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EAA and IASB join virtual forces: New opportunities for evidence-informed standard setting

Last Friday, 10 July 2020, the EAA collaborated with the IASB to bring you another mosaic piece in the EAA’s virtual events initiative: the IASB/EAA virtual workshop on the IASB’s Primary Financial Statements project and its related Exposure Draft ED/2019/7 General Presentation and Disclosure (watch the video here). IASB Board members Ann Tarca and Tom Scott as well as Staff members Ana Simpson and Aida Vatrenjak shared their expertise and gathered important insights and comments…
Thorsten Sellhorn
Thorsten Sellhorn
2 min read
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Farewell tribute to Prof. Rob Gray

On behalf of the CSEAR Council and Directorate   We are deeply saddened for the loss of our friend, colleague and mentor Professor Rob Gray. Rob pioneered the field of social and environmental accounting (SEA) and was the founder of the Centre for Social and Environmental Accounting Research (CSEAR), of the Social and Environmental Accounting (now Accountability) Journal and established the CSEAR UK Conference in the early 1990s, which has now developed into a series…
GIOVANNA MICHELON
GIOVANNA MICHELON
2 min read
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Ties to be Severed Between the Auditing and Consulting Arms of the Big Four in the UK

This analysis was originally posted by Audit Analytics.   The Financial Reporting Council (FRC) is now acting on changes recommended by the recent independent reviews of the audit market in the UK. Deloitte, EY, KPMG, and PwC have each been notified on 6 July 2020 that they have four years to complete the separation of operations between the auditing and the consulting arms of their businesses. The FRC’s Business Case Paper highlights the main objectives of the regulation as:…
Jessica McKeon
Jessica McKeon
4 min read
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The Linear and Non-Linear Effects of Internal Control and its Five Components on Corporate Innovation: Evidence from Chinese Firms using the COSO Framework

In a recent study, published in the European Accounting Review (EAR), Yining Chen, Baohua Liu and I study the impact of internal control (IC) on corporate innovation. Per the Committee of Sponsoring Organizations (COSO), IC has five components (i.e., control environment, risk assessment, control activities, information & communication, and monitoring). Surprisingly, with a few exceptions, studies on IC seldom examine how these five components individually impact corporate policies and activities. The literature on IC primarily…
Johnny Chan
Johnny Chan
4 min read
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The Wirecard scandal – transparency is needed

“An accounting scandal at one of Germany’s fastest-growing blue-chip companies has raised doubts about the national financial watchdog and, coming on top of other high-profile cases of fraud, led to questions about the country’s ability to oversee its corporate titans.” How did it come to that? As I say in an Associated Press article appearing in the New York Times and Washington Post, it’s too early to say what happened at Wirecard – and why…
Thorsten Sellhorn
Thorsten Sellhorn
5 min read
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401

Virtual IASB/EAA workshop

The International Accounting Standards Board (IASB) in conjunction with the European Accounting Association (EAA) will hold a virtual workshop on 10 July 2020 at 15.00-17.00 (CEST).  The workshop will provide an overview of the IASB’s General Presentation and Disclosure Exposure Draft (ED) and relevant academic literature. The proposals in this project are pervasive and would affect everyone applying IFRS Standards; with the aim to improve communication in the financial statements, with a focus on the…
GIOVANNA MICHELON
GIOVANNA MICHELON
< 1 min read
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785

Effect of Mandatory IFRS Adoption on Accounting-Based Prediction Models for CDS Spreads

In a recent study, published in the&nbsp;European Accounting Review (EAR), Pepa Kraft, Zilu Shan, and I, examine the effects of mandatory IFRS adoption on accounting-based predictionmodels for credit default swap (CDS) spreads for a sample of 292 firms in 16 IFRS-adopting countries. Mandatory adoption of IFRS in 2005 substantially affected financial reporting for firms around the world. There is a large literature examining the effects of mandatory adoption of IFRS on accounting quality, equity capital…
Wayne Landsman
Wayne Landsman
3 min read
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Creating a collaborative virtual classroom: the case of Discord

In this article I will describe my experience with using Discord, which was initially designed as a communication platform for video gamers, as a virtual classroom to enable highly collaborative team work in a remote context. But first some backstory; I give a yearly Python course for European PhD students organized through the Limperg Institute. This year I was going to give one in June at Tilburg University, however, due to the COVID-19 circumstances that…
Ties de Kok
Ties de Kok
6 min read
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Get Involved! EAA Education Committee

The EAA Education task force is soliciting candidates for the new&nbsp;EAA Education Committee. We are looking for colleagues with a proven track record in educational innovation who want to serve for a 2 or 3 year-period in this new EAA Education committee. Education committee members will be approved by the EAA Management Committee.&nbsp; If you or one of your colleagues (potentially a teaching focused faculty member) have an interest, please send a motivation letter and…
ARC Commitee
ARC Commitee
< 1 min read
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COVID-19 Impacts on European Audit Opinions

This analysis was originally posted by&nbsp;Audit Analytics. &nbsp; This post will be updated to reflect the current number of filings citing the COVID-19 pandemic in a going concern opinion, key audit matter, or emphasis of matter. Overall Statistics As of the week ended 12 June 2020, Audit Analytics has observed the following trends in European audit opinions referencing COVID-191: Going Concern Modification: 106 Key Audit Matter: 173 Emphasis of Matter Paragraph: 175 Based on company…
Jessica McKeon
Jessica McKeon
6 min read
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