generally accepted accounting principles
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India is one of the emerging economies in the world. For economic development, foreign direct investment (FDI) is needed, to facilitate the investment climate. There is a need to integrate its financial reporting with rest of the economies of the globe so that investors from outside will appreciate the financial results and financial positions of the companies. This will provide uniformity and comparability of financial statements with the financial statements prepared in other countries. At present, Indian companies are preparing their financial statements as per Generally Accepted Accounting Principles in India (Indian GAAP). These Principles are based on IFRS issued by International Accounting Standard Board (IASB). However, these principles were modified substantially as per Indian laws and practices.

This study aims to analyze how the application of financial accounting in Islamic boarding schools in Riau Province. The research method is descriptive qualitative that is comparing theory and practice carried out by Islamic boarding schools. Sources and research data obtained from primary and secondary data The number of informants obtained amounted to 9 boarding school administrators. The object of the research is a boarding school in the province of Riau. The result of the research is that all Islamic boarding schools in terms of their accounting application have not followed or applied the accounting standards that have been set by the Generally Accepted Accounting Principles. The accounting applied is still very simple, that is, it still uses a general cash book and there is no journalizing. The financial statements made are only limited to general financial accountability. For this reason, it is necessary to socialize Accounting Standards for Islamic Boarding Schools, because according to the management they have never received accounting training in their Islamic boarding schools.

In this article, we bridge the gap between academia and practice by analyzing and presenting the results of allegations in more than 200 lawsuits against the largest public accounting firms. Our findings are critical as the lawsuits damage the firms’ reputations, the credibility of the profession in general, and may result in large monetary losses and loss of clients. We find three key results not found in previous legal research. First, we find that Generally Accepted Accounting Principles (GAAP) issues, especially those focused on valuation, dominate Generally Accepted Auditing Standards (GAAS) issues in the allegations. Second, fraud allegations against the auditors themselves are a significant problem, although often ignored in the fraud literature. Third, the Public Company Accounting Oversight Board (PCAOB) reports on the accounting firms provide an unintended source of information for third parties in future legal allegations against those same firms.

Purpose Studies show firms reporting using Generally Accepted Accounting Principles in the United States (US GAAP) and International Financial Reporting Standards (IFRS) are similarly valued in the market, however, these studies are limited due to the noise present in international studies from regulatory differences. This study aims to eliminate much of this noise by using a cleaner sample of all listings with the Securities Exchange Commission (SEC). This paper also looks at more detailed book value figures. Design/methodology/approach There have been previous studies on the differences in market valuation of firms reporting using IFRS vs US GAAP. Most of this research is confounded with difficulties due to different regulatory environments and volatile time periods. The study uses cleaner data following the SEC’s acceptance of IFRS financials without a 20-F Reconciliation. The authors use a large sample of non-US firms trading on US exchanges choosing to use either US GAAP or IFRS for SEC reporting purposes. The sample period starts two years after the SEC’s acceptance of IFRS financials without a 20-F reconciliation and is larger than earlier samples. Findings The authors show that there is no difference between IFRS and US GAAP firms’ overall value relevance, however, earnings are more value relevant when measured using IFRS and book value is more value relevant when measured using US GAAP. The authors find that the difference between US GAAP and IFRS can be explained, at least in part, by greater market multiples being placed on inventories and goodwill using US GAAP. This is offset in part by greater multiples being placed on other assets under IFRS. Originality/value The authors replicate earlier studies but also extend with a better sample and more detailed finings.

Purpose The purpose of this paper is to investigate in-depth and explain the issues related to the experience of Tunisia, a developing country, in its attempt to move from Euro-Continental rule-based generally accepted accounting principles (GAAPs) to an accounting system adapted to international financial reporting standards (IFRS). Design/methodology/approach The study is conducted via a qualitative methodology based on a content analysis of primary data from interviews with key actors involved in financial reporting in Tunisia. Findings Findings reveal that local Tunisian GAAPs, adapted to IFRS in their 1996 version, failed to establish a financial reporting accounting culture and meet public-interest firms’ informational needs. This is mainly related to factors, such as the simplified methods adopted (generally adequate to the identified needs of users of small and medium-sized entity financial statements) and the hybrid aspect of the Tunisian accounting standards due to the co-existence of Euro-Continental and Anglo-Saxon parties. Moreover, the findings show that the lack of political willpower and the absence of updates to changes in IFRS have compromised the proper functioning of standardization and control structures. Practical implications The study’s results may interest regulators and policymakers of many developing countries that have not pursued the harmonization of their local GAAPs with IFRS. In addition, findings from the research provide insights into the rough road towards harmonization, the dysfunctions of the latter and delays in developing countries. Originality/value The research highlights the complexity for an emerging country with Euro-Continental accounting traditions to move to IFRS.

The purpose of this study was to determine the suitability of financial statements according to ISAK No. 35 and how the accounting record in the financial statements of Baitul Hidayah Puger Mosque with generally accepted accounting principles. The research was conducted at the Baitul Hidayah Puger Mosque using data collection techniques with interviews and documentation. The data analysis technique in this research was a qualitative descriptive analysis where the data was compiled and described based on the result of data collection on financial statements, then was compared with relevant theories to the problem, which could then be drawn a conclusion. Based on the result of the study, it could be concluded that the basis of recording applied at the Baitul Hidayah Puger Mosque was incomplete and not sequential according to applicable standards. The financial statements that made a report, a report on changes in net assets, a cash flow statements and notes on financial statements. Implementation of ISAK No. 35 Baitul Hidayah Puger Mosque was not in accordance with generally accepted accounting principles. The financial reporting of the Baitul Hidayah Mosque in Puger was not in accepted accounting principles.

Infinity Business Group, Inc. (IBG), a company specializing in the collection of bad checks, was incorporated in 2003. IBG recorded its collection fees as Accounts Receivable even before the Not-Sufficient-Funds checks were collected, a method not in compliance with Generally Accepted Accounting Principles; accordingly, IBG’s auditor should not have issued unqualified opinions on the financial statements during 2003-2008. A $23 million write-off of Accounts Receivable in 2009 had a devastating effect on the company and it declared bankruptcy in 2010. In 2019, the Bankruptcy Court ruled: (a) the auditor’s unqualified opinions violated the U.S. Securities Exchange Act, and the auditor was forced to plead guilty to one felony count of securities fraud; (b) IBG’s CFO was dishonest when he responded to an inquiry from a lender about the Accounts Receivable; (c) Morgan Keegan & Company, Inc. (MK), a brokerage and investment banking firm contractually affiliated with IBG, encouraged IBG to discontinue using the improper accounting method; (d) IBG’s President Cordell made a misrepresentation to MK in 2007 when he stated that all of the questionable Accounts Receivable had been written off; (e) in 2008, MK became aware that IBG might change the accounting method; (f) MK never encouraged IBG managers to breach fiduciary duties to IBG; (g) MK did not owe IBG fiduciary duties, but even if it did, there is no evidence of a breach because MK encouraged discontinuance of the improper accounting practice; (h) some of the managers and directors of IBG were innocent, they did not participate in daily operations of the company, and they did not have control of the company; and (i) notwithstanding the fact they did not commit securities fraud, some of the “innocent” managers and directors failed to discharge their duties to IBG by advocating for the continued use of the improper accounting method. On appeal in 2021, the District Court affirmed the Bankruptcy Court, holding that: it did not make any legal errors; the Bankruptcy Trustee did not adequately prove damages caused by MK; and the Bankruptcy Trustee’s claims were barred by the Doctrine of in Pari Delicto.

The recording of royalty expenses must not only be consistent but also complied with the principle of matching costs against revenue, especially in calculating taxable income. If all accounting principles are not met in recording the royalty expense, the tax authority will correct it  so that the royalty expenses cannot be deducted from taxable income. By using a case in a tax court in Indonesia, there is a taxpayer who does not meet the matching cost against revenue principle when recording royalty expenses. The taxpayer deducts these royalty expenses for the previous year in the current year because the amounts of these royalty expenses are known exactly in the current year. Even though the taxpayer's financial statements were audited and had an unqualified opinion, the Directorate General of Taxes (DGT) as the tax authority in Indonesia negated the royalty expenses as a deduction from taxable income. This paper finds that a net sales-based royalty fee scheme can be estimated at the end of the year and deducted from gross income without waiting for a certainty on the amount of royalty expense on invoices received in the coming year. The accounting records of the taxpayer are not proper so that some data or documents cannot be proven in the tax court. The method of recording in the financial statements with an unqualified opinion does not guarantee that the recording follows tax regulations, especially following Generally Accepted Accounting Principles (GAAP).

Purpose The purpose of this paper is to explore whether the choice of International Financial Reporting Standards (IFRS) vs Generally Accepted Accounting Principles (GAAP) is associated with the frequency and likelihood of accounting irregularities and fraud in US banks. Design/methodology/approach The authors examine the relationship between financial reporting standards and accounting irregularities in publicly listed US banks. Using a sample of 4,284 banks with accounting irregularities observed in the USA over the period of 1996–2014. They used logit model to estimate the likelihood of corporate misreporting having been committed in terms of accounting irregularities. Findings The authors show that banks that use US GAAP exhibit better operating performance than fraudulent banks that use IFRS except for certain variables. They also find that fraudulent banks are more likely to commit accounting irregularities when they have to follow IFRS and banks have relatively better bank performance. Practical implications Overall, the empirical findings result consistent with Kohlbeck and Warfield’s (2010) find that accounting standards are linked to fewer accounting irregularities. Originality/value In this study, accounting irregularities have a significant effect on bank performance during the Dodd–Frank period. It finds that banks that choose to use IFRS are more likely to have accounting irregularities and to engage in fraud.