A study of the impact of Internal Controls over IFRS Property, Plant and Equipment

• Main Authors: LIU, CHI-YA, 劉琦雅
• Other Authors: Huang, Shi-Ming
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/41303505254431809580

碩士 === 國立中正大學 === 會計與資訊科技研究所 === 102 === In order for our investment market to align with international market, the Financial Supervisory Commission (FSC) R.O.C., Executive Yuan has requested listed and unlisted public companies to adopt the International Financial Reporting Standards (IFRS) starting in 2013 and 2015, respectively. The most domestic enterprises often are invested heavily in fixed assets that make the impact of the IFRS significantly. Fixed assets primarily follow the IAS16: property, plant and equipment (hereafter IAS16). To meet IAS16’s requirements, the existing accounting treatment needs to be changed and relevant internal control system should be revised. In order to control the cognitive processes of the research and develop a comprehensive concept structure, this research applied Gowin’s Vee (Gowin, 1981) as a research strategy. On the conceptual side, the analysis structure of the IAS16 and internal control mode based on COSO’s five essential components was formed. On the methodological side, expert questionnaires of Fuzzy Analytical Hierarchy Process (FAHP) were employed with weightings determined by competition, followed by individual interviews to verify the empiricism of internal control mode conforming to the IAS16. “Controlled environment” weighted highest in the statistical outcome of the analysis structure of the IAS16 and internal control- overall mode. This indicates that the controlled environment established by the enterprise is the most important influencing factor when adopting the IFRS. On the operation level, the weight ranking focused on “controlled procedure – information technology”. If enterprises can provide excellent information system with inbuilt, faultless internal control rules when implementing the IFRS–IAS16, the post-transitional operations can be more efficient. The research results of structure and weight ranking can be applied to standards for adopting the IAS16, revisions of internal control system, questions of internal control self-assessment, allocation of resources for audit plans and focal points for external audit teams. Furthermore, it can also serve as references for key points of future regulations by competent authorities.