Accounting for Joint Ventures and Associates in Canada, UK, and US: Do US Rules Hide Information?
Unlike US GAAP, accounting principles in Canada and the UK require disclosure of disaggregated components of joint ventures and associates. Using comparative analysis of Canadian, UK and US data, this study investigates the potential loss of forecasting and valuation relevant information from aggregating joint venture and associate accounting amounts. Findings show that aggregating joint venture and associate investment numbers, and aggregating joint venture revenues and expenses, each leads to loss of forecasting and valuation relevant information. Thus, current US accounting principles likely mask information that financial statement users could use to predict future earnings and explain share prices. Copyright Blackwell Publishers Ltd, 2006.
Year of publication: |
2006-04
|
---|---|
Authors: | Soonawalla, Kazbi |
Published in: |
Journal of Business Finance & Accounting. - Wiley Blackwell, ISSN 0306-686X. - Vol. 33.2006-04, 3-4, p. 395-417
|
Publisher: |
Wiley Blackwell |
Saved in:
freely available
Saved in favorites
Similar items by person
-
The pooling of interests to end the pooling method in IFRS
Soonawalla, Kazbi, (2010)
-
Richardson, A. William, (2011)
-
Richardson, William, (2012)
- More ...