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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...

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Main Authors: Nor Asma Lode,, Napier, Christopher J.
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2014
Online Access:http://journalarticle.ukm.my/7564/1/7115-18210-1-SM.pdf
http://journalarticle.ukm.my/7564/
http://ejournal.ukm.my/pengurusan/index
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spelling my-ukm.journal.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
institution Universiti Kebangsaan Malaysia
building Perpustakaan Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
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.
format Article
author Nor Asma Lode,
Napier, Christopher J.
spellingShingle Nor Asma Lode,
Napier, Christopher J.
Recognition of actuarial gains and losses under IAS 19 among UK Listed Companies
author_facet Nor Asma Lode,
Napier, Christopher J.
author_sort Nor Asma Lode,
title 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_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_sort recognition of actuarial gains and losses under ias 19 among uk listed companies
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2014
url http://journalarticle.ukm.my/7564/1/7115-18210-1-SM.pdf
http://journalarticle.ukm.my/7564/
http://ejournal.ukm.my/pengurusan/index
_version_ 1643737171925925888
score 13.211869

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