The important role of academic participation and research in the development of accounting standards has long been recognized. Not surprisingly, most U.S. academic participation has been directed at standard setting in the U.S. We suggest that International Financial Reporting Standards (IFRS) development could be enhanced by greater participation from the academic community. The International Accounting Standards Board (IASB) is engaged in an aggressive agenda addressing several critical financial reporting topics, including consolidations, financial instruments, financial statement presentation, insurance, leasing, and revenue recognition. Given the IASB's agenda and the status of the U.S. GAAP/IFRS convergence projects, we believe that ''the time is right'' for academics, through their research, insights, and perspectives, to make significant contributions to the IASB. We urge academics to participate more actively in the development of IFRS through comment letter writing.
Purpose -In response to corporate scandals the USA issued the Sarbanes-Oxley Act to promote corporate responsibility for financial reporting. Some see the impact of the US legislation crossing borders and influencing the nature of financial reporting in other countries. The purpose of this paper is to investigate whether or not there have been increases in transparency in non-US financial markets, specifically in South East Asia, suggesting a ripple effect as a result of the Sarbanes-Oxley Act. Design/methodology/approach -The study examines the audited financial statements of 92 South East Asian companies issued before and after the Sarbanes-Oxley legislation to note any significant increase in transparency. As a proxy for transparency, the study examines the number of footnotes included in audited financial statements. Findings -The results indicate a statistically significant increase in the number of footnotes in the positive direction. Because of this increase, a changing trend of increased transparency is suggested in South East Asia. Originality/value -In 2002 the USA passed the Sarbanes-Oxley Act to promote corporate responsibility for financial reporting. Some see this US legislation creating a ripple effect on financial reporting in other countries. The findings of this study suggest a changing trend of increased transparency in financial reporting in South East Asia. Although this trend cannot be directly attributed to the effects of the Sarbanes-Oxley Act, it appears to be related to a larger, more transcendent worldwide reform movement towards increased corporate responsibility and financial reporting to which the Sarbanes-Oxley Act appears to have served as a catalyst.
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