Transition period of mandated accounting changes - timing of adoption and economic consequences: the case of SFAS No. 13

Article Abstract:

Research was conducted to analyze the economic effects of the late adoption of the Statement of Financial Accounting Standards No. 13, Accounting for Leases by Lessees. Findings indicate that there was a higher percentage of Generally Accepted Accounting Principles-based debt covenants for late adopters and they would have been close to violating the debt regulations if they complied with the standard earlier. Results also showed that remedial actions were taken by late adopters to reduce the negative impact of the statement during the specified transition period.

Laws, regulations and rules, Financial statements

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A Rational Reconstruction of the Decision-Usefulness Criterion

Article Abstract:

The usefulness of information to decision makers is a general base for the study of accountancy. Economics forms the theoretical foundation for accounting theory. However, the neo classical model does not necessarily lead to the decision-usefulness criterion. The welfare of organizations is as plausible as the welfare of users as a basis for accounting standards. The idea that both user needs and control needs of reporting organizations is the basis of financial reporting is proposed.

Accounting and auditing, Economics

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Accounting for new financial instruments

Article Abstract:

The traditional cost accounting system based on transactions is inadequate inaddressing the problems posed by the unique characteristics of hedging instruments. To remedy these problems, the US Financial Accounting Standards Board is proposing that accountants use the mark-to-market and deferral accounting methods when dealing with hedging instruments. These methods take into consideration both the hedging instrument and the hedged assets, liabilities and transactions.

Accounting, auditing, & bookkeeping, Research, Methods, Hedging (Finance), Financial instruments

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