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...

The primary argument of this paper is, namely, that the International Accounting Standards Board (IASB), is in need of an enforcement mechanism. In drawing attention to this argument, the paper not only proposes considerations which are to be taken into account if such a mechanism is to be...

This paper investigates the effect of different mood statesiquest;specifically positive, neutral, and negative moodiquest;on inventory valuation decisions. Psychological research suggests that different mood states can lead to different professional judgments in the performance of an ambiguous...

I study the evolution of Statement of Financial Accounting Standard (SFAS) # 142, which uses unverifiable fair-value estimates to account for acquired goodwill. I find evidence consistent with the Financial Accounting Standards Board (FASB) issuing SFAS 142 in response to political pressure over...

Finance theory proposes that firms' cost of capital increases when market makers set wider spreads due to perceived higher information asymmetry across traders. Using a sample of UK investment property firms and controlling for firms' non-random selection of external monitors, we find evidence...

This paper examines whether auditor independence is compromised resulting in poor quality audit when auditors provide substantial non-audit services to their clients. Prior studies have used abnormal discretionary accruals, financial restatements, the likelihood of issuing a qualified opinion,...

I use market-based measures to investigate the perceived reliability of fair value amounts reported in bank financial statements. Fair values as a measurement basis in accounting are becoming more predominant. This growth increasingly requires fair value estimation. I develop a hypothesis based...

Previous evidence of conservatism in Australian financial reporting, as in other countries, is constrained by the absence of a reliable firm-year specific measure. This paper calibrates such a measure using the procedure outlined by Khan and Watts (2007). We show that the C_Score they propose...

Despite the unquestionable influence of conservatism, disagreement remains about what economic demands lead to financial reporting conservatism. Research examining lenders' demands for reporting conservatism has been questioned for ignoring conservative contract modifications. We document that...