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/ http://journalarticle.ukm.my/7564/ http://journalarticle.ukm.my/7564/1/7115-18210-1-SM.pdf

id	ukm-7564
recordtype	eprints
spelling	ukm-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
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
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/ http://journalarticle.ukm.my/7564/ http://journalarticle.ukm.my/7564/1/7115-18210-1-SM.pdf
first_indexed	2023-09-18T19:50:02Z
last_indexed	2023-09-18T19:50:02Z
_version_	1777406157884751872

Recognition of actuarial gains and losses under IAS 19 among UK Listed Companies

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