Emerald | Accounting Research Journal

Winning ARC grants: comparing accounting with other commerce-related disciplines

Kevin Clarke, Jack Flanagan, Sharron O'Neill — 2011-11-22 00:00:00.0

Abstract

Purpose – The purpose of this paper is to examine whether accounting researchers in Australia more proactively pursued government-sponsored Australian Research Council (ARC) research funding in the post-Enron period than researchers in other commerce-related disciplines. Design/methodology/approach – The study measures disciplinary research activity using successful Australian Research Council Linkage and Discovery grants for the period 2000 to 2008. The study identifies the number of grants received, the total dollar amount funded, the number of participating institutions, individual researchers and (where applicable) partnering organisations. Using these criteria, the study compares the success of accounting with that of banking and finance, economics and business and management. Findings – The study highlights accounting's failure to attain comparable levels of research funding relative to other commerce-related disciplines (both in terms of grants and dollars), even given the public profile of accounting events post-Enron. The study reveals a significantly higher “elite institution effect” exists in accounting and lower levels of academic and commercial partnerships when compared to other disciplines. The study examines potential reasons for the lack of ARC funding won by accounting researchers. Practical implications – The persistently low level of representation of accounting researchers among ARC grant winners during this period appears counterintuitive to the traditional “professional model” that links university-based disciplinary members with practitioners. Why accounting, as a high-profile profession diverges from this model should be of concern to researchers, universities and the accounting profession. Originality/value – The study's use of comparative ARC data extends and contextualises earlier studies that have sought to examine the state of accounting research in Australia.

Forecasting confidence under segment reporting

Jacqueline Birt, Greg Shailer — 2011-11-22 00:00:00.0

Abstract

Purpose – Changes in Australian segment reporting standards over the last decade changed the required disaggregation of segment information. The purpose of this paper is to investigate whether increased disaggregation has implications for users' confidence in decisions based on segment reports and perceptions of segment reporting usefulness. Design/methodology/approach – Using an experiment based on the differences between the original AASB 1005 and the more detailed requirements of AASB 114, the authors test whether segment report users' confidence in forecasting and their perceptions of segment report usefulness differ between the different information sets provided under these standards. Findings – It was found that the more disaggregated or finer reports based on AASB 114 provide significantly more confidence to users, compared to the coarser segment reports based on the original AASB 1005, but this is not associated with differences in segment report usefulness scores. Research limitations/implications – The authors' experiment is based on AASB 1005 and AASB 114 and the results cannot be generalized to differences with other reporting standards. Examination of differences in recently released AASB 8 may reveal different implications for users' confidence and perceptions of usefulness. More generally, other tests of usefulness are needed to confirm whether opinions of usefulness that are not confirmed by decision-making practices provide a reliable basis for determining usefulness. Practical implications – By confirming that decision makers' confidence can be increased by the provision of finer information sets, the authors' results have practical implications for accounting standard setting. Originality/value – By testing the impact of report differences on user decision confidence, the paper addresses a previously overlooked issue.

Properties of net income and total comprehensive income: New Zealand evidence

M. Humayun Kabir, Fawzi Laswad — 2011-11-22 00:00:00.0

Abstract

Purpose – The purpose of this paper is to investigate the properties of net income (NI) and total comprehensive income (TCI) of listed companies in New Zealand (NZ). Four properties of TCI and NI are examined: persistence, variability, predictive ability, and value relevance. Whether the value relevance of TCI depends on its reporting location is also investigated. Design/methodology/approach – A cross-sectional research design is used with data on TCI reported by NZ listed companies in 2010 under the new disclosure requirement in IAS 1. Ordinary least squares (OLS) regressions are used with a sample of 86 firms to test for persistence, variability, and predictive ability, and 81 firms to test for value relevance of NI and TCI. Findings – The study finds: NI is potentially more persistent than TCI and potentially explains contemporaneous stock returns better than TCI; no significant difference in the variability and predictive ability of NI and TCI; little evidence that the value relevance of TCI depends on its reporting location; other comprehensive income (OCI) has incremental ability to predict one-year-ahead CFO, although the incremental ability of OCI to predict one-year-ahead NI is not statistically significant; and OCI is not incrementally value relevant. Practical implications – The findings would be of interest to securities analysts and other users in valuing firms and when earnings are used in contractual settings (e.g. management compensation). Further, the results would also be of potential interest to standard-setters. Originality/value – The literature on comprehensive income is growing. However, the authors are not aware of any study that investigates the properties of NI and TCI in accordance with the new requirement to report comprehensive income in the amended IAS 1 which came into effect in NZ on January 1, 2009. The paper adds current evidence on the properties of NI and TCI under IFRS to the international literature.

Developing and enhancing independent learning skills: Using video tutorials as a means of helping students help themselves

Belinda Luke, Kate Hogarth — 2011-11-22 00:00:00.0

Abstract

Purpose – The purpose of this paper is to examine the use of short video tutorials in a post-graduate accounting subject, as a means of helping students develop and enhance independent learning skills. Design/methodology/approach – In total, five short (approximately five to 10 minutes) video tutorials were introduced in an effort to shift the reliance for learning from the lecturer to the student. Data on students' usage of online video tutorials, and comments by students in university questionnaires were collated over three semesters from 2008 to 2009. Interviews with students were then conducted in late 2009 to more comprehensively evaluate the use and perceived benefits of video tutorials. Findings – Findings reveal preliminary but positive outcomes in terms of both more efficient and effective teaching and learning. Research limitations/implications – The shift towards more independent learning through the use of video tutorials has positive implications for educators, employers, and professional accounting bodies; each of whom has identified the need for this skill in accounting graduates. Practical implications – The use of video tutorials has the potential for more rewarding teaching and more effective learning. Originality/value – This study is one of the first to examine the use and benefits of video tutorials as a means of developing independent learning skills in accountancy students – addressing a key concern within the profession.

Advancing innovation in accounting research

2011-11-22 00:00:00.0