates that auditors prefer not to have to override accounting standards to show a true and fair fiew or fair presentation and possible reasons for this.

    Erick Outa · Research and Consulting

    Where the auditors follow the standards, there is less need to explain anything further because that is compliance and override may not arise. In any case in principle based standards, interpretation can come in many ways. My understanding of the concern here seems to be circumstances where a standard is contested or require interpretation beyond what happens ordinarily. Such cases can be found in companies that may have experienced scandals like Enron and WorldCom (US), Parmalat (Italy), Satyam (India) HIH Insurance (Australia) and many others. In these circumstances, auditors believe they followed the standards. If you ask the auditors of these companies why they didn’t consolidate some subsidiaries or why some related company transactions were not reported and the standards they were applying, the response can be very interesting. It appears in these situations, the auditors may have applied the standards instead of the override and hence the consequences.
    The paper by Thomas and Paul (2004) highlights many such situations and includes many SEC analysis of some of the variances.Where an auditor has not applied an override when that should have been the case, that will result in low financial reporting quality which Thomas and Paul has described as:
    1. Following GAAP but selecting alternatives within GAAP that bias or distort reported results to achieve a desired outcome (e.g., selecting a depreciation method that results in higher earnings than the economic depreciation of the assets warrant).
    2.Using loopholes or bright-lines in accounting principles (e.g., the lessee has a capital lease if the present value of the lease payments is 90 percent or more of the fair value of the property) to structure transactions to achieve a desired outcome that differs from the economic structure of the transaction (e.g., that allows a lessor to structure a lease solely to qualify for immediate sales treatment while still allowing the lessee to treat it as an off-balance-sheet arrangement).
    3. Using unrealistic or inappropriate estimates and assumptions to achieve a desired outcome (e.g., using extraordinarily long depreciable lives for assets or unrealistically optimistic assumptions about collectability of receivables and loans).
    4. Stretching accounting principles to achieve a desired outcome (e.g., using a narrowly defined rule on consolidation of special-purpose entities (SPEs) for a leasing transaction to justify no consolidation of SPEs in other types of transactions).
    5. Engaging in fraudulent financial reporting. Rather than low financial reporting quality, this category actually has no financial reporting quality.

    All these  actions per se are acceptable by the standards but in reality should be over ride to allow for quality reporting.

    This pioneer work of Thomas and Paul highlights some of these issues and circumstance when standards are interpreted and show how companies in trouble have applied standards . You can read the copyright work
    Financial reporting quality: red flags and accounting warning signs.
    Publication: Commercial Lending Review
    Publication Date: 01-JAN-04
    Author: Robinson, Thomas R. ; Munter, Paul

    There are also cases of “substance over form” where accounting for leased assets takes a legal nature based on several interpretations.
    Erick Outa

  • Yuri Biondi added an answer:
    How can we measure the accruals reversals and how we can show them?

    Accruals reverse when their economic benefits are realized.. but how we can measure the reversals of accruals and how we can present them?

  • Robert Rebman added an answer:
    Is there any evidence to show that auditors prefer Rules based rather than Principles based accounting??

    Reasons why auditors might prefer Rules based over Principles Based accounting.

    Robert Rebman · Benedictine University

    Thank you, Erick.  I will follow up.

    Best for 2015 for you as well.

    Robert Rebman

  • Hossein S Kazemi added an answer:
    Are there any substantial studies that have examined the impact of investing in green real estate investment trusts (REITs)?
    While there is currently a strong focus on corporate social responsibility and the impact of investing in socially responsible equities, to a certain extent, the discussion revolving investing in 'green' buildings/ REITs is neglected.
    Hossein S Kazemi · Stonehill College

    Here is another pretty good article: Portfolio greenness and the financial performance of REITs 

    by:  Piet Eichholtz, , Nils Kok , Erkan Yonder

    Journal of International Money and Finance
    Volume 31, Issue 7, November 2012, Pages 1911–1929

    Hope this helps.

  • Tariq Ismail added an answer:
    How can I explain why I am using five likert scale for my questionnaires?
    I have done a presentation about innovation in service, and I have adopted questionnaires from previous studies ( 5-likert scale). However, one of the questions has been asked "why do you think five likert scale is the most suitable for your questions?" So any justifications for that?
    Tariq Ismail · Cairo University

    The most recommend scale is the one of 5 points, where it is reliable than 3 or 7 points. There are many justifications to support this. You can consult previous studies on this. 

  • Erick Outa added an answer:
    What are the parameters studied on disclosure of accounting policies?
    In the light of accounting standard can we test these parameters for the purpose of studying disclosure of accounting policies?
    Erick Outa · Research and Consulting

    Hi Shrikrishna, the responses i see here are too focused on corporate governance guides. That is where you will  find 44 disclosures or 98 disclosures as in Standards and Poor. But your question is on disclosure of Accounting policies which are driven by standards ie IFRS for adopting countries.If you take a set of the 28 Accounting standards or 15 IFRS , you will notice they are structured into various sections such as objective, scope, definitions, Accounting treatment, disclosures and effective date. The disclosures here are the ones refered to by auditors in the annual reports where they appear as notes to the financial statements as significant accounting policies. For example if you take IAS  16, there are several disclosure requirements prescribed by the standards  such as measurement bases, depreciation methods etc.  Most likely if your study involves accounting disclosure, it maybe too much to study more than one standard.  On the other hand corporate governance disclosures are driven by different codes such as OECD, commonwealth, King Report in South Africa and Higgins or Cadbury in the UK.In the annual report these disclosures are found under corporate governance policies and are typicaly measured by indices because of the levels of subjectivity while accounting polices are specific and non compliance to disclose may lead to disqualification of your accounts.

    Occasionally some disclosures fall in both such as related party disclosures and management compensation.

    Yes they can be tested but i must admit such studies are not as common as testing disclosures in corporate governance. Ill check a few such studies in the American Accounting associations and get back to you.


  • H Gin Chong added an answer:
    Kindly suggest new topics for Research in Accounting and Auditing?
    Respected Professors, Assistant Professors and Other faculty members of Business Schools. Kindly share the new topics for Research in Accounting and Auditing. Also suggest the sources from where I will pick the topic as new learner.
    H Gin Chong · Prairie View A&M University


    In auditing, take a look at materiality and audit risk, auditors' independence, audit quality, impacts of SOX to listed, non listed, professional firms.

    In MA, how firms measure their performance and human capital.

    Hope these are useful thoughts.,

  • Praveen Hoogar added an answer:
    What points should we consider to calculate income?

    This is the problem which many of the researchers have been experiencing hurdles to calculate or mention the income of particular family or subject?   

    Praveen Hoogar · Karnatak University, Dharwad

    Thank you Warren

About Accounting

System of recording financial transactions.

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