Foundations and Trends® in Accounting
ACCOUNTING DISCLOSURE AND REAL EFFECTS
by Chandra Kanodia (Carlson School of Management, University of Minnesota)
Accounting Disclosure and Real Effects presents a new approach to the study of accounting measurement and disclosure that challenges the existing accounting literature. This new approach — the "real effects" perspective — argues that how firms' economic transactions, earnings, and capital flows are measured and reported to the capital markets has substantial effects on the firms' real decisions and on the allocation of resources in the economy in general.
Accounting Disclosure and Real Effects answers the following questions: - How does accounting for derivative transactions change a firm's risk management, speculation and production policies?
- How does the measurement of intangibles change a firm's mix of tangible and intangible investments?
- Does the way in which we account for executive compensation change the compensation package and the incentives of managers?
- Does fair value accounting for bank portfolios change its lending and portfolio strategies?
- Does accounting conservatism increase the efficiency of debt contracting?
Accounting Disclosure and Real Effects should be required reading for accounting regulators and corporate managers who have to deal with alternative accounting standards and disclosure requirements. This landmark survey is the only source to focus on the real effects approach to the study of disclosure.
Published by Now Publishers and marketed by World Scientific
Contents:
- Introduction
- A Conceptual Framework for Understanding Real Effects
-
Real Effects of Imprecision in Accounting Measurements
- Real Effects of Measuring Intangibles
- Real Effects of Periodic Performance Reports
- Real Effects of Accounting for Derivatives
- Conclusion
- References
Readership: Graduate students, postgraduates, accounting regulators and
corporate managers.
| 104pp |
Pub. date: Aug 2007 |
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