Browsing Department of Accounting and Auditing (AA/ACC) by Title
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Reporting decision and content of the reportSormunen, Nina (Frederiksberg, 2012)[More information][Less information]
Abstract: The going-concern context has been the subject of much research and discussion for many years at both academic and professional levels. The International Standard on Auditing (ISA) 570 stipulates that the auditor should consider the appropriateness of managements’ use of the goingconcern assumption and to evaluate whether there are material uncertainties with respect to entity’s ability to continue as a going concern. Regardless of what is stated in the financial statement, the auditor should comment on going-concern uncertainty in the audit report if there is a doubt about firm’s ability to continue as a going concern. There is strong evidence that the auditor’s going-concern decision is a complex task with extensive consequences. The primary purpose of this thesis is to empirically provide significant basis to get better understanding of the challenging nature of the auditor’s going-concern reporting. This thesis deals with different aspects of auditor’s going-concern reporting and contributes mainly to the line of auditing research. URI: http://hdl.handle.net/10398/8490 Files in this item: 1
Nina_Sormunen.pdf (1.181Mb) -
Rohde, Carsten (Frederiksberg, 2011)[More information][Less information]
Abstract: Budgets and budget control has been known since the early 19th century1. However the use of budget control was until the beginning of the 1920ies in US primarily related to governmental units and states and to a minor extent to business units in practice. At that time James McKinsey describes budgetary control as involving the following2: 1. The statement of the plans of all the departments of the business for a certain period of time in the form of estimates 2. The coordination of these estimates into a well-balanced program for the business as a whole. 3. The preparation of reports showing a comparison between the actual and the estimated performance, and the revision of the original plans when these reports show that such a revision is necessary. As can be seen from the statement budgetary control includes at the same time a planning and coordination mechanism for actions and performance ex ante as well as a control mechanism ex post through a comparison between estimated and actual plans and performance. URI: http://hdl.handle.net/10398/8373 Files in this item: 1
Carsten_Rohde_Budgeting_Beyond.pdf (1.122Mb) -
Kaspersen, Mia (Frederiksberg, 2013)[More information][Less information]
Abstract: The overall purpose of this thesis is to examine how and why internal processes, systems, and structures influence the construction of social and environmental reports. The three papers that are included in this thesis approach this research objective from three different but interrelated perspectives. Each of these perspectives is an essential aspect of reporting practices. By conducting case studies and including organisational members who participate in social and environmental reporting (SER) processes (Adams and Whelan, 2009; Farneti and Guthrie, 2009), this thesis strives to contribute to increased knowledge regarding organisational reporting behaviours and the construction of SER (Laine, 2009; Parker, 2007; Thomson and Bebbington, 2005; Adams, 2004; Gray, 2005; Adams and Larrinaga-González, 2007; Tilt, 2006; O'Dwyer, 2005b; Spence and Rinaldi, 2012; O'Dwyer et al., 2011; Tregidga et al., 2012b). Thus, by attempting to ‘look inside organisations’ and by emphasising the role of the organisational context, the three articles of this thesis provide insights into details regarding 1) the reporting environment and audit trail; 2) the role of stakeholder engagement in SER; and 3) why certain impacts of organisational activities are included (or excluded) in social and environmental reports. The three papers addressing these topics have been motivated by an aspiration to establish a more nuanced understanding of the current state of SER. URI: http://hdl.handle.net/10398/8667 Files in this item: 1
Mia_Kaspersen_Summary.pdf (1.332Mb) -
Their Merits and Sophistication across ContextsHolm, Morten (Frederiksberg, 2012)[More information][Less information]
Abstract: The purpose of this dissertation is to expand our understanding of the applicability and performance effects of different Customer Profitability Measurement (CPM) models across contexts. Customer profitability measurement has attracted increasing interest recently – mainly in the marketing literature. The vast majority of this research has been case-based. Consequently, the evidence in this field consists of a number of case demonstrations indicating that using CPM models can be beneficial in specific industries but only very limited cross-sectional research investigating the general relationships between the CPM model use, context and firm financial performance. Researching these relationships is expected to contribute to marketing as well as management accounting literatures but also to managers working with or planning to start working with CPM models in practice for two reasons: First, marketing managers are increasingly required to be accountable for the marketing investments they expect to make. A better understanding of which CPM models that are applicable in different contexts will contribute to more efficient resource utilization in firms. Second, the management accounting literature on CPM models is very scarce despite the fact that this area is a key priority in practice. Knowledge on how CPM models are adapted to fit the environment in which the firm operates will contribute to our understanding of how CPM models should be designed but also to the general school of contingency-based management accounting research. URI: http://hdl.handle.net/10398/8437 Files in this item: 1
Morten_Holm.pdf (795.1Kb) -
Del 2Krogholt Hansen, Carsten; Petersen, Christian; Plenborg, Thomas (København, 2006)[More information][Less information]
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Del 1Krogholt Hansen, Carsten; Petersen, Christian; Plenborg, Thomas (København, 2006)[More information][Less information]
Abstract: Danske børsnoterede virksomheder overgik til internationale regnskabsstandarder pr. 1. januar 2005. Der skal således ikke længere foretages åremålsamortisering af goodwill, der til gengæld afløses af værdiforringelsestest. Såfremt den bogførte værdi af goodwill er større end genindvindingsværdien, skal der ske nedskrivning. Som en konsekvens heraf er resultat af primær drift for virksomheder med goodwill på balancen forbedret. Eksempelvis er Carlsbergs resultat af primær drift forbedret med 976 mio. kr. i 2004 som følge overgang til værdiforringelsestest af goodwill. Implementeringen af IAS 36 (impairment of assets) og IFRS 3 (business combinations) har således haft ganske store regnskabsmæssige konsekvenser for de netop aflagte årsrapporter for 2005. I denne artikel undersøger vi via en spørgeskemaundersøgelse, hvorledes danske børsnoterede virksomheder, der har indregnet goodwill, gennemfører værdiforringelsestest. Vi fokuserer på de tekniske problemstillinger, der er forbundet med værdiforringelsestest. Eksempelvis undersøger vi, hvorledes de børsnoterede virksomheder fastlægger en CGU og hvordan de estimerer kapitalomkostninger og terminalværdien ved fastlæggelse af genindvindingsværdien. Derimod adresserer vi ikke, om de foretagne skøn vurderes rimelige. URI: http://hdl.handle.net/10398/6747 Files in this item: 1
rr_161106_del 1.pdf (153.8Kb) -
Stenheim, Tonny (Frederiksberg, 2012)[More information][Less information]
Abstract: The dissertation investigates the decision usefulness of goodwill-accounting numbers. Theory and methodology from value relevance, earnings-management and corporate-governance literature are employed in order to investigate the decision usefulness. The dissertation compares the value relevance of goodwill reported under the impairment-only method (current IFRS) with the value relevance of goodwill reported under alternative accounting methods. It also investigates the extent to which goodwill-impairment losses under IFRS are associated with variables for economic impairment and/or earnings-management incentives. And finally, it investigates whether an estimate of misrepresentation of economic impairment in goodwill is associated with earnings-management incentives and/or corporate-governance mechanisms. The results suggest that the impairment-only method provides accounting numbers that more faithfully depict economic fundamentals as reflected in stock prices. The results also suggest that reported goodwill-impairment losses are not strongly affected by earnings-management incentives. Still, misrepresentation of economic impairment in goodwill does not seem to be constrained by corporate-governance mechanisms. In overall, these findings support the recently implemented impairment-only method under current IFRS URI: http://hdl.handle.net/10398/8398 Files in this item: 1
Tonny_Stenheim_2ed.pdf (2.371Mb) -
Petersen, Christian; Plenborg, Thomas (København, 2007)[More information][Less information]
Abstract: Bonus plans have become a popular tool for compensating managers and employees. While other accounting studies on bonus plans typically focus on earnings management, for example by examining the association between cash bonuses and stock returns or the incentive for management to manage earnings, our study discusses specific issues that are relevant in designing and understanding bonus plans based on financial performance measures. Bonus contracts should be designed so they align the interest of management and owners. In practice, this is far more difficult than it sounds. We discuss issues that require special attention in preparing bonus contracts: Choice of performance measure(s), accounting issues, link between performance and bonus, and bonus threshold. Our study should be of interest to managers, compensation committees, investors and others interested in bonus plans. A proper bonus plan is essential to ascertain that management compensation is closely linked to management’s ability to create value. URI: http://hdl.handle.net/10398/6740 Files in this item: 1
wp_2007-05.pdf (99.26Kb) -
Banghøj, Jesper; Petersen, Christian; Plenborg, Thomas (København, 2008)[More information][Less information]
Abstract: We examine what determines executive compensation in privately held firms. Our study is motivated by the fact that most studies in this area rely on data from publicly traded firms. Further, the few studies that are based on data from privately held firms only examine a limited number of determinants of executive compensation. Previous studies also assume that the quality of compensation contracts is identical across executives. Based on unique data from our survey we create a quality index on each executive’s bonus plan. We conjecture that the pay to performance relation is stronger for better designed bonus plans. URI: http://hdl.handle.net/10398/6751 Files in this item: 1
wp_2008-02.pdf (167.1Kb) -
Plenborg, Thomas; Petersen, Christian; Gabrielsen, Gorm; Banghøj, Jesper (Frederiksberg, 2009)[More information][Less information]
Abstract: We examine what determines executive compensation in privately held firms. Our study is motivated by the fact that most studies in this area rely on data from publicly traded firms. Further, the few studies that are based on data from privately held firms only examine a limited number of determinants of executive compensation. Our findings indicate that the pay to performance relation is weak. Board size and ownership concentration are the only corporate governance characteristics that explain variations in executive compensation. Executive characteristics like skills, title and educational attainment all explain variations in executive compensation. Contrary to our expectations we do not find a stronger pay to performance relation in firms with better designed bonus plans. URI: http://hdl.handle.net/10398/7958 Files in this item: 1
WP_2009-01[1].pdf (271.1Kb) -
Christoffersen, Jeppe (Frederiksberg, 2011)[More information][Less information]
Abstract: In recent years, we have witnessed multinational enterprises (MNEs) changing strategies to exploit opportunities for division of labor on a global scale (Hansen et al. 2009). In consequence these have received growing interest among researchers and governments as ‘agents of host country economic development’ (Scott-Kennel and Enderwick 2005, p.105). A general consensus of this research is that ‘FDI [Foreign Direct Investment] offers an additional channel for introduction of technology, innovation, new ideas, different organizational practices and new skills to a host country’ (Scott-Kennel and Enderwick 2005, p.112). Another consensus is that these knowledge resources were introduced into the host country through linkages between the MNEs and a local firm and would in the longer term diffuse to other firms through e.g. demonstration effects and labor turnover (Giroud and Scott-Kennel 2009).... URI: http://hdl.handle.net/10398/8332 Files in this item: 1
Jeppe Christoffersen_SUMMARY.pdf (1.138Mb) -
Banghøj, Jesper; Plenborg, Thomas (København, 2007)[More information][Less information]
Abstract: We explore the impact of stock pay and stock holdings on the pay to performance sensitivity in Denmark. Our research is motivated by the fact that most non-UK/US studies ignore stock based pay and stock holdings when measuring the pay to performance sensitivity. Further, most studies that explore the pay to performance relation apply the Black and Scholes approach assuming that the executive is both risk neutral due to hedge possibilities and well diversified. However, as pointed by Hall and Murphy (2002) executives are neither risk neutral nor well diversified. We adopt the certainty equivalence approach developed by Lambert et al (1991) to demonstrate that in a setting where executives are risk averse and undiversified there is a gap between the cost of granting stock options and the value, which executives receive from the same stock option program. Our findings indicate that the Danish level of pay is lower than in the UK and the US but more in line with the pay in other Scandinavian countries. Further, our results show that stock options are less frequently used to compensate Danish executives. On the other hand, stock ownership seems to be a more popular way to align the interests of the management and the shareholders than stock options. Furthermore, including stock holdings affect our four pay to performance sensitivity measures significantly. We also demonstrate that the pay to performance sensitivity is considerably lower than indicated by the Black and Scholes approach. Finally, the pay to performance sensitivity is on average smaller in Denmark than in the US. However, the pay to performance sensitivity seems similar in Denmark and the UK. URI: http://hdl.handle.net/10398/6741 Files in this item: 1
wp_2007-01.pdf (277.2Kb) -
Petersen, Christian; Plenborg, Thomas (København, 2006)[More information][Less information]
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Jeppesen, Kim K. (København, 2008)[More information][Less information]
Abstract: This paper examines recent attempts to professionalize Danish public sector auditing by the establishment of a certification of public sector auditors known in Danish as Certificeret Offentlig Revisor (COR). The establishment of the COR-certification has led to a dispute over the public sector auditing jurisdiction between a coalition of public sector auditors and the professional bodies of the private sector auditors. The paper outlines the process that led to the decision to create the COR-certification, analyse the COR coalition’s attempt to build a network of support for its jurisdictional claim of expertise, and discusses the general implications of the case for the ongoing attempt to create a European certification of public sector auditors. *) Paper presented at the 5th EIASM International Conference on Accounting, Auditing & Management in Public Sector Reforms, Amsterdam September 3-5, 2008 URI: http://hdl.handle.net/10398/6745 Files in this item: 1
wp_2008-01.pdf (105.0Kb) -
a case study of the implementation of the EU eigth directive in Denmark 1984-2003Loft, Anne; Jeppesen, Kim K. (København, 2003)[More information][Less information]
Abstract: This paper analyses the complex process through which EU's Eighth Company Law Directive on the qualification of statutory auditors (1984) was implemented in Denmark. The Directive envisaged one group of ‘statutory auditors’ in each member state. However, in Denmark there were two groups of auditors: the state authorised auditors who had a long education and high status, and the registered auditors who had a shorter education, lower status and whose clients were mainly medium and small sized businesses. An exemption was made in the Directive to allow the registered auditors to continue to audit despite that they did not have the required ‘university level’ education. This made the issue of education central to the long-term survival of the registered auditors and it consequently became the object of a long conflict between the parties with an interest in auditor education and qualifications: the profession, the state and the educational institutions. This case illustrates the processes of audit regulation in a small European state with a highly developed economy where auditors are approved and regulated by the state but through processes heavily influenced by the profession. It provides an interesting contrast to other studies carried out on the implementation of this Directive, e.g. in the UK (Cooper et al, 1996) and in Greece (Caramanis, 1999), and perhaps some insight into the difficulties which may be encountered in implementing the new Eighth Directive proposed by the Commission in May 2003. Key Words: EU; Eighth Directive; accounting profession; Denmark; harmonisation; regulation. URI: http://hdl.handle.net/10398/6739 Files in this item: 1
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Belyst ved investorer og analytikeres holdningerPlenborg, Thomas; Holm, Jakob Wagner; Banghøj, Jesper; Østrup, Jens (Frederiksberg, 2009)[More information][Less information]
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Petersen, Christian; Plenborg, Thomas (København, 2007)[More information][Less information]
Abstract: Adopting a survey approach, our study examines how firms implement impairment test of goodwill. We focus on how firms define and measure the recoverable amount of CGU. The survey includes 58 completed questionnaires representing 73% of the firms on the Copenhagen Stock Exchange that recognise goodwill in the balance sheet. Our survey generally supports that a common practice on impairment tests of goodwill has not yet been established. Based on our analysis it is difficult to determine whether this simply reflects that firms adopt an approach suited to their organisational and economic structures or if it exposes that firms are uncertain as how to apply a standard. The analysis also reveals that some of the methods used when defining a CGU are not in compliance with IAS 36. In addition, we find inconsistencies in the way that firms estimate the recoverable amount. Our analysis should be of interest to a number of parties including firms, financial advisors, auditors, standard setters and users of financial statements. Impairment tests, IAS 36, compliance, goodwill, value in use, valuation techniques. URI: http://hdl.handle.net/10398/6744 Files in this item: 1
wp_2007-02.pdf (371.8Kb) -
an empirical analysisPetersen, Christian; Plenborg, Thomas (København, 2007)[More information][Less information]
Abstract: Fair value accounting has become predominant in accounting as a vast number of IAS/IFRS standards are based on fair value accounting, including IAS 36 Impairment of assets. Fair value accounting for goodwill is technically challenging, since market prices are not observable. Thus, valuation technologies must be applied in order to test goodwill for impairment. While prior research on goodwill has concentrated on either the (dis)advantages for each accounting procedure for goodwill or examined the value relevance of goodwill (amortization) and goodwill write-offs, little effort has been devoted to the technical problems in the implementation of IAS 36. However, recent research on the topic document that firms commit a variety of errors in applying IAS 36 (Petersen and Plenborg, 2007). We examine firm characteristics that might explain the frequency of errors that firms commit in applying impairment tests. Our findings suggest that at least two factors might explain why errors are present – the lack of an impairment manual and not involving employees with rigorous experience in firm valuation. Our research, which might be seen as the fist step toward guidelines in applying technically challenging accounting standards, should be of interest to firms, auditors and standard setters. URI: http://hdl.handle.net/10398/6749 Files in this item: 1
wp_2007-04.pdf (293.7Kb) -
Petersen, Christian; Plenborg, Thomas (København, 2008)[More information][Less information]
Abstract: This study focuses on methodological errors that arise when firm valuation is carried out in practice. Violation of assumptions underlying the valuation models are examples of methodological errors. We analyze valuation spreadsheets from five Danish financial institutions (i.e., stockbrokers and corporate finance departments) in order to trace if firm valuation models are properly applied. We conclude the following: (i) Methodological errors often cause valuation models to generate estimates that differ significantly from the theoretically correct value; and (ii) Firm value estimates were biased due to a variety of methodological errors. The implications of those errors may be significant. Investors are exposed to poor recommendations. Financial institutions such as investment bankers and stockbrokers may be exposed to bad reputation and lawsuits. Accounting firms that do not carry out firm valuation correctly (for example in testing goodwill for impairment) also run the risk of litigations. URI: http://hdl.handle.net/10398/6746 Files in this item: 1
wp_2008-03.pdf (229.2Kb) -
How to exploit the potential for management accounting of information technologyRom, Anders (København, 2008)[More information][Less information]
Abstract: A lag seems to exist between management accounting techniques and management accounting practices of organisations (Bjørnenak, 1997a). The accounting lag exists in spite of the interaction taking place between academia and practice in terms of researchers conducting field studies and management accountants attending research-based courses before and during their careers in practice. URI: http://hdl.handle.net/10398/7717 Files in this item: 1
anders_rom.pdf (2.648Mb)
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