Research
Inline XBRL New Emerging Technology
The purpose of this research study is to provide an understanding of the adoption of Inline XBRL in the United States. The eXtensible business reporting language (XBRL) has revolutionized the financial reporting system at the Securities and Exchange Commission (SEC). As members of the financial reporting community are aware of the importance of information technology, leaders of both public and private companies should consider the challenges and risks of adopting Inline XBRL. For instance, the most important challenges and risks to consider when adopting Inline XBRL are: (a) independent audit assurance, (b) appropriate set of controls and procedures, and (c) education review. Inline XBRL is currently replacing HTML submissions of separate files. The XBRL International will be responsible for Inline XBRL maintenance, including its format. Therefore, the European Securities and Market Authorities (ESMA) mandated the use of Inline XBRL as new technology with the intention of protecting the financial capital well-being in public markets.
The Importance of CSR in Financial Reporting Standards
The purpose of this article is to review the recent trends related to corporate social responsibility (CSR) and financial reporting standards. The researcher presents four CSR background theories to evaluate the importance of sustainability in the financial reporting arena. The Big Four accounting firms are promoting the importance of adopting CSR in financial statements. Scholars and practitioners acknowledge that there is an existing relationship between corporate governance and CSR. The 7Ps presented in the study served as guidance for developing a sustainable and adequate CSR financial reporting system. The three pillars that support sustainability are environmental, social, and economic. It is expected that in the future the triple bottom line theory (TBL) will be known as integrated report (IR). Evidently, the adoption of corporate responsibility in financial statements has the ability to increase the amount of relevant information provided to shareholders and stock exchange markets around the world.
The Unprecedented Business Ethical Dilemma in the World Financial Markets
The purpose of this article is to explore the importance of business ethics in the corporate business world. Good ethical practices and behaviors are critical to the success of organizations. The first code of professional conduct (as cited in Messier, Glover, and Prawitt, 2008) was introduced and written in 400 BC(Hippocratic Oath). The Sarbanes Oxley Act of 2002 brought financial transparency among corporate management and auditors in order to prevent white collar crime. Clement (2006) found in his study that in top 100 Fortune corporations, only forty engaged on unethical behavior. The Foreign Corrupt Practices Act (FCPA) is one of the fastest changing acts in the criminal law arena. It attempts to curb bribery of foreign officials that give business advantages to those paying the bribe. The Securities and Exchange Commission (SEC) has collected over $1.4 billion in fines (Turk, 2013) due to both illegal and unethical acts. In today's global economy, corporate scandals are increasing at a rapid pace.
Leading Innovation Change in Todayas Competitive Environment
The purpose of this article is to explore the existing relationship between leaders and today’s competitive environment and innovation. The three strategies that leaders (as cited in Cumming, 1998) can use to create a climate that encourages innovation are (1). The foundation of creativity, (2). The application of a new idea and (3). The applicability of a successful concept. Legrand and Weiss (2011) reveal that 80% of the leaders in the organization believe that innovation is important for the organization's future success. Bill Gates, the former Chief Executive Officer (CEO) of Microsoft clearly believed and understood that innovation is important element for organizational success. Innovation is the engine for growth for all businesses in the 21 century. Innovation and creativity (as cited in Angle, 1989) shared similar characteristics. Corporate culture and a climate that encourages innovation are two factors that are often found within the leadership literature. Therefore, a leader needs to understand the applicability of the living system theory among individuals and organizations by reshaping the social progress of the business world as noted by Vancouver (1996).
The Italian Food Sector Future Growth in Thais Market
The purpose of this article is to explore recent existing trends of opportunities in launching a new product in Thai’s market such as Italian Pasta. In addition, Bella Pasta Italiana is a fictitious company that introduces a SWOT analysis in the literature review that discusses, in depth, the main strategies of Bella Pasta Italiana doing business in Thailand. Moreover, Bella Pasta Italiana will adopt a marketing mix business strategy proposed by Griffin and Pustay (2015). Furthermore, from 2013 to 2020, the government of Thailand is willing to invest $67 billion in the country’s logistical infrastructure system (U.S. Commercial Service, 2014). For example, as The World Bank (2014) index indicates, it is very easy to do business in Thailand and the country index ranked Thailand as number 26 as compared to other populated countries in the Asian region. Therefore, from 2014 to 2018 the business environment in Thailand will improve its marginal and sustainability position (The Economist Intelligence Unit, 2014).
The Leading Financial Changed of Revenue Recognition by Business Enterprises under FASB vs. IASB
The purpose of this research study is to provide a relevant position about the emergence and adoption process of the revenue recognition project under Financial Accounting Standard Board (FASB) and International Accounting Standard Board (IASB) and its crucial financial reporting performance by business enterprises. In 2014 the Financial Accounting Standard Board (FASB) developed a conceptual framework in relation to the joint revenue recognition project. As a result, the Financial Accounting Standard Board (FASB) in an early announcement this year stated that the revenue recognition project will take place as early as 2015 as noted by Lemus (2014). However, the revenue recognition project will change its reporting perspective from historical cost value to fair value measurement. For example, the International Accounting Standard Board (IASB) noted that more than 95% of Small and Medium-sized Entities (SMEs) are allowed to use EFRS. Therefore, it is expected (as cited in Kieso, Weygandt, & Warfield, 2013) that the optional adoption process of International Financial Reporting Standards (IFRS) in the United States will take place as early as 2017.
The Financial Collapse of the Enron Corporation and its Impact in the United States Capital Market
The purpose of this article is to review the collapse of the Enron Corporation and the collapse’s effect on the United States financial market. Enron Corporation, the seventh largest company in the United States, misguided its shareholders by reporting $74 billion profit of which $43 billion was detected as fraud. Moreover, according to the association of fraud examiners $2.9 trillion was lost because of employee fraud. For example, as presented by Kieso, Weygandt, and Warfield (2013), in a global survey study that was conducted in 2013, it was reported that 3,000 executives from 54 countries were involved in fraudulent financial reporting. Therefore, the world of accounting is dominated by the top four accounting firms known as (1). PricewaterhouseCoopers (PwC), (2). Deloitte & Touche (DT), (3). Ernst & Young (EY) and (4). KPMG which represent a combined income of $80 billion.
The Similarities and Differences between the Financial Reporting Standards under United States. GAAP Versus IFRS
The purpose of the article is to review recent trends as it relates to the expected convergence process from United States Generally Accepted Accounting Principles (GAAP) to International Financial Reporting Standards (IFRS) that will take place as early as 2015. In addition, the idea of implementing International Financial Reporting Standards (IFRS) in the United States market is not only adopting one singular accounting system but also bringing foreign cash from multinationals by lowering the repatriation tax rate under IFRS so businesses can have the competitive advantage to continue operating in the global market arena. However, the prohibition of Last-In, First-Out (LIFO) under International Financial Reporting Standards (IFRS) represents a great challenge to the Financial Accounting Standard Board (FASB) and the Securities and Exchange Commission (SEC). As a result, according to Warren, Reeve, & Duchac (2014), approximately 127 countries have already adopted IFRS and Tyson (2011) predicts that the number of countries adopting IFRS will increase up to 150 countries worldwide. Therefore, IFRS claims to be more capital oriented, to provide more relevant information for investment decision, and to reflect better a firm’s economic position than United States GAAP as predicated by Florou & Kosi (2013).
