Article
1:
Jones,
S. & Higgins, A. D., "Australia's Switch to International Financial
Reporting Standards: A Perspective from Account Preparers", Accounting and Finance, Vol. 46, 2006,
pp. 629-652.
(i)
Target Academic Community
The
target academic community is account preparers and accounting standard setter.
(ii) Research problems
Although
accounting regulators and professional bodies have supported the implementation
of IFRS in Australia, there has been much debate on the merits of IFRS
adoption. Therefore, this paper examines whether the perceptions of account
preparers consistent with the views of accounting regulators in the
implementation of IFRS in Australia context as account preparers are the
primary affected party responsible to implement IFRS.
(iii) Theoretical
models
This
paper does not use any specific theory to support the motives of the study.
Drawing from the IFRS implementation background in the European Union (EU) and implementation
action plans introduced by the Australian accounting regulators, this study
examines a number of explanatory variables that have impacts on account
preparers.
(iv) Data gathering
This
study use a structured telephone survey to investigate the impact of certain
variables such as firm size, firm performance, types of industry, level of
knowledge and expected financial implications of IFRS. This study presents the
descriptive analysis on the background of the companies and tests the
hypothesis by using multiple regressive and ANOVA analysis.
(v) Contributions
This
paper is the first study provides empirical evidence to the Australian
accounting regulators as the past published studies were anecdotal and/or
analytical types. This study provides timely feedback to regulator on
particular issues faced by ASX top 200. In particular, this study concludes
that the government's rapid timetable for IFRS adoption is unlikely to bring
significant benefits to Australian reporting entities.
(vi) Advancement of
knowledge
This
paper examines the response and feedback from account preparers who are mainly
responsible to implement IFRS. The findings can add to a growing body of
published research on IFRS convergence which normally depends on archival
research that examines very limited variables from financial statements,
market-related data and metrics.
(vii) 'Rules of the
game' for good academic paper
This
paper intends to survey the perceptions of account preparers on the benefits of
IFRS adoption. However, survey measures beliefs, which may not always coincide
with actions and can only include limited categories of survey questions. Thus,
qualitative research method such as interview and case study method can be used
to obtain more in-depth feedback and responses from account preparers.
Moreover,
this paper does not use a suitable theory to explain the research questions and
findings. The research question is posed to examine the justifications of
regulators to move to IFRS convergence with perceptions of reality about IFRS
adoption from account preparers. However, this paper does not examine the
perceptions of users on the roles of regulators to implement IFRS convergence
plans and actions. Hence, the results do not really address the research
question proposed in this study.
Article 2:
Kraal, D., Yapa, P.W.,
& Joshi, M., "The Socio-Economic Impacts of the Adoption of IFRS: A
Comparative Study between the ASEAN Countries of Singapore, Malaysia and
Indonesia", American Accounting
Association Annual Meeting, Washington, D.C., 4-8 August 2012.
(i)
Target Academic Community
The
target academic community is accounting practitioners, accounting standard
setters, accounting professional bodies and academics.
(ii) Research problems
This
paper examines socio-economic impacts of the IFRS adoption in ASEAN countries
of Singapore, Malaysia and Indonesia. Specific research questions are raised to
study the impacts of IFRS on wider stakeholders, perceived tensions between
companies in the adoption of IFRS and ongoing IFRS training issues.
(iii)
Theoretical models
This
paper uses institutional theory to examine the influence of environment and
social expectations on organisations internal practices and characteristics in
the IFRS adoption (DiMaggio and Powell, 1983). From the institutional theory
perspective, this paper investigates the development, influences and relevance
of IFRS in the ASEAN countries.
(iv) Data gathering
This
study uses one-to-one interviews with academics, accounting professionals and
practicing firms in Singapore, Malaysia and Indonesia. Interview questions related to the benefits
of IFRS adoption, issues in the implementation of IFRS and roles of accounting
professions in conducting training program.
(v) Contributions
This
paper contributes to the IFRS research about the socio-economic impacts of IFRS
on stakeholders in the ASEAN countries. Specifically, this study provides
in-depth analysis on IFRS implementation process in each country based on their
specific socio-economic environment. This paper provides insight to accounting
regulators to assess the impacts of IFRS and issues faced by organisations in
the process of IFRS implementation.
(vi) Advancement of
knowledge
This
paper attempts to study the impacts of IFRS in the ASEAN countries from the
socio-economic perspective. Past research focuses on the impacts of IFRS on the
capital market performance by using various economic modeling methods. This
paper contributes to scant literature on IFRS adoption from the socio-economic
perspective.
(vii) 'Rules of the
game' for good academic paper
This
paper examines the socio-economic impacts of IFRS adoption in the ASEAN
countries by conducting interview with wider stakeholders that include academics,
accounting professionals and practicing firms. However, interview can be
extended to account preparers and accounting standard setters since they are the
main group of stakeholders affected by the IFRS convergence.
In
addition, this paper utilises institutional theory to examine the
socio-economic impacts of IFRS adoption in the ASEAN countries. However,
institutional theory is more suitable applied in the organization context as
institutional theory provides explanations about organizational legitimacy with
the institutional isomorphism (DiMaggio & Powell, 1983). Thus, future
research can use institutional theory to examine the influences of coercive,
normative and mimetic isomorphism on organisations in the process of IFRS
implementation.
Article 3:
Fox, A., Helliar, C.,
Venezian, M., & Hannah, G., "The Costs and Benefits of IFRS
Implementation in the UK and Italy", Journal
of Applied Accounting Research, Vol. 14, No. 1, 2013, pp. 1-30.
(i)
Target Academic Community
The
target academic community is accounts preparers, auditor and accounting
regulators especially in EU countries.
(ii) Research problems
This
paper examines whether stakeholders from the UK and Italy, which have different
legal structures and socio-economics, have different perceptions on the IFRS
adoption. This study focuses on different stakeholders' perception on the costs
and benefits of IFRS adoption.
(iii)
Theoretical models
This
paper uses stakeholder theory to explain that a country to be a national
stakeholder in the IFRS implementation process and focuses on the views of
different stakeholders interviewees on IFRS implementation in their respective
country.
(iv)
Data gathering
This
study conducts 32 series semi-structured interviews with account preparers,
auditors and regulators from the UK, Ireland and Italy. The interview focuses
on the stakeholders' perceptions of the IFRS implementation process, the costs
of IFRS implementation and any associated benefits.
(v) Contributions
This
paper indicates that the experience of UK and Italian national stakeholders is
different on the IFRS implementation process. The findings imply that the IASB
has to understand that each country has a different stakeholder perspective
which may make IFRS more difficult to implement or to adjust to than in other
countries.
(vi) Advancement of
knowledge
This
paper attempts to compare different stakeholders perception from different
nation based the stakeholder theory perspective. The interview results show
variety of stakeholders’ views on the costs and benefits of IFRS implementation
from the Anglo-Saxon and EU continental perspective.
(vii) 'Rules of the
game' for good academic paper
This
study uses stakeholder theory to explain different views of stakeholders in the
process of IFRS implementation. However the study focuses more on costs and
benefits of IFRS adoption. Alternatively, this study can use resource-based
view to examine internal barriers that may impede the IFRS adoption. From the
resourced-based view, lack of resources and capability can be barriers for
companies to implement IFRS.
Additionally,
this study conducts interviews with preparers, auditors, users and accounting
regulators. However, this paper only shows the findings from the preparers and
auditors perspective. Hence, more thorough analysis should be provided from the
users of financial statements and accounting regulators perspective.
Research Gap
There
has been convergence towards IFRS in the world. The accounting standard setters
in the world have raised concern about the necessary to move into IFRS
convergence and the issues faced by each country in the IFRS adoption. These
three papers explore the perceptions of wider stakeholders on IFRS convergence
instead of using common archival method to examine the average effects of IFRS
adoption. A few research gaps have been identified from these three papers.
First,
Jones & Higgins (2006) examine whether the perceptions of account preparers
consistent with the views of accounting regulators in the implementation of
IFRS in Australia context. However, the research question on the roles of
accounting standards setter and regulators in the IFRS convergence process has not
been addressed clearly in this paper. Godfrey et al. (2010) point out that
there are two contrasting theories, i.e. public interest and private interest
theory on the roles of regulators in the accounting standard setting. Private
interest theory states that government should not intervene in the process of
regulating accounting practices as role of accounting is provide information
about firms' performance. On the other hand, the public interest theory argues
that government elected by different interest groups plays important role in
redistribution of wealth within society and should involve in accounting
regulations. Some academics question the effectiveness of the roles of
accounting standard setters in the IFRS convergence process. Whilst another
stream of research argues that the government or regulator actions encourage
widespread diffusion of IFRS (Chua & Taylor, 2008; Jermakowicz
and Gornick-Tomaszewski, 2006). Hence, there is
questionable about the roles of accounting regulators in promoting the IFRS
convergence. Future study can examine the roles of accounting regulators in the
IFRS adoption process and the effectiveness of the IFRS action plans introduced.
Thus, interview can be conducted with accounting standard setters to obtain a
better understanding on the IFRS actions plans and regulations set forth.
Alternatively, interviews can be conducted with account preparers and auditors
to evaluate the IFRS convergence plan introduced by the local accounting
standard setters and the International Accounting Standard Board (IASB).
Second,
these three papers do not study the roles of auditors in the IFRS
implementation process. Although external auditors do
not impose preferred practices on clients, they may provide their opinions or
suggestions on financial reporting practices. For example, auditors can
facilitate the sharing of common technical and operating standards,
methodologies, training and technology that are related to IFRS adoption. Thus,
interview can be conducted with account preparers to examine the roles of
auditors in the IFRS adoption process. Alternatively, interview can be
conducted with auditors to examine the audit firms' preparedness for IFRS
convergence. For example, audit firms may conduct training courses on new
standard for their staffs and clients. Additionally, IFRS adoption may
influence auditors’ judgment decision making in evaluating the client's
accounting treatments. This finding is useful to audit firms to evaluate their
roles in assisting clients in the IFRS transitional period and the impacts on
audit practices.
Lastly,
Fox et al. (2013) focus on the cost and benefits of IFRS adoption. Future study
can use institutional theory to examine the main driving forces that influence
the preparedness of companies to IFRS convergence. For example, coercive
isomorphism can be used to explain the influences of regulatory enforcement,
mimetic isomorphism explains the influences of industry practices and normative
isomorphism indicates the influences of professional accounting bodies. The findings
may be relevant to accounting regulators in assessing the likelihood that
companies will comply with principles underpinning the IFRS once it is adopted.
In
summary, future research can examine the roles of accounting standard setters and
the effectiveness of IFRS action plans in view that stakeholders are affected
significantly by regulations introduced by accounting standard setters. Specifically,
study can consider Malaysia context as Malaysia has recently adopted IFRS in
2012 and the IFRS implementation contexts are much different from other
countries. The Malaysian Accounting Standard Board (MASB) in Malaysia has
introduced two different framework (Malaysian Financial Reporting Framework (MFRS)
and Financial Reporting Standard (FRS)) as well as exemption for transitioning
entity in November 2011. As defined by MASB, the companies that are required to apply MFRS
framework are "Entities Other Than Private Entities shall apply the MFRS
framework for annual periods beginning on or after 1 January 2012, with the
exception of entities (known as transitioning entities) which are given options
to continue with the old FRS framework
that has not adopted IAS 41 Agriculture and/or IC Interpretation 15 Agreements
for the Construction of Real Estate." Subsequently, MASB plans that the
full adoption of the MFRS Framework will be mandatory to all companies for
annual periods beginning on or after 1 January 2013. These
implementation plans especially the rules on transitioning entities may create
various issues and confusion to stakeholders. Additionally, the Malaysian
accounting professional bodies and Big Four audit firms that mainly occupy the
accounting standard setting board have exerted strong influences on the IFRS
implementation process in Malaysia. Hence, the Malaysian accounting environment
provides a rich context for us to examine the stakeholders’ interest and the
issues encountered in the IFRS convergence.
Generally,
country-based national governance structures are seen to differ on many aspects,
in both legal requirements and best practice recommendations. In order to make
optical global public policy decisions, there is much we need to know about
what makes governance mechanism effective and the extent to which such
mechanism can be transferred between countries (Brown & Tarca, 2012). Considering
the impacts of IFRS on stakeholders’ interests, institutional theory can be
utilised to examine the roles of regulators and auditors as well as other drivers
that can influence the preparedness of companies for IFRS convergence. According
to DiMaggio and Powell (1983), organizations must conform to institutional
isomorphism if they intend to gain legitimacy within an organizational field. The
legitimacy of IFRS is crucial because legitimacy justifies and explains an
institution’s structure and existence in the process of implementing IFRS. Furthermore,
legitimacy of IFRS convergence requires the fit between an institution and its
environment. The results of this study may prove
useful to accounting standard setters in other countries that consider implementing
IFRS.
References
Brown, P. & Tarca,
A., "Ten Years of IFRS: Practitioners' Comments and Suggestions for
Research", Australian Accounting
Review, Vol. 22, No. 63, 2012, pp. 319-330.
Chua, W.F. &
Taylor, S.L., "The rise and rise of IFRS: An
examination of IFRS diffusion", Journal
of Account Public Policy, Vol. 27, 2008, pp. 462-473.
DiMaggio,
P.J. & Powell, W.W., "The iron cage revisited: Institutional
isomorphism and collective rationality in organization fields", American
Sociology Review, Vol. 48, 1983, pp.
147-160.
Fox, A., Helliar, C.,
Venezian, M. & Hannah, G., "The Costs and Benefits of IFRS
Implementation in the UK and Italy", Journal
of Applied Accounting Research, Vol. 14, No. 1, 2013, pp. 1-30.
Godfrey, J., Hodgson,
A., Tarca, A., Hamilton, J. & Holmes, S., Accounting Theory (Brisbane: John Wiley, 2010).
Jermakowicz, E.K. &
Gornick-Tomaszewski, S., "Implementing IFRS from the perspective of EU
publicly traded companies", Journal
of International Accounting, Auditing and Taxation, Vol. 15, 2006, pp. 170-196.
Jones, S. & Higgins,
A. D., "Australia's Switch to International Financial Reporting Standards:
A Perspective from Account Preparers", Accounting
and Finance, Vol. 46, 2006, pp. 629-652.
Kraal, D., Yapa, P.W.
& Joshi, M., "The Socio-Economic Impacts of the Adoption of IFRS: A
Comparative Study between the ASEAN Countries of Singapore, Malaysia and
Indonesia", American Accounting
Association Annual Meeting, Washington, D.C., 4-8 August 2012.
