Download or read book Segmental Reporting Quality After IFRS 8 written by Ahmed Aboud and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: While the IASB had reduced the differences between SFAS & IFRS, in that IFRS 8 (Segment reporting) is a copy of the US SFAS 131, the quality of segment disclosure after IFRS 8 is under question. The European Parliament endorsed IFRS 8 after a great deal of scrutiny and much debate. Although the endorsement indicated approval of IFRS 8 by the European Union countries, the EU Parliament expressed reservations and regrets about the standard. In this context, this study addresses the effectiveness of IFRS 8 in improving the quality of segmental reporting in EU. However, quality assessment is a complex issue and prior studies have used different definitions and measures for disclosure quality, this study also assesses the impact of using alternative proxies for disclosure quality. Findings document conflicting evidence on the impact of IFRS 8 on disclosure practices. While the quantity of information decreased for the two years after the adoption of the new standard, the fineness of information significantly improved. Similarly, cross segment variability and consistency dimensions show slightly improvement in the post IFRS 8 periods. Furthermore, the empirical evidence indicates a complementary relationship between the four dimensions, suggesting the impossibility of adequately describing segmental disclosure quality in terms of a single dimension. This study contributes to literature in two ways. Firstly, it contributes to disclosure literature by helping to appropriately define and measure the quality of segmental information. Secondly, it provides evidence on the effectiveness of a debatable standard, IFRS 8.
Download or read book Segment Disclosure Quantity and Quality Under IFRS 8 written by Paul André and published by . This book was released on 2016 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: Focusing on segment disclosures under the management approach, we investigate managers' choices with respect to both segment reporting quantity and quality and the usefulness of these two characteristics for financial analysts. We measure quantity as the number of segment-level line items and quality as the cross-segment variation in profitability -- arguing that more managerial discretion can be exercised over quality than over quantity. We find that managers solve proprietary concerns either by deviating from the suggested line-item disclosure in the standard, or, if following standard guidance, by decreasing segment reporting quality. Moreover, financial analysts do not always understand the quality of segment disclosures, suggesting that a business-model type of standard creates difficulties even for sophisticated users. Our results inform standard setters as they start working on a disclosure framework and as they consider the business model approach to financial reporting.
Download or read book The Impact of IFRS 8 on Geographical Segment Information written by Edith Leung and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates how the introduction of IFRS 8 affects segment disclosures for a large sample of European firms. In contrast to prior research we focus on geographical segments. Similar to SFAS 131, IFRS 8 aims to improve segment disclosures by requiring a “management approach”, which introduces considerable reporting discretion. We compare a hand-collected sample of restated IFRS 8 segment disclosures with historical IAS 14R disclosures. We find that geographical segments are more disaggregated under IFRS 8, although the number of financial items per segment and the likelihood of reporting segmental earnings decline. More importantly, we document predictable heterogeneity in the disclosure quality of segment information. First, we find that firms reporting poorly under IAS 14 continue to do so under IFRS 8, suggesting more cross-sectional divergence under the latter standard. Second, our results show that the impact of IFRS 8 varies with corporate transparency. Finally, we fail to document any clear economic and informational effects post IFRS 8, even for firms that exhibit disclosure quality improvements. Overall, we provide comprehensive evidence on the effects of IFRS 8 on geographical segment information and show that prior reporting behavior is a useful indicator for the impact of a new standard.
Download or read book Segment Reporting Under IFRS 8 written by Martin Nienhaus and published by Peter Lang Gmbh, Internationaler Verlag Der Wissenschaften. This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study analyzes the impact of introducing IFRS 8 on segment reporting practice and its economic consequences. The results show that segment information based on the management approach is a useful decision, it mitigates information asymmetries, reduces the cost of capital and also affects the work of financial analysts.
Download or read book Segmental Reporting After IFRS8 written by Ahmed Aboud and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Segment Reporting written by Mark Aleksanyan and published by . This book was released on 2015 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper contributes to the debate on segment reporting standards in the UK and Europe and, specifically, the merit of IFRS 8 relative to predecessor standards (SSAP 25 and IAS 14R). We carry out a longitudinal analysis of segment reporting practices of a large sample of listed UK companies, covering all three reporting regimes. Using the Proprietary Cost Theory (PCT) as our theoretical lens, we present evidence consistent with PCT, that proprietary costs considerations influence companies' segment disclosure choices. We show that when companies are required to disclose more detailed accounting information for geographical segments (e.g., when geography is the basis of operating segments, under IFRS 8, or primary segments, under IAS 14R), they choose to define geographical segments in broader geographic areas terms than was the case under SSAP 25. We find that although companies disclose greater quantity of segmental information under IFRS 8 and IAS 14R (than SSAP 25), the more recent standards brought about a notable reduction in (i) the level of specificity of the disclosed geographical segments, and (ii) the quantity of disclosed geographic segment profit data - one of the most important data types for users. While this may have reduced the proprietary costs of segment disclosures, the reduction in disclosure of segmental performance data may have reduced the usefulness of segment reports to investors.
Download or read book Politics Or Accounting Principles written by Louise Crawford and published by . This book was released on 2010 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Segment Reporting Udner IFRS 8 written by Nina Franzen and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Segment Reporting written by International Accounting Standards Committee and published by . This book was released on 1997 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Impact of IFRS 8 on Analysts Information Environment written by Ahmed Aboud and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: While the IASB had reduced the differences between SFAS & IFRS, in that IFRS 8 (Segment reporting) is a copy of the US SFAS 131, the quality of segment disclosure after IFRS 8 is under question. The European Parliament endorsed IFRS 8 after a great deal of scrutiny and much debate. Although the endorsement indicated approval of IFRS 8 by the European Union countries, the EU Parliament expressed reservations and regrets about the standard. It has been reported that IFRS 8 achieved the expected objectives, although financial statement users disputing the principle of the core standard. Therefore this paper responds to the call of IASB (2013) and examines the impact of IFRS8 adoption on analysts' information environment using a sample from EU countries for four successive years. The empirical evidence indicates that segment disclosure quality measured by the disaggregation of geographical information is positively associated with the accuracy of analysts forecast and also positively associated with the dispersion. It also supports the benefits of IFRS8 to the properties analyst earnings forecasts. We document increased forecast accuracy and agreement after the switch to IFRS8.Moreover, we find that the adoption of IFRS8 is associated with an increase in the information that has additional value to analyst forecasts while it decreases the irrelevant information.
Download or read book Three Essays on Operating Segment Disclosure written by Rucsandra Moldovan and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis contains three stand-alone essays on the operating segment disclosures that European multi-segment companies make under IFRS 8 Operating Segments. Each essay aims to improve our collective understanding about managers' disclosure strategy by examining various characteristics of operating segment disclosure. Chapter I, entitled “The Interplay between Segment Disclosure Quantity and Quality,” investigates managers' choices with respect to both disclosure quantity and disclosure quality, and the usefulness of these two characteristics for financial analysts. Focusing on segment disclosures under the management approach, I measure quantity as the number of segment-level line items and quality as the cross-segment variation in profitability, and argue that greater managerial discretion can be exercised over quality than over quantity. I hypothesize and find that managers solve proprietary concerns either by deviating from the suggested line-item disclosure in the standard, or if following standard guidance, by decreasing segment reporting quality. Moreover, financial analysts do not always understand the quality of segment disclosures, which suggests that a business-model type of standard creates difficulties even for sophisticated users. My results inform standard setters as they start working on a disclosure framework and as they seem to consider the business model approach to financial reporting. Chapter II is entitled “Inconsistent Segment Disclosure across Corporate Documents.” Market regulators in the U.S. and Europe investigate cases of inconsistent disclosures when a company provides different information on the same topic in different documents. Focusing on operating segments, this essay uses hand-collected data from four different corporate documents of multi-segment firms to analyze the impact of inconsistent disclosure on financial analysts' earnings forecast accuracy. Inconsistencies that arise from further disaggregation of operating segments in some documents seem to bring in new information and increase analyst accuracy. However, when analysts must work with different, difficult-to-reconcile segmentations, their information processing capacity and forecasts are less accurate. These findings contribute to our understanding of the effects of managers' disclosure strategy across multiple documents and have implications for regulators and standard setters' work on a disclosure framework. Chapter III is entitled “Management Guidance at the Segment Level.” Prior research has found that managers add information to their earnings guidance to justify, explain, or contextualize their forecasts. I identify segment-level guidance (SLG) as a type of disaggregated information that multi-segment firms provide with their management guidance, and investigate its usefulness for financial analysts' earnings forecasting accuracy, as well as its influence on managers' earnings fixation. I further characterize the level of precision (point and range, maximum or minimum estimate, or simply narrative) and of disaggregation of SLG. I find that companies in high tech industries known for increased uncertainty in future performance are less likely to provide SLG, and that SLG is associated with better forecasting accuracy. However, while providing more item-disaggregated SLG improves accuracy, increased precision has no impact on forecast accuracy. From the manager's point of view, SLG creates incentives to engage in earnings management, and the more precise the SLG is the greater the incentive. In contrast, more item-disaggregated SLG discourages earnings management, perhaps by improving monitoring. In a context where qualitative, narrative, and disaggregated guidance is regarded as a solution to avoid earnings fixation and short termism, understanding which types of information achieve this goal, and how, is relevant for managers, investors, and regulators alike.
Download or read book Segment Reporting Under IFRS 8 written by Nina Franzen and published by . This book was released on 2014 with total page 240 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Decision Usefulness Theory of Accounting written by George J. Staubus and published by Routledge. This book was released on 2013-02-01 with total page 336 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book ties together selected contributions by George Staubus to the early development of the decision-usefulness theory of financial accounting--the theory that has become generally accepted accounting theory in the last half of the twentieth century and is the basis for the FASB's conceptual framework.
Download or read book IFRS 8 Operating Segments written by International Accounting Standards Board and published by . This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book International Financial Reporting Standards Implementation written by Mohammad Nurunnabi and published by Emerald Group Publishing. This book was released on 2021-08-23 with total page 276 pages. Available in PDF, EPUB and Kindle. Book excerpt: Contributions to International Accounting aims to address a vital gap in research by focusing on providing relevant and timely studies on International Financial Reporting Standards implementation for local and international policymakers.
Download or read book Operating Segments written by Dr. Louise Crawford and published by . This book was released on 2012 with total page 63 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Losing the Excess Baggage written by and published by . This book was released on 2011 with total page 137 pages. Available in PDF, EPUB and Kindle. Book excerpt:
