Predictive Ability for US GAAP and IFRS PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Predictive Ability for US GAAP and IFRS PDF full book. Access full book title Predictive Ability for US GAAP and IFRS by Sharon Price. Download full books in PDF and EPUB format.
Author: Sharon Price
Publisher:
ISBN:
Category : Accounting
Languages : en
Pages : 186
Get Book Here
Book Description
The transition towards a set of high quality global standards is well under way with over 120 countries adopting International Financial Reporting Standards (IFRS). The United States (US) has taken a significant step towards adopting IFRS by accepting financial statements prepared with IFRS from foreign listed companies in domestic stock exchanges. This study adds to the earnings quality literature regarding predictive ability by comparing IFRS and US Generally Accepted Accounting Principles (US GAAP). The predictive ability of disaggregated earnings prepared with IFRS in forecasting future cash flows in a single research setting under SEC jurisdiction is examined. This research evaluates financial statements of Canadian filers in the US prior to and after adoption of IFRS. Results show no statistical difference in the overall predictive ability of IFRS and US GAAP however differences in the way the prediction is made are discovered. Inconsistencies with the predictive literature as to the importance of accruals in aiding predictive ability are found.
Author: Sharon Price
Publisher:
ISBN:
Category : Accounting
Languages : en
Pages : 186
Get Book Here
Book Description
The transition towards a set of high quality global standards is well under way with over 120 countries adopting International Financial Reporting Standards (IFRS). The United States (US) has taken a significant step towards adopting IFRS by accepting financial statements prepared with IFRS from foreign listed companies in domestic stock exchanges. This study adds to the earnings quality literature regarding predictive ability by comparing IFRS and US Generally Accepted Accounting Principles (US GAAP). The predictive ability of disaggregated earnings prepared with IFRS in forecasting future cash flows in a single research setting under SEC jurisdiction is examined. This research evaluates financial statements of Canadian filers in the US prior to and after adoption of IFRS. Results show no statistical difference in the overall predictive ability of IFRS and US GAAP however differences in the way the prediction is made are discovered. Inconsistencies with the predictive literature as to the importance of accruals in aiding predictive ability are found.
Author: Sofie Van der Meulen
Publisher:
ISBN:
Category :
Languages : en
Pages : 46
Get Book Here
Book Description
Author: Hsiao-Tang Hsu
Publisher:
ISBN:
Category :
Languages : en
Pages : 177
Get Book Here
Book Description
In this dissertation I investigate and compare the impairments of long-lived operating assets under US Generally Accepted Accounting Principles (US GAAP) and International Financial Reporting Standards (IFRS) from different perspective, including the informativeness, determinants, and market valuation of asset impairments. A firm invests in long-lived operating assets with the expectation of generating future benefit. The decision or recognition of asset impairments implies such future benefit is expected to be lower than originally estimated. US GAAP and IFRS both require the recognition of impairment losses but their standards and accounting approaches are different in several ways. These distinctions raise the question whether the reported long-lived asset impairments under US GAAP and IFRS are comparable and motivate this dissertation. I investigate the predictive ability of reported asset write-offs for firms' future performance and find negative associations suggesting the informativeness of impairment losses. But such informativeness depends on the type of assets impaired, the accounting standards adopted, and the institutional characteristics. In general, aggregate impairments are persistently associated with future performance under IFRS but not US GAAP. The impairments of tangible assets have more predictive ability than those of intangibles. For IFRS adopters, enforcement takes a more important role in determining the informativeness of asset impairments than legal origins. I also examine the determinants and attributes of asset impairments under US GAAP and IFRS. I find both of them reflect certain economic factors and reporting incentives. Under US GAAP asset impairments strongly reflect GDP growth, unemployment rate, industry-trend and reporting incentives, including taking a big bath and income smoothing. Under IFRS the impairments reflect most economic factors but less reporting incentives. However, when enforcement is low in IFRS countries, firms tend to manage earnings through asset write-offs. I further address the market valuation of asset write-offs under US GAAP and IFRS. The reporting of asset impairments improves the explanatory power of accounting information for equity prices under IFRS but not US GAAP, especially when enforcement is high. The associations between asset write-offs and equity prices under IFRS in high enforcement countries are significantly different from those under US GAAP, implying investors weigh reported impairments under IFRS. I also use stock returns as an alternative metric of market valuation. Under US GAAP, asset write-offs are negatively associated with past, current, and future stock returns. Under IFRS in high enforcement countries the effects of impairment loss concentrate on past and current stock returns. The results of comparisons suggest asset write-offs under US GAAP and IFRS are not totally comparable from a market perspective. This dissertation contributes to literature on special items, impairment accounting, and reporting under IFRS. It is also related to the comparability of financial reporting under US GAAP and IFRS. While studies have compared overall properties of the two standards, examining the differences in a specific accounting area is also important as U.S. SEC express concern about the convergence of different accounting standards and whether U.S. should incorporate IFRS into its financial reporting systems.
Author: Jeff Coulton
Publisher:
ISBN: 9780994369734
Category :
Languages : en
Pages :
Get Book Here
Book Description
Author: Allan B. Afterman
Publisher: Wg&l/Ria Group
ISBN: 9780791369074
Category : Accounting
Languages : en
Pages : 235
Get Book Here
Book Description
Author: Joanne M. Flood
Publisher: John Wiley & Sons
ISBN: 1119736196
Category : Business & Economics
Languages : en
Pages : 1420
Get Book Here
Book Description
The most comprehensive guide to US GAAP—thoroughly updated to reflect the latest pronouncements US GAAP is constantly being updated, requiring its users to be armed with expert interpretation and explanation of the relevant principles. Wiley GAAP 2021 provides the most complete coverage of all Financial Accounting Standards Board (FASB) Topics – including the latest updates. Each chapter includes discussion of perspectives and issues, sources of GAAP, practice-oriented examples, and accurate definitions of terms, concepts, and rules. Every FASB Topic is fully explained in a clear, reader-friendly way with dynamic graphics to aid in understanding complex topics. Extensively updated to reflect all current US GAAP changes, this indispensable book: Reviews the latest changes to accounting principles, including credit losses, inventory, financial instruments, leases, and revenue Offers expert guidance on issues surrounding specific pronouncements Includes comprehensive cross-references and topic-specific appendices Explains how the standards apply to common real-world scenarios Clarifies implementation through numerous illustrations and practical examples Accurate and up-to-date GAAP implementation is crucial for eliminating the risk of noncompliance. Wiley GAAP 2021 is your one-stop resource for staying up-to-date with constantly-changing guidelines—providing the insight and guidance accounting professionals need.
Author: Gerard Caprio
Publisher: World Bank Publications
ISBN:
Category : Bancos
Languages : en
Pages : 49
Get Book Here
Book Description
"Which public policies and ownership structures enhance the governance of banks? This paper constructs a new database on the ownership of banks internationally and then assesses the ramifications of ownership, shareholder protection laws, and supervisory/regulatory policies on bank valuations. Except in a few countries with very strong shareholder protection laws, banks are not widely held, but rather families or the State tend to control banks. We find that (i) larger cash flow rights by the controlling owner boosts valuations, (ii) stronger shareholder protection laws increase valuations, and (iii) greater cash flow rights mitigate the adverse effects of weak shareholder protection laws on bank valuations. These results are consistent with the views that expropriation of minority shareholders is important internationally, that laws can restrain this expropriation, and concentrated cash flow rights represent an important mechanism for governing banks. Finally, the evidence does not support the view that empowering official supervisory and regulatory agencies will increase the market valuation of banks"--NBER website
Author: Ran Barniv
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
We examine whether differences between IFRS and U.S. GAAP affect forecast accuracy and other measures of analysts' performance and if analysts with superior forecasting ability are less affected by these differences. Our unique sample consists of resided U.S. analysts who followed cross-listed firms in the U.S. and were unfamiliar with IFRS prior to its adoption but were familiar with U.S. GAAP. The main finding is that firm-specific differences between IFRS and U.S. GAAP and its interaction with our superior analyst variable and other information environment characteristics significantly affect forecast accuracy in the year of IFRS adoption, but this is generally not the case in the subsequent year. We provide evidence that superior analysts gain a comparative advantage in the year of IFRS adoption but the advantage fades out in subsequent years when all analysts are trained and educated in IFRS. Similar effects are generally documented on analysts following and stock recommendations but we find no significant effects on forecast dispersion. We interpret our findings as being consistent with U.S. regulators stating that U.S. analysts will need investments in education, training, and processing the interactive IFRS data and practitioners' predictions that analysts would quickly learn the new accounting standards.
Author: Jennifer Francis
Publisher: Now Publishers Inc
ISBN: 1601981147
Category : Business & Economics
Languages : en
Pages : 97
Get Book Here
Book Description
This review lays out a research perspective on earnings quality. We provide an overview of alternative definitions and measures of earnings quality and a discussion of research design choices encountered in earnings quality research. Throughout, we focus on a capital markets setting, as opposed, for example, to a contracting or stewardship setting. Our reason for this choice stems from the view that the capital market uses of accounting information are fundamental, in the sense of providing a basis for other uses, such as stewardship. Because resource allocations are ex ante decisions while contracting/stewardship assessments are ex post evaluations of outcomes, evidence on whether, how and to what degree earnings quality influences capital market resource allocation decisions is fundamental to understanding why and how accounting matters to investors and others, including those charged with stewardship responsibilities. Demonstrating a link between earnings quality and, for example, the costs of equity and debt capital implies a basic economic role in capital allocation decisions for accounting information; this role has only recently been documented in the accounting literature. We focus on how the precision of financial information in capturing one or more underlying valuation-relevant constructs affects the assessment and use of that information by capital market participants. We emphasize that the choice of constructs to be measured is typically contextual. Our main focus is on the precision of earnings, which we view as a summary indicator of the overall quality of financial reporting. Our intent in discussing research that evaluates the capital market effects of earnings quality is both to stimulate further research in this area and to encourage research on related topics, including, for example, the role of earnings quality in contracting and stewardship.
Author: Francesco Bellandi
Publisher: John Wiley & Sons
ISBN: 1119960347
Category : Business & Economics
Languages : en
Pages : 847
Get Book Here
Book Description
An indispensable guide to making the transition to dual IFRS/GAAP financial reporting U.S. financial reporting will undergo an unprecedented level of change within the next several years. U.S. companies face a convergence between U.S. GAAP and IFRS, affecting several major accounting standards—most notably in the areas of leasing, revenue recognition, and financial instruments. It is imperative that U.S. companies understand these major changes and their business and operational implications. The IFRS U.S. GAAP Dual Reporting Handbook to First-Time Adoption offers a comprehensive treatment of both the principles and techniques of dual reporting under IFRS/U.S. GAAP, while exploring the practical implications for accounting professionals of reporting under both sets of standards. Takes an operating approach to the implementation and application of the dual standards Draws upon the author's extensive firsthand experience to dispel uncertainty and offer decision makers expert technical assistance Defines systemic changes businesses will need to make to accommodate IFRS standards Compares the two bodies of standards item-by-item and identifies solutions under one set of standards to issues arising under the other Explores the strategic impact of structuring a company for IFRS transition In addition to covering the full range of critical issues surrounding adopting IFRS, this indispensable handbook is a rich resource of dual reporting tools, including financial statement formats, charts of accounts, accounting check-lists, reconciliation schedules, and operating manuals.
