The Association between Changes in Accounting Estimates and Accounting Restatements

Beaulieu, Philip; Hayes, B. Louise; Timoshenko, Lev M.

doi:10.2139/ssrn.3170603

Cited by 4 publications

(3 citation statements)

References 62 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…For instance, Keating and Zimmerman (1999) estimate that incomedecreasing depreciation policy changes occur in 0:27% of their sample. More recent evidence (e.g., Beaulieu et al, 2017) is consistent with this estimate.…”

Section: Discussionsupporting

confidence: 80%

Identifying the Roles of Accounting Accruals in Corporate Financial Reporting

Dutta

Patatoukas

Wang

2021

Journal of Accounting, Auditing & Finance

View full text Add to dashboard Cite

Research in corporate financial reporting identifies two important roles of accounting accruals. First, accruals smooth fluctuations in operating cash flows. Second, accruals allow recognition of losses in an asymmetric timely manner. While these two roles imply different relations between individual accrual components and operating cash flow news, prior research often focuses on the properties of aggregate accruals. We investigate the role of individual accrual components and identify asymmetry in the relation of investment with operating cash flow news as a confounding factor. We show that this investment factor operates through depreciation and amortization accruals, which typically account for the bulk of aggregate accruals. Overall, our article demonstrates the importance of adopting a granular approach to identifying the different roles of individual accrual components.

show abstract

Section: Discussionsupporting

confidence: 80%

Identifying the Roles of Accounting Accruals in Corporate Financial Reporting

Dutta

Patatoukas

Wang

2021

Journal of Accounting, Auditing & Finance

View full text Add to dashboard Cite

show abstract

“…Fuadah and Hakimi (2020) state that financial performance is an economic indicator that represents a form of corporate responsibility to its stakeholders, stakeholder satisfaction is determined by how the company acts to provide it. Accordign to Beaulieu et. al.…”

Section: Discussionmentioning

confidence: 99%

“…Furthermore, Glendening (2017) shows that the predictive value of income with respect to future cash flows is negatively related to disclosure Critical Accounting Estimate (CAE). Beaulieu, Hayyes, andTimoshenko, (2017), andSmieliauskas, Bewley, Gronewold, andMenzefricke, (2016) indicates that there is a significant and positive relationship between changes in accounting estimates and restatements supported by changes in accounting estimates associated with an increased likelihood of restatements in correcting intentional misstatements.…”

Section: Introductionmentioning

confidence: 99%

Changes in Accounting Estimates for Disclosure Discrepancy in The Useful Life of Pot Reduction: Study Case in PT. XYZ (Persero) Indonesia

Kurniawansyah

Simamora²

2023

IJABIM

View full text Add to dashboard Cite

This study aims to obtain empirical evidence of the application of changes in accounting estimates to change the useful life of the reduction pot at PT. XYZ (Persero) based on PSAK 25. Data collection techniques used in this study included interviews, observation, and documentation techniques. After the data and information were obtained, data analysis was carried out using qualitative analysis techniques using the Milles K. Hubertman model. The results show that the application of changes to the estimated useful lives of reduction pots results in an increase in depreciation expense in 2021 of USD 2,025,260, and a total of 44 reduction pots will be written off in full at net book value because they have experienced depreciation for or more than 5 (five) years, amounting to USD 1,004,663. The implementation of PSAK 25 has an impact on profit for the year and asset impairment in 2021.

show abstract

Changes in Accounting Estimates: Underlying Economic Reality or Earnings Management

Ghosh

Siriviriyakul

2018

SSRN Journal

View full text Add to dashboard Cite

The Association between Changes in Accounting Estimates and Accounting Restatements

Cited by 4 publications

References 62 publications

Identifying the Roles of Accounting Accruals in Corporate Financial Reporting

Identifying the Roles of Accounting Accruals in Corporate Financial Reporting

Changes in Accounting Estimates for Disclosure Discrepancy in The Useful Life of Pot Reduction: Study Case in PT. XYZ (Persero) Indonesia

Changes in Accounting Estimates: Underlying Economic Reality or Earnings Management

Contact Info

Product

Resources

About