Journal of Management Research

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Non-compliance with Accounting Standard for Lease Transactions


Affiliations
1 University of Windsor Odette School of Business Windsor, Ontario N9B 3P4, Canada
     

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It is argued that companies are structuring lease agreements so that leases can be classified as operating thus enhancing their financial results. The International Accounting Standards Board recently proposed that the present classification be removed and all leases would appear on the balance sheet. This paper compares the opinions of 63 qualified accountants in Canada and 54 qualified accountants in Malaysia on the present regulations and the possibility of abuse of present accounting standards. Canadian accountants are more likely to agree than Malaysian accountants that present standards are being abused and there is statistical support that accountants in Malaysia with shorter work experience are more likely to consider that the standard is abused than those with longer work experience. Reasons are suggested for these differences. The paper concludes by identifying potential avenues for further research which would extend our knowledge on the development and implementation of new standards and improve our understanding of the potential relationship between expressed opinions and the personal attributes of the respondents.

Keywords

Accounting for Leases, Regulatory Non-compliance, Accounting for Leases in Malaysia, Accounting for Leases in Canada, Leasing Transactions, Accountants’ Opinions on Leasing Standards
User
Notifications

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  • Non-compliance with Accounting Standard for Lease Transactions

Abstract Views: 480  |  PDF Views: 5

Authors

Audra Ong
University of Windsor Odette School of Business Windsor, Ontario N9B 3P4, Canada

Abstract


It is argued that companies are structuring lease agreements so that leases can be classified as operating thus enhancing their financial results. The International Accounting Standards Board recently proposed that the present classification be removed and all leases would appear on the balance sheet. This paper compares the opinions of 63 qualified accountants in Canada and 54 qualified accountants in Malaysia on the present regulations and the possibility of abuse of present accounting standards. Canadian accountants are more likely to agree than Malaysian accountants that present standards are being abused and there is statistical support that accountants in Malaysia with shorter work experience are more likely to consider that the standard is abused than those with longer work experience. Reasons are suggested for these differences. The paper concludes by identifying potential avenues for further research which would extend our knowledge on the development and implementation of new standards and improve our understanding of the potential relationship between expressed opinions and the personal attributes of the respondents.

Keywords


Accounting for Leases, Regulatory Non-compliance, Accounting for Leases in Malaysia, Accounting for Leases in Canada, Leasing Transactions, Accountants’ Opinions on Leasing Standards

References