Recognition of actuarial gains and losses under IAS 19 among UK Listed Companies
The requirement for UK listed companies to prepare their financial statements in accordance with IFRS for accounting periods beginning on or after January 1, 2005 provided these companies with an accounting policy choice in the area of pension accounting. Probit models indicate that the characteri...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2014
|
| Online Access: | http://journalarticle.ukm.my/7564/ http://journalarticle.ukm.my/7564/1/7115-18210-1-SM.pdf |
| _version_ | 1848811522305818624 |
|---|---|
| author | Nor Asma Lode, Napier, Christopher J. |
| author_facet | Nor Asma Lode, Napier, Christopher J. |
| author_sort | Nor Asma Lode, |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | The requirement for UK listed companies to prepare their financial statements in accordance with IFRS for accounting
periods beginning on or after January 1, 2005 provided these companies with an accounting policy choice in the area of
pension accounting. Probit models indicate that the characteristics of size of firm and interest coverage are significant
determinants influencing the choice of accounting policy. Therefore, managers are likely motivated to make the incomesmoothing
accounting choice (the use of the “corridor” method) when size of firm and interest coverage are large, while
the more volatile full recognition policy is more likely to be chosen when size of firm and interest coverage are small.
These findings support the argument that the retention of options in IFRS may operate to the detriment of key stakeholders,
in particular equity investors, by providing opportunities for earnings management. |
| first_indexed | 2025-11-14T23:47:44Z |
| format | Article |
| id | oai:generic.eprints.org:7564 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T23:47:44Z |
| publishDate | 2014 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:75642016-12-14T06:44:29Z http://journalarticle.ukm.my/7564/ Recognition of actuarial gains and losses under IAS 19 among UK Listed Companies Nor Asma Lode, Napier, Christopher J. The requirement for UK listed companies to prepare their financial statements in accordance with IFRS for accounting periods beginning on or after January 1, 2005 provided these companies with an accounting policy choice in the area of pension accounting. Probit models indicate that the characteristics of size of firm and interest coverage are significant determinants influencing the choice of accounting policy. Therefore, managers are likely motivated to make the incomesmoothing accounting choice (the use of the “corridor” method) when size of firm and interest coverage are large, while the more volatile full recognition policy is more likely to be chosen when size of firm and interest coverage are small. These findings support the argument that the retention of options in IFRS may operate to the detriment of key stakeholders, in particular equity investors, by providing opportunities for earnings management. Penerbit Universiti Kebangsaan Malaysia 2014 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/7564/1/7115-18210-1-SM.pdf Nor Asma Lode, and Napier, Christopher J. (2014) Recognition of actuarial gains and losses under IAS 19 among UK Listed Companies. Jurnal Pengurusan, 40 . pp. 15-24. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/index |
| spellingShingle | Nor Asma Lode, Napier, Christopher J. Recognition of actuarial gains and losses under IAS 19 among UK Listed Companies |
| title | Recognition of actuarial gains and losses under IAS 19 among UK Listed Companies |
| title_full | Recognition of actuarial gains and losses under IAS 19 among UK Listed Companies |
| title_fullStr | Recognition of actuarial gains and losses under IAS 19 among UK Listed Companies |
| title_full_unstemmed | Recognition of actuarial gains and losses under IAS 19 among UK Listed Companies |
| title_short | Recognition of actuarial gains and losses under IAS 19 among UK Listed Companies |
| title_sort | recognition of actuarial gains and losses under ias 19 among uk listed companies |
| url | http://journalarticle.ukm.my/7564/ http://journalarticle.ukm.my/7564/ http://journalarticle.ukm.my/7564/1/7115-18210-1-SM.pdf |