5th Edition

International Corporate Reporting Global and Diverse

    446 Pages 6 Color Illustrations
    by Routledge

    446 Pages 6 Color Illustrations
    by Routledge

    This textbook provides a comprehensive overview of international corporate reporting which enhances students’ understanding of diversity and convergence in the field.

    The authors discuss the institutional and cultural context in which international corporate reporting has developed over the years as well as the global reach of IFRS Standards from the IASB throughout and beyond the European Union, into interest groups and emerging economies. Other key elements explored throughout the book include assurance through auditing and corporate governance, narrative reporting, strategic and corporate social responsibility, group accounting, current accounting issues and taxation in corporate reports. Indicative research examples show how the methods used in research papers may be understood and applied. Case studies outline short projects based on corporate cases, with related links to material on corporate websites. Helpful and reliable sources of information and data are identified through hyperlinks to accessible websites. End-of-chapter questions encourage discussion of the main issues. Throughout there is a focus on accountability and the information needs of stakeholders.

    This new edition of a classic text is fully revised and updated in order to remain essential reading for students of international accounting and corporate reporting globally. The book will be an invaluable resource for postgraduate taught programmes and final-year undergraduate courses in accounting, finance and business studies.

    List of exhibits and case studies

    Author biographies



    Part I Institutions, culture and research methods

    Chapter 1 Global corporate reporting

    Learning outcomes

    1.1 Current trends in global corporate reporting

    1.2 Overview of corporate reporting

    1.3 Our approach in this book

    1.4 The language we use

    1.5 Establishing global authority in corporate reporting

    1.6 Challenging globalisation

    1.7 Summary and key points



    Chapter 2 Institutional and external influences

    Learning outcomes

    2.1 Introduction

    2.2 Factors influencing the development of accounting systems

    2.3 The political and economic system

    2.4 The legal system

    2.5 The taxation system

    2.6 The corporate financing system

    2.7 The accounting profession

    2.8 Religious institutions

    2.9 Other influences

    2.10 Indicative research examples

    2.11. Summary and key points



    Chapter 3 Cultural influences

    Learning outcomes

    3.1 Introduction

    3.2 Defining culture

    3.3 Culture and business

    3.4 Culture and accounting

    3.5 Is culture an important influence on accounting?

    3.6 Indicative research examples

    3.7 Summary and key points



    Chapter 4 Classification of accounting systems

    Learning outcomes

    4.1 Introduction

    4.2 Reasons for classifying accounting systems

    4.3 Deductive and inductive classification

    4.4 Approaches to classification

    4.5 Development of classification studies

    4.6 Is classification successful?

    4.7 Summary and key points



    Chapter 5 Measuring harmonisation and diversity

    Learning outcomes

    5.1 Introduction

    5.2 Similarities and differences in the accounting methods used

    5.3 Good news, bad news and earnings ‘conservatism’

    5.4 Similarities and differences in narrative disclosure

    5.5 Summary and key points



    Part II Global reach of international standards

    Chapter 6 Developing international financial reporting standards

    Learning outcomes

    6.1 Introduction

    6.2 Structure for setting IFRS Standards

    6.3 Operation of the IASB

    6.4 Challenges to the IASB

    6.5 The International Federation of Accountants

    6.6 Indicative research examples

    6.7 Summary and key points



    Chapter 7 European accounting and reporting

    Learning outcomes

    7.1 Introduction

    7.2 European Union (EU)

    7.3 Accounting in EU member states

    7.4 National standard setters in Europe

    7.5 European Securities Markets Authority (ESMA)

    7.6 Indicative research examples

    7.7 Summary and key points

    Appendix to Chapter 7



    Chapter 8 Global organisations and interest groups

    Learning outcomes

    8.1 Introduction

    8.2 Political influence

    8.3 Initiatives from the business community

    8.4 Cooperation in the accountancy profession

    8.5 Regional groups in the accountancy profession

    8.6 Indicative research examples

    8.7 Summary and key points



    Chapter 9 Broadening the influence of IFRS Standards

    Learning outcomes

    9.1 Introduction

    9.2 Differential reporting

    9.3 Balancing national control with IFRS convergence

    9.4 Public sector accounting standards

    9.5 Indicative research examples

    9.6 Summary and key points



    Part III Assurance

    Chapter 10 Auditing

    Learning outcomes

    10.1 Introduction

    10.2 International Auditing and Assurance Standards Board

    10.3 National monitoring and review of audit firms

    10.4 Developing the audit report

    10.5 Competition and audit reform

    10.6 Indicative research examples

    10.7 Summary and key points



    Chapter 11 Corporate governance

    Learning outcomes

    11.1 Introduction

    11.2 Organisation for Economic Cooperation and Development (OECD)

    11.3 Corporate governance models

    11.4 Corporate governance codes

    11.5 Enforcement and ratings

    11.6 Indicative research examples

    11.7 Summary and key points



    Part IV Narrative corporate reporting

    Chapter 12 Management commentary and strategic reporting

    Learning outcomes

    12.1 Introduction

    12.2 Management discussion and analysis in the US

    12.3 Management reports through the EU Accounting Directive

    12.4 IASB Management commentary

    12.5 Remuneration reports

    12.6 Dual listing and investor communication

    12.7 The meaning of ‘transparency’

    12.8 Indicative research examples

    12.9 Summary and key points



    Chapter 13 Corporate social responsibility and sustainability

    Learning outcomes

    13.1 Introduction

    13.2 Initiatives supported by the United Nations

    13.3 Governmental-backed strategies

    13.4 Global networks and interest groups

    13.5 Market ratings

    13.6 Is CSR reporting effective for sustainability?

    13.7 Indicative research examples

    13.8 Summary and key points



    Part VI Accounting and taxation

    Chapter 14 Group reporting

    Learning outcomes

    14.1 Introduction

    14.2 Group accounting

    14.3 Goodwill and impairment

    14.4 Associates and joint ventures

    14.5 Foreign currency and hyperinflation

    14.6 Summary and key points



    Chapter 15 Current issues in accounting

    Learning outcomes

    15.1 Introduction

    15.2 Fair value accounting

    15.3 Investment properties

    15.4 Revenue recognition

    15.5 Research and development expenditure

    15.6 Leases

    15.7 Alternative performance measures (non-GAAP reporting)

    15.8 Indicative research examples

    15.9 Summary and key points



    Chapter 16 Corporate tax reporting

    Learning outcomes

    16.1 Introduction

    16.2 Tax systems

    16.3 IAS 12 Accounting for income taxes

    16.4 Tax planning and transfer pricing

    16.5 Country-by-country reporting

    16.6 Indicative research examples

    16.7 Summary and key points



    Part VI National interests in an environment of global reporting

    Chapter 17 United States

    Learning outcomes

    17.1 Introduction

    17.2 Institutional and external influences

    17.3 Development of accounting regulation

    17.4 The corporate reporting system

    17.5 Auditing and corporate governance

    17.6 Indicative research examples

    17.7 Summary and key points



    Chapter 18 China

    Learning outcomes

    18.1 Introduction

    18.2 Institutions

    18.3 Development of accounting regulation

    18.4 Corporate reporting framework

    18.5 Auditing and corporate governance

    18.6 Hong Kong

    18.7 Indicative research examples



    Chapter 19 Japan

    Learning outcomes

    19.1 Introduction

    19.2 Institutions

    19.3 External influences on accounting

    19.4 Development of accounting regulation

    19.5 The corporate reporting system

    19.6 Auditing and corporate governance

    19.7 Indicative research examples

    19.8 Summary and key points





    Pauline Weetman is Professor Emerita in Accounting at the University of Edinburgh and holds the Distinguished Academic Award 2005 of the British Accounting and Finance Association. She is a co-editor of The Routledge Companion to Accounting in Emerging Economies.

    Ioannis Tsalavoutas is Professor of Accounting and Finance at the University of Glasgow and holds a PhD in Accounting from the University of Edinburgh. His research on financial accounting and reporting has featured in leading journals. He is a co-editor of The Routledge Companion to Accounting in Emerging Economies.

    Paul Gordon is a lecturer in accounting and finance at Heriot-Watt University, having previously held positions at Glasgow, Aberdeen and Bangor. His teaching interests include international accounting and financial analysis.

    'This is an outstanding new (fifth) edition of a well-established international accounting textbook from a highly experienced team of authors. Notably, there is a valuable focus on cultural and institutional influences along with a comprehensive coverage of key reporting issues.' — Professor Sid Gray, University of Sydney, Australia

    'International Corporate Reporting is always part of my recommended textbooks to students across a wide variety of masters’ courses I have taught. It is a must for those who want to understand the current global corporate reporting landscape. And it is truly international in perspective!' — Paul André, PhD, CPA-CA, Professor of Accounting, HEC Lausanne, Switzerland

    'International Corporate Reporting is about anything corporate reporting that is not financial accounting theory or financial statement preparation. It is logically structured, combines breadth with depth, and is impressive in its academic treatment of a great variety of relevant topics.' — Carien van Mourik, Senior Lecturer in Accounting, The Open University, Faculty of Business and Law, UK

    'The book discusses a good variety of topics related to international accounting practice and regulation. Chapters are laid out in an easy-to-follow fashion, offering different ways in which to engage with the content, from brief overviews to detailed case studies. A very worthwhile read for those interested in the topic!' — Anna Samsonova-Taddei, Professor of Accounting, Alliance Manchester Business School, University of Manchester, PhD Director (Accounting Pathway), UK

    'International Corporate Reporting by Weetman, Tsalavoutas, and Gordon is an excellent resource with a vast amount of information about the major international financial and accounting institutional structures. While the text is broad in its scope and includes discussions regarding China, Japan, and the US, its focus is definitely from a European perspective. Thus, it could greatly assist US graduate accounting and finance students in learning about the broader environments in which accounting and auditing functions in today’s global economy.' — Robert K. Larson, Professor of Accounting, Editor-in-Chief, Journal of International Accounting, Auditing & Taxation, Carl H. Lindner College of Business, University of Cincinnati

    'This textbook, written in a friendly style with clear descriptions, discussions, and explanations, provides a thoughtful presentation that helps the reader understand and appreciate the multi-dimensional process involved in corporate reporting. The emphasis on institutional settings and cultures enhance our conceptual understanding and practical aspects of corporate reporting. This book is a must read for any student of corporate reporting.' — Theodore Sougiannis, KMPG Distinguished Professor of Accountancy, University of Illinois at Urbana-Champaign