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3 days ago · Financial reporting is the process of documenting and presenting your company’s financial information, typically through financial statements. Wear your investor hat for a moment. If you were an investor in your own company, you’d need plenty of financial information about the company—revenue, cost structure, cash flows, capital ...
Jun 26, 2020 · Abstract. In this paper, I provide an overview of the research on the real effects of financial reporting on investing and financing decisions made by firms. Accounting can improve investment efficiency and affect nearly every aspect of the financing decision by reducing information asymmetry and improving monitoring.
- Catherine Shakespeare
- 2020
- Universal Standards. Back in 2002, the world seemed to be on the verge of an accounting revolution. An initiative was under way to create a single set of international accounting standards, with the ultimate aim of uniting the U.S. Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS) that European countries were in the process of adopting.
- Revenue Recognition. Revenue recognition is a tricky piece of the regulatory puzzle. Suppose you sell a smartphone or an internet service or a $30 million software package to an individual or a company.
- Unofficial Earnings Measures. Although unofficial measures of revenue are relatively new for many companies, all types of businesses have been employing non-GAAP and non-IFRS measures of earnings for a long time.
- Fair Value Accounting. Executives and investors have two measures at their disposal for determining the value of a firm’s assets: the price originally paid (that is, the acquisition cost or historical cost) and the amount those assets would bring in if sold today (fair value).
Mar 1, 2024 · Financial reporting. Real effects. Allocation of resources. 1. Introduction. Most accounting research focuses on the capital market effects of financial reporting. Financial reporting informs investors, creditors, and the public about firms’ activities, net assets, financial position, and results of operations.
Jun 2, 2022 · Financial reports tell a company’s economic story and are required by regulators, laws or executives. Doing them well without wasting resources is a challenge.
Aug 9, 2021 · In summary, this section provides a preliminary conceptualisation of the financial reporting system in terms of an architecture of interconnected sub-systems in a risk cycle. In effect, this is a risk-based and cyclical version of the financial reporting supply chain.
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Apr 8, 2023 · We identify the consequences of financial reporting for (1) the reporting firm, (2) its peer firms, and (3) the input and output markets. We also highlight the effects of firms’ internal ...
