Accounting losses and earnings conservatism: Evidence from Australian generally accepted accounting principles

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dc.contributor.author Balkrishna, H
dc.contributor.author Coulton, JJ
dc.contributor.author Taylor, SL
dc.date.accessioned 2010-05-28T09:55:10Z
dc.date.issued 2007-01
dc.identifier.citation Accounting and Finance, 2007, 47 (3), pp. 381 - 400
dc.identifier.issn 0810-5391
dc.identifier.other C1UNSUBMIT en_US
dc.identifier.uri http://hdl.handle.net/10453/10274
dc.description.abstract We provide evidence on three important aspects of Australian financial reporting; namely, the characteristics of losses, the extent to which Australian firms earnings are conditionally conservative (i.e. bad news is reflected in earnings more quickly than good news) and the extent to which losses reflect incrementally greater conditional conservatism. We find evidence that loss incidence in Australia is frequent, with around 40 per cent of the sample firm-years from 1993 to 2003 being losses. Losses are also surprisingly persistent, and the probability of loss reversal declines monotonically as the history of losses extends. Although conditional conservatism is also shown to be a pervasive aspect of Australian Generally Accepted Accounting Principles, we demonstrate that it is more evident among loss observations. This result is robust across different methods of capturing conditional conservatism, and supports the conclusion that the relatively high frequency of losses is, at least in part, a reflection of conservative reporting.
dc.publisher Blackwell Publishing
dc.relation.isbasedon 10.1111/j.1467-629X.2007.00218.x
dc.title Accounting losses and earnings conservatism: Evidence from Australian generally accepted accounting principles
dc.type Journal Article
dc.parent Accounting and Finance
dc.journal.volume 3
dc.journal.volume 47
dc.journal.number en_US
dc.journal.number 3 en_US
dc.publocation Oxford, UK en_US
dc.identifier.startpage 381 en_US
dc.identifier.endpage 400 en_US
dc.cauo.name BUS.School of Accounting en_US
dc.conference Verified OK en_US
dc.for 150103 Financial Accounting
dc.personcode COULTJ
dc.personcode 104690
dc.percentage 100 en_US
dc.classification.name Financial Accounting en_US
dc.classification.type FOR-08 en_US
dc.edition en_US
dc.custom en_US
dc.date.activity en_US
dc.location.activity en_US
dc.description.keywords Accruals; Cash flows; Conservatism; Earnings; Losses en_US
dc.description.keywords Accruals
dc.description.keywords Cash flows
dc.description.keywords Conservatism
dc.description.keywords Earnings
dc.description.keywords Losses
pubs.embargo.period Not known
pubs.organisational-group /University of Technology Sydney
pubs.organisational-group /University of Technology Sydney/Faculty of Business
pubs.organisational-group /University of Technology Sydney/Faculty of Business/School of Accounting
pubs.organisational-group /University of Technology Sydney/Strength - Corporate Governance
utslib.copyright.status Closed Access
utslib.copyright.date 2015-04-15 12:17:09.805752+10
utslib.collection.history School of Accounting (ID: 328)
utslib.collection.history Closed (ID: 3)


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