Concerns have been raised in the academic and practitioner literatures of accounting that, in general, standard-setters have increasingly neglected stewardship and reliability in pursuit of value-relevance; and then, in particular, that current accounting for the vast sums now expended on...

This paper is concerned with the allegation that fair value accounting rules have contributed significantly to the recent financial crisis. It focuses on one particular channel for that contribution: the impact of fair value on actual or potential failure of banks. The paper compares four...

This study finds that pro-forma earnings forecasts by bidding firms during acquisitions are associated with a higher likelihood of deal completion, expedited deal closing, and with a lower acquisition premium − but only in stock-financed acquisitions. Analysts also respond to these forecasts...

This paper examines the value relevance of goodwill impairment and the information content of impairment announcements with the introduction of Financial Reporting Standard (FRS) 11 in the UK in 1998 which allowed an annual impairment review as an alternative to capitalisation and subsequent...

The paper analyzes the earnings forecasts issued by bidders' executives in the biggest deals announced on the New York Stock Exchange in the years 1998-2001. It explores the role of the forecasts as an information source for investors at the time of the bid announcement. We investigate the...