Premium Essay

Accounting Horizon

In: Business and Management

Submitted By Kuttyma
Words 26892
Pages 108
Accounting Horizons
Vol. 24, No. 3
2010
pp. 355–394

American Accounting Association
DOI: 10.2308/acch.2010.24.3.355

Global Accounting Convergence and the
Potential Adoption of IFRS by the U.S.
(Part I): Conceptual Underpinnings and
Economic Analysis
Luzi Hail, Christian Leuz, and Peter Wysocki
SYNOPSIS: This article is Part I of a two-part series analyzing the economic and policy factors related to the potential adoption of IFRS by the United States. In this part, we develop the conceptual framework for our analysis of potential costs and benefits from
IFRS adoption in the United States. Drawing on the academic literature in accounting, finance, and economics, we assess the potential impact of IFRS adoption on the quality and comparability of U.S. reporting practices, the ensuing capital market effects, and the potential costs of switching from U.S. GAAP to IFRS. We also discuss the compatibility of IFRS with the current U.S. regulatory and legal environment, as well as the possible macroeconomic effects of IFRS adoption. Our analysis shows that the decision to adopt IFRS mainly involves a cost-benefit trade-off between ͑1͒ recurring, albeit modest, comparability benefits for investors; ͑2͒ recurring future cost savings that will largely accrue to multinational companies; and ͑3͒ one-time transition costs borne by all firms and the U.S. economy as a whole, including those from adjustments to U.S. institutions. In Part II of the series ͑see Hail et al. 2010͒, we provide an analysis of the policy factors related to the decision and present several scenarios for the future evolution of U.S. accounting standards in light of the current global movement toward
IFRS.
Keywords: accounting regulation; standard setting; U.S. equity markets; mandatory disclosure; political economy; convergence; harmonization.
JEL Classifications: F50; G15; G38; K22; M41; M48; O51.

Luzi Hail is an...

Similar Documents

Premium Essay

An Abandoned House

...old abandoned house. I couldn't help but stop for a few minutes and look at the details of the huge, strange shaped house. I noticed that it had been a long time since anybody even took a look at the house. The old house was left to die, alone, with no one to care. The paint was peeling, the windows were broken and the shingles had been torn from the roof, probably by past storms. What caught my eye was that the unkempt yard, it looked like it hadn’t been cut since the house was abandoned, the grass was almost my height and there was nothing but weeds everywhere. I imagined this house would’ve probably been huge and gorgeous in its days. It had three full stories. The fourth floor had an attic where you could sit and see the sunset on the horizon. The house also had a huge porch with large white columns making a fence to support the balcony. The columns were full of dirt; they looked less white and more brownish-black. As I slowly continued to walk past the house, I could hear the wind whistling through the broken windows. I could see the leftovers of the curtains moving gently in the breeze and the grass swishing left and right in the wind. As I was giving the house a final look I thought I saw a silhouette of somebody beside the window gazing upon me so I started to walk a little bit faster. As I walked I wondered how much longer this house could stand up to the rain and wind before it surrendered itself to nature or would people destroy it and replace it. Maybe it would......

Words: 340 - Pages: 2

Free Essay

Art History

...Feb. 19, 2013 A Formal Analysis of John Constable’s Seascape with Sailing Vessels on the Horizon John Constable is one of the first Romantic artists to view landscapes for their own beauty. He painted during the Industrial Revolution and as a result viewed industrialization as the degradation of the natural environment. Constable’s dystopic view of the Industrial Revolution is evident in his paintings in which he juxtaposes elements of the natural world and industrial world to convey a certain message. In his painting Seascape with Sailing Vessels on the Horizon, Constable contrasts the pollution of the sea with the serene, vast sky to depict the grandeur of nature and its tenacity even in the face of industrialization. Constable noticeably uses color to describe the contaminated and tumultuous waves of the sea in opposition to the glowing and still sky. The viewer’s eyes first jump to the tide hitting the beach and creating a splash of water at the forefront of the painting. The colors used at this location are navy, mustard yellow, brown, grey, and creamy-white. These colors in the sea connote to filthy, muddled water. Furthermore, there are a couple of distinct dashes of deep, dark grey colors at the splash site that add to the effect of making the water seem dirty. The colors in the sea are most intense at this splash site but the viewer also notices specks of burgundy through out the sea that confirm the pollution and impure composition of the sea. In......

Words: 1316 - Pages: 6

Free Essay

Photography Peer Review

...Peer Review “Hidden in a Bed of Flowers” ¹ Lauren attempted to use several techniques throughout her photographs. Overall in all the photographs she used low horizon, shapes, high horizon, color, value, rule of third, emphasis, deep depth of field, narrow depth of field, texture, and form. She was definitely successful in achieving her goals due to the fact that I was able to see all the techniques and differentiate between them just by a glimpse at them. In the first photograph of the “Gradient Sky” she used the techniques of low horizon to showcase the gradient colour of the sky. Secondly, shape is used in a way that the silhouette show shape through the outline of the barn. Finally, there is an element of colour included as well with the sky in a combination of blue and orange and they are complementary colours highlighting each other. I think she was successful achieving colour and low horizon as the colours are easy to point out for example the blending of all the colours in the sky during the sun set or sun rise. Low horizon is also well attained. I think in my opinion 1 technique she can definitely improve a lot more could be on the element of shape. Shape can be improved by slightly moving towards the right side to include the entire picture of the house and the outline of the barn so the shape could be a lot more noticeable. This would also help due to the fact that the windows of the house would be a lot more obvious and easy to consider as the element of......

Words: 349 - Pages: 2

Free Essay

The Backyard Tree

...This tree that I want to write about stands proud n tall in the garden in the backyard and is visible from my kitchen window. It has been my constant companion since the time we rented this beautiful house, here in Auckland, almost six months back. When we came here it was the beginning of summers, and this tree was lush green and its spiky fruits, the size of small plums, hung in twos, suspended by a thin vein, looking like small chandeliers, shyly peeping from behind the curtain of leaves. It was a sight to behold, as many birds seem to move in and out of it making the sweetest music as they went about their day. It gave me a lot of pleasure to watch it and suddenly I would not feel lonely and so far away from home. As months went by, I heard autumn was fast approaching and somewhere that made me sad. I somehow could not bear the thought of seeing my companion all barren, but I could not have been more wrong. As autumn approached, the tree transformed into a golden yellow bouquet, its fruits too took on a golden hue as I watched mesmerized. All my sadness put to rest, making me realize that the statement,' a thing of beauty is a joy forever', holds so much water. It did not stop at that. It slowly changed into a riot of fiery red and orange, almost looking ablaze, and then as days passed, one by one it started shedding its leaves. They lie there, at its feet, in a heap. I could not bring myself to sweep them away, as they lie huddled together in this cold and rainy......

Words: 431 - Pages: 2

Free Essay

Island of Splendor

...Island of Splendor The sun sets slowly across the water, as the horizon closes with red and yellow skies. Waves crash against the cliff of Black Rock for a never ending time. You hear the tropical birds sing their night time melody while crickets play their solos to spice up the evening. Fishing boats are tied to broken docks as dolphins play in the crystal clear water. Another day has washed forever away but another night sets touching the sandy shores of the Island of Maui. A place filled with fun, luxury, and excitement, Maui would be considered a tropical paradise to many people. While gazing out among the vast ocean ahead, the sparkly, bright blue water of the new day appears to be never ending. The open water’s foamy fingers cradle the other islands as speed boats and sail boats jump the waves, passing the misty puffs of air emitted from the whales swimming by. On the shore, the fresh, salty air sweeps past your face, as if a fan was turned on and off repeatedly right next to you. A mix of coconut and seaweed permeate the air, giving it a sense of figure, so strong it can almost be eaten. The cool, crisp air perfectly carries the sound of the crashing waves, as the tide carries them in and out. From the bird’s perspective, people laughing and gentle music on the boardwalk provide a comfortable home. The cool water and warm sands offer a nice break from the humid day, brings relaxation to anybody who enters this paradise. In addition to the ocean, the vibrant......

Words: 502 - Pages: 3

Free Essay

Visual Analysis

...creative expression of the landscape to which it belongs. The ‘mirror’ gives an illusion of sublime weather under the conditions of tempest, which captures the viewers’ mind all the time—the vast realms and luminous coalescences of the grassland and dark clouds. The panoramic landscape at sunset has been manipulated, producing a paint-like effect across a vista of clouds at dusk, with extreme fears and depression sweeping over the horizon. This is the viewer’s first impression regarding the artwork’s composition in terms of evoking a breath-taking natural spectacle so intense it seems to pulse with life-force. In these intense stunning conditions, Fitzgerald seeks a sublime expression of the landscape by standout artwork techniques through composition, line, space, colour, medium and texture. The artwork represents the scene of tempest based on the composition, a focal point of clouds at dusk that balances the vista of the horizon. The line of interaction between reality and photography creates a harmonious landscape and the geographic horizon lines evoke the place where clouds meet the land’s edge. Consequently, hovering...

Words: 744 - Pages: 3

Free Essay

Night Sky

...the cool blanket it would produce over the farm on a hot summer night. Or playing in the dense sticky mud with my brothers and sister acting like we were stuck in quick sand, helpless to escape. However, nothing compares to the night sky on a clear evening. It would make any star gazer green with envy with its vivid scenery, wild life in the background and fresh brisk air. Once the coral and amethyst sky transforms into a vast amplitude of jet black the real joy began. A colossal umbrella of luminous stars would metamorphasized amongst the ocean of darkness. Every star and planet would be in its' proper place every night. A full moon would seemed to lighten the night, projecting invisible rays that would high light the mountains on the horizon. The stars would glitter and gleam, blinking wildly aginst the contrasting black night. Constellations were emense and easy to spot. The North star always shined brighter than the others making it effortless to find the Big Dipper.Some of my favorite memories are attached with the starry sky. Wildlife would invigorate the evening with its harmonious tunes. Frogs would start croaking and bellowing as the stars started to gleam. Crickets could be heard performing their orchestra of chirps and whistles for the man on moon. An occasional hoot from an underground owl would echo aginst concrete ditches, carrying its' heckle down the fields. A calming rhythm of trickling water from near by canals would almost be hypnotizing while......

Words: 441 - Pages: 2

Free Essay

Descriptive Essay

...is the beach. A mixture of peace, tranquility, and serenity create an unmatchable feeling of calmness I get when I am watching the sunset and the constant movements of the waves at the beach. It is just me and my thoughts at the beach, allowing me to enjoy the sights and sounds. The sun, a large orange fireball in the distance, looks like it is slowly sinking into the ocean beneath it. The sky splashed with random blends of pinks reds, oranges, yellows and even some hints of purples and blues. The water below reflects the skies colors. The waves tinted with reds and streaks of blues. The sand under me is the same color making me feel like if the sand is on fire. The dark ocean waters and the bright sky create a contrast that makes the horizon look like a meeting of two worlds. Its beautiful and breathtaking, and I'm speechless as I sit in front of this amazing sight. Nothing bothers me as I slowly look around the beach. A feeling of calmness wraps around me like a warm blanket. I am at peace with myself. All I can hear is the sounds of the waves crashing against the shore, and some seagulls, flying overhead squawking. The cool wind blows softly through my hair sending chills down my spine. It is all so calm and pure. The fishy smell is not so comforting; the smell tingles my nose; as I breathe in the cold, salty air. The smell of the ocean seems so pure and unpolluted, a nice change from the smog in the city. It is almost as if it were the smell of freedom, and it......

Words: 567 - Pages: 3

Premium Essay

The Beach

...As I arrive to the beach with all my friends, the eagerness of seeing this peaceful place is rising. I can’t wait to smell the fresh salty air, feel the soft sand between my toes, walk along the breezy shoreline. As we approach the beach, the first thing I notice is the sky. As I look into the cloudless, cerulean blue sky and see the flawlessness of life; in the distance, rolling clear-blue waves crash into each other with such force as that of football players. The sky is breathtaking along with the sounds of the waves and the tide washing onto the shore. The water reminds me of crystals shimmering in the water with the sun reflecting off of it. As the sun sets, the sky turns into a pink hue with a bright orange sun going down into the horizon. We stroll on the beach, and my feet sink into the soft sand. I stroll along, and the grainy, slick, brown sugar sand pulls my bare feet under and leaves a perfect imprint. I pick up a handful and sift it from my palm slowly, feeling the grittiness of sand with each finger. The view down the beach of the white, but slightly brown sand was enough to make my knees go weak. The sand is such a sensational feeling between my toes and a beautiful view against the crystal blue water. The beach is a beautiful scene of peace and tranquility. Every moment is a different scene. As I sit in my chair I can see all the sights of summer; children building sand castles along the ocean's edge, to my right I observe an elderly couple enjoying a good......

Words: 551 - Pages: 3

Free Essay

Porters

...MACY’S,Inc Mission Statement: “Our goal is to be a retailer with the ability to see opportunity on the horizon and have a clear path for capitalizing on it. To do so, we are moving faster than ever before, employing more technology and concentrating our resources on those elements most important to our core customers."  Vision Statement: "Our vision is to operate Macy's and Bloomingdale's as dynamic national brands while focusing on the customer offering in each store location."  Values: Above & Beyond Going ‘Above & Beyond’ amplifies our dedication to superior service for all our internal and external customers. It is a clarion call for us to constantly create and innovate so that we can consistently add value to our products and services. We constantly challenge ourselves to remain relevant to the changing time and needs of our loyal customers, friends and colleagues. Enabling Lives We believe everyone has the ability to live up to their highest potential. Through empowerment, we raise the living standard of our employees, customers and the community by providing them with the right service and environment to flourish. We are in the business of enabling people to better themselves. Power of Attitude We believe in the power of attitude in determining how far we go in life. We believe in making a difference with the right attitude. We believe the right attitude will enhance our work and service relationships as well as improve the outcome of any task or......

Words: 330 - Pages: 2

Premium Essay

Fin 515 Final Project

...projections for 2011. Free cash flow is expected to grow at a 6% rate after 2011. The weighted average cost of capital is 11%. a. If operating capital as of 12/31/2010 is $502.2 million, what is the free cash flow for 12/31/2011? Computation of the Free Cash Flow NOWC= ($5.60 + $56.20 + $112.40) NOWC = $174.20 Net Plant and Equipment= ($11.20 + $28.10) Net Plant and Equipment= $39.30 Operating Capital= $174.20 - $39.30 Operating Capital= $134.90 Total Operating Capital=$134.90 + 397.50 Total Operating Capital=$532.40 Change in operating Capital= $532.40 - $502.20 Change in operating Capital= $30.20 FCF= $65.16 - $30.20 FCF=$34.96 b. What is the horizon value as of 12/31/2011? Horizon value = 37.06/ (.11-.06) Horizon value = $741.15 c. What is the value of operations as of 12/31/2010? Value of operations in 2010= $34.96 + $741.15 Value of operations in 2010= $776.11 Value of operations in 2009=$741.15-$41.95 Value of operations in 2009=$699.20 d. What is the total value of the company as of 12/31/2010? Total Value of the Company= $699.20+$49.90 Total Value of the Company= $749.10 e. What is the intrinsic price per share for 12/31/2010? Value of Equity= $749.10-($69.90+$140.80)-$35.00 Value of Equity= $503.40 Price per share= $503.40/10 Price per share=...

Words: 278 - Pages: 2

Free Essay

Student

...Forecast time horizons http://www.logisitik.com/learning-center/forecast-time-horizons.html Here the objective is to establish the demand forecast for a company. But there are different time horizons or levels of forecasting: • Level 1 - The Strategic Plan: used to forecast on a 3-5 year time horizon the company strategy such as diversification, new products development, equipment investment or divestment, capital expansion… • Level 2 – Sales & Operation Plan: used to forecast over the next 6-18 months the customer demands and build the required capacity and material supply plan in accordance. Here the main decisions that could be taken are hiring employees, subcontracting, buying a new machine,… • Level 3 - Master Production Schedule: used to forecast up to the next 3-6 months demand to build the manufacturing schedule and material supply schedule as well as the shop floor capacity loads. Here the forecast must be accurate enough to schedule the manufacturing operations properly and making adjustments if required. The time horizons depends of the company industry sector and could be adjusted depending of the product life cycle. Those time horizons are absolutely not the same for a PC manufacturer or a nuclear power energy manufacturer. There are many forecasting models that we further detail in the next articles, but the key criteria to choose a model are the following ones: • Historical data: Are relevant historical data available for a given product or......

Words: 621 - Pages: 3

Free Essay

Museum Paper

...A work of art that I kept going back to and really impressed me was a piece titled “Woman Reading” by artist Eastman Johnson. Eastman Johnson is an American Artist that painted scenes of everyday life in America, along with portraits. It was painted in 1874 and is an oil on board. The paintings size is 25 1/8 inches by 18 5/8 inches. The piece is a painting of a woman reading a book with a sailboat in the background. In describing this work of art in detail, I’d have to start off by describing the colors in the painting. At the top starts with blue for the sky, then you see pink clouds then really blend down with pinkish/grey and green water and brown dirt and grass. These colors are all blended together. There really is no definite horizon line between sky and water. The sky and clouds have varying different shades of blue, pinks and blending with a touches of grey. Even with that said the only way you can really tell it’s the water is because there is a sail boat there and you can see the reflection. The water is portrayed as dead calm where the ship is. No waves or white caps. I don’t believe there is any breeze at all. Johnson painted a ship on the water with tall white sails, and showed its reflection on the water. Without the ship there, I’m not sure you would have been able to tell there was water. The colors all blend together so beautifully. Johnson painted the woman in ordinary dress for the time. She is dressed in a brownish/black dress with a white apron over......

Words: 875 - Pages: 4

Free Essay

Place You Know Well

...San Bernardino, Lake Arrowhead is a tiny city where every family would enjoy living in. Not only is Lake Arrowhead Village a great place to live but great place to enjoy nature’s beauty at any time of the day. I remember Lake Arrowhead for its beautiful scenery, it is family-oriented, and it has many outdoor activities. While visiting Lake Arrowhead in the winter time, I fell head over heels with the beautiful scenery that nature brought upon my eyes. As I arrived to the house in the evening, I looked up and I was able to see the stars that lit up the sky above me. As I walk down to the lake, I was able to hear the crickets’ chirping and the owls hooting as they hear the crackling of the snow that I’m stepping upon. As I look through the horizon of the snow, I saw the never ending slope falling towards the lake that apparently was frozen. As I sat on one of the unfrozen steps, I looked up once again, and I see the beautiful full moon sitting on a cloud. The stars shined even brighter when the moon glistened its light down to Earth. The lake looked really calm and I only saw a couple of ripples being caused by a female duck and her ducklings swimming in the middle of the lake. In the morning when I looked outside the window, the sun shined beautifully through the icicles that dangled down the side of the house. When I drove down to the city, you can see the cities that are at sea level. As I continued looking down, I see the clouds climbing up the mountains. And as I reach out......

Words: 367 - Pages: 2

Free Essay

Me My Self

...When I was younger, I watched cars zoomed back and forth. I saw people riding bicycles and rollerblades while they strolled along the streets. What caught my attention was the airplane that flew across the sky that disappeared over the horizon. I always wondered what it would be like to travel to another place and experience another country's culture. It would be fun to go to South America, Australia, Europe, or even China. Well, I had my opportunity in 7th grade to go to France in Europe, and what I remembered from this trip was an injury that I probably would not forget. The place I stayed in France was a house not too far from Paris. It was in the rural areas of France, but it was a lovely place. My friend, Julien, showed me around the house and introduced me to his family. They were all very kind. Everything was going smoothly and I waited for the upcoming days of excitement. One day, on a weekend, Julien gathered some friends to have a picnic and to go on a bike journey. There were a total of 6 including me, 4 guys and 2 girls. Julien lent me one of his bikes, which was not the best because the wheels kept jamming, but usable. On the way, we stopped at stores to pick up snacks and accessories. We even stopped by a shop that had all kinds of explosives and fireworks. At this point I was really excited because in the shop were small dynamites, the size of USB drives to rockets that would shoot in the sky to make pretty sparkles in the sky. I eagerly paid for several......

Words: 289 - Pages: 2