The effect of alternative accounting measurement bases on investors’ assessments of managers’ stewardship

Anderson, Spencer B.; Brown, Jerry L.; Hodder, Leslie D.; Hopkins, Patrick E.

doi:10.1016/j.aos.2015.03.007

Cited by 31 publications

(12 citation statements)

References 31 publications

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“…Drake, Hales, and Rees (2019) provide initial crosssectional evidence on the task-dependent nature of information usefulness assessments. By using an experiment to identify causal determinants of investment professionals' information usefulness assessments, we show that the usefulness of financial accounting information is contingent on users' information acquisition objectives (Anderson, Brown, Hodder, Patrick, and Hopkins 2015;Brown, Call, Clement, and Sharp 2015). Thus, our findings contribute to the debate on whether a single set of general-purpose financial statements can simultaneously satisfy potentially competing user needs (Drymiotes and Hemmer 2013;Murphy et al 2013;Zeff 2013;Pelger 2016).…”

Section: Introductionmentioning

confidence: 73%

“…is generally regarded as of high relevance, may interfere with analysts' and fund managers' managerial performance assessments. In contrast, Anderson et al (2015) report that fair value information can sometimes benefit managerial performance evaluation by allowing users to disentangle managerial effort from exogenous market factors. 3 How useful accounting information is to users with different objectives therefore remains an open, yet fundamental, question.…”

Section: Conceptual Unerpinnings and Hypothesis Development Decismentioning

confidence: 99%

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The Usefulness of Financial Accounting Information: Evidence from the Field

et al. 2017

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Section: Introductionmentioning

confidence: 73%

Section: Conceptual Unerpinnings and Hypothesis Development Decismentioning

confidence: 99%

The Usefulness of Financial Accounting Information: Evidence from the Field

et al. 2017

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“…However, this should not discourage academics to engage with the objectives and QCs. Recent research has started to use experiments to explore these topics (Anderson, Brown, Hodder, & Hopkins, 2015;Cascino et al, 2017) and has also begun to employ qualitative studies to address the question of what reliability means in the preparation (and audit) of accounts (Barker & Schulte, 2017;Huikku, Mouritsen, & Silvola, 2017). It is to be hoped that the IASBwhen it will start yet another CF revision at some pointcan build on more (empirical) academic insights that are able to speak to the standard-setters' conceptual challenges.…”

Section: Discussionmentioning

confidence: 99%

The Return of Stewardship, Reliability and Prudence – A Commentary on the IASB’s New Conceptual Framework

Pelger

2019

Accounting in Europe

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In March 2018, the IASB published its revised conceptual framework including notable changes to the chapters on the objective of financial reporting and on qualitative characteristics. The IASB put more emphasis on stewardship as part of the decision usefulness objective, reintroduced prudence as an aspect of neutrality and introduced a tolerable level of measurement uncertainty (as a successor to reliability) as part of faithful representation. The present paper discusses the substance of and reasons for these changes in light of the history of the IASB's work on conceptual frameworks. The paper also explores the possible impact of these changes on the IASB's future standard-setting by looking at the other chapters of the IASB's new framework. This paper finds that the more pronounced role of stewardship and the reintroduction of prudence do not seem to entail a revised conceptual thinking of the IASB in the other chapters, while the introduction of a tolerable level of measurement uncertainty provides the IASB with a conceptual tool with the potential to substantially affect future standard-setting debates. However, its positioning as part of faithful representation is questioned and an alternative arrangement of qualitative characteristics suggested.

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“…There is also a stream of literature referring to auditors [Birnberg 2011;Brown, Popova 2016], but as they are not experiencing the employee-employer relation, the findings presented in these studies are of limited use for accountants' decision-making. Research aimed at making choices in the context of accounting policy as an incentive most often assumes the impact on stakeholders, in particular owners [Anderson et al, 2015]. A manager is indicated as a decision-maker, whodue to the function performed -is interested in obtaining approval for the presented view of the entity's financial situation.…”

Section: Past Behavioural Accounting Researchmentioning

confidence: 99%

The perception of discretionary accounting regulations on asset write-offs

Maruszewska¹

2019

Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu

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Flexibility of accounting norms (in the scope of asset write-offs) was introduced in order to enable entities to apply solutions adjusted to their specific character, creating+-* the possibility to use discrete decision-making in a way that undermines the theoretical foundations of accounting. The disfunction lowers the faithful representation of financial reports. The aim of this study is to analyse the perception of discrete accounting in the context of financial reporting. The study was conducted among part-time accounting students with the high level of previous accounting experience. The findings showed that the respondents were not eager to use write-offs for manipulation purposes but were strongly convinced that other accountants would behave unethically. They also suggested that faithful representation is not perceived as a social norm among accounting professionals and that the perception of asset write-offs differs depending on the group of assets. In the conclusion, the study indicated a gap between the theoretical foundations of accounting and their application in business practice.

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The effect of alternative accounting measurement bases on investors’ assessments of managers’ stewardship

Cited by 31 publications

References 31 publications

The Usefulness of Financial Accounting Information: Evidence from the Field

The Usefulness of Financial Accounting Information: Evidence from the Field

The Return of Stewardship, Reliability and Prudence – A Commentary on the IASB’s New Conceptual Framework

The perception of discretionary accounting regulations on asset write-offs

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