We examine the properties of the accounting earnings reported by local governments across Australia. Specifically, we examine the following research questions: (i) Does accrual accounting for local governments provide useful information? and (ii) Are earnings reported by local governments...

The research presented in this paper is an attempt to solve the problem of translation using the PPS (Purchasing Power Standard) theory. The proposed methodology uses PPS to eliminate inconsistencies that exchange rate brings into consolidated statements. Economic volume aggregates in PPS are...

We test the ability of analyst characteristics to explain relative forecast accuracy across legal origins (common law versus civil law). Common law countries generally have more effective corporate governance mechanisms, including stronger investor protection laws and inputs provided through...

In this journal, Buchheim and Beiersdorf discussed recent changes in the regulation of the management report (Lagebericht) in Germany. More specifically, their article addresses risk reporting, which is an integral part of the management report. While risk reporting has been explicitly required...

This study examines the business environment of Egypt, a nation at the beginning of its transition to a market economy, to determine whether national culture is associated with the use of accounting-based debt covenants in debt agreements. As a country's economy develops, agency problems occur....

The introduction of International Financial Reporting Standards (IFRS) in the EU is obviously an unusually important event for accounting, accountants and accounting researchers, and naturally European Accounting Review has been very keen in devoting this special issue to the topic. It will be a...

This paper describes and analyzes the issues of financial reporting and corporate communication in connection with corporate governance. The analysis is based on the studies conducted in the Anglo-American and the European academic literature both from a normative and a positive perspective. It...

International Financial Reporting Standards (IFRS) and their predecessor, International Accounting Standards (IAS) are gaining in worldwide recognition. All publicly traded companies in the EU must adopt them by 2005 and many other countries either have adopted them or plan to do so in the near...

Motivated by the debate about globally uniform accounting standards, this paper investigates whether firms using US GAAP vis-a-vis IAS exhibit differences in several proxies for information asymmetry. The study exploits a unique setting where the two sets of standards are put on a level playing...

Despite the increasing integration of global capital markets, there is little evidence on the valuation properties of cross-listed, non-U.S. firms' accounting variables. We use the relative performance of the earnings capitalization, the book value, and the residual income valuation models to...