We investigate whether clear disclosure of comprehensive income (CI) facilitates detection of earnings management by buy-side financial analysts and predictably affects their security price judgments. Because analysts and investors often must sort through voluminous footnotes and non-financial...

This paper studies how an accountant's method of aggregating information in a financial report is affected by differences in the reliability and relevance of components of the report. We study a firm that hires an accountant to produce a report that reveals information to investors regarding the...

Both FASB and the IASB inappropriately justify their asset and liability view of income determination based upon the published work of Nobel laureate economist J.R. Hicks. Hicks actually rejects the asset and liability view because the resulting income includes windfall gains. In this paper,...

FASB and the IASB, in asserting their preference for the asset and liability view of income over the revenue and expense view, have mistakenly invoked J.R. Hicks as grounding their position. In fact, Hicks argues that income based upon the asset and liability view is irrelevant when windfalls...

Conservatism is one of the attributes of accounting quality. Conservatism is also one of the major reasons for international differences in financial reporting. The objective of this paper is to examine earnings quality proxied by earnings conservatism in transitional economies of Central and...

Regulators such as the SEC and standard setting bodies such as the FASB and the IASB argue the case for the conceptual desirability of fair value measurement, notably on the relevance dimension. Recent standards on financial instruments and certain non-financial items adopt the new measurement...

While there are efforts to establish a single international accounting standard, there are strong current and future needs to handle heterogeneous accounting methods and systems. We advocate a context-based approach to dealing with multiple accounting standards and equational ontological...

We examine whether the adoption of internationally recognized accounting standards is associated with a greater sensitivity of credit ratings to accounting information. Our results suggest that voluntary adoptions of IFRS/U.S.GAAP come with significant increases in the sensitivity of credit...

The globalization of capital markets has greatly impacted the harmonization of accounting standards. The International Accounting Standards Committee (IASC) has contributed to the harmonization of accounting standards by issuing the International Accounting Standards (IAS). In 2001, the...

I investigate reliability differences across recognition and disclosure regimes to shed light on differing incentives and reporting of employee stock option (ESO) fair values. I compare ESO fair values based on firm-reported inputs with ESO fair values based on benchmark inputs, estimated...