University of Tehran
Accounting and Auditing Review
2645-8020
9
1
2002
12
22
-
-
13225
FA
Journal Article
1970
01
01
The present article deals with the emergent factors that have stabilized the historical cost including educational methods, of legal protection, inaccurate generalization of initial book-keeping, protection of syndicates, and non-existence of a complete market. It then proceeds to analyze the criticisms leveled at the cost price which cover unreal assumptions, internal inconsistencies of rules, regulations and accords, absence of a physical entity for accounting terms and figures, irrelevancy of accounting information to the decision-making models and negative implications of the historical cost.
In another section, the arguments supporting the historical cost such as the assessment of stewardship, historicism and decision-making, have been explained. The research also discusses the adverse effects of the cost price on investors, businesses, accounting professionalism and the institutes in charge of accounting standards accreditation. In conclusion, a new accounting model tailored to the needs of the information age is suggested and the role of each one of the interested groups applying this model is accordingly discussed.
The present article deals with the emergent factors that have stabilized the historical cost including educational methods, of legal protection, inaccurate generalization of initial book-keeping, protection of syndicates, and non-existence of a complete market. It then proceeds to analyze the criticisms leveled at the cost price which cover unreal assumptions, internal inconsistencies of rules, regulations and accords, absence of a physical entity for accounting terms and figures, irrelevancy of accounting information to the decision-making models and negative implications of the historical cost.
In another section, the arguments supporting the historical cost such as the assessment of stewardship, historicism and decision-making, have been explained. The research also discusses the adverse effects of the cost price on investors, businesses, accounting professionalism and the institutes in charge of accounting standards accreditation. In conclusion, a new accounting model tailored to the needs of the information age is suggested and the role of each one of the interested groups applying this model is accordingly discussed.
University of Tehran
Accounting and Auditing Review
2645-8020
9
1
2002
12
22
-
-
13226
FA
Journal Article
1970
01
01
The major goal of this article is to present a scientific model of optimizing credits allocation under Note 3 for various economic sectors and activities. The suggested model has been based on "an Ideal Planning" that may achieve the intended goals with respect to the legal requirements, restrictions and available resources.
This is a linear model which characterizes the first "Ideal Planning" in view of the provisions of Note 3 . In this model, four priorities have been envisaged as follows:
1- Agriculture, 2- Industry and mine, 3- Services, and 4- Job Creation.
The data collected from the Fars province Budget and Plan Department for five years (1996-2001) underlie our model which can endorse the optimal allocation of credits for each year.
The outcomes gained from this model have been compared with real distribution of credits, representing that the current method used for credits allocation has not been optimal. This method has not only been unable to reach the set goals but it has also led to fragmentation of credits. Also the apportionment of a part of the budget under the rubric of "undistributed credits" without any prior fixed program for its distribution, has been a barrier to reach upper levels of optimizing aggregate to credits allocation.
It has also been indicated that the proposed model will have the potentialities of achieving the set goals upon optimizing allocations with regard to the prescribed limitations, predicting
the possible deficit or surplus as well as providing help for decision-makers in the problem-solving process.
The major goal of this article is to present a scientific model of optimizing credits allocation under Note 3 for various economic sectors and activities. The suggested model has been based on "an Ideal Planning" that may achieve the intended goals with respect to the legal requirements, restrictions and available resources.
This is a linear model which characterizes the first "Ideal Planning" in view of the provisions of Note 3 . In this model, four priorities have been envisaged as follows:
1- Agriculture, 2- Industry and mine, 3- Services, and 4- Job Creation.
The data collected from the Fars province Budget and Plan Department for five years (1996-2001) underlie our model which can endorse the optimal allocation of credits for each year.
The outcomes gained from this model have been compared with real distribution of credits, representing that the current method used for credits allocation has not been optimal. This method has not only been unable to reach the set goals but it has also led to fragmentation of credits. Also the apportionment of a part of the budget under the rubric of "undistributed credits" without any prior fixed program for its distribution, has been a barrier to reach upper levels of optimizing aggregate to credits allocation.
It has also been indicated that the proposed model will have the potentialities of achieving the set goals upon optimizing allocations with regard to the prescribed limitations, predicting
the possible deficit or surplus as well as providing help for decision-makers in the problem-solving process.
University of Tehran
Accounting and Auditing Review
2645-8020
9
1
2002
12
22
-
-
13227
FA
Journal Article
1970
01
01
In retrospect, two deciades has passed since the translation of the International Accounting Standards (IAS), formation of the Iranian Accounting Standard Committee (IASC) and Pronouncement of its statements of financial accounting standards that were assumed to be in compliance with the IAS.
Regardless of the pros and cons given on worldwide harmonization and adherence to the IAS, the goal of this article is to evaluate the possibility of "fair presentation of financial statements" in Iran, which is the main objective of the IAS. The legal requirements in Iran to use the same set of books for both tax and financial accounting, the use of the same depreciation charges for both tax and accounting purposes, mani pulation of some of the IAS like elimination of LIFO method and the like are obstacles which makes it impossible to develop professional
judgment for "fair presentation" of financial statements. This article has related these obstacles to the cultural values of Iran, which in turn affect accounting values.
In retrospect, two deciades has passed since the translation of the International Accounting Standards (IAS), formation of the Iranian Accounting Standard Committee (IASC) and Pronouncement of its statements of financial accounting standards that were assumed to be in compliance with the IAS.
Regardless of the pros and cons given on worldwide harmonization and adherence to the IAS, the goal of this article is to evaluate the possibility of "fair presentation of financial statements" in Iran, which is the main objective of the IAS. The legal requirements in Iran to use the same set of books for both tax and financial accounting, the use of the same depreciation charges for both tax and accounting purposes, mani pulation of some of the IAS like elimination of LIFO method and the like are obstacles which makes it impossible to develop professional
judgment for "fair presentation" of financial statements. This article has related these obstacles to the cultural values of Iran, which in turn affect accounting values.
University of Tehran
Accounting and Auditing Review
2645-8020
9
1
2002
12
22
-
-
13228
FA
Journal Article
1970
01
01
The technical Committee of the Audit Organization has issued an exposure draft regarding the analysis of the issues relating to Segmental Reporting. The first issue to resolved by the Committee is whether or not information about segments of an enterprise should be included in financial statements. This article presents the results of a post-test with the control group experiment conducted to determine the effects on investment analysis of the presence of segmental data in financial statements of diversified firms and the results of a cross-sectional survey carried out to determine the costs and benefits of disclosing segmental information in Iran. The authors strongly believe that the benefits of disclosing disaggregated financial information exceed the related disclosure costs and that the introduction of segmental data can significantly reverse ananlysts' evaluations of the diversified firms presented to them in this study. Therefore, they conclude that diversified firms should include segmental data in their annual and interim financial reports.
The technical Committee of the Audit Organization has issued an exposure draft regarding the analysis of the issues relating to Segmental Reporting. The first issue to resolved by the Committee is whether or not information about segments of an enterprise should be included in financial statements. This article presents the results of a post-test with the control group experiment conducted to determine the effects on investment analysis of the presence of segmental data in financial statements of diversified firms and the results of a cross-sectional survey carried out to determine the costs and benefits of disclosing segmental information in Iran. The authors strongly believe that the benefits of disclosing disaggregated financial information exceed the related disclosure costs and that the introduction of segmental data can significantly reverse ananlysts' evaluations of the diversified firms presented to them in this study. Therefore, they conclude that diversified firms should include segmental data in their annual and interim financial reports.