Beginning in 2005, the EU began requiring consolidated financial reports of publicly traded firms to be prepared in accordance with EU-endorsed International Financial Reporting Standards (IFRS) in an effort to increase the comparability of financial information across EU Member States. While...

While sophisticated skepticism promotes voluntary disclosure, various frictions serve to defeat it. One of the simplest frictions is rational investor uncertainty about management's endowment of information (UEI). Sophisticated skepticism will increase as the likelihood that management is...

Earnings asymmetric timeliness in recognizing losses versus gains is the most commonly used measure of conditional accounting conservatism. However, this measure captures both accrual asymmetric timeliness and operating cash flow (CFO) asymmetric timeliness. Because cash flow asymmetry is not...