Jan'20
Welcome to The IUP Journal of Accounting Research and Audit Practices
Focus
echnologies are laying the groundwork for the future of businesses. Considering this backdrop, Sean Stein Smith, the author of the first paper, "Blockchain, Smart Contracts and Financial Audit Implications", seeks to analyze how the interaction applications of smart contracts with blockchain technology can change audit processes. The author connects smart contracts to audits, identifies potential pain points and proposes five new roles for accounting and audit professionals that will arise in response to the market needs.
The board of directors is meant to make strategic choices or decisions for various aspects, for the business to be successful. The effectiveness of these decisions reflects on the firm performance and firm value over time. The strategy used in these decisions should result in minimizing risk and maximizing firm value. Thus, the business should be able to fulfill the basic concept of accounting and going concern. This aspect has been tested by Joseph Olorunfemi Akande, Olayinka Moses and Dev Tewari, the authors of the second paper, "Board Experience, Corporate Risk-Taking and Going Concern: Evidence from South Africa". The authors analyze multivariate models of corporate governance attributes using the Bayesian analytical method and conclude that board experience plays a vital role in influencing firm's risk-taking behavior, which in turn impacts the firm's going concern prospects. The authors suggest a better repositioning of corporate governance in the light of board experience.
Although they have no physical characteristics, intangible assets have value because of the advantages or exclusive privileges and rights they provide to a business entity. Since many intangible assets are not purchased, they may not have a reportable cost, but accounting principles require that intangible assets be reported on a company's balance sheet at cost or less. As there are differences in the accounting standards followed by different companies of different countries, the intangible asset-related information disclosed in the balance sheets becomes incomparable. Basing on these facts, M L Ashoka, Abhishek N and M S Divyashree, the authors of the third paper, "Accounting for Intangible Assets: An Analysis of IFRS and Non-IFRS Based Accounting Standards", analyze the IFRS and non-IFRS based accounting standards using content analysis, reliability test, disclosure index and one sample t-test. The authors conclude that IFRS-based accounting standards provide easier method for recognition, measurement and disclosure of intangible assets-related information.
Tourism, the most remarkable economic and social phenomenon, is important for the benefits it brings and also due to its role as a commercial activity that creates demand and growth for many industries. It not only contributes towards more economic activities in a country but also generates more employment and revenue and plays a significant role in the overall development. Against this backdrop, the increase in demand for tourism in one of the Indian states, Rajasthan, has been studied by Asha Sharma, in her paper, "The Impact of Tourism Demand on the Economic Development of Rajasthan: An Analysis Using Neural Network Technique". The author examines the impact of tourism demand on the economic development of the state through various developmental activities. The author uses various statistical techniques to measure the relation between the tourism demand and the economic development of Rajasthan and concludes that domestic tourists show a very high level of correlation with economic development.
Consulting Editor
| Article | Price (₹) | ||
| Blockchain, Smart Contracts and Financial Audit Implications |
100
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| Board Experience, Corporate Risk-Taking and Going Concern: Evidence from South Africa |
100
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| Accounting for Intangible Assets: An Analysis of IFRS and Non-IFRS Based Accounting Standards |
100
|
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| The Impact of Tourism Demand on the Economic Development of Rajasthan: An Analysis Using Neural Network Technique |
100
|
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Blockchain, Smart Contracts and Financial Audit Implications
Blockchain technology and cryptoassets may have seized the attention of the financial services space, but as the technology ecosystem continues to mature there are additional considerations coming to the forefront. Smart contracts represent an important piece of the blockchain conversation and play a critical role in how blockchains interact with other technology platforms. Accounting and auditing professionals will need to understand both how smart contracts function, and also how these applications will impact accounting and auditing processes. The present paper, written keeping both the academic and practitioner audience in mind, seeks to examine how smart contracts interact with blockchain technology, analyze how these applications can change audit processes, and propose potential future roles for the profession.
Board Experience, Corporate Risk-Taking and Going Concern: Evidence from South Africa
Experience is arguably one of the most prominent corporate governance attributes, yet studies investigating traits of corporate governance in mitigating risk-taking behavior have ignored board experience. Using the Bayesian analytical method, the present study analyzes multivariate models of corporate governance attribute (i.e., board experience), corporate risk-taking and going concern of Johannesburg Stock Exchange (JSE) listed firms. The paper finds the sampled firms' board experience to be a key attribute that influences firm's risk-taking and going concern. Additionally, it finds that firms' risk-taking behavior significantly impacts their going concern prospects. The findings suggest the need for a better repositioning of corporate governance in the light of board experience.
Accounting for Intangible Assets: An Analysis of IFRS and Non-IFRS Based Accounting Standards
Intangible Assets are the most important category of assets which help the organization in creating a competitive edge over others. Across the globe, there are several accounting standards, and the treatment of intangible assets varies from one another, and this in turn leads to diversity in the manner intangible assets are reported and disclosed. Due to this diversity, it is highly impossible to carry out cross-country comparison of intangible assets-related information. The International Accounting Standards Board (IASB) made an effort to remove such diversity nd bring uniformity in reporting and disclosure of intangible assets-related information. The present paper focuses on analyzing accounting of intangible assets in the Indian context. For the purpose of the study, data was collected from the secondary sources such as annual reports of 10 selected companies and accounting standards published by MCA. For analyzing the collected data, content analysis, reliability test, disclosure index and one-sample t-test were used and the study found that all the selected companies were complying with IFRS-based accounting standards in relation to intangible assets in a significant manner.
The Impact of Tourism Demand on the Economic Development of Rajasthan: An Analysis Using Neural Network Technique
Tourism industry has been defined as one of the largest and fastest growing industries. This industry is also considered to be one of the ancient industries of the world. Tourism industry in India is experiencing a boom at the moment. India has tremendous potential to become a major global tourist destination and Indian tourism industry is exploiting this potential to the hilt. A state like Rajasthan has all the elements to become a model state for tourism in the country. It has a rich cultural heritage and the tourists from all over the world visit it due to its climate, scenic beauty and ecological resources. The statistical figures reveal that Rajasthan gets the lion's share of total tourist arrivals, both foreign and domestic, due to its special climate and culture. The present paper assesses the impact of tourism demand on the economic development of Rajasthan. The paper measures the economic development of Rajasthan in terms of Gross State Domestic Product. It assesses the impact of tourism on various developmental activities. Various statistical techniques such as correlation, regression and neural network are used to measure the relation between these two factors.