The purpose of financial reporting is to provide information that is useful for decision making. Recently,however, there has been a systematic decline in the usefulness of such information. Indeed, the currentreporting model seems to be no longer sufficient mainly due to the fact that it ignores...

PurposeTo empirically explore empirically the underlying factors that may affect the extent to which forward-looking information is disclosed.MethodologyThis study uses a list of forward-looking keywords to demonstrate the differences, if any, in the level of disclosure among firms and between...

Purpose – This paper examines the impact of audit quality, measured by financial statements audited by the big four accounting firms, on the investors' ability to predict future earnings for profitable and unprofitable firms.Methodology – The paper uses the returns-earnings regression model...

We investigate the joint effects of dividend propensity (i.e. whether a firm pays cash dividends) and voluntary disclosure on the relationship between current stock returns and future earnings. We examine whether dividend propensity and voluntary disclosure act as substitutes or complements in...

Profit forecasts are rarely disclosed in the UK except in prospectuses, circulars and during takeover bids. There are few regulations governing the content of profit forecasts. Under stock exchange rules these forecasts must be reported on by both reporting accountants and the merchant bankers...

To contribute to the PCAOB project on risk assessment in financial statement audits, we draw on the academic literature to offer insights and conclusions on the risk-assessment process. We use the PCAOB's (2005) recent briefing paper on risk assessment as the organizing framework for our...

This paper returns to an issue that received prominence in the mid 1980?s to early 1990?s, the battle to report the value of marketing assets in corporate financial statements. The reason for this return is the impending change to Australian accounting standards that will see Australian...