We investigate how the increasing use of automated model-based credit scores and the inevitable devaluation of private information channels affect private firms’ earnings management choices. Our analysis shows that credit-scoring algorithms may not be as sophisticated as expected since they do...

This paper investigates whether there is market reaction to and value-relevance of information contained in the mandatory transitional documents required by IFRS 1 (2005). These documents detail the reconciliation adjustments necessary to a firm's previously reported UK GAAP accounts to achieve...

Using a sample of 4,278 listed UK firms, we construct a social network of directorship-interlocks that comprises 31,495 directors. We use social capital theory and techniques developed in social network analysis to measure a director's connectedness and investigate whether this connectedness is...

In seeking to replace accounting conventions by concepts in the pursuit of principles-based standards, the FASB/IASB joint project on the conceptual framework has grounded its approach on a well-known definition of income by Hicks. We welcome the use of theories by accounting standard setters...

Revenue recognition and measurement can conflict with liability recognition and measurement. We explore here under different market conditions when the two measurement approaches coincide and when they conflict. We demonstrate that the conflict most generally arises over deciding how to treat...

The ASB, FASB and IASB all have on their agendas a major project on revenue recognition in financial statements. Methods of revenue recognition and measurement can conflict with methods of liability recognition and measurement. We explore here (by reference to the examples of a magazine...

This article examines the prospects for the International Accounting Standards (IAS) based on a discussion held by U.S. and British academics in August 2001. Participants recognized several key challenges to widespread implementation of IAS. These include the need to improve the quality of...