Accounting disclosure and real effects
By: Chandra Kanodia
Series: Foundation and trends in accounting -- 1:3; Foundations and trends in accounting -- 1:3.
Publisher: Now
Published: 2007
Place of publication: Boston
Language: eng
Format: [electronic resource] /
Number of pages: 95
ISBN-13: 9781601980632
Subjects: Accounting; Disclosure in accounting; Financial; BUSINESS & ECONOMICS
Description: In this paper I advocate and illustrate a new approach to the study of accounting measurement and disclosure that is strikingly different from the usual studies of disclosure in pure exchange economies. This new approach studies the "real effects" of accounting disclosure, arguing that how accountants measure and report firms' economic transactions, earnings and cash flows to capital markets has strong effects on firms' real decisions and on resource allocation in the economy. I explicitly study the real effects of accounting for firms' intangible investments and accounting for firms' derivatives/hedge activities. I also shed new light on more fundamental accounting issues such as the real effects of imprecision in accounting measurement and the real effects of periodic performance reporting. Studies of real effects have the potential to inform accounting policy debates since they are built around very specific economic transactions and their accounting treatment.
Notes: Title from PDF title page (viewed Jan. 23, 2008).

Offprint. Foundations and trends in accounting (Online). Vol. 1, no. 3 (2006).

Includes bibliographical references.
Table of contents: title: Abstract; title: 1. Introduction; title: 2. A conceptual framework for understanding real effects; title: 3. Real effects of imprecision in accounting measurements; title: 4. Real effects of measuring intangibles; title: 5. Real effects of periodic performance reports; title: 6. Real effects of accounting for derivatives; title: 7. Conclusion; title: Acknowledgements; title: References; title: Updates.