GAAP allows unusual or infrequent items to be reported as special items in order to distinguish transitory earnings from permanent earnings. However, special items have been shown to hide permanent losses. IFRS prohibits special items reporting to promote inter-company comparability. This study examines if special losses contain relevant information by using intra-industry information transfer methodology with a sample of 563 material asset impairment losses reported as special items over the period from 2001 to 2007, we find that such information is relevant but garbled due to the laxative reporting rules of GAAP. The major policy implication of this study is that IFRS and GAAP should be more conciliatory by allowing special item reporting, but at the same time requiring strict reporting and disclosure rules to enhance the relevance and reliability of earnings information.
JEL Codes: M41
Total Reviews: 0
Price:$9.99
March 2020 (International Review of Business Research Papers) → Ethical Factors Affecting the Financial Market: A Study from Bangladesh Perspectives
September 2016 (Journal of Modern Science and Technology) → Cost Effective Decisions on Service Rate at a Customer Care Centre with Multi-Server Queuing Model
September 2017 (International Review of Business Research Papers) → Remittance, Exchange Rate and Dutch Disease: The Case of Bangladesh
$9.99
July 2015 (Journal of Business and Policy Research) → Perceived Importance of Defensive Marketing Strategies Before and After Competitor Entry: Does Nationality Matter?
$9.99
March 2015 (World Journal of Management) → Characteristics of Community Entrepreneurs in Chiangmai, Thailand
$9.99
Reviews
There are no reviews yet.