Determinants and harmonisation of Asia‐Pacific manufacturing companies' measurement practices

Lin Chong, W., Tower, G. and Taplin, R. (2000) Determinants and harmonisation of Asia‐Pacific manufacturing companies' measurement practices. Asian Review of Accounting, 8 (2). pp. 81-103.

Abstract

This paper examines accounting harmonisation and determinants explaining accounting measurement policy choice decisions by Asia-Pacific listed manufacturing companies. Using Thomas' (1991) theoretical framework, four contingent variables (country of reporting, company size, profitability and debt leverage) are examined as possible determinants of firms' accounting choices concerning non-current asset valuation measurement base, goodwill and depreciation. 130 listed manufacturing companies' annual reports were examined from Australia, Hong Kong, Indonesia, Malaysia, and Singapore. This study involves two phases. The first phase evaluates accounting harmonisation measurement indices in comparison with the extant literature. An important innovation is the operationalisation of Archer et. al. (1995) between-country and within-country C indices. Computed comparability indices indicated variations in the level of harmony across the five countries for all three accounting measurement practices. The second phase employed logistic regression to examine possible determinants of accounting policy choice decisions. Such a combined research approach should lead to a better understanding of de facto accounting harmonisation and practices.

Item Type:	Journal Article
Publisher:	Emerald Group Publishing Ltd
Copyright:	© 2000, MCB UP Limited
URI:	http://researchrepository.murdoch.edu.au/id/eprint/34547

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