Difficulties of municipalities in the cearense metropolitan region in adhering to the public accounting convergence process: a multi-study

Objective: The purpose of this multi-case study is to evaluate the perceptions of Brazilian municipalities regarding the process of convergence of public accounting to international standards, initiated in 2008, considering the importance of these federated entities in the primary provision of public goods and services to society. Methodology: It was based on the application of a questionnaire with structured questions applied to the finance departments in 7 (seven) municipalities of the Metropolitan Region of Fortaleza. In addition to this aspect, the municipalities were selected based on the state’s GDP and the level of public investments made by them. Results: The results were considered consistent by emphasizing that 71% of the municipalities started the convergence process within the deadline established by the National Treasury Secretariat (STN), however only 43% stated they were prepared to apply the NBCASP. One of the main related difficulties refers to the lack of investment in training for the technicians involved and of their own systems to operate the changes determined by the STN. Contributions of the Study: Effectively, the research proved real difficulties experienced by part of the surveyed municipalities that can compromise the progress of the convergence process in Brazil, aspects which were not considered in the researches previously carried out.

The Current Situation of International Accounting Convergence and the Strategic Choice of International Convergence of Accounting Standards for Chinese Enterprises

With the deepening of world economic integration, IFRS has become more and more widely used worldwide. Under the new situation that the current international financial regulatory framework is being rebuilt, the international accounting landscape is undergoing major adjustments, and the international accounting standard setting agencies are actively promoting the reform of governance structure, my country needs to review the situation, follow the trend, and choose an international accounting standard that meets the needs of national conditions.

The Potential Role of Intellectual Capital in the Process of Accounting Convergence

Today, wealth is created through a combination of intangible assets that generate value. Companies have recognized the importance of intellectual capital as a key factor for success, looking for ways to measure and control this factor. Differences arising between accounting and fiscal policy will be resolved over accounting. This chapter shows that it is imperative to review fiscal policy on intangibles so as to reach the premises of business development, reestablishing profit growth, and fiscal parameter supervision by senior staff. The transition to accounting convergence is very complex and will result in terms of significant accounting policies and principles that are currently in project of the IASB and FASB.

Resistance to change in the processes of implementation of international accounting standards

This article aims to analyze the resistance to change in the process of implementation of IFRS in the background of employees and retirees of the Entities of the Social security of Córdoba, which was theoretically based on international financial reporting standards and the theoretical contributions in the field of resistance to change. On the other hand, it is framed in the qualitative methodology through the deductive, under the type of descriptive study method and was carried out under a non-transactional, experimental design and field. Likewise, the facts were studied from January/2018 to February/2018, through the application of a questionnaire with scale Likert type (validated 3 experts) to measure the resistance to change in the process of implementation of IFRS and was directed to the members of the Committee of implementation of IFRS in the entity. Descriptive statistics was used for the analysis of data, and the following conclusions were obtained: accounting convergence processes lack elements that can reduce resistance to the change of system of accounting standards International, this resistance is evident in the lack of clear objectives in terms of the process of convergence, lack of a specific methodology, low budgetary and financial allocation for the implementation of the activities related to the process of conversion, little communication in organizational communication lines and difficulties in the remuneration and compensation.

Does Mandatory Adoption of IFRS Enhance Earnings Quality? Evidence From Closer to Home

The global accounting convergence and the often discussed probable adoption of International Financial Reporting Standards (IFRS) by U.S. regulators is a timely topic. We contribute to the literature by examining a more recent mandatory IFRS adoption by Canada. Canadian GAAP (CGAAP) is often considered a close substitute for U.S. GAAP. One key feature of this setting is that two earnings numbers are available for fiscal year 2010 since Canadian firms were required to reconcile earnings under CGAAP with earnings under IFRS. We run a “horse race” of earnings quality between earnings under CGAAP and IFRS. We find that on average, relative to IFRS-earnings, earnings under CGAAP have greater association with next period cash flows and higher degree of persistence. Further, when the difference between earnings under CGAAP and IFRS is large, IFRS-earnings are less value-relevant and less persistent. These results strongly support the notion that higher earnings quality is associated with CGAAP. Finally, the results also indicate that differences between CGAAP and IFRS with regard to accounting for financial instruments and investments significantly impair the quality of IFRS-earnings. Our findings are potentially informative to any revival of policy debates on the possible adoption of IFRS by U.S. firms.

The Measurement and Recognition of Intellectual Capital in the Process of Accounting Convergence Trends and Patterns

The value of intellectual capital has been the main focus in the debates between international professionals and the business world for many decades. Today, this concept interferes with the international process of assessment and with the convergence of accounting. However, it is more likely for a certain period of time to develop both paradigms in parallel and then become convergent, thus solving the paradox of intangible asset valuation. Another challenge would be to extend and adapt this research to the specifics of different national economic systems, to generalize the relationship between intellectual capital and company performance and other countries and industries. This chapter analyzes the answer of the questions regarding recognition, presentation, and evaluation of intellectual capital, and also various controversial issues of this concept, as it is presented in the current project of the IASB and FASB.