Journal of Corporate Accounting & Finance

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  • Implementation of TDABC in SME: A Case Study

    This article describes a procedure that allows small‐scale manufacturing industries to easily adapt time driven activity based costing system. This model is of two stages, the first stage consists of seven steps and the second step consists of three steps. The model was developed on the basis of an intensive case study conducted at a small‐scale furniture manufacturing industry. The model assigns the cost of overhead expenses such as building rent, building maintenance, power consumption, machine maintenance cost, and chemical consumable on the activities. Thereafter, the cost of activity is assigned to the product. The complete process is explained using matrices. This makes the cost‐related calculations easy and overhead costs are traced without difficulty. The ease of use of the proposed procedure is illustrated using actual data from a small manufacturing industry located in central India. Further, based on this model a generalized equation is developed. Results of the case study help the firm's strategic decision making and identify the opportunities for profitability improvement. © 2018 Wiley Periodicals, Inc.

  • Propping in the Pyramidal Business Groups in Turkey

    This article investigates the existence of propping in Turkish business group firms for the years 2010–2016 (150 firms and 1,050 firm‐year data in total). It is claimed that pyramidal ownership in Turkey is used to prop up intra‐group funds and is a beneficial vehicle providing a less costly way of financing. The empirical results of the research indicate the existence of propping in the Turkish business groups and bring a debt and dividends (debt service hypothesis) related explanation for the propping phenomenon in the pyramidal business groups. Accordingly, the key findings indicate that firms within the business group transfer funds to each other via debt and dividends channels in order to reduce financial distress. Hence, business groups in Turkey use pyramidal ownership as a financing vehicle to increase internal capital market funds and a substitute for incomplete financial markets. Propping provides an implicit insurance against bankruptcy risk. © 2018 Wiley Periodicals, Inc.

  • Hit Refresh: The Quest to Rediscover Microsoft's Soul and Imagine a Better Future for Everyone
  • Leveraging Employee Expense Data to Drive Sales Revenue: How the Integration of T&E and CRM Solutions Can Be Used to Improve Sales Team Efficiencies

    Travel and entertainment (T&E) is often the largest single controllable cost for businesses, and can reach 10% to 12% of all spend. New approaches for integrating and visualizing T&E spend versus revenue generated can allow organizations to deploy travel budgets more effectively, in order to drive increased revenues. © 2018 Wiley Periodicals, Inc.

  • Unknown until Known
  • Definition of a Business and Disposal of Asset Group: How FASB's New Standards Interact
  • Process Costing: The Most Important Subject in the Management Accountant's Curriculum
  • The New Accounting Standard for Revenue Recognition: Do Implementation Issues Differ for Fortune 500 Companies?

    The purpose of this study is to discover how a sample group of Fortune 500 companies is preparing for adoption of the new revenue recognition standard and how these companies expect it will the impact their current operations. Existing research involved large samples of public and private companies of all sizes. This exploratory investigation seeks to determine if Fortune 500 companies are experiencing different implementation timelines or issues as a result of their size. A survey of chief accounting officers was conducted to discover perceptions of how the new standard will impact various aspects of their respective companies. The study also reports the progress that these companies have made in preparing for and implementing the new revenue recognition standard. Findings indicate that these companies expect to change internal policies and procedures, yet do not anticipate that the new standard will impact product and services offerings. The results of this pilot study, based on a relatively small sample, begin to offer some insight into issues and perceptions of large publicly‐held companies and can serve as a starting point for more extensive research. © 2018 Wiley Periodicals, Inc.

  • Two‐Step Fraud Defense System: Prevention and Detection

    In today's local and global economy, similarities exist among companies in the types of fraud documented, lack of internal controls, and weak authorizing hierarchy that lead to the increase of fraudulent acts and the decrease of revenue. Since similarities exist, standard practices such as a combination of prevention and detection tools, will minimize the risks associated with fraud and make vulnerable organizational structures stronger and resistant to fraud tactics. © 2018 Wiley Periodicals, Inc.

  • What Drives Developing and Transitional Countries to Adopt the IFRS for SMEs? An Institutional Perspective

    With the awareness of the socioeconomic importance of small- and medium‐sized enterprises (SMEs) and the growing demand for a high‐quality accounting framework for these businesses, the International Accounting Standards Board issued on July 9, 2009 a simplified version of financial reporting standards (IFRS for SMEs) to meet the specific needs of such entities. Recently, there is an increasing widespread acceptance of this standard around the world. While considerable effort has been made to explain the worldwide diffusion of full IFRS, still little empirical evidence on the factors influencing the IFRS for SMEs adoption has been undertaken. This study seeks to examine the institutional factors associated with the adoption of the IFRS for SMEs specifically in the context of developing and transitional economies. Based on a sample of 70 countries, the research results show that SMEs' importance, country's reliance on external funding, and external openness degree positively affect the IFRS for SMEs adoption. They reveal a negative effect of tax system and governance quality on this decision. However, education level and prior adoption of full IFRS are nonsignificant factors. These results are relevant to practitioners, SMEs' potential investors, standard setters, regulators, CPA firms, SMEs' managers, and policy‐makers. © 2018 Wiley Periodicals, Inc.

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