This paper discusses several issues that were raised by the International Accounting Standards Board (IASB) in their request for information for the post-implementation review (PIR) of the International Financial Reporting Standard (IFRS) 9: Financial instruments – Classification and Measurement. In doing so, we first review the related academic literature and present empirical evidence on the post-adoption impact of IFRS 9. We then discuss conceptual issues associated with the business model and cash flow characteristics assessment in IFRS 9, as well as issues associated with the presentation of fair value changes in other comprehensive income (OCI) and modifications to contractual cash flows. Finally, we identify gaps in the literature and provide suggestions for future research that can help inform accounting standard setters.
In this discussion of Brouwer and Naarding's article ‘Making Deferred Taxes Relevant’, which is published in this issue of Accounting in Europe, I question several aspects of their proposal to change the tax accounting standard. I argue that a quest for more value relevance of individual balance sheet items is not a good guideline for accounting standard setting. The distinction between book-first and tax-first temporary differences may be helpful for some analytical purposes, but it is not sufficiently robust to serve as a basis for an accounting standard. However, I agree with the authors that the efforts to improve IAS 12 should not be abandoned.
Kvaal, Erlend (2017)
The Role and Current Status of IFRS in the Completion of National Accounting Rules?Evidence from Norway
Business combinations og de norske standardene om foretaksintegrasjon
Kvaal, Erlend (2001)
Regnskapsføring av uoppfylte avtaleforpliktelser
Kvaal, Erlend (2001)
Sammenligning av NRS usikre forpliktelser og betingede eiendeler og IAS 37 provisions, contingent liabilities and contingent assets
Stenheim, Tonny & Kvaal, Erlend (2017)
The role of cash generating units in accounting for goodwill impairments
[Conference Lecture]. Event
Kvaal, Erlend (2016)
The role of cash-generating units in accounting for goodwill impairments
[Lecture]. Event
Stenheim, Tonny & Kvaal, Erlend (2016)
The role of cash-generating units in accounting for goodwill impairments
[Conference Lecture]. Event
Stenheim, Tonny & Kvaal, Erlend (2016)
The cash-generating units in accounting for goodwill impairments
[Conference Lecture]. Event
Stenheim, Tonny & Kvaal, Erlend (2016)
The role of cash-generating units in accounting for goodwill impairments
[Lecture]. Event
Kvaal, Erlend & Nobes, Christopher (2014)
The effects of IFRS adoption on cross-country variation in book-tax conformity
[Conference Lecture]. Event
Langli, John Christian; Kvaal, Erlend & Mohammad, Abdolmohammadi (2011)
Earnings Management Prioritites in Private Familiy Firms
[Conference Lecture]. Event
Langli, John Christian; Kvaal, Erlend & Mohammad, Abdolmohammadi (2011)
Earnings Management Priorities of Private Family Firms
[Conference Lecture]. Event
Kvaal, Erlend & Nobes, Christopher (2011)
International variations in deferred tax disclosures
[Conference Lecture]. Event
Abdolmohammadi, Mohammad; Kvaal, Erlend & Langli, John Christian (2010)
Earnings Management Priorities of Private Family Firms
[Report Research].
We compare earnings management priorities of private family and private non-family firms. Our study is made possible by the availability of a new and unique database on family relationships between CEOs, board members and owners of private Norwegian firms. We hypothesize and find that compared with private non-family firms, private family firms are likely to manage earnings downward. However, we also find that highly leveraged private family firms make more income increasing accounting choices than highly leveraged private non-family firms. Finally, we document that CEOs representing controlling families promote earnings management, and independent board members somewhat mitigate it. We note that research on the relationship between financial reporting quality and family governance is quite limited. We contribute to this emerging literature.
