The purpose of this commentary is to address the issues raised by Ohlson from the point of view of analytical accounting research. The aim is not only to provide some input to young researchers who are going to publish good research using analytical methods, but also to give some hints to help...

This paper studies monitoring and accrual measurement in a principal-agent setting. The advantage of the principal-agent setting is that it allows accrual measurement to be explicitly connected to monitoring and to encompass questions of managerial behaviour and communication incentives. It also...