ISSN:1035-6908    

DOI:10.1111/j.1835-2561.1994.tb00152.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

The explosion in the growth of derivative financial instruments in recent years is a major cause of concern for accounting standard‐setters. This paper considers the reasons for the growth and identifies the accounting problems associated with these instruments. The relevant United States and Australian pronouncements are discussed. Major proposals in ED 59 Financial Instruments are outlined and two critical issues concerning the automatic writedown of financial assets and the treatment of anticipatory hedges are identified. ED 59 contains similar proposals to E 48 issued by the IASC. However, there are some differences between the two documents and these are discussed. The paper also considers possible developments in accounting for financial instrument

ISSN:1035-6908    

DOI:10.1111/j.1835-2561.1994.tb00153.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

This paper provides an overview of the executive compensation debate with special emphasis on the role of executive share options. Widespread criticism of executive pay typically concentrates on pay levels, rather than the composition of executive pay and its determinants. The paper points out that gains from exercising executive share options are not simply rewards for the period in which they are realised and reported. The economic rationale for rewarding executives through share options is reviewed, leading to the conclusion that options are more likely to form a relatively important part of executive remuneration in organisations which face valuable, but relatively risky, investment opportunities. However, because options can aggravate conflicts of interest such as those that arise between shareholders and lenders, they are not a universally efficient form of executive compensation.

ISSN:1035-6908    

DOI:10.1111/j.1835-2561.1994.tb00154.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

Accounting for employee share options (ESOs) has caused a furore in the United States. Understandably, Australian standard‐setters are moving cautiously but have signalled they may follow the FASB's lead. ESOs are a major form of executive remuneration but have not usually been recognised in the employer's financial statements unless and until they are exercised. The FASB has proposed that ESOs be valued on their grant date and immediately recognised as an asset (prepaid compensation) and additional shareholders' equity (options outstanding); the asset is then to be amortised over the period in which the employee's services are received. We describe and comment on the debate, in the light of the proposal's likely impact on firms' financial profile

ISSN:1035-6908    

DOI:10.1111/j.1835-2561.1994.tb00155.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

We take four case studies to illustrate three issues: how ESOs are valued; how the valuation depends on assumptions; and how US proposals to account for ESOs would affect a company's financial profile. We adopt the Black‐Scholes options model to value ESOs issued by Brambles Industries, Coles Myer, Tabcorp Holdings and Westpac Banking Corporation. Under the FASB's proposal, after‐tax profit is lower and shareholders' funds and assets are higher beginning with the grant date. At the end of the amortisation period, assets and shareholders' funds would be the same as under current practice, but the fair value of the ESOs on their grant date would have been transferred from unappropriated profits to issued capi

ISSN:1035-6908    

DOI:10.1111/j.1835-2561.1994.tb00156.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

The professional accounting bodies in Australia have undertaken a study of the “expectation gap” in perceptions of the auditing role and concluded that the public's image of the auditing profession will be enhanced if the differences in attitudes can be minimised. This paper analyses the views of auditors and financial report users about what the role of the auditor and the nature of an audit should be. The most significant differences between the auditors and the user groups relate to whether the auditor should be responsible for preventing and detecting fraud, detecting illegal acts, reporting whether the company is a reliable debtor or loan prospect and reporting the degree of confidence he or she has that the correct audit opinion has been issued. Where the differences represent “deficient standards” or “unreasonable expectations”, the professional bodies should consider changing auditor responsibilities or attempting to change users

ISSN:1035-6908    

DOI:10.1111/j.1835-2561.1994.tb00157.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

In 1994 a working party commissioned by the Australian accounting bodies produced a report titled A Research Study on Financial Reporting and Auditing ‐Bridging the Expectation Gap. The study was the result of concerns about the differing perceptions of the financial reporting and auditing roles. This paper asserts that the research study suffers from shortcomings including a failure to explore some important issues and a consequent failure to correct prevailing misconceptions in the minds of those compiling financial reports and others using the

ISSN:1035-6908    

DOI:10.1111/j.1835-2561.1994.tb00158.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

The latest Australian accounting standard on public‐sector accounting (AAS 29) requires government departments at all levels to comply with private‐sector accounting and reporting principles and standards. But this commercially oriented framework may appear alien to departmental managers and may not accommodate many of the unique characteristics of departmental financial accountability. The underlying concepts and terms which take their meaning from the commercial world of profit‐driven markets may be misunderstood, misinterpreted or lead to unintended welfare and distributional consequences. This article examines some of the underlying terms that may be misinterpreted and the possible consequences of their operation in the departmental co

ISSN:1035-6908    

DOI:10.1111/j.1835-2561.1994.tb00159.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY