Financial economic models often assume that investors know (or agree on) the fundamental value of... more Financial economic models often assume that investors know (or agree on) the fundamental value of the shares of the firm, easing the passage from the individual to the collective dimension of the financial system generated by the Share Exchange over time. Our model relaxes that heroic assumption of one unique "true value" and deals with the formation of share market prices through the dynamic formation of individual and social opinions (or beliefs) based upon a fundamental signal of economic performance and position of the firm, the forecast revision by heterogeneous individual investors, and their social mood or sentiment about the ongoing state of the market pricing process. Market clearing price formation is then featured by individual and group dynamics that make its collective dimension irreducible to its individual level. This dynamic holistic approach can be applied to better understand the market exuberance generated by the Share Exchange over time.
This paper aims at understanding the recent evolution of Chinese accounting standards while focus... more This paper aims at understanding the recent evolution of Chinese accounting standards while focusing on accounting for business combinations as a case of reference. A comprehensive comparative analysis between the standards of the International Accounting Standards ...
The paper addresses two distinct aspects of disharmony in international accounting standards sett... more The paper addresses two distinct aspects of disharmony in international accounting standards setting. The first aspect relates to the political economic context of financial accounting standards. This is illustrated by the Chinese standards setters' decision to allow the pooling of interests method of accounting for business combinations despite the prohibition of this method by both the FASB and the IASB. This decision by the Chinese standards setters appears to have been based on political economic factors related to the need for industrial reorganization in China rather than a desire to serve the needs of global capital markets. The second aspect of disharmony relates to the role played by differential understandings of the fundamental objectives of financial reporting in an international context. The IASB's goal of producing one set of global accounting standards to serve the needs of global capital markets has led to a reduction in the number of permissible accounting methods and a move towards the fair value accounting model. In particular, the IASB concluded that the acquisition method of accounting for business combinations should be the only method allowed for business combinations. In contrast, the Chinese standards setters have recognized the existence of both mergers and acquisitions, and in response they created two different methods of accounting for business combinations. Effectively, the Chinese standards setters developed an alternative approach to accounting for business combinations which challenges the IASB's goal of achieving international accounting convergence through the fair value model. (Q. Zhang). 1 The joint FASB/IASB conceptual framework project states that: "The objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors in making decisions in their capacity as capital providers. Capital providers are the primary users of financial reporting" .
ABSTRACT Since the nineties, UK has been progressively adopting a Governmental accounting reform ... more ABSTRACT Since the nineties, UK has been progressively adopting a Governmental accounting reform purporting to interpret and mimic accounting standards and practices from the private sector. Since 2009, the UK set of accounting standards applicable to the whole of central government entities is based upon the international accounting standards (IFRS) initially designed for commercial enterprises, the latter standards having extensively inspired the International Public Sector Accounting Standards (IPSAS). This article summarizes the main pattern of this English accounting reform and analyses some theoretical and practical concerns raised by its application of a fair value accounting model to the public administration. Among others, these concerns are illustrated by the case of public private partnerships (PPP, PFI) that have been held off balance sheet (eluding then accounting and budgetary controls) notwithstanding their material impact on English public deficit and debt. The paper drives then relevant considerations and implications for representation and control of public deficit and debt in UK and in general.
La nouvelle « constitution comptable et financière de l'État français » (LOLF) exige, entre autre... more La nouvelle « constitution comptable et financière de l'État français » (LOLF) exige, entre autres, que :
This paper develops a theoretical analysis of performance measurement systems (including related ... more This paper develops a theoretical analysis of performance measurement systems (including related accounting standards) and the composition of the Board in the context of business models driven by complementarities, innovation and intangibles. Performance management systems frame and shape the representation of business performance and risk, while the composition of the Board is designed to control and govern the business processes and disclosure of information over time. Complementarities, intangibles and innovation exacerbate the information asymmetry that characterizes the specific economy of the business firm, making it different from external markets. Therefore, firm-specific information becomes as important as market prices to gauge the past and future performance and risk of the ongoing business firm. Specific knowledge of the firm is therefore required to disclose relevant and reliable information and to monitor corporate executives. This argues for the role of improved historical cost accounting systems coupled with non-independent, proficient Board members.
In the last decade, the European Union (EU) has reformed its accounting system, issuing its own c... more In the last decade, the European Union (EU) has reformed its accounting system, issuing its own conceptual framework and 18 accounting standards that draw upon the International Public Sector Accounting Standards (IPSAS) issued by the IPSAS Board. The aim of this article is to analyse this renewed EU accounting system that frames and shapes financial accounting and reporting of the European Communities (EC), in order to assess its capacity to "truly and fairly" represent EC economic activity as a non-business entity.
Article takes a different approach. It introduces a "systemic efficiency" criterion based on welf... more Article takes a different approach. It introduces a "systemic efficiency" criterion based on welfare ranges for individuals in addition to the total sum. Using this criterion, this Article argues that, by requiring explicit income-sharing and joint-decision instrumentalities, the entity solution is the most efficient and equitable solution to the social cost problem.
Financial economic models often assume that investors know (or agree on) the fundamental value of... more Financial economic models often assume that investors know (or agree on) the fundamental value of the shares of the firm, easing the passage from the individual to the collective dimension of the financial system generated by the Share Exchange over time. Our model relaxes that heroic assumption of one unique "true value" and deals with the formation of share market prices through the dynamic formation of individual and social opinions (or beliefs) based upon a fundamental signal of economic performance and position of the firm, the forecast revision by heterogeneous individual investors, and their social mood or sentiment about the ongoing state of the market pricing process. Market clearing price formation is then featured by individual and group dynamics that make its collective dimension irreducible to its individual level. This dynamic holistic approach can be applied to better understand the market exuberance generated by the Share Exchange over time.
This paper aims at understanding the recent evolution of Chinese accounting standards while focus... more This paper aims at understanding the recent evolution of Chinese accounting standards while focusing on accounting for business combinations as a case of reference. A comprehensive comparative analysis between the standards of the International Accounting Standards ...
The paper addresses two distinct aspects of disharmony in international accounting standards sett... more The paper addresses two distinct aspects of disharmony in international accounting standards setting. The first aspect relates to the political economic context of financial accounting standards. This is illustrated by the Chinese standards setters' decision to allow the pooling of interests method of accounting for business combinations despite the prohibition of this method by both the FASB and the IASB. This decision by the Chinese standards setters appears to have been based on political economic factors related to the need for industrial reorganization in China rather than a desire to serve the needs of global capital markets. The second aspect of disharmony relates to the role played by differential understandings of the fundamental objectives of financial reporting in an international context. The IASB's goal of producing one set of global accounting standards to serve the needs of global capital markets has led to a reduction in the number of permissible accounting methods and a move towards the fair value accounting model. In particular, the IASB concluded that the acquisition method of accounting for business combinations should be the only method allowed for business combinations. In contrast, the Chinese standards setters have recognized the existence of both mergers and acquisitions, and in response they created two different methods of accounting for business combinations. Effectively, the Chinese standards setters developed an alternative approach to accounting for business combinations which challenges the IASB's goal of achieving international accounting convergence through the fair value model. (Q. Zhang). 1 The joint FASB/IASB conceptual framework project states that: "The objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors in making decisions in their capacity as capital providers. Capital providers are the primary users of financial reporting" .
ABSTRACT Since the nineties, UK has been progressively adopting a Governmental accounting reform ... more ABSTRACT Since the nineties, UK has been progressively adopting a Governmental accounting reform purporting to interpret and mimic accounting standards and practices from the private sector. Since 2009, the UK set of accounting standards applicable to the whole of central government entities is based upon the international accounting standards (IFRS) initially designed for commercial enterprises, the latter standards having extensively inspired the International Public Sector Accounting Standards (IPSAS). This article summarizes the main pattern of this English accounting reform and analyses some theoretical and practical concerns raised by its application of a fair value accounting model to the public administration. Among others, these concerns are illustrated by the case of public private partnerships (PPP, PFI) that have been held off balance sheet (eluding then accounting and budgetary controls) notwithstanding their material impact on English public deficit and debt. The paper drives then relevant considerations and implications for representation and control of public deficit and debt in UK and in general.
La nouvelle « constitution comptable et financière de l'État français » (LOLF) exige, entre autre... more La nouvelle « constitution comptable et financière de l'État français » (LOLF) exige, entre autres, que :
This paper develops a theoretical analysis of performance measurement systems (including related ... more This paper develops a theoretical analysis of performance measurement systems (including related accounting standards) and the composition of the Board in the context of business models driven by complementarities, innovation and intangibles. Performance management systems frame and shape the representation of business performance and risk, while the composition of the Board is designed to control and govern the business processes and disclosure of information over time. Complementarities, intangibles and innovation exacerbate the information asymmetry that characterizes the specific economy of the business firm, making it different from external markets. Therefore, firm-specific information becomes as important as market prices to gauge the past and future performance and risk of the ongoing business firm. Specific knowledge of the firm is therefore required to disclose relevant and reliable information and to monitor corporate executives. This argues for the role of improved historical cost accounting systems coupled with non-independent, proficient Board members.
In the last decade, the European Union (EU) has reformed its accounting system, issuing its own c... more In the last decade, the European Union (EU) has reformed its accounting system, issuing its own conceptual framework and 18 accounting standards that draw upon the International Public Sector Accounting Standards (IPSAS) issued by the IPSAS Board. The aim of this article is to analyse this renewed EU accounting system that frames and shapes financial accounting and reporting of the European Communities (EC), in order to assess its capacity to "truly and fairly" represent EC economic activity as a non-business entity.
Article takes a different approach. It introduces a "systemic efficiency" criterion based on welf... more Article takes a different approach. It introduces a "systemic efficiency" criterion based on welfare ranges for individuals in addition to the total sum. Using this criterion, this Article argues that, by requiring explicit income-sharing and joint-decision instrumentalities, the entity solution is the most efficient and equitable solution to the social cost problem.
Uploads
Papers by Yuri Biondi