While SFAS No. 131 is intended to increase the transparency of financial reporting using a “management approach,” it may reduce shareholders' ability to interpret segment disclosures relative to the ‘industry approach' employed under SFAS No.14. This study investigates whether segment...

In early 2006, the AICPA released Alerts #90 and #98 which, following Securities and Exchange Commission guidance, allowed firms to reclassify cash flow items without penalty. We investigate the market effects of the cash flow restatements by investigating the abnormal trading volume reaction to...

The Securities and Exchange Commission has become increasingly concerned with the rising number of restatements to statements of cash flows (SCFs). Regulators and practitioners are generally more focused on the overstatement of operating cash flows, while the understatement of operating cash...

While SFAS No. 131 is intended to increase the transparency of financial reporting using a "management approach", it may reduce shareholders' ability to interpret segment disclosures relative to the 'industry approach' employed under SFAS No.14. This study investigates whether firm-segment...