فصلنامه مطالعات تجربی حسابداری مالی
پیاپی 1 (بهار 1382)

This study examines the relationship among the cultural values of Iranian society, disclosure and conservatism degree of Iranian firms in presentation of financial statements. It is argued that an empirical relation exist between the cultural value, as conceived by Hofstede’s theory of the four dimensions of cultural values (power distance, uncertainty avoidance, individualism, and masculinity) and the accounting values are captured by Gray’s two dimension (conservatism and secrecy). 64 corporate annual reports registered on Tehran Stock Exchange (TSE) were examined in order to determine whether culture values correlate with the degree of conservatism and level of disclosure. The results in general support the theoretical expectations.

On the basis of "Property Right" Theory, a company is considered as a small group of written or unwritten, formal or informal agreements between beneficiaries and their links: and it is supposed that each person follows his interests and a conflict of interest exists among them. The information inserted in financial report is used in the process of drafting contracts between persons and company. For loan contracts by using ratios, such as the ratio of debt to owner's equity limitations are imposed on managers in transferring wealth from loaners to shareholders. Using accounting income in bonus schemes in order to decrease the conflict of interest between shareholders and management, and in order to prevent managers from leaving is amongst management responsibilities. Finally, using accounting information in political processes such as tax determination, pricing of goods and services, economic decision makings, etc. are samples of accounting information used by loaners, owners and governments. Wealth of persons is also affected by the accounting information prepared by managers. In spite of conflict of interest and effect of accounting information on wealth of mentioned beneficiaries, it is necessary to choose independent auditors for monitoring and attesting this information. Independent auditors, who are chosen in shareholders general meetings, impartially make a professional comment, by auditing vouchers, documents and evidences supporting financial statements. Independent auditors report accredit accounting information which from the basis of decision makings of beneficiaries. Researches, done in other countries, show that projected cases in independent auditors reports and specially the explanatory paragraph or paragraphs inserted, are used for company's general meeting decision making in order to decide on adjustments, profit division, managers bonus, etc. Furthermore, mentioned accounting reports are used by government, politicians, stock exchange, credit institutions and banks for different decision makings. The purpose of this research is to find the answer to the question: "What is the lack of auditors reports effect on company's general meetings decision making and governmental organizations, like ministry of economic and finance, stock exchange and banks caused by?" In order to find the answer to the above question, the research is compiled in the form of seven research hypotheses. In this research, 46 companies accepted in stock exchange in the period of years 1994 to 1996, are studied and variables extracted from documented evidence are subjected to the research hypotheses. Conclusion of the research shows that in spite of presence of major shareholders and increasing of share percentage, substantive separation of ownership from management has not been achieved. The lack of substantive separation of ownership from management, lack or weakness of conflict of interest between owner and/or manager and closeness (direct access) of owner to financial information and in some cases support and restrictions of business law have effect on how independent auditor's reports are used in company general meeting decision making. Lack of related laws and provisions cause the manner in which independent auditors report effect decision making of governmental institutions and banks. Finally, the researcher, on the basis of performed studies and conclusions of this research, has made suggestions on this topic and recommended subjects for future researches.

Understanding the international dimensions of accounting is vital for anyone who wants to do business or invest across national borders. Accounting amounts may vary substantially according to the principles that govern them. Differences in culture, business practices, Political and regulatory structures, Currency values, foreign exchange rates, local inflation rates, business risks, and tax codes must be considered in deciding where and how to do business. Financial Statements and other disclosures are impossible to understand without an awareness of the underlying accounting principles and business culture. We discuss how accounting has developed historically, and offers a system of classification designed to help you understand the similarities and differences which you will find among national accounting principles. Accounting principles are often developed on an ad hoc basis and embody, in complicated and unpredictable ways, the information needs of managers, investors, bank and other creditors, tax authorities, Politicians and regulators, employee, and (increasingly) international organizations, among others. Resulting accounting systems vary dramatically in purpose, design, operation, and effect.

This Paper Provides empirical evidence on the predictive ability of nonearning annual report numbers under an earning prediction approach. The most studies report that earning were generated by a random walk Process. The paper investigates information Content of accounting items. The Logit prediction models were estimated based on pooled data set of 71 firms over the period 1371-79. The result demonstrates the predictive power of accounting item to explain and Forecast of earnings. However the predictive Performance model in the period 1377-79 was not significantly different from random walk model; except in 1378. Gross margin ratio, growth in Assets per share, growth in Assets, growth in Sales to assets ratio, total debt to total assets, pretax income to sales, growth in net income to sales, growth in operating expense to sales and changes in return on equity, correlated with earnings and these explanatory variables whose estimated coefficients had a wald Statistic significantly different from zero at the 10% level. The finding suggest that a firm's nonearings annual report numbers contain information concerning the direction of its next year's earnings change.