This study identifies several interrelated reasons why firms' depreciation method choice is likely to influence managers' capital investment decisions. We find that firms that use accelerated depreciation make significantly larger capital investments than firms that use straight-line...

Statement of Financial Accounting Standards No. 107 (codified in ASC 825-10), Disclosures about Fair Value of Financial Instruments, mandates the disclosure of fair values for financial instruments with the objective of providing investors with more relevant information about firms' future cash...

In the wake of global financial crisis, there is a pressing need for improving transparency and interoperability of the financials of public companies. XBRL and XBRL taxonomies have the potential of helping us accomplish this objective. In the U.S., the SEC has mandated that all publicly listed...

The properties of many important valuation rules can be quantified, examined, and compared in a unified framework to assist policy decisions. Valuation rules can be viewed as econometric estimators of unobserved values of aggregates. Which valuation rule has minimum mean squared error (relative...

This study examines the impact of SFAS 141 on earnings predictability of merging firms. I expect a relative improvement in analysts' earnings forecast accuracy for merging firms versus non-merging peers after SFAS 141 adoption. I restrict the post-SFAS 141 sample to the initial year of SFAS 141...

Financial report of countries varies due to differences in accounting practices of different countries. These depend on the level of differences in accounting standards of the countries under review. The International Accounting Standards Board (IASB) developed the International Financial...

The paper provides a genesis of fair value accounting (FVA) and reviews some research and empirical evidence that are relevant to the debate surrounding its use. We also comment on FVA's role in the financial crisis: was it just the messenger of bad news or was it “procyclical,” contributing...

The objective of this paper is to analyze the implementation of International Financial Reporting Standards (IFRS) in Brazil. This analysis focuses specifically on derivative transactions. For these, a disclosure index has been elaborated using recent Brazilian standards, which are based on the...

The adoption of IFRS in Malaysia has not changed all aspects of financial accounting and reporting. However, in regards to goodwill, the new accounting treatment represents one of the biggest challenges to Malaysian reporting entities as no such standard existed pre-IFRS adoption. The new...

Lenders can transfer credit risk by purchasing credit default swaps (CDS), but holding swaps can diminish their incentives to monitor borrowers. Contracting theory predicts that lenders demand conservatism, in particular asymmetric timeliness of loss recognition, to effectively monitor...