Accounting scandals and deficiencies in standards have persuaded international accounting standard-setters to rethink revenue recognition. The proposals of the joint IASB/FASB-project Revenue Recognition feature an asset-liability approach relying on measurement at fair values or at allocated...

This paper adopts and reviews discretionary disclosure and cheap talk models to analyze risk reporting incentives and their relation to regulation. Given its inherent discretion, risk reporting depends on disclosure incentives. To assess these incentives the analytical models consider risk...

This paper discusses the ability of models on cheap talk, and of audit and liability regulations, to provide analytically-based assessment of credibility of management forecast disclosure in market and regulated settings. While credibility is linked to restrictive conditions in pure market...