Conceptual changes in lease accounting: Regulatory and academic challenges
Cambios conceptuales en la contabilidad de los arrendamientos: retos normativos y académicos
Abstract
The aim of this paper is to show that the position of those who set accounting standards and that of pressure groups is consistent with the Ideology Theory of regulation and Positive Accounting Theory of economic consequences, respectively. However, contrary to previous literature on lobbying, it is argued that in an international context and after some years of experience with IFRS, all the agents, and not just the standard setters, use conceptual and technical arguments to defend their position, as interest groups, mainly preparers, think their lobbying activity will be more effective. For this analysis, the current proposal for changing the accounting regulations of leasing contracts has been selected, as well as the comment letters received. The results of the analysis are consistent with the theories when showing the position of both the standard setters and interest groups, although they show a use of the conceptual framework as an excuse for their arguments. The controversy surrounding the proposal is discussed in detail, highlighting the potential of this topic for accounting research.
Downloads
-
Abstract382
-
PDF (Español (España))180
References
[Abdel-khalik, 1981] A.R. Abdel-khalik. The Economic Effects on Lessees of FASB Statement No. 13. Accounting for Leases, FASB, (1981)
[Altman et al., 1977] E.I. Altman, R. Haldeman, P. Narayanan. Zeta analysis: A new model to identify bankruptcy risk of corporations. Journal of Banking and Finance, (1977), pp. 29-54
[Beattie et al., 2000] V. Beattie, A. Goodacre, S. Thomson. Recognition versus disclosure: An investigation of the impact on equity risk using UK operating lease disclosures. Journal of Business, Finance & Accounting, 27 (2000), pp. 1185-1224 http://dx.doi.org/10.1371/journal.pone.0121362
[Beattie et al., 2006] V. Beattie, A. Goodacre, S. Thomson. International lease-accounting reform and economic consequences: The views of U.K. users and preparers. International Journal of Accounting, 41 (2006), pp. 75-103
[Breton y Taffler, 1995] G. Breton, R. Taffler. Creative accounting and investment analyst response. Accounting and Business Research, 25 (1995), pp. 81-92
[Broadbet y Laughlin, 2005] J. Broadbet, R. Laughlin. Organisational and accounting change: Theoretical and empirical reflections and thoughts on a future research agenda. Journal of Accounting and Organizational Change, 1 (2005), pp. 7-25
[Burlaud y Colasse, 2011] A. Burlaud, B. Colasse. International accounting standardisation: Is politics back?. Accounting in Europe, 8 (2011), pp. 23-47
[Cañibano y Gonzalo, 1997] L. Cañibano, A. Gonzalo. Los programas de investigación en contabilidad. Revista de Contabilidad, 0 (1997), pp. 57-95
[Comiskey y Mulford, 1988] E. Comiskey, C. Mulford. The influence of accounting principles in investment management decisions. Accounting Horizons, June (1988), pp. 67-72
[Dal Bo, 2006] Dal Bo. Regulatory capture: A review. Oxford Review of Economics Policy, 22 (2006), pp. 203-225
[Dopuch y Sunder, 1980] N. Dopuch, S. Sunder. The FASB statement on objectives and elements of financial accounting: A review. The Accounting Review, 55 (1980), pp. 1-21
[Durocher y Fortin, 2011] S. Durocher, A. Fortin. Practitioners’ participation in the accounting standard-setting process. Accounting and Business Research, 41 (2011), pp. 29-50
[Durocher y Gendron, 2011] S. Durocher, Y. Gendron. IFRS: On the docility of sophisticated users in preserving the ideal of comparability. European Accounting Review, 20 (2011), pp. 233-262
[EFRAG, 2011] EFRAG (2011). Discussion Paper. Considering the Effects of Accounting Strandards [consultado 4 Nov 2013]. Disponible en: http://www.efrag.org/files/Effects/Discussion_Paper_-_Considaring_the_Effects_of_Accounting_Standards.pdf
[El-Gazzar, 1993] S. El-Gazzar. Stock market effects of closeness to debt covenant restrictions resulting from capitalization of leases. The Accounting Review, 68 (1993), pp. 258-272
[Elam, 1975] R. Elam. The effect of lease data on the predictive ability of financial ratios. The Accounting Review, 50 (1975), pp. 25-43
[Ely, 1995] K.M. Ely. Operating lease accounting and the markets assessment of equity risk. Journal of Accounting Research, 33 (1995), pp. 397-415
[Finnerty et al., 1980] J.E. Finnerty, R.N. Fitzsimmons, T.W. Oliver. Lease capitalization and systematic risk. The Accounting Review, 55 (1980), pp. 631-639
[Fito et al., 2013] A. Fito, S. Moya, N. Orgaz. Considering the effects of operating leases capitalization on key financial ratios. Revista Española de Financiación y Contabilidad - Spanish Journal of Finance and Accounting, 159 (2013), pp. 341-369
[Fülbier et al., 2008] R. Fülbier, J. Lirio Silva, M.H. Pferdehirt. Impact of lease capitalization on financial ratios of listed German companies. Schmalenbach Business Review, 60 (2008), pp. 122-144
[Garrod, 1989] N. Garrod. Regulation and response: The case of lease disclosure in the UK. Research in Accounting Regulation, 3 (1989), pp. 69-92
[Giner y Arce, 2012] B. Giner, M. Arce. Lobbying on accounting standards: Evidence from IFRS 2 on share-based payments. European Accounting Review, 21 (2012), pp. 655-691
[Hales et al., 2012] J.W. Hales, S. Venkataraman, T.J. Wilks. Accounting for lease renewal options: The informational effects of unit of account choices. The Accounting Review, 87 (2012), pp. 173-197
[Haller et al., 2012] A. Haller, C. Nobes, D. Cairns, A. Hjelström, S. Moya, M. Page. The effects of accounting standards – A comment. Accounting in Europe, 9 (2012), pp. 113-125
[Imhoff et al., 1993] E. Imhoff, R. Lipe, D. Wright. The effects of recognition versus disclosure on shareholder risk and executive compensation. Journal of Accounting, Auditing, and Finance, 8 (1993), pp. 335-368
[IASB, 2009] IASB (2009). Leases. Preliminary Views [consultado 17 Mar 2013]. Disponible en: http://www.ifrs.org/Current-Projects/IASB-Projects/Leases/DPMar09/Documents/DPLeasesPreliminaryViews.pdf
[IASB, 2010a] IASB (2010a). Exposure Draft.Leases [consultado 17 Mar 2013]. Disponible en: http://www.ifrs.org/Current-Projects/IASB-Projects/Leases/ed10/Documents/EDLeasesStandard0810.pdf
[IASB, 2010b] IASB. Basis for Conclusions on Chapter 3. Qualitative Characteristics of Useful Financial Information. B13-B-22. IFRS Foundation, (2010)
[IASB, 2011] IASB (2011). Due Process Handbook [consultado 4 Nov 2013]. Disponible en: http://www.ifrs.org/DPOC/Documents/DueProcessHandbookIASB2012.pdf
[IASB, 2013] IASB (2013). Exposure Draft. Leases [consultado 10 Oct 2013]. Disponible en: http://www.ifrs.org/Current-Projects/IASB-Projects/Leases/Exposure-Draft-May-2013/Documents/ED-Leases-Standard-May-2013.pdf
[Jorissen et al., 2010] A. Jorissen, N. Lybaert, R. Orens, L. van der Tas. Formal participation in the IASBs due process of standard setting: A multi-issue/multi-period analysis. European Accounting Review, 21 (2010), pp. 693-729
[Jorissen et al., 2013] A. Jorissen, N. Lybaert, R. Orens, L. van der Tas. A geographic analysis of constituents’ formal participation in the process of international accounting standard setting: Do we have a level of playing field?. Journal of Accounting Public Policy, 32 (2013), pp. 237-270
[Kelly, 1985] L. Kelly. Corporate management Lobbying on FAS n.° 8. Some Further Evidence. Journal of Accounting Research, 23 (1985), pp. 619-632
[Kenny y Larson, 1995] S. Kenny, R.K. Larson. The development of international accounting standards: An analysis of constituent participation in standard setting. The International Journal of Accounting, 30 (1995), pp. 283-301
[Kothari et al., 2011] S.P. Kothari, K. Ramanna, D.J. Skinner. What Should GAAP Look Like? A Survey and Economic Analysis. Working Paper. Harvard Business School, (2011)
[Kvaal y Nobes, 2012] E. Kvaal, C. Nobes. IFRS policy changes and the continuation of national patterns. European Accounting Review, 21 (2012), pp. 343-371
[Larson, 2007] R. Larson. Constituent participation and the IASBs International Financial Reporting Interpretations Committee. Accounting in Europe, 4 (2007), pp. 207-254
[Leuz et al., 2004] C. Leuz, D. Pfaff, A. Hopwood. The Economics and Politics of Accounting. Oxford University Press, (2004)
[Lipe, 2001] R.C. Lipe. Lease accounting research and the G4+1 proposal. Accounting Horizons, 15 (2001), pp. 299-310
[Meyer y Rowan, 1977] J.W. Meyer, B. Rowan. Institutionalized organizations: Formal structure as myth and ceremony. American Journal of Sociology, 83 (1977), pp. 340-363
[Munter y Tarcliffe, 1983] P. Munter, T.A. Tarcliffe. An assessment of users reaction to lease accounting disclosure. Journal of Accounting Auditing and Finance, 2 (1983), pp. 108-114
[Peasnell, 1982] K.W. Peasnell. The function of a conceptual framework for corporate financial reporting. Accounting and Business Research, 12 (1982), pp. 243-256
[Richardson y Eberlein, 2011] A.J. Richardson, B. Eberlein. Legitimating transnational standard-setting: The case of the international accounting standards board. Journal of Business Ethics, 98 (2011), pp. 217-245
[Rutherford, 2011] B.A. Rutherford. Accounting research and accounting policy: What kind of gap?. Accounting in Europe, 8 (2011), pp. 141-154
[Saemann, 2004] G. Saemann. Positions taken in the FASB and IASB due processes on accounting for employee stock options. Journal of Accounting & Finance Research, 12 (2004), pp. 1-5 http://dx.doi.org/10.1115/1.4030175
[SEC, 2003] SEC (2003). Study Pursuant to Section 108(d) of the Sarbanes-Oxley Act of 2002 on the Adoption by the United States Financial Reporting System of a Principles-Based Accounting System [consultado 15 Mar 2013]. Disponible en: http://www.sec.gov/news/studies/principlesbasedstand.htm#2bi
[Schipper, 1994] K. Schipper. Academic accounting research and the standards setting process. Accounting Horizons, 8 (1994), pp. 61-73
[Trombetta et al., 2012] M. Trombetta, A. Wagenhofer, P. Wysocki. The usefulness of academic research in understanding the effects of accounting standards. Accounting in Europe, 9 (2012), pp. 127-146
[Tua, 2006] J. Tua. Ante la reforma de nuestro ordenamiento: Nuevas normas, nuevos conceptos, un ensayo. Spanish Accounting Review - Revista de Contabilidad, 9 (2006), pp. 145-175
[Watts y Zimmerman, 1979] R.L. Watts, J.L. Zimmerman. The demand for and supply of accounting theories: The market for excuses. The Accounting Review, 65 (1979), pp. 273-305
[Watts y Zimmerman, 1986] R.L. Watts, J.L. Zimmerman. Positive Theory of Accounting. Prentice Hall, (1986)
[Weetman, 2001] P. Weetman. Controlling the standard-setting agenda: The role of FRS 3. Accounting, Auditing and Accountability Journal, 14 (2001), pp. 85-108
[Wilkins y Zimmer, 1983a] T. Wilkins, I. Zimmer. The effect of leasing and different methods of accounting for leases on credit evaluations. The Accounting Review, 58 (1983), pp. 749-764
[Wilkins y Zimmer, 1983b] T. Wilkins, I. Zimmer. The effects of alternative methods of accounting for leases — An experimental study. Abacus, 19 (1983), pp. 64-75
[Wilkins, 1984] T. Wilkins. A behavioural investigation of alternative methods of financing capital acquisitions and lease capitalization. Accounting and Business Research, 14 (1984), pp. 359-366
[Wysocki, 2011] P. Wysocki. New institutional accounting and IFRS. Accounting and Business Research, 4 (2011), pp. 309-328
[Young, 1994] J.J. Young. Outlining regulatory space: Agenda issues and the financial accounting standards board. Accounting, Organizations and Society, 19 (1994), pp. 83-109
[Zeff, 1978] S. Zeff. The rise of economic consequence. Journal of Accountancy, December (1978), pp. 56-63
The publications in this journal are subject to the following terms:
1. Ediciones de la Universidad de Murcia (EDITUM) and ASEPUC conserve the patrimonial rights (copyright) of the published manuscripts, and favour and allow their reuse under the licence of use indicated in point 2.
2. The manuscripts are published in the electronic edition of the journal under an Attribution-NonCommercial-NoDerivatives 4.0 International licence. It allows to copy, distribute and include the article in a collective work (for example, an anthology), as long as there is no commercial purpose, the article is not altered or modified and the original work is properly cited. This journal is free of charge for the Open Access publication. ASEPUC and EDITUM finance the productiona and publication costs of the manuscripts.
3. Conditions for self-archiving. Authors are permitted and encouraged to electronically disseminate the published version of their works, as it favors their circulation and dissemination and thus a possible increase in their citation and reach among the academic community.
