This paper clarifies some of the conflicting arguments about the value relevance of deferred taxes. We address two questions. First, does accounting aggregation hold, or in other words, are deferred tax expense and liability balances valued the same as operating earnings and asset balances,...

This paper reports descriptive evidence about how managers attempt to manage earnings, based on a sample of 515 earnings-management attempts obtained from a survey of 253 experienced auditors (and also analyzed by Nelson et al. 2002). We classify attempts first according to primary approach:...

This paper examines accounting and non-accounting factors behind accounting losses over a fifty-year period. Using multivariate time-series analysis, we report evidence that the annual percentage of losses for U.S. firms is significantly related to accounting conservatism, Compustat coverage of...

The earnings-returns relation asymmetry indicates the changing relation between earnings and returns when the nature of earnings information differs in a certain way. Literature has documented a variety of asymmetric relations and provided a wide range of explanations. Hayn (1995) accounted for...

We develop a theoretical framework that explains firms' reactions to new accounting standards, especially, those released by the FASB under its extended adoption policy. Our theory highlights the differences between recognized and disclosed accounting information, and provides a link between...

This paper discusses arguments for and against introducing competition into the accounting standard-setting process in the U.S. by allowing individual corporations to issue financial reports prepared in accordance with either FASB or IASB rules. The paper examines several arguments supporting...

Financial Accounting Statement No. 106 (FAS 106), approved by the Financial Accounting Standards Board in 1990, required most private companies to significantly alter the way they accounted for their retiree health benefits beginning with fiscal years after Dec. 15, 1992. FAS 106 dramatically...

This paper starts out to observe that there is a gap between the importance given to accounting and the low level of bookkeeping and accounting practice in the agricultural sector. Reasons for this gap are that current general accounting rules do not adapt very well to the particularities of...

We find that brand assets recognized by 33 U.K. firms are value relevant, i.e., associated with market values. Most previous studies on the value relevance of intangible assets have examined outsiders' valuations; our study adds to the literature by showing the relevance of managers' valuations...

This paper addresses issues of financial reporting within the context of European harmonisation and accession. The construct of the True and Fair View (hereafter TFV) constitutes a locus of reflection for the establishment of a mutually intelligible foundation for financial reporting in the New...