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The Impact of the Prohibition of Non-Audit Services on the Profitability of Big-4-affiliated Audit Firms in Bangladesh Rahman, Md. Jahidur; Phyllis, Mo Lai Lan; Mo, Lam
Asian Journal of Accounting Research Vol 1, No 1 (2016): Asian Journal of Accounting Research
Publisher : Universitas Airlangga

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The purpose of this paper is to study the impact of the prohibition of certain non-audit services by the Securities and Exchange Commission (SEC) of Bangladesh on the profitability of the audit firms which are affiliated with Big-4 international audit firms. This paper is based on personal in-depth interviews with the Big-4-affiliated audit firms. A qualitative approach, in a way which is descriptive and illustrative, is adopted in this research. This research provides evidence for the fact that audit services are the most significant and stable source of income for an audit firm. Although respondents generally admit that non-audit services might be more profitable, they all agree that audit services are indeed the core operations of an audit firm. Findings in this paper reveal a contemporary picture of the auditing profession in Bangladesh and elucidate the impact that the implementation of Corporate Governance Order 2006 has on an audit firms profitability. This research is the first in-depth study of the impact of the prohibition of non-audit services on the profitability of the Big-4-affiliated audit firms in Bangladesh. Financial reporting regulatory authorities in Bangladesh or other developing countries may find the findings in this paper useful.

Exploring The Armâs Length Transfer Pricing Strategy for Taxation Purpose: An Ethnographic Study in a Manufacturing Enterprise Rahmiati, Alfa; Sandi, Resti
Asian Journal of Accounting Research Vol 1, No 1 (2016): Asian Journal of Accounting Research
Publisher : Universitas Airlangga

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Practices of transfer pricing in among companies having âspecial relationshipâ (hubungan istimewa in Bahasa Indonesia, this study uses a term of ârelated partyâ) to others are very common nowadays. However, the complexity of transfer pricing strategy and practices in many companies made the use of individual level data become insufficient, therefore we conduct an ethnographic study to explore how taxpayer determines the reasonable transfer pricing based on five methods (i.e. Comparable uncontrolled Price/CUP, Resale Price/RPM, Cost Plus, Transactional Net Margin Method/TNMM and Profit Split Method/PSM).This researchÂ aims to execute a tax strategy based on those methods, which finally derive the amount of product price according to armâs length transfer pricing rule. We collected the data through interviews, observation and literatures. They are based on several months of personal experience of field research in and around the manufacturing enterprise. The results showed that the tax expense could be reduced by using Cost Plus Method, but practically, the application of this method requires more in-depth analysis and a very reliable & comparative data so the company must spend a lot of cost and time to process it. The Transactional Net Profit Method is proved to be the best application for the enterprise to optimize tax expenses because the data used for the analysis were more accessible which saved time and costs.

The Antecedents of Non-Unqualified Opinions of Local Governments Financial Statements: A Study on Counties and Cities in East Java Province Ningsih, Sri
Asian Journal of Accounting Research Vol 1, No 1 (2016): Asian Journal of Accounting Research
Publisher : Universitas Airlangga

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Local Government in Indonesia annually publishes Local Government Financial Statements (LGFS) for helping their stakeholders in making decisions. Audit Opinion of the LGFS for counties and cities in East Java Province during the last 8 years (2006-2013) showed a quite astonishing result. From all of 301 financial statements, only 45 LGFS (14.95%) obtained Unqualified Opinion, other financial statements (256 or 85.05%) received Non-Unqualified Opinion. This study aims to analyze the accounts and problems in the accounts which cause LGFS obtain Non-Unqualified Opinion. Using content analysis with NVIVO10 applications, this study analyzed 256 audit opinions of the LGFS of counties and cities in East Java during 2006-2013 that obtained Non-Unqualified Opinion to identify the accounts and problems in the accounts which cause LGFS obtain Non-Unqualified Opinion. The results showed that the most frequent accounts as an exception in the audit opinion are the accounts on Budget Realization Report (BR) with the frequency of occurrence as much as 6628 times. The Balance Sheet (BS) accounts was at the second place with the total frequency of occurrence 4206 times. And last, there was a Cash Flow Statement (CF) account with the frequency of occurrence as much as 693 times. In BR, the most frequent account which appears as an exception is spending account (as much as 4198 times), while the assets are the most frequent accounts as an exception in the Balance Sheet (as much as 4206 times). The problem with the accounts that often appear as an exception was mainly due to the weakness of the Internal Control System (ICS), followed by non-compliance with the provisions of law and the last problem is in-economies, inefficiency and ineffectiveness.

The Effect of Good Corporate Governance on Tax Avoidance: An Empirical Study on Manufacturing Companies Listed in IDX period 2010-2013 Tandean, Vivi Adeyani; Winnie, Winnie
Asian Journal of Accounting Research Vol 1, No 1 (2016): Asian Journal of Accounting Research
Publisher : Universitas Airlangga

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This study aims to obtain an empirical evidence about the effect of good corporate governance on tax avoidance which becomes a proxy of current ETR (Effective Tax Rate). The samples of this study were 120 manufacturing companies listed in Indonesian Stock Exchange in 2010 â 2013. The hypothesis testing used multiple regression analysis. The result of this study show that audit committee has a positive effect on tax avoidance in partial but the executive compensation, executive character, company size, institutional ownership, boards of commisionersâ proportion, audit committee and audit quality have simultaneous effect to define tax avoidance.

Practical Challenge of Content Analysis: An Illustrative Example from Recoding IC Information in the UKâs Companies Annual Reports Rahman, Mara Ridhuan Che Abdul
Asian Journal of Accounting Research Vol 1, No 2 (2016): Asian Journal of Accounting Research
Publisher : Universitas Airlangga

Intellectual capital (IC) is believed to be more important resources to add the value of a company rather than physical assets. This gives rise to the increasing practice of reporting IC information in corporate annual report. Over the past fifteen years, considerable numbers of studies have employed content analysis to examine the extent and nature of IC information in several countries, but they presented different results. These results might partly contribute to different methods in counting information. In fact, the previous studies have been critised for not explicitly clarifying how information was recoded and counted which led to incomparable findings. Therefore, this paper firstly seeks to discuss an illustrative example of âsense-makingâ process in identifying, categorizing, and counting of IC information in annual reports of pilot sample company. Secondly, the method refined in the pilot study was applied over the final samples of six large companies in the UK from 1974 to 2008 The contribution of this paper is to primarily refine the previous method in recoding information, to send a message that transparency is crucial in content analysis and to facilitate method replication for future studies. Overall, this study demonstrates a marked increase in IC information disclosure was identified over the 35 years. The relational capital information disclosure was relatively more prominent over time, followed by human capital and structural capital.

Measuring Board of Director Performance: An Overview and Future Research Opportunities Nowland, John
Asian Journal of Accounting Research Vol 1, No 2 (2016): Asian Journal of Accounting Research
Publisher : Universitas Airlangga

This article provides a brief overview of the literature on board of director performance, highlighting the difficulties in attempting to directly measure the performance of boards of directors and how various studies have tackled this challenge. As an illustration, I show that two current measures of board of director performance, board meeting activity and director attendance, suggest that the boards of Asian firms do not compare favorably to the boards of firms from developed markets. Suggestions for future research on the performance of corporate boards are provided, as well as implications for board of director practices in Asia.

Determinants Distribution of Financing and the Implications to Profitability: Empirical Study on Cooperative Sharia Baitul Maal wa Tamwil (BMT) in Indonesia Lisa, Oyong
Asian Journal of Accounting Research Vol 1, No 2 (2016): Asian Journal of Accounting Research
Publisher : Universitas Airlangga

Financing is one of the main activities and a major source of revenue for Islamic Cooperatives. This study aimed to analyze the effect of capital structure, third party funds and non-performing financing to the finance portfolio as well as to analyze the effect of capital structure, deposits, non-performing financing and the distribution of funding to profitability. The analysis technique used is multiple regression analysis, using F test and t test. The results of the analysis showed that the capital structure, third party funds and non-performing financing significantly effect on the distribution of funding. Capital structure, third party funds, and the distribution of funding has a significant effect on profitability, Sharia Cooperative BMT in Indonesia. While non-performing financing does not affect the profitability of Islamic Cooperative Baitul Maal Tamwil in Indonesia.

Developing an Accounting Textbook Using Collaborative Learning and IFRS for Senior High School Students in Indonesia Irafahmi, Diana Tien; Sulastri, Sulastri
Asian Journal of Accounting Research Vol 1, No 2 (2016): Asian Journal of Accounting Research
Publisher : Universitas Airlangga

The 2013 curriculum mandates the importance of collaborative learning designed to educate students to be more productive, creative, and innovative with a high level of affective skills. Collaborative learning can be manifested in the form of a textbook. This research is aimed at developing an accounting textbook in accordance with the mandate of the 2013 curriculum. The selected model is IDI which consists of three main phases: defining, developing and evaluating. The methods chosen are interview, observation, and document review which are analyzed qualitatively. The research was conducted in 4 senior high schools in Malang. The finding shows that at defining phase, there is a need to develop an accounting textbooks using collaborative learning and corresponding to the new accounting standards, namely IFRS. Therefore, at the developmental phase, we construct a prototype book ready to be evaluated. The result of evaluation phase shows that the textbook is valid on the overall aspects including the content, the presentation, the graphic, and the language, with an average percentage of 93.7%.

Integrated Reporting: Are Indonesian Companies Ready to Do It? Setiawan, Amelia
Asian Journal of Accounting Research Vol 1, No 2 (2016): Asian Journal of Accounting Research
Publisher : Universitas Airlangga

Many companies in Indonesia already have completed sustainability reporting (SR) in their corporate reporting eventhough the regulation has not required public companies to disclose Integrated Reporting (IR) in their report. Are companies with excellent sustainability reporting ready to release integrated reporting? This question is the main concern of this paper. The published guidelines by IIRC are divided into two categories:Â guidelines which can be assessed objectively and those that cannot be measured objectively. Content analysis is used for data collection and analysis for annual reports of the companies used as sample in this research. The result of this research showed that companies that won Indonesia Sustainability Reporting Award are ready to disclose Integrated Reporting with few modification which adds the value of their report. The implication of the study for public companies is a encouragement to publish integrated reporting and for researchers is being preliminary research for developing research about integrated report in Indonesia.

Achieving Sustainable Development through Environment Accounting from the Global Perspective: Evidence from Bangladesh Kumar, Tapos
Asian Journal of Accounting Research Vol 2, No 1 (2017): Asian Journal of Accounting Research
Publisher : Universitas Airlangga

The study visualizes the link between environment accounting & triple bottom line, quantitative environmental reporting & standard method, voluntary environmental disclosure & legal requirement, size of company & volume of environmental disclosure, material flow analysis & life cycle assessment to achieve sustainable development in Bangladeshi corporation. Therefore, the purpose of the study is to investigate the role of these factors to achieve sustainable development in Bangladeshi corporation. To investigate the role of these factors, ten factors that significantly contribute to achieve sustainable development were determined. A set of closed-minded questionnaire was developed on the basis of these factors to collect the data from employees & employers. Questionnaire was administered by using statistical tools such as matrix, cross tabulation & Paired Samples Tests as a data collection tool and analyses. Research finding shows that sustainability of corporation was associated with the performance of economic, social, and environment. Other factors like quantitative environmental reporting, standard method, voluntary environmental disclosure, legal requirement, size of the company, volume of environmental disclosure, material flow analysis & life cycle assessment were found that they worked as a complement to enhance the performance of economic, social, and environment to achieve sustainable development in Bangladeshi corporation.

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Home Page

OAI Link

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Reviewer

Google Scholar

Contact Name -

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Journal Mail Official -

Editorial Address -

Location Kota surabaya, Jawa timur INDONESIA

Abstract

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Contact Name
-

Contact Email
-

Phone
-

Journal Mail Official
-

Editorial Address
-

Location
Kota surabaya,

Jawa timur

INDONESIA