This paper1 empirically examines the accounting and the economic effects of foreign exchange rate fluctuations on the oil and gas industry under the former and the current translation accounting standards in Australia...This paper1 empirically examines the accounting and the economic effects of foreign exchange rate fluctuations on the oil and gas industry under the former and the current translation accounting standards in Australia. Due to the unique features of the oil and gas industry and based on an analysis of the former standard-Australian Accounting Standards Board （AASB） 1012, the authors predict that a positive translation adjustment （the accounting effect） is associated with a loss, instead of a creation of the firm value （the economic effect） under AASB 1012. The authors also predict that the new standard AASB 121, adapted from the International Accounting Standard （IAS） 21 with modifications, will report translation adjustments that are consistent with the economic effects. By using Australia-based multinational oil and gas firms, the authors find that translation adjustments under AASB 1012 are inversely associated with firm value and that the relationship changes to a positive one under AASB 121. This study concludes that the new standard has the potential to improve the quality of the translation accounting information.展开更多
We studied monthly seasonality in the top 50 Australian stocks across different industry sectors. Unlike other Australian studies, we examined monthly seasonality using stock return data of individual companies for th...We studied monthly seasonality in the top 50 Australian stocks across different industry sectors. Unlike other Australian studies, we examined monthly seasonality using stock return data of individual companies for the period of January 1980 through to August 2010. We found that stock returns of over half of the 50 companies are significantly positive in April and December, and most companies have low stock returns in October. Seven companies have higher returns in April than in other months of the year, most of which are banking and financial services companies, while six companies have lower returns in February than in other months. Although Australia has a July-June taxation cycle, we found that only three stocks have a July anomaly. The findings are inconsistent with the tax-loss selling hypothesis and other studies on the Australian equity markets （e.g., Brown, Keim, Kleidon, ＆ Marsh, 1983; Brailsford ＆ Easton, 1991）. However, our findings are generally consistent with Bonin and Moses （1974） on individual stock seasonality展开更多
The starting point for the research was the evidence of a possible contradiction in the provisions of IAS 12 on goodwill and deferred income taxes, i.e., about the need to calculate deferred income taxation on tempora...The starting point for the research was the evidence of a possible contradiction in the provisions of IAS 12 on goodwill and deferred income taxes, i.e., about the need to calculate deferred income taxation on temporary differences relating to all assets except for goodwill. This paper aims at exploring the degree of consistency between the theoretical provisions of International Accounting Standards （IAS）/International Financial Reporting Standards （IFRS） and their actual application by the management of Italian and Bulgarian listed companies, as regards the accounting treatments of deferred income taxes relating to the item ＂goodwill＂. The findings suggest that there are some differences between the accounting methods used by the management of most Italian listed companies and the provisions of IAS/IFRS. It can be argued that the rules given by IAS/IFRS are sometimes contradictory, since they may cause doubts in interpretation. As a consequence, in the end of the paper, an amendment to the provisions, set forth in IAS/IFRS concerning the accounting treatment of deferred income taxes relating to the item ＂goodwill＂, is proposed.展开更多
Australia＇s liquefied natural gas industry~ has been growing rapidly in recent years. As China＇ s natural gas production drops and its demand for clean energy sources, such as natural gas, grows, LNG, as a complemen...Australia＇s liquefied natural gas industry~ has been growing rapidly in recent years. As China＇ s natural gas production drops and its demand for clean energy sources, such as natural gas, grows, LNG, as a complement to piped natural gas, will be an important part of China＇s strategy of ensuring its natural gas consumption. Aware of this market opportunity , China＇s three big national oil companies, CNPC, CNOOC and Sinopec have all inw＇sted in Australia＇s LNG sector. Chinese oil companies are facing multiple challenges in their Australian LNG projects, including strict environmental taws and high labor cost. These companies should strengthen communication with local government to create a good investment environment for LNG projects.展开更多
文摘This paper1 empirically examines the accounting and the economic effects of foreign exchange rate fluctuations on the oil and gas industry under the former and the current translation accounting standards in Australia. Due to the unique features of the oil and gas industry and based on an analysis of the former standard-Australian Accounting Standards Board （AASB） 1012, the authors predict that a positive translation adjustment （the accounting effect） is associated with a loss, instead of a creation of the firm value （the economic effect） under AASB 1012. The authors also predict that the new standard AASB 121, adapted from the International Accounting Standard （IAS） 21 with modifications, will report translation adjustments that are consistent with the economic effects. By using Australia-based multinational oil and gas firms, the authors find that translation adjustments under AASB 1012 are inversely associated with firm value and that the relationship changes to a positive one under AASB 121. This study concludes that the new standard has the potential to improve the quality of the translation accounting information.
文摘We studied monthly seasonality in the top 50 Australian stocks across different industry sectors. Unlike other Australian studies, we examined monthly seasonality using stock return data of individual companies for the period of January 1980 through to August 2010. We found that stock returns of over half of the 50 companies are significantly positive in April and December, and most companies have low stock returns in October. Seven companies have higher returns in April than in other months of the year, most of which are banking and financial services companies, while six companies have lower returns in February than in other months. Although Australia has a July-June taxation cycle, we found that only three stocks have a July anomaly. The findings are inconsistent with the tax-loss selling hypothesis and other studies on the Australian equity markets （e.g., Brown, Keim, Kleidon, ＆ Marsh, 1983; Brailsford ＆ Easton, 1991）. However, our findings are generally consistent with Bonin and Moses （1974） on individual stock seasonality
文摘The starting point for the research was the evidence of a possible contradiction in the provisions of IAS 12 on goodwill and deferred income taxes, i.e., about the need to calculate deferred income taxation on temporary differences relating to all assets except for goodwill. This paper aims at exploring the degree of consistency between the theoretical provisions of International Accounting Standards （IAS）/International Financial Reporting Standards （IFRS） and their actual application by the management of Italian and Bulgarian listed companies, as regards the accounting treatments of deferred income taxes relating to the item ＂goodwill＂. The findings suggest that there are some differences between the accounting methods used by the management of most Italian listed companies and the provisions of IAS/IFRS. It can be argued that the rules given by IAS/IFRS are sometimes contradictory, since they may cause doubts in interpretation. As a consequence, in the end of the paper, an amendment to the provisions, set forth in IAS/IFRS concerning the accounting treatment of deferred income taxes relating to the item ＂goodwill＂, is proposed.
文摘Australia＇s liquefied natural gas industry~ has been growing rapidly in recent years. As China＇ s natural gas production drops and its demand for clean energy sources, such as natural gas, grows, LNG, as a complement to piped natural gas, will be an important part of China＇s strategy of ensuring its natural gas consumption. Aware of this market opportunity , China＇s three big national oil companies, CNPC, CNOOC and Sinopec have all inw＇sted in Australia＇s LNG sector. Chinese oil companies are facing multiple challenges in their Australian LNG projects, including strict environmental taws and high labor cost. These companies should strengthen communication with local government to create a good investment environment for LNG projects.
