The selection and weighting of performance indicators are of vital importance for an effective compensation contract. We examine the effect of the reclassification of income statement items, caused by China’s new Accounting Standards for Business Enterprises (ASBE) in 2007 on the weight...

A recent FASB standard requires an entity's management to assess the entity's ability to continue as a going concern and disclose substantial doubt about such. In contextualized experiments wherein the entity's auditor does not issue a going concern opinion and the entity subsequently fails, we...

We examine whether (and to what extent) accounting regulation intended to improve disclosure can lead to higher disclosure quality in the absence of a change in preparer incentives. We exploit a sequence of two similar regulatory changes, one under US GAAP and the other under IFRS, which have...

The paper focuses on the accounting treatment under local GAAP and IAS/IFRS and the concepts of companies that are “implementing IFRS” or those “intending to implement IAS/IFRS” with a focus on companies in the food & beverages industry: alcohol-free beverage sector in Greece and...

The value relevance of financial statements is of great significance to investors and standard setters. The present research examines whether accounting comparability among industry peers enhances the value relevance of earnings and book value. This is an important question because both the...

SEC rules require managers to reconcile their non-GAAP forecasts with the most directly comparable GAAP measure unless doing so would entail ‘unreasonable effort'. A significant and growing number of managers invoke the unreasonable efforts exception to justify the omission of comparable GAAP...