By developing a synthesis of documents that have been released officially under the revenue recognition project jointly run by the International Accounting Standards Board and Financial Accounting Standards Board, this article points out that the earning generation and realization process over...

As people are deciding between two alternatives, they may distort new information to support whichever alternative is tentatively preferred. The presence of such predecisional distortion of information was tested in decisions made by two groups of professionals, auditors and salespersons. Both...

This paper explores "revenue accounting" in contrast to traditional "cost accounting." Revenue accounting is to serve information needs of managers and investors in planning and controlling a firm's sales activities and their financial consequences. Weaknesses of traditional accounting have...

When the Revelation Principle (RP) holds, managing earnings confers no advantage over revelation. We construct an explanation for earnings management that is based on limitations on owners? ability to make commitments (a violation of the RP?s assumptions). Traditionally, earnings management is...

In spite of the proliferation of alternative API metrics, little interpretation and comparison of them has been conducted. Their relationship with the capital asset pricing model has remained obscure. This paper attempts to clarify these and other issues. The major conclusion is that API (or...