Financial statements represent an instrument by which relevant information about a company is passed on to its users. Based on the information presented in the financial statements, i.e. information on the financial position and performance of the company, and generated cash flows and capital,...

Financial statement preparers often make accounting judgments with considerable uncertainty about what future accounting standards will require. We conduct a study in the experimental economics tradition to investigate how such uncertainty affects preparers’ current period accounting...

SFAS No. 123(R) requires firms to recognize the fair value of stock options as compensation expense over the vesting period of the options. Thus, SFAS No. 123(R) leads to an overall increase in financial statement conservatism. However, it is not known whether SFAS No. 123(R) increases...

International Accounting Standard (IAS) 1 – Presentation of Financial Statements contradicts International Accounting Standards Board (IASB) Conceptual Framework on the users of financial statements. IASB Conceptual Framework is superior to all international accounting standards and clearly...

This paper reviews the principal candidates for bases of measurement in financial reporting - historical cost, value to the business (also known as deprival value or current cost), fair value, realisable value, and value in use - explains how they work, and discusses their advantages and...

We develop a Compustat-based financial reporting uniformity measure based on the presentation of common financial statement line items. We define uniformity as the average ratio of a firm's pairwise overlaps of non-missing Compustat data items with peer firms. Emphasizing the conceptual...

In this study, I examine whether management discloses areas with higher financial reporting risk as critical accounting policies (CAPs) and how investors react to restatements of areas previously disclosed as CAPs. Through CAPs, management annually discloses the accounting policies that it views...

The main objective of the interim financial reporting is to present, timely and regularly, information concerning the enterprise's capacity to generate earnings and cash flows and its financial position and liquidity. International Accounting Standard 34 “Interim Financial Reporting”...