A Framework for Post Implementation Review of Iranian Accounting Standards

Document Type : Research Paper

Authors

Abstract

Over the last decade, International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) have concluded that publication of an exposure draft to ensure the quality of accounting standards would not be enough anymore. Indeed, a comprehensive Post Implementation Review (PIR) of accounting standards should be performed to ensure the effectiveness of approved accounting standards. In other words, one more step has been added to accounting standards setting process and in future one of the main challenges towards standard setters would be the fact that whether their PIR has a prompt feedback or not. This research attempts to provide a proper PIR framework for accounting standards of Iran through comparative studies of frameworks designed by pioneering accounting standard setters, with participation of various stakeholders (108 people including university professors, enterprise Chief financial officers, expert external auditors and Chief investment officers).
In the proposed framework, we answered to these questions: "Who performs the PIR? When is the PIR performed? What are the general and specific objectives of the PIR? How is the PIR process? What is the content of the PIR report?".

Keywords


Barth, M. E. 2006. ‘Research, Standard Setting, and Global Financial Reporting’, Foundations and Trends in Accounting, Vol. 1, No. 2.
Barth, M. E. 2007. ‘Standard-Setting Measurement Issues and the Relevance of Research’, Accounting and Business Research, Special Issue, International Accounting Policy Forum, Vol 37Supplement 1.
Barth, M. E. 2008. ‘Global Financial Reporting: Implications for U. S. Academics’, The Accounting Review,Vol. 83, No. 5.
Blouin, J. , and Robinson, L. 2013. ‘Insights from the initial post-implementation review of FIN 48’. Working Paper.. WWW. ssrn. com
Blouin, J. L. , and L. A. Robinson. 2011. ‘Academic research on FIN 48: What have we learned?’, Prepared for the Financial Accounting Foundations’ Post-Implementation Review of Financial Accounting Standards Board Interpretation No. 48.
Brown, P. , and B. Howieson. 1998. ‘Capital Markets Research and Accounting Standard Setting’, Accounting and Finance, Vol. 38, No. 1.
European Financial Reporting Advisory Group (EFRAG). 2011. ‘Considering the Effects of Accounting Standards, Discussion Paper.. www. frc. org. uk.
Ewert, R. , & Wagenhofer,A. 2012. ‘Using Academic Research for the Post-Implementation Review of Accounting Standards: A Note’, Abacus, Vol. 48, No. 2.
Financial Accounting Foundation. 2012. ‘Post-implementation review Report on FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes’.
Financial Accounting Foundation. 2012. ‘Post-implementation review Report on FASB Statement No. 131, Disclosures about Segments of an Enterprise and Related Information’.
Financial Accounting Foundation. 2013. ‘Post-implementation review Report on FASB Statement No. 141 (revised 2007) , Business Combinations’.
Financial Accounting Foundation. 2013. ‘Post-implementation review Report on FASB Statement No. 109, Accounting for Income Taxes’.
Financial Accounting Foundation. 2014. ‘Post-implementation review Report on FASB Statement No. 123 (R) , Share-Based Payment’.
Financial Accounting Foundation. 2014. ‘Post-implementation review Report on FASB Statement No. 157, Fair Value Measurements’.
Financial Accounting Foundation. 2015. ‘Post-implementation review Report on FASB Statement No. 160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No. 51’.
Financial Accounting Foundation. 2016. ‘Post-implementation review Report on FASB Statement No. 128, Earnings per Share’.
Fülbier, R. U. , J. -M. Hitz and T. Sellhorn. 2009. ‘Relevance of Academic Research and Researchers’ Role in the IASB’s Financial Reporting Standard Setting’, Abacus, Vol. 45, No. 4.
Haller, A. , C. Nobes,D. Cairns, A. Helstrom, S. Moya, M. Page and P. Walton. 2012. ‘The Effects of Accounting Standards’, Accounting in Europe, Volume 9, Issue 2.
IASB. 2008. ‘Business Combinations Phase II – Project summary, feedback and effects analysis’.
IASB. 2012. ‘Post-Implementation Review of IFRS 8, Operating Segments’, Staff Memorandum.
IASB. 2013, Post-implementation Review: IFRS 8 Operating Segments, Report and Feedback Statement.
IASB. 2015, Post-implementation Review: IFRS 3 Business Combinations, Report and Feedback Statement.
Leisenring, J. J. , and L. T. Johnson. 1994. ‘Accounting Research: On the Relevance of Research to Practice’, Accounting Horizons, Vol. 8, No. 4.
Pounder, B. 2013. ‘Post-Implementation Reviews of Accounting Standards’, Strategic Finance, Vol. 95 Issue 2.
 Rutherford, B. A. 2011. ‘Accounting Research and Accounting Policy: What Kind of Gap?’, Accounting in Europe, Vol. 8, No. 2.
Schipper, K. 1994. ‘Academic Accounting Research and the Standard Setting Process’, Accounting Horizons, Vol. 8, No. 4.
Singleton-Green, B. 2010. ‘The Communication Gap: Why Doesn’t Accounting Research Make a Greater Contribution to Debates on Accounting Policy?’, Accounting in Europe, Vol. 7, No. 2.
Swieringa, R. J. 1998. ‘Accounting Research and Policy Making’, Accounting and Finance, Vol. 38, No. 1.
Zeff, S. A. 1978. ‘The Rise of Economic Consequences’, The Journal of Accountancy, Vol. 146, No. 6