John Blake

The relationship between tax and accounting rules ‐ the Swedish case

Traces the history of the imposition of a comprehensive tax‐accounting link in Sweden, identifying ways in which professional accountants have sought to circumvent the impact of the link and considering the effect of the link on the three bodies in Sweden involved in formulating accounting regulations and recommendations. Analyses the range of arguments put forward in the literature in Sweden for and against the binding link. Reports on interviews with leading Swedish accounting practitioners on their experience and views of the link.

Testing the bases of ethical decision-making: A study of the new zealand auditing profession

This paper reports on a survey of auditors in New Zealand which investigates the nature of the moral judgements they make on a series of problems with ethical dimensions. The framework adopted for this purpose is developed from earlier work which identifies a range of ethical principles which may be involved in business ethical decision-making. Auditors responded to a questionnaire which posed, firstly, several questions about the context of their ethical decision-making, and secondly, a series of vignettes elaborating problematical dilemmas which required the selection of one of four possible responses. Data was analysed to determine whether or not it confirmed previous findings in suggesting a predominant ethical orientation for auditors. The results were correlated with demographic variables in order to determine whether or not age, gender, position in firm and size of employee firm were significantly correlated to ethical response. The survey results, on the whole, confirmed the ethical orientation suggested by previous findings, but there were some unexpected results in three out of the ten vignettes examined. Although some correlations were found between the demographic variables and subject responses, the evidence of this survey does not strongly suggest a consistent significant correlation.

Developing a new national management accounting framework – the Spanish case

Comparative national management accounting is a young discipline. A recent survey of management accounting practice in Europe reveals five major issues that contrast across national management accounting practice. In the light of this work we undertook a survey of Spanish management accounts and found that there is declining use of official government guidance on management accounting; the emerging management accounting profession is qualified by university education, and is not generally involved in any professional body; although the literature indicates a strong Anglo‐American influence on modern Spanish management accounting, we found a strong, previously unreported, German influence; a wide range of innovative management accounting approaches have been tried; there is a move towards a planning objective as the focus of the management accountant’s work.

Implementing the EU accounting directives in Sweden -- practitioners' views

Abstract Sweden legislated in 1995 to implement the European Union (EU) directives relating to harmonization of accounting. This article reports the results of an empirical study, based upon interviews and a questionnaire survey, on the attitudes of Swedish practitioners to the harmonizing legislation and to the current state of Swedish accounting. The research finds that the Germanic influence on Swedish accounting is lessening in importance, with a likely weakening of the close link between taxation and accounting and a perception amongst practitioners of the increasing importance of the International Accounting Standards Committee (IASC) and US influences.

Managing the economic impact of accounting regulation: the Spanish case

Company financial managers, when confronted with a change in accounting regulations, may face a change in their economic environment as a result of the reaction of users to the reported accounting information. In 1990 a requirement for lessees to capitalize finance leases was introduced in Spain. Reports the results of a survey in Spain of two key groups, company financial managers and bank financial analysts. The study concludes that leasing companies successfully lobbied for changes in the accounting rules which actually proved adverse to their economic interests; and company managers and bank analysts misunderstand each other′s reactions to the capitalization of finance leases. Indicates that managers can benefit from studying research on economic impact issues before determining their own response.

The dimensions of, and factors giving rise to, variations in national management accounting approaches

During the 1990s studies of management accounting practices in Europe and in Latin America have given us data on 23 countries. In this paper we use these data to identify five distinct aspects of national management accounting culture: the influence of regulations on official recommendations; the source of management accountants; influence from one country to another; variations in use of specific techniques; and variations in the objectives of the management accounting system. We then identify nine factors which account for national variations in the management accounting environment, being: taxation, price controls, protection and competition, academics, ownership of the firm, bonus schemes, inflation, the extent of manipulation, and ideology.

Revista Española de Financiación y Contabilidad (1985–1999): Un Análisis Retrospectivo

RESUMEN Es una tradición internacional que las principales revistas académicas sean objeto de estudios retrospectivos con motivo de la celebración de algún aniversario especial. Tras la publicación del número 100 de la Revista Española de Financiación y Contabilidad, este trabajo pretende aportar elementos descriptivos sobre los autores que han contribuido a la misma, así como sus instituciones, las: materias tratadas, las referencias bibliográficas, los artículos más citados y la percepción de calidad de esta revista entre profesores de contabilidad españoles.

Joint ventures in China – accounting implications

Illustrates the growth of foreign investment in China, which is most often dealt with through Chinese‐foreign equity joint ventures and discusses the business issues involved. Traces the development of the Chinese accounting system, which is now largely in line with international standards, and identifies four accounting issues for foreign partners in joint ventures. Warns that the evaluation of a proposition must take into account the different accounting standards applied to previous accounts, the time needed to get an investment running effectively and possible legal problems in the home country from personal favour. Points out that the consolidation of joint venture accounts is not straightforward and recommends that the accounting rules which apply to contracts should be specified.

European accounting harmonisation: Myth or reality?

In the European Union, governments through Directives, and the accounting profession through the International Accounting Standards Committee (IASC), both claim to be seeking to harmonise accounting practices. In this article, John Blake and Oriol Amat explore these claims. They first identify the continuing wide variation in accounting practice within Europe and internationally. Second, they consider the demand for harmonisation of accounting practices within Europe and internationally. Third, they offer a list of the environmental factors that obstruct international accounting harmonisation. Finally, they discuss the limitations of the work of the European Union in achieving accounting harmonisation.

Corporate Governance and Creative Accounting: A Comparison Between Spain and the UK

A particularly sensitive area of corporate governance is the extent and legitimacy of manipulation of accounting rules. This process, which has come to be known as ‘creative accounting’, involves accountants using their knowledge of accounting rules to manipulate and distort figures reported in the accounts of a business. This process has been seen as arising in the context of the flexibility that is permitted in the USA and the UK in order that financial statements may be ‘fairly presented’ or may give a ‘true and fair view’. By contrast, accounts that are presented in the continental European tradition of legalistic and rigid rules have been seen as less subject to such manipulation. In this article, we compare the experiences of Spain, a country whose accounting approach falls firmly within the continental European tradition, with the United Kingdom. In exploring this issue, we: consider the definition and nature of ‘creative accounting’, placing this within the contrasting Anglo-American and continental European accounting traditions; identify the types of creative accounting technique that can be used, how accounting regulators can control abuse, and compare how controls can be applied within each of the accounting traditions; review the motivations for companies to engage in creative accounting; report some evidence on the extent of, and attitudes towards, creative accounting in Spain and the United Kingdom.