Essay on Accounting: Stock Market and Specific Accounting Standards

Submitted By indy18
Words: 335
Pages: 2
Open Document
Literature Review
This section would consist of five major parts which start from the previous articles in terms of the applications of event studies in the newly issued specific accounting standards as well as full-set accounting standards. Subsequently, the advantages and drawbacks with respect to the adopting IFRS would be extensively discussed. Last but not least, this paper would introduce previous research regarding the relationship between IFRS adoption and market reaction as the premise of following tests.

Previous Research regarding Adopting Specific Accounting Standards
Applying event study in the adoption of accounting standards has been extensively discussed. For instance, Leftwich (1981) tests if there is abnormal return while the two compulsory accounting standards, Accounting Principles Board Opinion No.16: Accounting for Business Combination and Opinion No.17: Accounting for Intangible Assets, are issued. It is found by Leftwich that there is negative impact on stock price provided these new standards cause adverse effect on firms. However, Dechow et al. (1996) indicate that there is no systematic evidence to support that investors reacted to news concerning mandatory expensing of stock options while FASB announcing Exposure Draft regarding stock compensation project. So far as the studies regarding newly accounting standards issued during the period of convergence stage in Taiwan are concerned, numerous domestic academic articles dedicate to uncovering
Show More

Related Documents: Essay on Accounting: Stock Market and Specific Accounting Standards

Marketing: Stock Exchange and Hong Kong Essay

disclosure and accounting harmonization: Cases of three listed companies in China 作者: Lin, Z Jun; Wang, Liyan. 出版物信息: Managerial Auditing Journal 16. ?5 (2001): 263-273. [->0] : This paper presents a comparative study of the financial reporting practices of three Chinese companies (Tsingtao Brewery Co., Shanghai Petrochemical Co. Ltd., Yizheng Chemical Fibre Ltd.) listed simultaneously in Mainland China and Hong Kong. Their financial statements, prepared based on the accounting and disclosure…

Words 6210 - Pages 25

Essay Financial Accounting Standards Board and Fasb

Financial Accounting Standards Board The Financial Accounting Standards Board (FASB) is a not-for-profit organization that was created in 1973 by the Financial Accounting Foundation (FAF). The board was created to replace the Committee on Accounting Procedure and the Accounting Principles Board which was part of the American Institute of Certified Public Accountants. The foundation created the FASB to improve the standards of accounting and reporting for nongovernmental entities. The FAF…

Words 422 - Pages 2

Essay on accounting study materials

chart of accounts (national accounting code) Objectives and principles of financial reporting Definitions of elements Recognition and valuation rules Standardized chart of accounts Model financial statements Other influences on French accounting rules Commercial legislation (Code de Commerce) Tax laws Accounting regulation and enforcement CNC – National Accounting Board Keeps plan current Makes rulings and recommendations on accounting issues CRC – Accounting Regulation Committee Converts…

Words 1843 - Pages 8

Homework 1 Essay

managers try to identify investment opportunities that are worth more to the firm than they cost to acquire. An example would be for the financial managers to decide to establish a new location in another city. Page 5. b. Capital structure, which is the specific mixture of long-term debt and equity the firm uses to finance its operations. An example would be for the financial managers to decide to give up some equity and raise money in order to pay an outstanding debt. Page 5. c. Working capital, which is…

Words 1869 - Pages 8

Fasb Business Research Report

7 Conclusion 8 References 9 Executive Summary The purpose of this report is to research the accounting and reporting standards of the Financial Accounting Standards Board (FASB) and report the impact FASB may have on our company. The following research explains the history and purpose of FASB, the accountability requirements on public corporations, the effectiveness of FASB in setting standards in order to improve financial reporting in the public…

Words 2412 - Pages 10

Intermediate One, Chapter One Notes Essay

Intermediate Accounting Chapter One • 1984 Michael Dell of the University of Texas created PC’s Limited. The company manufactured computers after it has been ordered, otherwise known as just-in-time (JIT) approach. • In 1985 PC’s Limited began with $1,000 from Michael, $300,000 in expansion capital, and the revenue topped $73 million. • The company was later renamed Dell Inc. which in January 2011, exceeded $2.6 billion in profits and $61 billion in revenue. In 1988 an initial public offering…

Words 2452 - Pages 10

Capstone: International Financial Reporting Standards and Business Managers Essay

Alternative Methods of Accounting Martha Pendergrass ACC 577 Financial Accounting and Reporting February 2013 Discuss how the company’s management team can manipulate its earnings results though the adoption of different accounting methods and the obligation of accounting professionals to be transparent to shareholders. Earnings manipulation is usually not the result of an intentional fraud, but the culmination of a series of aggressive interpretations of the accounting rules and aggressive…

Words 1257 - Pages 6

Business Report for Tardis Ltd. Essays

current statistics. 1.4 Assumptions Tardis ltd is assumed to be a going concern and continue to experience growth. It has also been assumed that the tax rate in Mexico is unchanged. The requirements to list companies on the Mexican stock exchange are also assumed to remain the same. Any other government regulations for the operations of the business and the requirements to set up the subsidiary company are also presumed to be unchanged. 2.0 Findings 2.1 Historical Influences on…

Words 1666 - Pages 7

Financial Statement Analysis Study Guide Essays

Questions 2. How does the concept of consistency aid in the analysis of financial statements? What type of accounting disclosure is required if this concept is not applied? Consistency allows for the same accounting principle from period to period. A change in principle requires statement disclosure. 3. The president of your firm, Lesky and Lesky, has little background in accounting. Today, he walked into your office and said, “A year ago we bought a piece of land for $100,000. This year,…

Words 3553 - Pages 15

Tax and Answer A. Essay

of the federal government that has the broad powers to prescribe accounting standards to be employed by companies that fall within its jurisdiction. What are two purposes of Generally Accepted Accounting Principles (GAAP)? Choose 2 answers A. To establish procedures for banking institutions B. To establish principles of reporting for the securities industry C. To establish and improve standards of financial accounting and reporting for the guidance and education of the public D. To…

Words 5320 - Pages 22