Ron Day and Neil Hartnett
This paper examines the controversy surrounding the use of the Inverted‐Sum‐Of‐Years‐Digits (ISOYD) method of goodwill amortisation and events leading to its banning by the…
Abstract
This paper examines the controversy surrounding the use of the Inverted‐Sum‐Of‐Years‐Digits (ISOYD) method of goodwill amortisation and events leading to its banning by the Australian accounting regulatory bodies. Companies using the method claimed that a prohibition would reduce their share price and international competitiveness. On the other hand, efficient capital market proponents argued that the amortisation method was irrelevant to the economic position of a firm in the absence of any cash flow effects. This paper discusses these conflicting views and investigates possible motives for the choice of goodwill amortisation method through a cross‐company analysis of key characteristics. In addition, sharemarket reaction to key events leading to the change of policy was examined using conventional event‐study methodology. The cross‐company analysis revealed significant differences in the goodwill characteristics between ISOYD companies and non‐ISOYD companies which may have motivated their choice. The result of the event‐study found that no significant abnormal return could be unequivocally attributed to any of the key events or announcements.
Neil Hartnett, Jennifer Römcke and Christine Yap
This paper considers the association between instruction style and student academic performance, and draws from recent laboratory research where accounting student performance was…
Abstract
This paper considers the association between instruction style and student academic performance, and draws from recent laboratory research where accounting student performance was found to be closely associated with the effect of instructor behaviour upon student task motivation and deep learning. Drawing upon emergent motivation theory, we discuss the proposition that appropriate instructor behaviours, through their positive effect upon student task motivation, anxiety and emergent confidence, can induce an upward performance shift, or interrupt a downward shift. A performance spiral model is modelled whereby students carry with them the learning responses from repeated good (or poor) performance into subsequent task settings, with corresponding accentuated effects upon anxiety and motivation.
This paper aims to extend the research into company financial forecasts by modelling naïve earnings forecasts derived from normalised historic accounting data disclosed during…
Abstract
Purpose
This paper aims to extend the research into company financial forecasts by modelling naïve earnings forecasts derived from normalised historic accounting data disclosed during Australian initial public offerings (IPOs). It seeks to investigate naïve forecast errors and compare them against their management forecast counterparts. It also seeks to investigate determinants of differential error behaviour.
Design/methodology/approach
IPOs were sampled and their prospectus forecasts, historic financial data and subsequent actual financial performance were analysed. Directional and absolute forecast error behaviour was analysed using univariate and multivariate techniques.
Findings
Systematic factors associated with error behaviour were observed across the management forecasts and the naïve forecasts, the most notable being audit quality. In certain circumstances, the naïve forecasts performed at least as well as management forecasts. In particular, forecast interval was an important discriminator for accuracy, with the superiority of management forecasts only observed for shorter forecast intervals.
Originality/value
The results imply a level of “disclosure management” regarding company IPO forecasts and normalised historic accounting data, with forecast overestimation and error size more extreme in the absence of higher quality third‐party monitoring services via the audit process. The results also raise questions regarding the serviceability of normalised historic financial information disclosed in prospectuses, in that many of those data do not appear to enhance the forecasting process, particularly when accompanied by published management forecasts and shorter forecast intervals.
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This chapter uses Dewey’s seminal Democracy and Education (1916) as a key text to investigate the concept of the democratic curriculum. I argue that a democratic curriculum is one…
Abstract
This chapter uses Dewey’s seminal Democracy and Education (1916) as a key text to investigate the concept of the democratic curriculum. I argue that a democratic curriculum is one where a series of educational innovations or procedures are followed. These are as follows: a removal of the existing division between ‘academic’ and ‘vocational’ education; pedagogy in the form of discussion and dialogue; negotiation of curriculum aims and objectives with students and other local stakeholders. The focus of attention will be on the English school curriculum (both primary and secondary), especially concerning the National Curriculum, and the debate over ‘standards’ and testing. A tentative link between the democratic curriculum and increased student motivation and participation is made.
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Investigates the differences in protocols between arbitral tribunals and courts, with particular emphasis on US, Greek and English law. Gives examples of each country and its way…
Abstract
Investigates the differences in protocols between arbitral tribunals and courts, with particular emphasis on US, Greek and English law. Gives examples of each country and its way of using the law in specific circumstances, and shows the variations therein. Sums up that arbitration is much the better way to gok as it avoids delays and expenses, plus the vexation/frustration of normal litigation. Concludes that the US and Greek constitutions and common law tradition in England appear to allow involved parties to choose their own judge, who can thus be an arbitrator. Discusses e‐commerce and speculates on this for the future.
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Renée O'Leary and Riccardo Polosa
This paper aims to overview the need for tobacco harm reduction, the consumer products that facilitate tobacco harm reduction and the barriers to its implementation. The worldwide…
Abstract
Purpose
This paper aims to overview the need for tobacco harm reduction, the consumer products that facilitate tobacco harm reduction and the barriers to its implementation. The worldwide endemic of tobacco smoking results in the death of over seven million smokers a year. Cigarette quit rates are very low, from 3%–12%, and relapse rates are high, from 75%–80% in the first six months and 30%–40% even after one year of abstinence. In addition, some smokers do not desire to quit. Cigarette substitution in tobacco harm reduction is one strategy that may reduce the burden of morbidity and mortality.
Design/methodology/approach
This review examines the displacement of smoking through substitution of non-combustible low-risk products such as snus, heated tobacco products and e-cigarettes.
Findings
Toxicological testing, population studies, clinical trials and randomized controlled trials demonstrate the potential reductions in exposures for smokers. Many barriers impede the implementation of product substitution in tobacco harm reduction. These products have been subjected to regulatory bans and heavy taxation and are rejected by smokers and society based on misperceptions about nicotine, sensational media headlines and unsubstantiated fears of youth addiction. These barriers will need to be addressed if tobacco harm reduction is to make the maximum impact on the tobacco endemic.
Originality/value
This review provides the rationale for tobacco harm reduction, evaluates the current products available and identifies the barriers to implementation.