Longitudinal perceptions of enforcement mechanisms in an IFRS-based accounting reform

• Autorzy: Silva Ana Paula , Fontes Alexandra , Martins Adelaide

Identyfikatory

DOI

10.17512/pjms.2021.23.2.30

Warianty tytułu

PL

Długoterminowe postrzeganie mechanizmów egzekwacyjnych w reformie rachunkowości opartej na MSSF

• Języki publikacji: EN

Abstrakty

EN

Adopting International Financial Reporting Standards (IFRS) or IFRS-based accounting models per se may not suffice to reach worldwide accounting de facto convergence. Prior research suggests successful worldwide adoption of IFRS is highly reliant on effective enforcement. Notwithstanding, there is a paucity of qualitative evidence on the effectiveness of enforcement mechanisms following an IFRS-based accounting reform that could help uncover opportunities for improvement and enhance de facto implementation. The purpose of this paper is to explore the appropriateness of IFRS enforcement mechanisms based on the perceptions of Portuguese auditors and tax officials. Data were obtained directly from interviews conducted just before adopting an IFRS-based system in 2009 and at a vantage point after adoption, in 2017, in Portugal. Using an institutional lens, the evidence of this longitudinal qualitative study raises serious concerns regarding the effect of poor enforcement on the occurrence of resistance to the adoption of an IFRS-based accounting system. Therefore, several measures are suggested to secure the Portuguese accounting reform's success.

PL

Przyjęcie Międzynarodowych Standardów Sprawozdawczości Finansowej (MSSF) lub modeli rachunkowości opartych na MSSF jako takich może nie wystarczyć do osiągnięcia faktycznej konwergencji rachunkowości na całym świecie. Wcześniejsze badania sugerują, że pomyślne przyjęcie MSSF na całym świecie w dużym stopniu zależy od skutecznego egzekwowania. Niemniej jednak brakuje jakościowych dowodów na skuteczność mechanizmów egzekwowania prawa po reformie rachunkowości opartej na MSSF, które mogłyby pomóc odkryć możliwości poprawy i usprawnić faktyczne wdrażanie. Celem tego artykułu jest zbadanie stosowności mechanizmów egzekwowania MSSF w oparciu o spostrzeżenia portugalskich audytorów i urzędników podatkowych. Dane uzyskano bezpośrednio z wywiadów przeprowadzonych tuż przed przyjęciem systemu opartego na MSSF w 2009 r. Oraz z punktu widzenia po przyjęciu, w 2017 r., W Portugalii. Patrząc z perspektywy instytucjonalnej, dowody z tego długoterminowego badania jakościowego budzą poważne obawy dotyczące wpływu słabego egzekwowania prawa na występowanie oporu przed przyjęciem systemu rachunkowości opartego na MSSF. Dlatego sugeruje się kilka środków, które zapewnią sukces portugalskiej reformy rachunkowości.

Słowa kluczowe

EN

enforcement; accounting; International Financial Reporting Standards; Portugal; perceptions

PL

egzekwowanie prawa; rachunkowość; międzynarodowe standardy sprawozdawczości finansowej; Portugalia; postrzeganie

• Wydawca: Czestochowa University of Technology
• Czasopismo: Polish Journal of Management Studies
• Rocznik: 2021
• Tom: Vol. 23, No. 2
• Strony: 495--511
• Opis fizyczny: Bibliogr. 61 poz., tab.

Twórcy

autor

Silva Ana Paula

• Escola Superior de Ciências Empresariais, Instituto Politécnico de Viana do Castelo
• CEOS.PP, Portugal

autor

Fontes Alexandra

• Escola Superior de Tecnologia e Gestão, Instituto Politécnico de Viana do Castelo
• REMIT, Portugal

autor

Martins Adelaide

• Department of Economics and Management, University Portucalense
• REMIT
• School of Economics and Management, University of Minho, Portugal

Bibliografia

• 1.Albu, N., Albu, C.N., (2012). International Financial Reporting Standards in an emerging economy: Lessons from Romania. Australian Accounting Review, 22(4), 341-352.
• 2.Al-Hussaini, A., Al-Shammari, B, Brown, P. and Al-Sutan, A., (2008). Development of enforcement mechanisms following adoption of International Accounting Standards in the Gulf Co-Operation Council Member States. Journal of International Business Strategy, 8(3), 50-71.
• 3.Al-Shammari, B., Brown, P. and Tarca, A., (2008). An Investigation of Compliance with International Accounting Standards by Listed Companies in the Gulf Co-Operation Council Member States. The International Journal of Accounting, 43, 425-447.
• 4.André, P., (2017). The role and current status of IFRS in the completion of national accounting rules-evidence from European countries. Accounting in Europe, 14(1-2), 1-12.
• 5.Arafat, I., Dunne, T. and Ahmed, A. H., (2020). Splitting Accountability Hairs: Anomalies in the Adaptation of IFRS for SMEs in the UK and Ireland. Accounting in Europe, 17(2), 183-203.
• 6.Ball, R., (2006). International Financial Reporting Standards (IFRS): pros and cons for investors. Accounting and Business Review, 36, 5-27.
• 7.Ball, R., (2016). IFRS - 10 years later. Accounting and Business Research, 46(5), 545-571.
• 8.Baum, J. A. C., Powell, W. W., (1995). Cultivating an institutional ecology of organizations: Comment on Hannan, Carroll, Dundon, and Torres. American Sociological Review, 60, 529-539.
• 9.Bonetti, P., Magnan, M. L. and Parbonetti, A., (2016). The influence of country- and firm-level governance on financial reporting quality: Revisiting the evidence. Journal of Business Finance & Accounting, 43(9-10), 1059-1094.
• 10.Boxenbaum, E., Jonsson, S., (2008). Isomorphism, diffusion and decoupling, [in] R. Greenwood, C. Oliver, R. Suddaby, & K. Sahlin (Eds.), The Sage handbook of organizational institutionalism (pp. 78-98). Thousand Oaks, Sage.
• 11.Boxenbaum, E., Jonsson, S., (2017). Isomorphism, diffusion and decoupling: Concept evolution and theoretical challenges,[in] R. Greenwood, C. Oliver, T. Lawrence, & R. Meyer (Eds.), The Sage handbook of organizational institutionalism (pp. 79-104). Thousand Oaks, Sage.
• 12.Bradbury, M.E., Scott, T., (2020). What accounting standards were the cause of enforcement actions following IFRS adoption? Accounting & Finance.
• 13.Brown, P. (2011). International Financial Reporting Standards: What Are the Benefits? Accounting and Business Research, 41 (3): 269-285.
• 14.Brown, P., Tarca, A., (2005). A Commentary on Issues Relating to the Enforcement of International Financial Reporting Standards in the E.U. European Accounting Review, 14(1), 181-212.
• 15.Canning, M., O'Dwyer, B., (2013). The dynamics of a regulatory space realignment: Strategic responses in a local context. Accounting, Organizations and Society, 38(3), 169-194.
• 16.Carneiro, J., Rodrigues, L.L. and Craig, R., (2017). Assessing international accounting harmonization in Latin America. Accounting Forum, 41(3), 172-184.
• 17.Che Azmi, A., English, L. M., (2016). IFRS Disclosure Compliance in Malaysia: Insights from a Small-sample Analytical Study. Australian Accounting Review, 26(4), 390-314.
• 18.Covaleski, M. A., Dirsmith, M. W., (1988). An institutional perspective on the rise, social transformation, and fall of a university budget category. Administrative Science Quarterly, 33(4), 562-587.
• 19.Christopher, J., Sarens, G. and Leung, P., (2009). A critical analysis of the independence of the internal audit function: evidence from Australia. Accounting, Auditing & Accountability Journal, 22(2), 200-220.
• 20.Daske, H., Hail, L., Leuz, C. and Verdi, R., (2013). Adopting a Label: Heterogeneity in the Economic Consequences around IAS/ IFRS Adoptions. Journal of Accounting Research, 51(3), 495-547.
• 21.Decree-Law 158/2009, of July 13, which approves the Portuguese IFRS-based Accounting Standards System (Sistema de Normalização Contabilística - SNC, System of Accounting Standardisation), and revokes the Portuguese official plan of accounts. In Diário da República (Official Gazette), 1st series, No. 133, July 13, 2009.
• 22.De Luca, F., Prather-Kinsey, J., (2018). Legitimacy theory may explain the failure of global adoption of IFRS: the case of Europe and the U.S. Journal of Management and Governance, 22(3), 501-534.
• 23.Deephouse, D. L., Bundy, J., Tost, L. P. and Suchman, M. C., (2017). Organizational legitimacy: Six key questions, [in] R. Greenwood, C. Oliver, T. Lawrence, & R. Meyer (Eds.), The Sage handbook of organizational institutionalism (pp. 27-54). Thousand Oaks, Sage.
• 24.Dillard, J.F., Rigsby, J.T. and Goodman, C., (2004). The making and remaking of organization context: Duality and the institutionalization process. Accounting, Auditing & Accountability Journal, 17(4), 506-542.
• 25.DiMaggio, P. J., (1988). Interest and agency in institutional theory, [in] L. J. Zucker (Ed.), Institutional patterns and organizations. Culture and environment (pp. 3-21). Cambridge, Ballinger.
• 26.DiMaggio, P. J., Powell, W. W., (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48, 147-160.
• 27.El-Helaly, M., Ntim, C. G. and Soliman, M., (2020). The Role of National Culture in International Financial Reporting Standards Adoption. Research in International Business and Finance, 54, 1-19.
• 28.Funnell, W., Wade, M., (2012). Negotiating the credibility of performance auditing. Critical Perspectives on Accounting, 23(6), 434-450.
• 29.Garud, R., Hardy, C. and Maguire, S., (2007). Institutional entrepreneurship as embedded agency: An introduction to the special issue. Organization Studies, 28(7), 957-969.
• 30.Guerreiro, M.S., Rodrigues, L.L. and Craig, R., (2012). Voluntary adoption of International Financial Reporting Standards by large unlisted companies in Portugal - Institutional logics and strategic responses. Accounting, Organizations and Society, 37(7), 482-499.
• 31.Goodstein, J. D., (1994). Institutional pressures and strategic responsiveness: Employer involvement in work-family issues. Academy Management Journal, 37(2), 350-382.
• 32.Gordon, E. A., Gotti, G., Ho, J. H., Mora, A. and Morris, R. D., (2019). Commentary: Where is International Accounting Research Going? Issues Needing Further Investigation. Journal of International Accounting, Auditing and Taxation, 37(December), 1-15.
• 33.Gouldner, A. W, (1954). Patterns of industrial bureaucracy. New York: The Free Press.
• 34.Greenwood, R., Oliver, C., Lawrence, T. B. and Meyer, R. E., (2017). Introduction: Into the fourth decade, [in] R. Greenwood, C. Oliver, T. Lawrence, & R. Meyer (Eds.), The Sage handbook of organizational institutionalism (pp. 1-23). Thousand Oaks, Sage.
• 35.Hassan, E.A., Rankin, M. and Lu, W., (2014). The development of accounting regulation in Iraq and the IFRS adoption decision: an institutional perspective. The International Journal of Accounting, 49(3), 371-390.
• 36.Hoffman, A. J., (1999). Institutional evolution and change: Environmentalism and the U.S. chemical industry. Academy of Management Journal, 42(4), 351-371.
• 37.Humphrey, C., (2008). Auditing research: a review across the disciplinary divide. Accounting, Auditing & Accountability Journal, 21 (2), 170-203.
• 38.Isidro, H., Pais, C., (2017). The role and current status of IFRS in the completion of national accounting rules-Evidence from Portugal. Accounting in Europe, 14(1-2), 164-176.
• 39.Lawrence, T. B., Buchanan, S., (2017). Power, institutions and organizations, [in] Greenwood, C. Oliver, T. Lawrence, & R. Meyer (Eds.), The Sage handbook of organizational institutionalism (pp. 477-506). Thousand Oaks, Sage.
• 40.Mahama, H., Khalifa, R., (2017). Field interviews: Process and analysis, [in] Z. Hoque, L. D. Parker, M. A. Covaleski, & K. Haynes (Eds.), The Routledge companion to qualitative accounting research methods (pp. 321-338). Abingdon, Routledge.
• 41.Marginson, D. E., (2004). The Case Study, The Interview and The issues: A personal reflection, [in] C. Humbrey and B. Lee (Eds.), The Real Life Guide to Accounting Research- A Behind-the-Scenes View of using Qualitative Research Methods (pp. 325-338). Oxford, Elsevier.
• 42.Martins, A., Gomes, D., Oliveira, L., Caria, A. and Parker, L., (2020). Resistance strategies through the CEO communications in the media, Critical Perspectives on Accounting. 71, 1-23.
• 43.Maxwell, J. A., (1996). Qualitative Research Design: An Interactive Approach, Thousand Oaks, Sage Publications.
• 44.Meyer, J. W., Rowan, B., (1977). Institutional organizations: Formal structure as myth and ceremony. American Journal of Sociology, 83(2), 340-363.
• 45.Miles, M. B., Huberman, A. M., (1994). Qualitative data analysis, Thousand Oaks, Sage Publications.
• 46.Naser, K., Al-Khyal, T., Nuseibeh, R. and Al-Tweel, I., (2005). Users' opinions about different aspects of accounting harmonization: Evidence from the Gulf Co-Operational Council (GCC). International Journal of Commerce & Management, 15(3/4), 272-299.
• 47.Nurunnabi, M., (2017). Auditors' perceptions of the implementation of International Financial Reporting Standards (IFRS) in a developing country. Journal of Accounting in Emerging Economies, 7(1), 108-133.
• 48.Oliveira, J., Azevedo, G. and Oliveira, B., (2018). Impairment Losses: The Impact of First-time Adoption of the Accounting Standardisation System in Portugal. Australian Accounting Review, 28(4), 556-576.
• 49.Oliver, C., (1991). Strategic Responses to Institutional Processes. Academy of Management Review, 16(1), 145-179.
• 50.Pache, A. C., Santos, F., (2010). When worlds collide: The internal dynamics of organizational responses to conflicting institutional demands. Academy of Management Review, 35(3), 455-476.
• 51.Pache, A. C., Santos, F., (2013). Inside the hybrid organization: Selective coupling as a response to conflicting institutional logics. Academy of Management Journal, 56(4), 972-1001.
• 52.Quagli, A., Avallone, F., Ramassa, P. and Di Fabio, C., (2020). Someone else's problem? The IFRS enforcement field in Europe. Accounting and Business Research.
• 53.Rodrigues, L. L., Craig, R., (2007). Assessing international accounting harmonization using Hegelian dialectic, isomorphism and Foucault. Critical perspectives on accounting, 18(6), 739-757.
• 54.Scott, W. R., (2001). Institutions and organizations, Thousand Oaks, Sage Publications.
• 55.Shapiro, B., Matson, D., (2008). Strategies of resistance to internal control regulation. Accounting, Organizations and Society, 33(2/3), 199-228.
• 56.Silva, A.P., Fontes, A. and Martins, A., (2021). Perceptions on the implementation of the IFRS model in Portugal and Brazil. Journal of International Accounting, Auditing & Taxation, in press.
• 57.Soderstrom, N.S., Sun, K.J., (2007). IFRS adoption and accounting quality: A review. European Accounting Review, 16(4), 675-702.
• 58.Strauss, A. L., Corbin, J. M., (1990). Basics of qualitative research: Grounded theory procedures and techniques, London, Sage Publications.
• 59.Uzma, S.H., (2016). Cost-benefit analysis of IFRS adoption: developed and emerging countries. Journal of Financial Reporting and Accounting, 14(2), 198-229.
• 60.Wang, J. W., Yu, W. W., (2015). The Information Content of Stock Prices, Legal Environments, and Accounting Standards: International Evidence. European Accounting Review, 24(3), 471-493.
• 61.Villiers, C., Dumay, J. and Maroun, W., (2019). Qualitative accounting research: dispelling myths and developing a new research agenda. Accounting & Finance, 59(3), 1459-1487.

Uwagi

Opracowanie rekordu ze środków MEiN, umowa nr SONP/SP/546092/2022 w ramach programu "Społeczna odpowiedzialność nauki" - moduł: Popularyzacja nauki i promocja sportu (2022-2023).