---
_id: '3542'
abstract:
- lang: eng
  text: "We study the historical development of Slovenian Accounting Standards (SAS)
    and their association with accounting quality (AQ). We focus on private firms
    where the financial reporting process is characterised by low demand for high-quality
    reporting. We investigate three distinct editions of SAS since 1994 and test how
    their development towards international standards is related to AQ. Aggregate
    earnings management measures indicate that the use of accounting discretion decreases
    with less earnings smoothing over time. The main features of AQ have been consistent
    throughout historical development. Asymmetric timeliness of earnings, the ability
    of earnings to predict future cash flows, and the ability of accruals to mitigate
    mismatching are all present throughout. We also document typical departures from
    properties of high AQ. For example, accruals do not (always) facilitate timely
    recognition of losses. However, these can be attributed to the overwhelming influence
    of reporting incentives (e.g. taxation, debt, size) rather than to the (lower)
    quality of accounting standards.\r\n\r\n\r\n     \r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
    \r\n\r\n\r\n\r\n Full Article  \r\n  Figures & data  \r\n References \r\n 
    Citations  \r\n \r\n Metrics \r\n  Reprints & Permissions \r\n  PDF \r\n \r\n
    \r\n\r\n\r\n\r\n\r\nAbstract\r\n\r\n\r\nWe study the historical development of
    Slovenian Accounting Standards (SAS) and their association with accounting quality
    (AQ). We focus on private firms where the financial reporting process is characterised
    by low demand for high-quality reporting. We investigate three distinct editions
    of SAS since 1994 and test how their development towards international standards
    is related to AQ. Aggregate earnings management measures indicate that the use
    of accounting discretion decreases with less earnings smoothing over time. The
    main features of AQ have been consistent throughout historical development. Asymmetric
    timeliness of earnings, the ability of earnings to predict future cash flows,
    and the ability of accruals to mitigate mismatching are all present throughout.
    We also document typical departures from properties of high AQ. For example, accruals
    do not (always) facilitate timely recognition of losses. However, these can be
    attributed to the overwhelming influence of reporting incentives (e.g. taxation,
    debt, size) rather than to the (lower) quality of accounting standards."
author:
- first_name: Aljosa
  full_name: Valentincic, Aljosa
  last_name: Valentincic
- first_name: Ales
  full_name: Novak, Ales
  last_name: Novak
- first_name: Urska
  full_name: Kosi, Urska
  id: '54068'
  last_name: Kosi
citation:
  ama: Valentincic A, Novak A, Kosi U. Accounting quality in private firms during
    the transition towards international standards. <i>Accounting in Europe</i>. 2017;14(3):358-387.
    doi:<a href="https://doi.org/10.1080/17449480.2017.1378821">10.1080/17449480.2017.1378821</a>
  apa: Valentincic, A., Novak, A., &#38; Kosi, U. (2017). Accounting quality in private
    firms during the transition towards international standards. <i>Accounting in
    Europe</i>, <i>14</i>(3), 358–387. <a href="https://doi.org/10.1080/17449480.2017.1378821">https://doi.org/10.1080/17449480.2017.1378821</a>
  bibtex: '@article{Valentincic_Novak_Kosi_2017, title={Accounting quality in private
    firms during the transition towards international standards}, volume={14}, DOI={<a
    href="https://doi.org/10.1080/17449480.2017.1378821">10.1080/17449480.2017.1378821</a>},
    number={3}, journal={Accounting in Europe}, author={Valentincic, Aljosa and Novak,
    Ales and Kosi, Urska}, year={2017}, pages={358–387} }'
  chicago: 'Valentincic, Aljosa, Ales Novak, and Urska Kosi. “Accounting Quality in
    Private Firms during the Transition towards International Standards.” <i>Accounting
    in Europe</i> 14, no. 3 (2017): 358–87. <a href="https://doi.org/10.1080/17449480.2017.1378821">https://doi.org/10.1080/17449480.2017.1378821</a>.'
  ieee: 'A. Valentincic, A. Novak, and U. Kosi, “Accounting quality in private firms
    during the transition towards international standards,” <i>Accounting in Europe</i>,
    vol. 14, no. 3, pp. 358–387, 2017, doi: <a href="https://doi.org/10.1080/17449480.2017.1378821">10.1080/17449480.2017.1378821</a>.'
  mla: Valentincic, Aljosa, et al. “Accounting Quality in Private Firms during the
    Transition towards International Standards.” <i>Accounting in Europe</i>, vol.
    14, no. 3, 2017, pp. 358–87, doi:<a href="https://doi.org/10.1080/17449480.2017.1378821">10.1080/17449480.2017.1378821</a>.
  short: A. Valentincic, A. Novak, U. Kosi, Accounting in Europe 14 (2017) 358–387.
date_created: 2018-07-11T08:57:03Z
date_updated: 2023-01-24T15:34:31Z
department:
- _id: '551'
- _id: '635'
- _id: '186'
doi: 10.1080/17449480.2017.1378821
intvolume: '        14'
issue: '3'
jel:
- M41
- C23
- L21
- P20
keyword:
- private firms
- accounting quality
- development of accounting standards
- IFRS-like standards
- Slovenia
language:
- iso: eng
page: 358-387
publication: Accounting in Europe
publication_status: published
status: public
title: Accounting quality in private firms during the transition towards international
  standards
type: journal_article
user_id: '54068'
volume: 14
year: '2017'
...