Recent work shows that the role of accrual accounting in mitigating the timing differences between cash flows and … noise in the accrual accounting process, sophisticated users of financial information – financial analysts, are able to … extract useful information from the reported accrual accounting process, and use them in their forecasting process, are able …

profit companies, as well as industry groups. The same results were obtained for each earnings component, namely, innate and … tool to assess earnings quality based on accrual rates. This allows regulators and standard-setters to provide more …

find that cash flow and accrual patterns for firms with high values of our smoothing measure are more consistent with …

the earnings response coefficient. It also suggests that the ‘accrual anomaly' can be explained rationally. Accounting … ‘accrual anomaly'. Consequently, Sloan (1996) and similar results should not be interpreted as an accrual-based anomaly …

-sample and out-of-sample forecasting tests, we show that accrual components and operating cash flow components together are more … useful than earnings, operating cash flows and total accruals, and the combination of operating cash flows with accrual …

Under accrual accounting, earnings add to shareholders' equity. Cash flow generated by a business has no effect on the …, accrual accounting rules prescribe that earnings add to shareholder value, but cash flow is irrelevant to the valuation of …

accrual reliability (Richardson et al. 2005). Using a large sample of Australian firm years drawn from before and after the … mandatory adoption of IFRS, we find that accrual reliability declined significantly after mandatory IFRS implementation. Working … firms (i.e., the Big four) are able to significantly attenuate any decrease in accrual reliability during the post …