Analysts' responses to alternative methods of reporting unrealised gains and losses on derivatives

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Show simple item record Bierstaker, JL Thosar, SB Wiest, D 2010-05-14T07:46:54Z 2010-05-14T07:46:54Z en_US 2004-01
dc.identifier.citation Academy of Accounting and Financial Studies Journal, 2004, 8 (1), pp. 1 - 27
dc.identifier.issn 1096-3685
dc.identifier.other C1 en_US
dc.description.abstract With the publication of two statements on accounting for derivatives (SFAS 133 and SFAS 138), the Financial Accounting Standards Board (FASB) has taken another substantial step on the path toward its goal of requiring the reporting of all financial instruments at market value, generally with unrealized gains and losses included in income. This study investigates whether reporting an unrealized gain or loss in a separate line item on the income statement, as opposed to disclosure only in a footnote, affects how financial analysts use and evaluate information on such gains and losses. The vehicle for this research is unrealized gains or losses on derivatives. The study consisted of short financial analysis cases, presented to financial analysts and executives primarily through mail surveys. Each subject received one of the four different possible combinations of derivative gain or loss and disclosure type. When the unrealized derivative gain/loss was included as a separate line item in the income statement, analysts included the gain/loss significantly more often in their P/E ratios, and were more likely to list the derivative as a factor affecting their investment recommendation, than when the derivative gain/loss was disclosed only in a footnote.
dc.publisher Allied Academics
dc.title Analysts' responses to alternative methods of reporting unrealised gains and losses on derivatives
dc.type Journal Article
dc.parent Academy of Accounting and Financial Studies Journal
dc.journal.volume 1
dc.journal.volume 8
dc.journal.number 1 en_US
dc.publocation Cullowhee en_US
dc.publocation Berlin, Germany
dc.identifier.startpage 1 en_US
dc.identifier.endpage 27 en_US BUS.School of Finance and Economics en_US
dc.conference Verified OK en_US
dc.conference International Conference on Database and Expert Systems Applications
dc.for 150103 Financial Accounting
dc.personcode 000691
dc.percentage 100 en_US Financial Accounting en_US
dc.classification.type FOR-08 en_US 2004-08-30
dc.location.activity Zaragoza, Spain
dc.description.keywords NA en_US
pubs.embargo.period Not known
pubs.organisational-group /University of Technology Sydney
pubs.organisational-group /University of Technology Sydney/Faculty of Business
utslib.copyright.status Open Access 2015-04-15 12:23:47.074767+10
utslib.collection.history General (ID: 2)

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