Yahya Hassas Yeganeh; Ruhollah Rajabi
Volume 2, Issue 8 , January 2005, , Pages 55-86
Abstract
A wide range of theories and hypotheses positively or normatively have justified the need for presences of audit process as a monitoring body for reassuring financial information provided to the public. There is a consensus that the audit function should be performed in a professional framework. Nowadays ...
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A wide range of theories and hypotheses positively or normatively have justified the need for presences of audit process as a monitoring body for reassuring financial information provided to the public. There is a consensus that the audit function should be performed in a professional framework. Nowadays this function in most countries is performed by audit profession as a society whole agent. Auditors act in the interest of primary stakeholders, whilst having regard to the wider public interest. . Effectiveness of audit function strongly depends on professional power of auditors. Professional power provides auditor the ability to influence clients' behavior regarding financial reporting to comply with Generally Accepted Accounting Standards, otherwise ability to disclose disagreements and other reportable conditions in their audit reports. As a result this ability helps auditors serving public interest. Professional power supports auditor resolving conflicts between them and their clients regarding proper accounting treatment, presentation, disclosure, etc. The main objectives of this research was to recognizing some aspects of professional power of independent audit in Iran, factors affecting professional power and appraisal of audit profession practitioners of factors current situation. Research finding show that professional power affects from wide range of factors and practitioners are not satisfied with current situation of them. Finally based on research findings some suggestions have been made both for application and future researches.
Mohsen Khoshtinat; Z. Namazi
Volume 2, Issue 7 , October 2004, , Pages 55-76
Abstract
In time past many ratios such as current ratio and quick ratio had been used for evaluations of corporation liquidity authority and ability in debt repayment.
But in recent years because of some deficiency and defection of these two ratios some other ratios such as liquidity index, cash comprehensive ...
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In time past many ratios such as current ratio and quick ratio had been used for evaluations of corporation liquidity authority and ability in debt repayment.
But in recent years because of some deficiency and defection of these two ratios some other ratios such as liquidity index, cash comprehensive liquidity index, net liquidity index, cash conversion cycle, lambda and etc. have been presented.
In this essay in addition to presentation of these modern ratios via calculation of modern ratio correlation with traditional ratios, we will discuss to some extent the informational identify of them. For this reason all active corporation in food industry of negotiable papers exchange have been chosen and ratios for a period of 5 year (1377-1381) have been calculated and the correlation of them have been calculated by SPSS(a software).
The results of this research show that although the ratios have a near relationship with traditional ratios but they are some differences that can play an important role on our decision and they contain various and more information than traditional ratios and can help users to make their decision better than before.
saber sheri
Zahra Dianati Deylami; Amir Alam Baigi; Morteza Barzegar
Abstract
Today, in many countries, particularly the developing countries, economic reform, such as privatization, is considered a strategic approach. The more governments grow, the tighter the competitions become in the market, so, it appears that some fields should be privatized in order to create ...
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Today, in many countries, particularly the developing countries, economic reform, such as privatization, is considered a strategic approach. The more governments grow, the tighter the competitions become in the market, so, it appears that some fields should be privatized in order to create competition. By moving towardsprivatization and the changes in competition methods and the presentation of the World Trade, the importance of management accounting is more pronounced. This research is based on the Contingency Theory of Anderson and Lenan (1999) and it investigates the relation of the level of privatization on the performance of privatized companies with emphasis on the use of management accounting tools as anintermediary variable. The data, related to management accounting tools and used by the companies during 6 years, was collected through questionnaires and the data related to privatization and financial performance was collected using the information registered in the statements of 48 accepted companies on Tehran’sStock Market whose dates of acceptance are before 1387 and were continuously active until 1392. This data was analyzed by PLS 2014. The results indicate a positive relation between financial performance and privatization, and management accounting, as an intermediary variable, enhances this relation. Furthermore, the use of management accounting tools has a positive relation with the financial performance and the privatization of companies.
Shokrolah Khajavi; Ahmad Shokrollahi
Abstract
The interaction of managerial ownership and corporate performance in accordance with their endogenous nature is studied in this research. In other words, interrelations of mentioned variables along with some relevant variables of using three stage simultaneous equations and panel data are inquired. To ...
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The interaction of managerial ownership and corporate performance in accordance with their endogenous nature is studied in this research. In other words, interrelations of mentioned variables along with some relevant variables of using three stage simultaneous equations and panel data are inquired. To do this, quasi-research method is used for 134 listed companies of Tehran Stock Exchange during period of 1380 to 1389. Results of testing research hypotheses indicate positive significant effectiveness of performance on managerial ownership. The most important factors of making managerial ownership which lead to better performance are considered as bonus shares of management bonus plan and information asymmetry problem. Moreover, results of research do not confirm performance effectiveness from managerial ownership. Thus, research findings do not verify this predicate that “due to coordination of management and tockholders’ interests increasing managerial ownership causes agency expenses decreases and increases in stockholders’ interests
Mohammad reza Nikbakht; Amir Firooznia; Hamid Kalhornia
Abstract
In this research, the relationship between earnings to stock per price ratio (E / P ratio) with sales future growth and stocks systematic risk in listed companies in Tehran Stock Exchange is investigated. The purpose of the research is to determine whether investors are paying attention to the quality ...
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In this research, the relationship between earnings to stock per price ratio (E / P ratio) with sales future growth and stocks systematic risk in listed companies in Tehran Stock Exchange is investigated. The purpose of the research is to determine whether investors are paying attention to the quality of information presented (earnings per share), and reflects this on corporate future sales growth and the systematic risk of stocks. It also examines whether there is a meaningful relationship between E / P ratio and future sales growth. The sample of this research includes 146 listed companies in Tehran Stock Exchange during the period of 2011-2016. The linear regression model was used to test the hypotheses. The research findings show that there is a negative relationship between earnings per share (E / P) and future sales growth. In fact, companies that have a higher profit / share / E / P ratio have lower sales growth. Also, the results of the research show that there is a reverse relationship between profit to share price (E / P) and systematic risk (β). In fact, in companies with an E / P ratio, the systematic risk (β) was lower. Other research findings show that there is a positive relationship between earnings per share (EPS) and future sales growth. The results also indicate an inverse relationship between earnings per share (EPS) and systematic risk (β).
Ghodratollah Nikzad Chaleshtori; Mehdi Arabsalehi; Daryush Foroghi
Abstract
A review of the accounting theoretical literature confirms the role of CEO human capital as a valuable intangible asset for the company. The purpose of this study is to determine the effective criteria on the CEO human capital and to explain a comprehensive and multi-criteria model for measuring the ...
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A review of the accounting theoretical literature confirms the role of CEO human capital as a valuable intangible asset for the company. The purpose of this study is to determine the effective criteria on the CEO human capital and to explain a comprehensive and multi-criteria model for measuring the CEO human capital and evaluate the impact of the CEO human capital on the Earnings Forecasts Quality. For this purpose, firstly, the CEO human capital criteria were identified and experts' opinions regarding the weight of each of these criteria collected through a questionnaire and explained using the Shannon entropy technique of comprehensive CEO human capital model. Then, using the proposed model, the CEO human capital index was calculated for a sample of 70 the firms listed on the TSE during the period 2012-2017 and the impact of CEO human capital on Earnings Forecasts Quality was tested by estimating the regression model. The results show that Education level, work experience and industry-related field are important criteria of CEO human capital from the experts' point of view. Also, the results of the analysis of the research hypothesis showed that the improvement of the CEO human capital index has a positive effect on the horizon of earning forecast and reduces the bias of earning forecast. While the impact of the CEO human capital on the error of earning forecast and the range of earning forecast was not confirmed .
Ahmad Badri; Neda Goodarzi
Volume 11, Issue 43 , October 2014, , Pages 57-88
Abstract
Abstract
Individuals are thought to make biased judgments under uncertainty, because limited time and cognitive resources lead them to apply heuristics like representativeness. Representativeness is the tendency of individuals to classify things into discrete groups based on similar characteristics.
In ...
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Abstract
Individuals are thought to make biased judgments under uncertainty, because limited time and cognitive resources lead them to apply heuristics like representativeness. Representativeness is the tendency of individuals to classify things into discrete groups based on similar characteristics.
In order to measure the representativeness bias, we examine the relation between past trends and sequences in financial performance and future returns in Tehran stock exchange (TSE) between1380-1390. We also investigate the impact of consistent sequence of financial performance in future return. Finally, the study examines the effect of subsequent performance that confirms or contradicts past pattern of growth on the predictability of future returns. The study uses annual data consisted of 800 firms-year and 3200 firms-quarter. The main research methodology is portfolio study. This study calculates financial growth rates over two periods: one year (four rolling quarters) and five years (using annual data). Three accounting measures of performance are calculated: sales, net income, and operating income.
The results indicate that the abnormal returns in one-year trend are significantly positive. But abnormal returns in the year after five years of high or low growth are statistically and economically insignificant. In addition, we find little evidence about the consistency or pattern of firm performance effects on expectations of future returns. Finally, the past trend and pattern of growth do not lead to predictable returns following subsequent performance that confirms or contradicts this past trend.
Ghasem Blue; Mahdi Falah Barandagh
Volume 10, Issue 39 , October 2013, , Pages 57-82
Abstract
This research follow up the relation between conservatism and short term abnormal returns of IPOs in Tehran Stock Exchange and also infusing of asymmetry information among beneficiaries in IPO’s procedure in mentioned relation. The results of regression analysis for companies which their stocks ...
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This research follow up the relation between conservatism and short term abnormal returns of IPOs in Tehran Stock Exchange and also infusing of asymmetry information among beneficiaries in IPO’s procedure in mentioned relation. The results of regression analysis for companies which their stocks offered in Tehran Stock Exchange for period of 1382 to 1391 shows the relation between conservatism and short term abnormal returns of IPOs is meaningful and reverse. In the other word by increasing the level of conservatism, verifiability of presented information has been gone up and by decreasing of asymmetry information among beneficiaries in IPO’s procedure; short term abnormal return of this stock will be decrease. In the other hand the relation between conservatism and short term abnormal returns of IPOs in companies with high level of asymmetry information is stronger than companies with low level of asymmetry information.Also the results of research show the IPOs’ stocks have created averagely 26.07% Initial normal returns and 19.61% Initial abnormal returns (Returns adjusted by Market Portfolio) that confirmed the under pricing in Tehran Stock Exchange according to researchers in other countries.
Hamid Khaleghi Mogadam; Mohammad Ali Sahmani Asl
Volume 3, Issue 12 , January 2006, , Pages 57-81
Abstract
The present study identifies the effective accounting and economic variables on P/E ratio in Tehran stock Exchange (TSE) during the 12- year period from 1992 up to 2003. The investigation and identification of accounting information in determining P/E ratio and proper function of the capital market promote ...
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The present study identifies the effective accounting and economic variables on P/E ratio in Tehran stock Exchange (TSE) during the 12- year period from 1992 up to 2003. The investigation and identification of accounting information in determining P/E ratio and proper function of the capital market promote the accounting status in the professional society.
The research is seeking to find out if the economic and corporate variables (accounting variables) can affect the P/E ratio in TSE.
This question is formed into two major hypotheses including:
1) Changes in economic variables affect the corporate PIE ratio, and
2) Accounting variables affect the corporate P/E ratio.
Ex-post multiple factor analysis was applied to test the hypotheses. Furthermore, linear regression, and GEE and TSCSREG statistical instruments were also applied as well as panel Data Analysis.
The research findings indicates P/E ratio is much more affected by accounting variables than economic ones, while there is a strong correlation between the economic variables and corporate PIE ratio in TSE.
Accounting and various aspects of finance
Rafik Baghoomian; Hossein Rajabdorri; amirreza khanizolan
Abstract
The purpose of this study is to investigate the relationship between financial report readability and stock return synchronicity with the moderating role of institutional ownership and information asymmetry in companies listed in the Tehran Stock Exchange (TSE). This research is in terms of its purpose. ...
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The purpose of this study is to investigate the relationship between financial report readability and stock return synchronicity with the moderating role of institutional ownership and information asymmetry in companies listed in the Tehran Stock Exchange (TSE). This research is in terms of its purpose. Its period is from 2015 to 2019, and the selected sample consists of 171 companies listed in TSE. To test the research hypotheses through panel data, the ordinary least squares regression method in Eviews software was used. The findings of the research hypothesis test show that there is a negative and significant relationship between financial report readability and the stock return synchronicity. Also, institutional ownership as a moderating variable negatively correlates the illusion of financial report readability and the synchronization of stock prices. Additionally, the moderating effect of the information asymmetric variables on the relationship between the financial report readability and the price synchronization is positive and significant. According to the findings, on the one hand, it is necessary to examine the implications of financial report readability. On the other hand, in order to improve the market, more attention needs to be paid to the issues affecting the stock return synchronicity.
Accounting and various aspects of finance
Mohammad Ali Aghaei; Mohammad Amri Asrami
Abstract
In this study, the impact of CEO’s overconfidence on the relationship between cash holding and excess returns is investigated in companies listed in Tehran Stock Exchange during the years 2011-2018. For CEO’s overconfidence, overinvestment in assets, and for excess returns, the difference ...
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In this study, the impact of CEO’s overconfidence on the relationship between cash holding and excess returns is investigated in companies listed in Tehran Stock Exchange during the years 2011-2018. For CEO’s overconfidence, overinvestment in assets, and for excess returns, the difference between a firm’s stock return and the return of the firm’s benchmark portfolio over the same period is used. By systematic sampling, a sample of 157 companies is selected, and the models have run based on panel data with fixed effects. The results have shown that (1) cash holding has a positive and significant impact on excess returns, (2) CEO’s overconfidence has a negative and significant impact on excess returns, and lastly, (3) CEO’s overconfidence has a negative and significant impact on the relationship between cash holdings and the excess returns. With increasing CEO’s overconfidence, the excess returns will be reduced. Overconfident managers keep cash at a higher level that leads to overinvestment. It consequently decreases excess returns.
Financial Accounting
Abbas Aflatooni; Zahra Nikbakht; Kefsan Mansouri
Abstract
The existence of firms' excess cash causes resources to stagnate and, cash deficit causes loss of investment opportunities. Therefore, firms generally try to maintain an optimal level of cash holdings. In addition, firms attempt to quickly correct any deviations from the optimal level of cash holdings. ...
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The existence of firms' excess cash causes resources to stagnate and, cash deficit causes loss of investment opportunities. Therefore, firms generally try to maintain an optimal level of cash holdings. In addition, firms attempt to quickly correct any deviations from the optimal level of cash holdings. The level of cash holdings and the speed of correcting the gap between the actual and the optimal level of cash holdings depend on several factors. The purpose of this study is to investigate the effect of the firm's business strategies (defenders and prospectors) on the level of cash holding and its speed of adjustment. In this regard, the data of 120 firms listed on the Tehran Stock Exchange (TSE) during 2013-2020 (960 firm-years) have been used. The static models are estimated using ordinary least squares (OLS) estimator and, the system generalized method of moments estimator (GMM) is used to estimate dynamic models. The results show that the prospectors have a smaller cash holdings ratio than defenders, and also, the prospectors have lower cash holdings speed of adjustment than defenders. The results of supplementary tests that confirm the research's main findings are consistent with the predictions made in trade-off theory.
Hossein Etemadi; Ali Asghar Anvari rostami; Vahid Ahmadian
Volume 11, Issue 41 , April 2014, , Pages 59-81
Abstract
Abstract: The main objective of this study is to investigate the effect of the life cycle of the company's on dividend policy of the company which is accepted on the Tehran Stock Exchange. In this study, the ratio of dividends to the earnings per share and dividends to the company size are considered ...
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Abstract: The main objective of this study is to investigate the effect of the life cycle of the company's on dividend policy of the company which is accepted on the Tehran Stock Exchange. In this study, the ratio of dividends to the earnings per share and dividends to the company size are considered as the dependent variables and life cycle of the company is considered as independent variable. At first a statistical sample is separated by using variables, sales growth, age, and capital expenditure of the company's growth, maturity and decline then hypotheses of the study have been tested by using ANOVA and LSD tests. Analyses of 435 years - the company during the years 1386 to 1390 show that the company's dividend policy at different stages of the life cycle (growth, maturity and decline) differ. The results indicate that the average ratio of dividends to market value of equity of the sample firm's growth, maturity and decline vary. Accordingly, it is recommended to financial analysts to concern life cycle as a key factor when evaluating the current and future performance and financial structure of the company. for doing accurate analysis of financial condition and anticipated interest payments decisions, it is better to determine the company's life cycle.
Mahdi Bahar Moghadam; Mahnaz Salari
Volume 9, Issue 33 , April 2011, , Pages 59-80
Abstract
Abstract
In this study the relationship between accounting depreciation and economic depreciation has been studied. If the equality of accounting depreciation and economic depreciation is demonstrated, it is expected to be a negative and statistically significant relationship between accounting depreciation ...
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Abstract
In this study the relationship between accounting depreciation and economic depreciation has been studied. If the equality of accounting depreciation and economic depreciation is demonstrated, it is expected to be a negative and statistically significant relationship between accounting depreciation and current cash flows. But if there is conservatism in reporting depreciation, the relationship between accounting depreciation and future cash flows is expected to be negative. The reason is that before the economic depreciation of assets occurs; accounting depreciation in financial reports is recognized. Usually companies adopt a more conservative approach, to be able to report better performance in the future. For this research, the multiple regression model and information of companies listed in Tehran Stock Exchange during the period 2001-2010 were used. Results showed that there is no significant relationship between current cash flows and accounting depreciation. It can be argued that accounting depreciation and economic depreciation don’t change proportionately. But the relationship between accounting depreciation and future cash flows is negative and significant. Therefore it can be concluded that there is a conservative approach in reporting depreciation. And finally, in spite of the aforementioned expectations, there is Negative correlation between conservative reporting of depreciation and future growth opportunities.
Vahid Mollaimani; Mohammad Marfou
Volume 12, Issue 45 , April 2015, , Pages 59-80
Abstract
The speed of transferring of accounting information fromtransferors to users is so important that it is mentioned in accountingconceptual framework as a qualitative characteristics of accountinginformation. Barriers and problems discovering in informationchannel between transferors and users not only ...
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The speed of transferring of accounting information fromtransferors to users is so important that it is mentioned in accountingconceptual framework as a qualitative characteristics of accountinginformation. Barriers and problems discovering in informationchannel between transferors and users not only can Accelerates thetransmission of information but also can benefit users more. In thisresearch we investigate the relationship between disclosure qualityand audit report lag for 164 companies of Tehran Stock Exchangebetween the years of 1387 to 1391. We use disclosure quality ranking,management forecast error and prior period adjustments as therepresentatives of disclosure quality and test them with audit reportlag in E views and SPSS software. The findings of panel analysisshows that there is a significant negative relationship between auditreport lag and dependent variables, management forecast error andprior period adjustments. The final result shows a positive relationshipbetween disclosure quality and audit report lag. Furthermore there issignificant negative relationship between company size and auditreport lag and there is no relationship between auditor sizes, havinggood news or bad news and company debts with audit report lag
Sasan Mehrani; Amir Rasaiian
Volume 5, Issue 18 , July 2007, , Pages 59-80
Abstract
The firms' capital structure plays an important role in investment decision making. The main goal of this paper is review the relationship between capital structure and profitability measures in Tehran Stock Exchange. Therefore 189 sample firms that their required data for a nine years period (1375-1383) ...
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The firms' capital structure plays an important role in investment decision making. The main goal of this paper is review the relationship between capital structure and profitability measures in Tehran Stock Exchange. Therefore 189 sample firms that their required data for a nine years period (1375-1383) was available are selected. Then the relation between profitability ratios and capital structure is reviewed. Four industries of sample statistic, that had more firms, are selected to examine the hypotheses too. The panel data regression is used to examine the hypotheses. Signification of the models is examined by T and F statistics.
A. Rahmani; Z. Bayati
Volume 8, Issue 30 , July 2010, , Pages 59-77
Abstract
Pension plans accounting is a controversial issue. Providing the defined benefits pension plans in companies' financial statements is very important considering the lack of accounting standard in Iran in this regard, and most of the financial statements users are interested in true understanding of companies' ...
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Pension plans accounting is a controversial issue. Providing the defined benefits pension plans in companies' financial statements is very important considering the lack of accounting standard in Iran in this regard, and most of the financial statements users are interested in true understanding of companies' pension plans. The number of such companies which are qualified to entering in Tehran Stock Exchange (TSE) has increased; hence economic consequences of measuring and releasing of obligations have been noteworthy.
The current research studies uniformity of pension plans in financial statements reporting and necessity of creating a new standard in this regard.
The sample population of this research are 9 companies and banks that have had defined benefits pension plan for the financial year of 1388. Also the data of research has been collected using viewpoint of expertise and persons questionnaire. Examines of binominal distribution, chi square and mean have been applied for analyzing of data.
Results of this study, indicates the lack of uniformity in reporting pension plans in financial statements of employer and entities which have mostly use recognition rather disclosure. However some incompetence is in recognition and disclosure.
Also from viewpoint of pension plan financial statements users, releasing of pension plans information is useful, so they believe it is necessary that a new standard should be created.
mehdi baharmoghadam
Robab Shakeri; Mohammad Marfou
Abstract
In this study, the effect of business strategy on the Company's Information Environment (Information Asymmetry, stock returns Volatility, Earning Forecast Errors), is studied. Also to determine the type of companies' selected strategy (prospective or defensive), the Ittner and Larcker )1997) scoring ...
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In this study, the effect of business strategy on the Company's Information Environment (Information Asymmetry, stock returns Volatility, Earning Forecast Errors), is studied. Also to determine the type of companies' selected strategy (prospective or defensive), the Ittner and Larcker )1997) scoring system is used. For statistical analysis, multivariate regression used and control variables (firm size and financial leverage) is also used in models. The study period, is the period (2011) to (2015) and a sample of 168 companies listed on the Tehran Stock Exchange is used. The results indicate that a positive and significant relationship exists between the company's business strategy and Information Environment (Information Asymmetry, stock returns Volatility, Earning Forecast Errors) so that the more prospective business strategy, brings more information asymmetry, more stock returns Volatility and more Earning Forecast Errors
Roohalah Seddighi; Mohammad Marfou; Ali Ghasemi
Abstract
International Financial Reporting Standards for Small and Medium Sized Entities (IFRS For SMEs) is a set that has less requirements than international financial reporting standards. Small and medium enterprises are being adopted in many countries and these standards are under consideration in Iran. It ...
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International Financial Reporting Standards for Small and Medium Sized Entities (IFRS For SMEs) is a set that has less requirements than international financial reporting standards. Small and medium enterprises are being adopted in many countries and these standards are under consideration in Iran. It is necessary that this set of standards be examined before application. In the present study, by using the fair value approach in SME reporting standards, the impact of this approach on the performance indicators based of SME-standards has been investigated. The main purpose of this study is to investigate changes in performance indicators after applying SMEs standards.The statistical population of this research is the subsidiry companies of the public companies whose activities are investment and 95 companies selected as sample. The research period is 2015 to 2017. Therefore, using historical data in the audited financial statements of these companies and the fair value of the investment portfolio of these companies based on the trading portfolio and the report on the status of the portfolio in the codal website, changes in return on assets ratio (ROA) and return on equity ratio (ROE) as performance indicators, is evaluated statistically after applying the fair value approach and compared with the indicators based on Iran's accounting standard. The results indicated that the ratio of return on assets and return on equity as performance indicators, after the implementation of the International Financial Reporting Standard for small and medium sized entities did not change significantly.
Mohsen Dastgir; Mehran Hoseini Afshari
Volume 1, Issue 3 , October 2003, , Pages 60-94
Abstract
After initial Pricing of stocks at Tehran stock exchange, security prices will fluctuate according to the market prices. The question is which theoretical model, the market price of securities, will follow? The aim of this study is to identify among the best theoretical models, a model, which can best ...
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After initial Pricing of stocks at Tehran stock exchange, security prices will fluctuate according to the market prices. The question is which theoretical model, the market price of securities, will follow? The aim of this study is to identify among the best theoretical models, a model, which can best define the market price.
In this research, three valuation models which are best recommended in financial management literature are chosen, and the stocks which are traded at Tehran stock exchange are valued by them. Then the actual security prices, revealed by market are compared with those calculated values. The results of this study shows that if the required rate of return is calculated by CAPM, the Walter model compared to Gordon growth model and present value model of future cash flows, calculate security values closer to the market prices of the securities. The results also indicate when the fixed required rate of return of 40% is used; Gordon growth model will give values closer to the market prices of the securities.
Mohsen Khoshtinat
Volume 1, Issue 1 , April 2003, , Pages 61-84
Abstract
Understanding the international dimensions of accounting is vital for anyone who wants to do business or invest across national borders. Accounting amounts may vary substantially according to the principles that govern them. Differences in culture, business practices, Political and regulatory structures, ...
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Understanding the international dimensions of accounting is vital for anyone who wants to do business or invest across national borders. Accounting amounts may vary substantially according to the principles that govern them. Differences in culture, business practices, Political and regulatory structures, Currency values, foreign exchange rates, local inflation rates, business risks, and tax codes must be considered in deciding where and how to do business. Financial Statements and other disclosures are impossible to understand without an awareness of the underlying accounting principles and business culture.
We discuss how accounting has developed historically, and offers a system of classification designed to help you understand the similarities and differences which you will find among national accounting principles. Accounting principles are often developed on an ad hoc basis and embody, in complicated and unpredictable ways, the information needs of managers, investors, bank and other creditors, tax authorities, Politicians and regulators, employee, and (increasingly) international organizations, among others. Resulting accounting systems vary dramatically in purpose, design, operation, and effect.
Ali Saghafi; H Saydi
Volume 1, Issue 2 , July 2003, , Pages 61-82
Abstract
In recent decades, the emergence of crisis in accounting has posed by many thinkers and writers, particularly about theory setting and accounting methodology. As it is mostly accepted in philosophy of science, accounting is a type of social science that we should define it by its end, not by its subjects. ...
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In recent decades, the emergence of crisis in accounting has posed by many thinkers and writers, particularly about theory setting and accounting methodology. As it is mostly accepted in philosophy of science, accounting is a type of social science that we should define it by its end, not by its subjects. It is clear that, nowadays the ends and goals of accounting are two major things: preparing useful information for decision making; and accountability. Many evidences and researches show that positive methodology or positive accounting theory is not an appropriate means in achieving to accountability end. Because the focus of positivism is on objective realities; and it misses the role of mind and subjective ideas, accounting as a social science which has built not only on the physical objects but also on the accountants’ thought and power of mind, cannot rely on positive methodology for theory setting, entirely.
This article has tried to emphasize on the importance of the norms. Values and ethics in obtaining the accounting purposes by collecting some philosophic literature, especially the viewpoints of Immanuel Kant in his books based on critique concept and the members of Frankfurt School and their critical theory. Finally, after a review of the ethical approach in accounting theory, we conclude that the nearest way to accounting ends is relying on normative theories, which are described in this text as a stable bridge between the reality of accounting and its ends.
M. R. NikBakht; M. J. Sheikh
Volume 2, Issue 5 , April 2004, , Pages 61-94
Abstract
I n this research the importance of "warning signs" (Red flags) concerning financial fraud, considering the views and ideas of companies’ accounts managers accepted in Tehran Stock Exchange and opinion and ideas of members of official associations of accountants on evaluation, research by ...
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I n this research the importance of "warning signs" (Red flags) concerning financial fraud, considering the views and ideas of companies’ accounts managers accepted in Tehran Stock Exchange and opinion and ideas of members of official associations of accountants on evaluation, research by different angles between the above ideas has been accepted.
The result of the research reflects that all 42 “warning signs” accepted and declared in questioner by both.
In addition by using factor analysis and by discovery methods is five factors described below.
I - Acceptance of risks and looking for dangers
2- Management characteristics
3- Economical characteristics
4- Constructive characteristics being saturated
5- Unstableness, inabilities and insufficiency in profit making.
In addition result of the test proves absence of significant difference i n the most “warning signs” (red flags).
