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- All Subjects: Accounting
- Creators: School of Accountancy
- Creators: Chen, Yinong
Description
Depletion can be a common occurrence in today’s world where a rapid pace is the norm. Depletion is the using of a person’s self-monitoring resources that can erode one’s decision making ability. Depletion affects people in their day-to-day personal and professional lives and can especially be problematic when it compromises career prospects. Professionals, such as doctors, lawyers, and accountants, all make important decisions daily and in pursuit of quality decision-making must exert self-control and avoid impulsive reactions to environmental events. Many studies have been conducted providing evidence of the harmful effects of cognitive depletion; an extensive literature focuses on the medical profession where poor decision-making has life-and-death consequences. This thesis reflects on the effect of depletion on accounting professionals. To that extent, behavioral experiments were conducted using student participants: students that will be future accountants. This study found that accounting students’ performance on a subsequent task was influenced if they had completed a difficult first task. Accountants, along with all professionals, need to be made aware of this circumstance to ensure that those who may be more susceptible to their resources being depleted can find ways to be aware of their self-control levels.
ContributorsBlevins, Megan J (Author) / Clausen, Thomas (Thesis director) / Reckers, Philip (Committee member) / School of Accountancy (Contributor) / Dean, W.P. Carey School of Business (Contributor) / Barrett, The Honors College (Contributor)
Created2019-05
Description
The goal of this study is to assess differences that still exist in International Financial Reporting Standards based financial statements between otherwise similar firms. We undertake this study because one primary goal of IFRS is to enhance comparability of financial statements world-wide, but it is unclear to what extent that has happened. First, we assess whether different countries adopt different versions of IFRS. We find, adopting countries fully adopt IFRS with only minor alterations to IFRS as promulgated by the International Accounting Standards Board. We then test whether otherwise similar firms, but from different countries, interpret IFRS differently. IFRS is a principles-based set of accounting standards, and thus offers a wide array of options for companies to choose from in their reporting. The latitude of options in reporting inherently creates room for differences when firms interpret IFRS for their own financial statements. Building on prior studies (e.g., Ball (2016), Nobes (2011)), we find that historical country GAAP is influential, and in documented instances constrains comparability of otherwise similar firms located in different IFRS adopting countries. Based on our findings, we then offer suggestions to preparers and users of these financial statements, and the IASB, to address financial statement comparability issues (see appendix C).
ContributorsWalker, Brooke (Co-author) / Espinosa Jenkins, Lucas (Co-author) / Orpurt, Steven (Thesis director) / Rykaczewski, Maria (Committee member) / School of Accountancy (Contributor) / Department of Economics (Contributor) / Barrett, The Honors College (Contributor)
Created2020-05
Description
Inclusion of diverse talent in the field of public accounting has been highly prioritized by the profession since the late 1960s. In seeking to acquire racially/ethnically diverse talent in addition to an expanding set of identities (e.g. veterans, people with disabilities, LGTBQ+, and various backgrounds contributing to “diversity of thought”), Big Four Public Accounting firms have taken on more operational ownership of their Diversity and Inclusion programming. We conducted interviews with D&I program facilitators and surveyed Accounting and Finance students at Arizona State University to assess whether these programs align with students’ outlooks and are being properly presented to enhance awareness. The uniformity across the Big Four’s D&I program structures, the persistence in competition among them in relation to talent acquisition and retention, and students’ lack of awareness relating to program timing and existence lead us to conclude that efforts in improving diversity and inclusion in Big Four Public Accounting are most effective when the Big Four act collectively
ContributorsAlaniz, Leslie M (Co-author) / Quintana, Jacob (Co-author) / Samuels, Janet (Thesis director) / Dawson, Gregory (Committee member) / School of International Letters and Cultures (Contributor) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2020-05
Description
This paper consists of a literature review, wherein four papers surrounding Motivation Crowding Theory (MCT) were read and analyzed. The paper then goes into an analysis of a survey I conducted. The survey consisted of three main questions with three sub-questions for each, and all attempted to find a "limit" to MCT. However, results for the survey were ultimately inconclusive. The paper concludes with lessons learned in conducting research and surveys in particular, as well as a nod to the relevancy of MCT in business and personal applications.
ContributorsSmith, Mallory Anne (Author) / Reckers, Phil (Thesis director) / Samuelson, Melissa (Committee member) / Lowe, Jordan (Committee member) / School of Accountancy (Contributor) / Department of Information Systems (Contributor) / WPC Graduate Programs (Contributor) / Barrett, The Honors College (Contributor)
Created2020-05
Description
The purpose of this thesis was to create a valuation of Spotify (Ticker: SPOT) and estimate a share price for the company. Spotify is one of the largest music streaming services in the world, currently operating in 79 markets globally with a subscriber base of over 100 million people. Spotify initially offered April 3, 2018 at $132 per share and sees a huge amount of financial assets on their balance sheet due to continued investment. As a newly established high-growth company, Spotify has enjoyed a 30% average revenue growth year over year from 2014 to 2019. Although Spotify’s reach is quite large, the company is dwarfed by competitors such as Apple, Google, and Amazon in the extremely competitive music streaming industry. Within this paper, we first analyze the competitive landscape that makes up the music streaming industry. Once a baseline understanding of the music streaming industry has been reached, we turn the focus more directly onto Spotify through examining Spotify’s position within the market as well as the company’s current strategic goals and objectives. We then forecasted Spotify’s financial statements forward and created a residual income model (RIM) based on Spotify’s financial statements. As was previously stated, the purpose of this model was to arrive at a share price for Spotify that we believe accurately reflects its value and compare that with its current market trading price. After successfully accomplishing this goal, we conducted a comprehensive final analysis and offered Spotify recommendations based on the model as well and its output.
ContributorsRice, Ian (Co-author) / Nagele, Benjamin (Co-author) / Samuels, Janet (Thesis director) / Orpurt, Steven (Committee member) / School of Accountancy (Contributor) / WPC Graduate Programs (Contributor) / Barrett, The Honors College (Contributor)
Created2020-05
Description
This research study aims to find out the way how goodwill should be evaluated. This paper is about accounting for goodwill which will provide general information about goodwill value, especially of public companies. Additionally, I will discuss sources of goodwill, the importance of goodwill, why it is important to evaluate goodwill correctly, and what methods have been applied to evaluate goodwill. This thesis will analyze the advantages and disadvantages of both methods of accounting for goodwill which are the impairment testing method and the amortization method. This study is done by researching studies, journal articles, reviews, books, and websites about accounting. Lastly, this study will provide a suggestion for how goodwill should be evaluated effectively.
ContributorsPham, Trang Thi Thuy (Author) / Shields, Paul (Thesis director) / Huang, Xiaochuan (Committee member) / School of Accountancy (Contributor) / Department of Information Systems (Contributor) / Barrett, The Honors College (Contributor)
Created2021-05
Description
Materiality describes the level to which the misreporting of information could influence decisionmakers who use that information. Since materiality is a highly abstract concept, it requires metrics to support its application to financial statements and other documents. Nonprofit and for-profit firms have different missions, suggesting that material information for decisionmakers looking at nonprofits' reports may differ from material information for decisionmakers looking at for-profit firms' reports.
This paper examines how materiality applies to nonprofit information disclosure. It begins by introducing the concept of materiality. It then explores how accounting literature, rule-making bodies, and the courts define and apply materiality. Nonprofit firms' structure, required financial statements, and comparisons to for-profit firms are next addressed. Issues with assessing nonprofit success and materiality in relation to various aspects of a nonprofit's mission are also introduced.
This paper finds that the metrics which support materiality should be different for nonprofit vs. for-profit firms. Nonprofit materiality measures should center around the mission statement, which differs from nonprofit to nonprofit. These nonprofit materiality measures assess the primary mission of providing goods and services, which has the greatest interest to potential donors. Examples of these materiality measures, along with the challenges and insights gained from them, are discussed. This paper concludes by overviewing nonprofit materiality measures and noting how they can improve nonprofit information disclosure. Suggestions for further research into improving materiality for nonprofit information disclosure are also given.
This paper examines how materiality applies to nonprofit information disclosure. It begins by introducing the concept of materiality. It then explores how accounting literature, rule-making bodies, and the courts define and apply materiality. Nonprofit firms' structure, required financial statements, and comparisons to for-profit firms are next addressed. Issues with assessing nonprofit success and materiality in relation to various aspects of a nonprofit's mission are also introduced.
This paper finds that the metrics which support materiality should be different for nonprofit vs. for-profit firms. Nonprofit materiality measures should center around the mission statement, which differs from nonprofit to nonprofit. These nonprofit materiality measures assess the primary mission of providing goods and services, which has the greatest interest to potential donors. Examples of these materiality measures, along with the challenges and insights gained from them, are discussed. This paper concludes by overviewing nonprofit materiality measures and noting how they can improve nonprofit information disclosure. Suggestions for further research into improving materiality for nonprofit information disclosure are also given.
ContributorsBails, Robin Hong (Author) / Shields, David (Thesis director) / Alhusaini, Badryah (Committee member) / School of Accountancy (Contributor) / WPC Graduate Programs (Contributor) / Barrett, The Honors College (Contributor)
Created2020-12
Description
Blockchain is a sophisticated and complex technology that will have a massive impact on the public accounting industry. Currently there is concern surrounding how blockchain may impact the industry as a whole. Auditors and accountants are worried that this technology has the potential to replace the responsibilities they fulfill. However, blockchain technology will not replace accountants and will enhance their daily activities by eliminating menial tasks, providing increased transparency, and allowing time to be spent in areas that require more consideration. This will change the role of accountants and professionals, requiring them to be more technologically proficient and analytically minded. This paper is organized as follows. There will be an initial explanation of the technology to inform the reader of what blockchain is and how it works. Then there will be a discussion regarding how blockchain technology relates to, and can be utilized by, public accounting firms as well as the implications of blockchain on the public accounting industry. These implications will be discussed followed by why they are extraneous, and how to combat them in both the assurance and advisory practices. In conclusion, recommendations will be provided for public accounting firms on how to effectively utilize the technology to their benefit.
ContributorsLomsdalen, Stephen A (Co-author) / Charen, Stephanie (Co-author) / Samuelson, Melissa (Thesis director) / Garverick, Michael (Committee member) / School of Accountancy (Contributor) / WPC Graduate Programs (Contributor) / Barrett, The Honors College (Contributor)
Created2018-12
Description
The goal of this study was to explore the relationship between locus of control and the influence of an unethical authority figure. This research is a preliminary, exploratory study given research design limits. It was hypothesized that subjects oriented towards internal locus of control are better able to resist pressure from an unethical authority figure. Subjects oriented towards the powerful others and chance orientations were hypothesized to be less able to resist pressure from an unethical authority figure. The results found that the presence of an unethical authority figure had little to no influence on self-perceived unethical decision-making; the difference in unethical behavior between cases with an authority figure present and without one present was not statistically significant. Further, no support was found for the hypotheses as no statistically significant relationship between locus of control orientations and the difference between the control case and test case was found (R2 = 0.02, model P-value > 0.05). Further analysis confirmed the results of Detert et al. (2008), finding no relationship between survey subjects’ locus of control orientations and unethical decision-making. Additional analysis indicates a relationship between unethical decision-making and gender (B = -5.14, P = 0.03, P < 0.05), providing some interesting avenues for future research.
ContributorsAmorosi, Kaitlin (Author) / Samuelson, Melissa (Thesis director) / Orpurt, Steven (Committee member) / Department of Finance (Contributor) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2020-05
Description
Executive compensation is broken into two parts: one fixed and one variable. The fixed component of executive compensation is the annual salary and the variable components are performance-based incentives. Clawback provisions of executive compensation are designed to require executives to return performance-based, variable compensation that was erroneously awarded in the year of a misstatement. This research shows the need for the use of a new clawback provision that combines aspects of the two currently in regulation. In our current federal regulation, there are two clawback provisions in play: Section 304 of Sarbanes-Oxley and section 954 of The Dodd\u2014Frank Wall Street Reform and Consumer Protection Act. This paper argues for the use of an optimal clawback provision that combines aspects of both the current SOX provision and the Dodd-Frank provision, by integrating the principles of loss aversion and narcissism. These two factors are important to consider when designing a clawback provision, as it is generally accepted that average individuals are loss averse and executives are becoming increasingly narcissistic. Therefore, when attempting to mitigate the risk of a leader keeping erroneously awarded executive compensation, the decision making factors of narcissism and loss aversion must be taken into account. Additionally, this paper predicts how compensation structures will shift post-implementation. Through a survey analyzing the level of both loss- aversion and narcissism in respondents, the research question justifies the principle that people are loss averse and that a subset of the population show narcissistic tendencies. Both loss aversion and narcissism drove the results to suggest there are benefits to both clawback provisions and that a new provision that combines elements of both is most beneficial in mitigating the risk of executives receiving erroneously awarded compensation. I concluded the most optimal clawback provision is mandatory for all public companies (Dodd-Frank), targets all executives (Dodd-Frank), and requires the recuperation of the entire bonus, not just that which was in excess of what should have been received (SOX).
ContributorsLarscheid, Elizabeth (Author) / Samuelson, Melissa (Thesis director) / Casas-Arce, Pablo (Committee member) / WPC Graduate Programs (Contributor) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2018-12