SPECIAL
ISSUE
Worldwide
Financial Reporting : Charting for Future
-- Lingisetti Venu
The international disparities against global accounting
uniformity is an interesting study. This article demonstrates
various inherent factors such as diverse country practices
for such differences and how emphasis on quality disclosure
could be helpful in this scenario. Change is inevitable! This
is true even of the most standardized discipline "the Accounting".
This discipline represents the so-called sound standards that
are taken for granted by the corporates until something goes
wrong. And things indeed went wrong, as the corporates cooked
their financial reports with the aid of these decades-old
standards. It's since late 1990s when the Asian financial
crisis broke out that the dark ages of accounting stream began
© 2007 IUP . All Rights Reserved
SPECIAL
ISSUE
Financial
Reporting in India
-- Vishnu Kanhere and Guruprasad Murthy
Financial reporting and fiscal discipline go hand in hand.
From a few-page compilation of profit and loss account and
balance sheet to today's comprehensive annual reports, reporting
by corporates has indeed come a long way. The Management Information
Systems (MIS) reports have undergone considerable change over
the years. This article looks at financial reporting in India
and the change that has come in both internal reporting and
external reporting and its role in transforming corporate
India.
© 2007 IUP . All Rights Reserved
SPECIAL
ISSUE
Quality
Financial Reporting : Using Truth to Achieve Market Efficiency
and Greater Prosperity
--
Paul BW Miller and Paul R Bahnson
This article is based on the authors' observation on India,
as well as other nations engaged in similar effort of pursuing
the twin goals of developing its own capital markets and gaining
productive access to global capital markets. Reaching these
goals is crucial, so that the nation can build an economy
that will prosper and improve the welfare of its people. The
message of the authors is straightforward: (1) They want the
reader to succeed (2) useful financial information is essential
for that success, and (3) mere compliance with the traditional
Generally Accepted Accounting Principles (GAAP) will never
serve that purpose. This article challenges and inspires the
readers to seek higher levels of financial reporting quality,
and to assure them that their goals are within their grasp.
© 2007 IUP . All Rights Reserved
SPECIAL
ISSUE
Ethics
in Financial Reporting
-- Swapan Kumar Bakshi
Sound Financial Reporting is the key to efficient operation
of capital markets. It also has high economic-efficiency enhancing
value. But ironically, in spite of best intentions, lack of
transparency and ethics in the financial reporting has become
one of the controversial issues affecting the corporate world
and accounting profession today. The present article looks
into the controversial subject of Financial Reporting from
economic and ethical perspectives and explores the ongoing
issues surrounding it. It also examines the ethical dilemma
encountered by the auditors in maintaining independence.
© 2007 IUP . All Rights Reserved
SPECIAL
ISSUE
Directors'
Report : The Nucleus of Corporate Reporting
-- Dharminder Singh Ubha
Directors'
Report is considered as the nucleus of the Annual Report of
a company. It is treated as an index to corporate reporting.
The present study is conducted to find out the deviations
and variations in the presentation of information in the Directors'
Reports of 30 select companies through a detailed item-wise
analysis of the reports. The variations are found in the disclosure
of most of the items. Directors' Report of the companies of
all the three sectors vary from 15-50 with a considerable
range of variation affecting the adequacy of information and
its utility to their users.
© 2007 IUP . All Rights Reserved
SPECIAL
ISSUE
Segmental
Disclosures and Corporate Governance : The Road Ahead
-- Neeti Sanan
Good
corporate governance promotes the well-being of all stakeholders.
In addition to profits, which result from the symmetry between
the stakeholders in the near term, balancing interests guarantee
the organization's survival and growth in the long-term. A
good corporate governance engenders good financial reporting,
which results in the production of efficient segmental reports.
This in turn facilitates good governance. Quality segment
reporting protects investors and inculcates confidence in
the company's performance by overseeing and assessing management's
stewardship. Segmental disclosures are regarded as one of
the most useful revelations of financial reporting.
© 2007 IUP . All Rights Reserved
SPECIAL
ISSUE
Corporate
Environmental Accounting and Reporting : A Green Framework
-- P Malarvizhi
Corporate
environmental accounting and reporting is almost two decades-old
now. Environmental accounting provides a common framework
for organizations to identify and account for past, present
and future environmental costs, in order to support management
decision-making, control and public disclosure. And also environmental
reporting consolidates and compiles the environmental performance
status of an organization. Thus, accounting and reporting
for the environment has become increasingly relevant to companies
in this millennium.
© 2007 IUP . All Rights Reserved
SPECIAL
ISSUE
Fair
Value : A Tool for Financial Reporting
-- S Vijayalakshmi
Fair
value is one the tools for financial reporting. It explains
the ins and outs of corporate disclosure practices. FASB is
changing the rules for the disclosure of assets and liabilities
at the Fair value. In the changing scenario of corporate disclosure
practices, this article highlights the importance of Fair
value in the financial reporting system.
© 2007 IUP . All Rights Reserved
SPECIAL
ISSUE
Role
of Voluntary Disclosure and Transparency in Financial Reporting
-- Pankaj Madhani
This article discusses the role of voluntary disclosure
and transparency in Financial Reporting. It identifies various
characteristics and discusses transparency and benefits of
voluntary disclosure. To enhance competitiveness, firms view
disclosure as an opportunity rather than a burden. The higher
the level of disclosure the lower is the information risk
premium. Low risk premium provides higher valuation. Firms
gain from building reputation for transparent reporting, as
it eventually results in higher management credibility, a
higher Price/Earning (P/E) multiple, increased liquidity and
a lower cost of capital. This article also highlights risks
and costs associated with voluntary disclosure.
© 2007 IUP . All Rights Reserved
SPECIAL
ISSUE
Accounting
for Globalization and its Impact on Corporate Reporting
-- A Vinayagamoorthy
The accounting practices of the US and other countries
vary significantly. World-wide accounting uniformity is an
unattainable goal. This is due to differences in the economic,
political and social values, and the different developments
and goals of each individual country. However, International
Accounting Standards Committee (IASC) and the International
Organization of Securities Commissions (IOSCO) were formed
to promote some kind of accounting uniformity throughout the
world.
© 2007 IUP . All Rights Reserved
SPECIAL
ISSUE
Converging
Accounting Standards : The New Buzz in Financial Reporting
-- B Sujatha
The
convergence of Indian accounting standards with the International
Financial Reporting Standards (IFRS) is a clear indication
that the accounting profession is going to raise the demand
for the globalization of Indian business. However, convergence
will consummate into superior financial reporting only with
necessary changes in legislations, regulations and institutional
reforms.
© 2007 IUP . All Rights Reserved
SPECIAL
ISSUE
Financial
Reporting of Banking Companies in India
-- Kashmir Singh
Financial reporting of banking companies is important
for several reasons. First, the rapid changes brought out
by economic reforms have exposed the Indian financial sector
in general and the banking sector in particular to the challenges
of global banking business. Second, banking companies in India
are also moving towards public participation and are coming
up with their Initial Public Offerings (IPOs) and also raising
funds through Global Depository Receipts (GDRs) and American
Depository Receipts (ADRs) from abroad. Last, unlike other
companies, most of the funds used by banks to conduct the
business belong to creditors, particularly to depositors.
© 2007 IUP . All Rights Reserved.
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