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S3 (accounting theory (ch4 (4.1 (harmonization and/or standardisation in…

- - - - free market perspective
        
        arguments for
        
        3.7
        
        incentives to provide information
        
        cost will rise if the company fails to provide information about performance. Lack of information is likely be interpreted as the management is hiding something. It could be that they are acting in a self interested way or that they have some negative information about company performance that they want to hold behind locked doors. Speculation in absence of real information will increasing perceived risk hence reducing the stock price as well as likelihood of getting good terms on loans etc. increasing capital costs.
        
        3.5
        
        accounting standard overload
        
        Goods on regulated markets tend to be overproduced since the users are likely to overstate their need and lobby for more regulation, knowing that they don not has to pay for it. The overproduced quantity is subsidized by the non users
        
        3.11
        
        market corporate takeover
        
        Its the threat that unless managers provide information, cost of capital will increase, decreasing the value of the company, making the prospect of organizational takeover and them losing their job in the process more likely.
      - regulation perspective
        
        argument for
        
        Market mechanisms do not work properly in the case of public goods, and a below societal optimal quantity will be produce unless the market is regulated
    - - Är teorier
        
        public interest theory
        
        claims
        
        regulatory body is a neutral arbiter that represents the interest of the society which it operates, rather than the private interests of regulators
        
        regulation is put into placed with the aim to benefit society as a whole
        
        capture theories
        
        claims
        
        regulation might be initially put into place to protect public interests but over time this will change and the interest groups controlled by the regulation will begin to shape it in order to suit their own interests sometimes to the detriment of the public good.
        
        3.14
        
        Its not realistic that all regulators under all conditions wont be driven by self interest. Some regulators are more driven by protecting the common good than others. Certain conditions are likely to foster self interested behaviors as well as facilitating capturing of the regulatory mechanisms by special interests.
  - - - harmonization and/or standardisation in the context of finansial accounting
        
        harmonization
        
        definition
        
        a process of increasing the compatibility of accounting practises by setting bounds to the degree of variation
        
        standardisation
        
        defintition
        
        process of increasing the compatibility of accounting practices, with a more rigid and narrow set of rules compared to harmonization
    - - Does just adapting to IFRSs mean that accounting is consistent and comparable internationally
        
        IFRS
        
        objecvtives
        
        a) develop a set of financial reporting standards
        
        features
        
        in public intrest
        
        single set
        
        high quality
        
        understandable
        
        enforceable
        
        globally accepted
        
        b) promote application of developed standards
        
        c) take account of the needs of the entities controlled
        
        It is a step on the way, but there is a problem with lack of ability of IASB to enforce the specific standards. Different country's might enforce different standards creating domestic differences
    - - barriers to standardization of financial accounting across EU, has the EU been naive in working fo a standardization across all states?
        
        barriers
        
        For both legal and political reason the EU cant endorse future regulations made by an international body (IASs/IFRSs), without endorsing each regulation seperatly, slowing the process
        
        barriers to standardization in practices
        
        diffrences in taxation systems
        
        diffrences in economic and political influences on finsncial repporting
        
        modifications made to IFRSs at a national level
        
        diffrences in implementation, monitoring and enforcement
        
        naive?
        
        There is a different tradition and approach toward harmonization. Within EU accounting harmonization has taken place through legalization. This is a lengthy inflexible process not well suited for the dynamic business environment. But there is invested interests and an unwillingness to give up control over the regulatory mechanism
    - - benefits from adapting to IFRSs?
        
        lättare att förstå och jämföra
        
        listas i olika länder, lättare att attrahera kapital
        
        lättare att flyttas mellan olika länder
  - - - management bonus hypothesis
        
        managers will use accounting policies that are likely to shift reported earnings from future periods to the current period. This is to maximize their personal compensation as by reporting a high net income, their utility will be maximized through bonuses and incentives
      - debt hypotesis
        
        it states that all other things being equal, the closer a firm is to violation of accounting-based debt covenants, the more likely the firm manager is to select accounting procedures that shift reported earnings from future periods to the current period
    - - agency relationship
        
        a relationship where a principal allows an agent to act on his/her behalf. The agent is subject to the control of the principal
      - agency cost
        
        methods for reducing
        
        bounding
        
        aligning managers (agents) self interests to the interest of the owners (principal) by connecting bonus system to organizational performance using accounting data
        
        pricing
        
        paying lower wages to compensate for expected opportunistic behaviors, making manager pay their share of the agency cost
        
        controlling
        
        using accounting information to keep tabs on managers behavior and making agreements that limit opportunity for self-interested behavior on behalf of managers in return for higher wages
        
        cost that comes from managers putting their own self interest ahead of the owners/organisations interests, and the existence of information asymmetry allowing such behavior to get unnoticed/unpunished .
    - - positive accounting theory
        
        assumptions
        
        individual action is driven by self intrest, wealth maximation
        
        is this useful?
        
        It provides an useful window into possible explanations of what drivers accounting behaviors, as well as a basis for predicting future accounting behaviors
        
        is it realistic?
        
        It is a simplification, people isn't rational wealth optimizing machines. There are other factors in play such as cultural differences, personality differences, etc
        
        what does this say about
        
        politicians in producing regulation?
        
        They are acting to maximize their own utility. They are in a principal agent relationship with their voters (in a democracy). Given information asymmetry and incentive structure they will sometimes produce regulation that is not in the public/ their voters best intrest
        
        researchers in selecting issues to study?
        
        They are also acting to maximize their own utility. They might select issues that reflect positively on powerful special interest groups receiving founding for future research projects etc.
  - - - corporate disclosure policies
        
        the communication of information by people inside the public firms towards people outside the main aim of corporate disclosure is “to communicate firm performance and governance to outside investors”
      - legitimacy
        
        a generalised perception or assimulation that the actions of an entity are desireble, or appropriate within som socially constructed system of norms, value, beliefs, and definitions
      - social contracts
        
        implicit and explicit expectations that society has on the organization in the ways it is conducting its business
      - answer
        
        an organization uses corporate disclosure policies in order to satisfy implicit and explicit expectations in the social contract in order to achieve legitimacy
    - - system oriented theories
        
        examples
        
        legitimacy theory
        
        legitimacy theory has the role of explaining the behavior of organizations in implementing and developing voluntary social and environmental disclosure of information in order to fulfill their social contract.
        
        stakeholder theory
        
        8.13
        
        ethical branch branch
        
        claims
        
        2 more items...
        
        normativ
        
        manergerial
        
        claims
        
        1 more item...
        
        deskriptiv
        
        any identifiable group or individual who can affect the achievement of an organisation´s objectives, or is affected by the achievement of an organisations objectives
        
        stakholders
        
        primary
        
        2 more items...
        
        secondary
        
        2 more items...
        
        institutional theory
        
        theory on the deeper and more resilient aspects of social structure. It considers the processes by which structures, including schemes, rules, norms, and routines, become established as authoritative guidelines for social behavior.
        
        they reconceptualize the traditional view of organization as a independent unit. Organizations are an integrate part of the societal structure, Organizations are both affected by and in turn affect existing perceptions in the social environment. Corporate disclosure policies is one available lever of changing perceptions
    - - isomorphism
        
        types
        
        competitive
        
        homogenization due to a limited amount of perceived responses to market forces
        
        Instuitutional
        
        types
        
        coercive
        
        Coercive isomorphism stems from political influence and problem with legitimacy. In order to be accepted and allowed to conduct business a number of politically backed hops must be cleared.
        
        mimetic
        
        stems from human and organizational behavior under conditions of uncertainty. Degree of uncertainty is dependant on the ambiguity of goals within the field, level of understanding regarding organizational technologies and on environmental generated symbolic uncertainty. Mimetic isomorphism can be seen as an instance of evolutionary ingrained herd behavior where organizations tries to minimize uncertainty and risk by moving with the herd.
        
        normative
        
        stems from the degree of professionalization in the field. There are two drivers of professionalization, first is formal education and legitimization of universities. Second is the growth and elaboration of professional networks that span organizations
        
        competition over political power and legitimacy and is the dominant driver of homogenization in fields characterized by market failures, due to fiscal and legal barriers, unclear customer relationship etc
      - institutional isomorphism explaining voluntary corporate reporting practices
        
        voluntary
        
        Voluntary disclosure is the provision of information by a company's management beyond requirements such as generally accepted accounting principles and Securities and Exchange Commission rules, where the information is believed to be relevant to the decision-making of users of the company's annual reports.
        
        The concept of isomorphism explain different mechanisms that exercise pressure on organization to become more similar. Coercive mimetic and normative are three institutional mechanisms that explain the homogenization of voluntary corporate reporting practices
- - - - public interest theory
        
        de agerar i enlighet med vad som de upplever är samhällets bästa
        
        samhällets bästa
        
        är avhänigt antagande om vilken roll redovisningen bör spela, vad som bör prioriteras
        
        enhetsteorin vs. ägarteorin
        
        värderingsroll vs legalroll
      - public choice theory
        
        de är rationella politiska aktörer som fokuserar på sitt egenintresse och/eller specifika särintressen
        
        det är inte enbart redovisningens roll/funktion enligt normativa teorier som styr beteendet hos regleraren
      - capture theory
        
        förlängning av public choice theory som hävdar att regleraren fångas av företags intresseorganisationer och även om intentionen var att producera regleringar som tjänar samhällets intressen efter antaganden om redovisningens roll och funktion så övergår dessa reglrare till att tjäna särintressenas syften
      - economic interest theory
        
        regleraren drivs av maximera sin egen nytta redan från start och drivs inte alls av någon vilja att maximera nyttan för samhället så lvida inte egennyttan och samhällsnyttan sammanfaller
    - - typer
        
        mikro
        
        manipulering av redovisningsrapporter genom redovisningsval
        
        redovisningsval
        
        Innehållet i samtliga delar av redovisningsrapporter baseras i olika grad på kvalificerade bedömningaar gjorda av företagsledningen
        
        i en principbaserad reglering så existerar fler redovisningsval och därmed större utrymme för manipulering än i en regelbaserad
        
        typer
        
        traditionell räkenskapsmanipulering
        
        exempel
        
        redovisa en utgift som en tillgång istället för en kostnad
        
        skriver av tillgångar på längre tid än vad en ärlig bedömning av livslängden skulle innebära
        
        real räkenskapsmanipulering
        
        skjuta fram investeringar i R&D så att den belastar nästa års RR
        
        inte köpa in tillgången trots att den skulle vara en bra affär i det längre perspektivet
        
        redovisningsmanipulering
        
        defitions kriterier
        
        innefattar bedömningar i redovisningsval
        
        gör avsteg från normal praxis med syfte att vilseleda intreesgrupper
        
        makro/lobbying
        
        lobbying att med olika maktmedel påverka utformandet av regleringar
      - motivators
    - - real räkenskapsmanipulering innevbär att långsiktiga lönsamma investeringar i tillgångar, exempelvis inskaffandet av nya maskiner eller investeringar i R&D antingen avstås eller skjuts på till nästa redovisningsperiod. Detta med syfte att leva upp till överträffa kortsiktiga förväntningar på kapitalmarknaden. Detta medför dock negativa makroekonomiska effekter då det leder till mindre investeringar än vad som vore fallet om dessa incitament inte existerade.
    - - typer
        
        kontextuella
        
        legitimitetsteorin
        
        Företag strävar efter att leva upp till normer/förväntningar från samhället och andra intresanter
        
        rapportering om hållbarhets arbete kan delvis sägas vara motiverat av att företaget söker legimitet
        
        Drivkraften varierar över tid och mellan olika företag. exempelvis ett företag som hamnat i onåd, kan vara extra motiverat att visa upp en positiv bild för att återfå förlorad legimitet
        
        stakeholder theory
        
        företaget är motiverat att producera redovisningsinformation som är i enlighet med de största intressanternas önskemål förutsatt att desssa intresanters mål är förenliga med företagets mål.
        
        institutionell teori
        
        Det existerar tre mekanismer som gör att företag blir homogena, dessa mekanismer går under namnet isomorphism. Mekanismerna utövar också en homogeniserande effekt på redovisningsinformationen som produceras
        
        typer av isomorphism
        
        tvingande
        
        1 more item...
        
        härmande
        
        1 more item...
        
        normativ
        
        2 more items...
        
        teorin om kulturella dimensioner
        
        Kulturella dimensioner har påverkan på vilkaen redovisningsinformation som produceras
        
        dimensioner
        
        maktdistans
        
        individualism kontra kollektivism
        
        osäkerhets undvikande
        
        manlighet kontra kvinnlighet
        
        långsiktighet kontra kortsiktighet
        
        tillfredställelse kontra återhållsamhet
        
        ekonomiska
        
        principal-agent teorin
        
        separation mellan ledningen och ägaren skapar dissymmetri mellan intressen och tillgån tiill information. Detta skapar utrymme för ledningen att fatta oppertunisiska beslut som iär till gangn för dem själva (maximerar egennyttan) på bekostnad av ägarnas intressen
        
        lösningar
        
        monitoring
        
        minskar skillnaderna i tillgång till information vilket skapar grund för ägarna att ifrågasätta ledningens beslut och vidta åtgärder i fall förtroendet missbrukas
        
        metoder
        
        1 more item...
        
        bonding
        
        sammanlänka ledningens och ägarnas egenintressen, genom att skapa incitamentstrukturer som har en styrande effekt på ledningen i den rikting som ägarna önskar
        
        positive accounting theory
        
        det är ekonomiska konsekvenser för ledningen som styr utformandet av redovisningen snarare än huruvida den hålller hög kvalité enligt normativa teorier
        
        hypoteser
        
        bonus hypotesen
        
        i företag där ledningens ekonomiska ersättning i form av bonusar är kopplat till resultatmått så kommer de försöka höja resultatet genom redovisningsval
        
        exempel på val
        
        1 more item...
        
        debt covenant hypothesis
        
        företag som är nära att överskrida avtalade trösklvärden kommer göra val som gör att de inte överskrider dessa
        
        exempel på val
        
        2 more items...
        
        political cost hypothesis
        
        företag utsatta för medias granskning kommer att göra val som sänker vinster för att inte göda opinion mot högre skatter exempelvis
        
        signaleringsteorin
        
        företagsledningen hos högpresterande företag vill signalera detta till omvärlden genom frivilliga upplysningar medan företagsledningar hos lågpresterande företag inte vill signalera att de är lågpreterande och är därmed sparsam med informationen
        
        new institutional accounting theory
        
        Givet förekomst av transaktionskostnader oppertunistiskt beteende så är välfungerande institutioner (lagar, revisorer, övervakningsorgan, kapitalmarkander och corporate goverment mekanismer) viktiga för ekonomisk tillväxt, kvalitativ och transparent redovisning
        
        proprietary cost theory
        
        viss information kan innebära kostnader då exempelvis konkurrenter kan använda sig av den för att ta marknadsandelar. Nyttan med att göra informationen publik ställs i relation till propriety cost, redovisningsval görs beroende på utfallet av denna bedömning
        
        samtliga ekonomiska teorier antar att ledingen är ute efter att maximera egenyttan samt att det existerar en obalans i tillgång på information mellan ledniingen och ägarna, vilket skapar utrymme för ledningen att prioritera egenyttan över ägarnyttan
    - - skillnaden är att de kontextuella teorierna syftar till att förklara redovisningsbeteenden avseende fördelsaktiga icke ekonomiska konsekvenser exempelvis att få en ökad legitimitet (legitimitetsteorin), skapar informations värde för intressegrupper (stakeholder), minimera upplevd risk (härmade isomorphism), tillgodose behov hos en stark profession (normativ isomorphism). etc.
- - - - Undersöker hur väl företag efterlever gällande redovisningstandarder avseende informations delgivning, Samt förklarande faktorer till varför vissa företag väljer att delge mer information än vad redovisningstandarder kräver.
      - Compares Swedish and dutch companies in terms of compliance over time
    - - Its of interest to regulators because it suggests that the compliance is improving through proposed mechanism of learning and that countries lagging behind seams to be catching up, increasing homogenization in disclosure practices
      - It is interesting because of the contra intuitive result that Sweden had a higher compliance than dutch listed companies
    - - concepts
        
        IASB
        
        objectives
        
        make accounting information more comparable and hence more useful for decisions
        
        performance
        
        failing due to differences between countries and low level of compliance
        
        disclosure complience
        
        features
        
        more important with endorsed balance sheet approach because of the increase subjectivity and flexibility in valuing assets
        
        drivers
        
        enforcement system
        
        mechanisms
        
        1 self enforcement
        
        statutory of financial statements
        
        3 approval of financial statements
        
        institutional over sight system
        
        1 more item...
        
        legal sactions/complaints
        
        public and press actions
        
        hypothesis
        
        1
        
        1 more item...
        
        3
        
        1 more item...
        
        2
        
        1 more item...
        
        differences between swedish and dutch listed companies
        
        dutch
        
        sweden
        
        2 more items...
        
        information asymmetry
        
        hypothesis
        
        4
        
        1 more item...
        
        competitive disadvantage effect
        
        def
        
        perceived negative effects of disclosing information due to risk of helping competitors to market share
        
        perceived positive effects of disclosure (lower cost of capital) due to decreased risk of investors and loan givers in presence of more useful information
        
        hypothesis
        
        5
        
        1 more item...
        
        institutional pressures
        
        mechanism
        
        isomorphism
        
        1 more item...
        
        hypothesis
        
        6
        
        1 more item...
        
        learning
        
        hypothesis
        
        complience will increse between 2005 and 2008 due to learning
    - - design
        
        selection criteria
        
        companies that released the 2005 and 2008 annual report
        
        companies that had reported goodwill or other intangible assets
        
        those that valued assets with fair value to a higher price than cost to sell
        
        companies that do not split the fiscal year
        
        had primary quote on NOMX or EA
        
        dependant variable
        
        complience with IAS 36 paragraph 134
        
        operationalisation
        
        independent variables
        
        hypotesis 1 to 7
      - procedur
        
        multivariate regression analysis
        
        hypo deduktiv
    - - Swedish companies were more compliant that dutch in 2005, possible explanation is the historical difference in oversight. Dutch oversight being weaker
      - 2008 increased compliance in both countries indicating learning, dutch companies improved more leaving no significant difference between the countries
      - non-financials companies being more compliant in both countries
    - - Existanse of unknown drivers behind disclosure compliance (culture differences etc)