The Cash Flow Accounting Alternative for Corporate Financial Reporting

1978 ◽  
pp. 63-84 ◽  
Author(s):  
Tom A. Lee
Keyword(s):  
Cash Flow ◽  
Financial Reporting ◽  
Corporate Financial Reporting

scholarly journals INDIAN CORPORATE FINANCIAL REPORTING SYSTEM: A STUDY ON THE CASH FLOWS OF SELECTED PRIVATE ENTERPRISES

2016 ◽  
Vol 4 (1) ◽  
pp. 35-42
Author(s):  
Santanu Kumar Das
Keyword(s):  
Cash Flow ◽  
Financial Reporting ◽  
Reporting System ◽  
Cash Flows ◽  
Annual Reports ◽  
Modern World ◽  
Private Enterprises ◽  
Narrative Reporting ◽  
Private Investors ◽  
Corporate Financial Reporting

Corporate financial reporting plays an important role in growing phenomenon of Privatization. The present study is based on the reports of Private Enterprises for three years. Findings revealed that the companies were presenting their annual reports. A privately owned enterprise refers to a commercial enterprise that is owned by private investors, shareholders or owners. The recent trend in financial reporting includes presentation and discloser of accounting aspect, corporate governance, corporate social responsibility and narrative reporting. The present paper will examine the cash flow statements of Maharastra Scooters Ltd., Tata Chemicals Ltd. and TVS Srichakra. In corporate financial reporting cash flow statement tells us the net cash flow activities, particularly its operating, investing and financial activities. These indications are helpful to analyze cash flow. This explains the sources and applications of liquidity of company. Keeping the importance of financial reporting in modern world the present paper attempts to analyzed and evaluate the financial reporting system in some selected units of private enterprises in India.

Identifying the Roles of Accounting Accruals in Corporate Financial Reporting

2021 ◽  
pp. 0148558X2110352
Author(s):  
Sunil Dutta ◽  
Panos N. Patatoukas ◽  
Annika Yu Wang
Keyword(s):  
Cash Flow ◽  
Financial Reporting ◽  
Cash Flows ◽  
Timely Manner ◽  
Operating Cash Flows ◽  
Accounting Accruals ◽  
Operating Cash Flow ◽  
Cash Flow News ◽  
Corporate Financial Reporting

Research in corporate financial reporting identifies two important roles of accounting accruals. First, accruals smooth fluctuations in operating cash flows. Second, accruals allow recognition of losses in an asymmetric timely manner. While these two roles imply different relations between individual accrual components and operating cash flow news, prior research often focuses on the properties of aggregate accruals. We investigate the role of individual accrual components and identify asymmetry in the relation of investment with operating cash flow news as a confounding factor. We show that this investment factor operates through depreciation and amortization accruals, which typically account for the bulk of aggregate accruals. Overall, our article demonstrates the importance of adopting a granular approach to identifying the different roles of individual accrual components.

WILLIAM O. DOUGLAS ON THE TRANSFER OF THE SECURITIES AND EXCHANGE COMMISSION'S AUTHORITY FOR THE DEVELOPMENT OF RULES FOR FINANCIAL REPORTING

1986 ◽  
Vol 13 (2) ◽  
pp. 125-129 ◽  
Author(s):  
Robert Chatov
Keyword(s):  
Private Sector ◽  
Financial Reporting ◽  
Corporate Financial Reporting

As an SEC Commissioner, William O. Douglas favored active SEC participation in the development of rules of accounting for financial reporting under the Securities Acts. A retrospective letter dated September 29, 1973 indicates that the pre-War SEC Commission did not contemplate the virtually complete transfer to the private sector of the authority for development of corporate financial reporting that characterizes the position of today's SEC.

A CHRONOLOGY OF THE DEVELOPMENT OF CORPORATE FINANCIAL REPORTING IN CANADA: 1850 TO 1983

1986 ◽  
Vol 13 (1) ◽  
pp. 31-62 ◽  
Author(s):  
George J. Murphy
Keyword(s):  
Financial Reporting ◽  
The United States ◽  
Company Law ◽  
Economic Relationships ◽  
Professional Activities ◽  
Financial Reporting Standards ◽  
Significant Events ◽  
Canadian Institute ◽  
Chartered Accountants ◽  
Corporate Financial Reporting

A chronology of significant events in the development of corporate financial reporting standards and practices is presented. The introductory comments to the various sections direct attention to some of the main patterns and trends in that development and provide the framework in which the listing of events is to be interpreted. The particularly significant domestic sources of influence are the legislative and professional activities in Ontario and, in more recent times, the activities of the Canadian Institute of Chartered Accountants. External influences have been—not unexpectedly—the traditions of English Company law and the close professional, institutional and economic relationships with the United States. Some internationally significant developments unique to Canada are indicated.

Do Negative Corporate Social Responsibility Events Signal Financial Misreporting? — Empirical Finding from Taiwan

2021 ◽  
Vol 24 (01) ◽  
pp. 2150004
Author(s):  
Ching-Lung Chen ◽  
Hann-Pyng Wang ◽  
Hung-Shu Fan ◽  
Shiu-Chieh Chiu
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Cash Flow ◽  
Financial Reporting ◽  
Internal Control ◽  
Empirical Finding ◽  
Internal Controls ◽  
Control Rights ◽  
Cash Flow Rights ◽  
Corporate Social

This study examines whether negative corporate social responsibility events (NCSRs) signal potential firm misreporting and pending financial reporting restatements. Without formal opinions on the effectiveness of internal controls over financial reporting in Taiwan, we hypothesize NCSRs can represent and/or signal a firm’s internal control weakness, which may in turn result in poor financial reporting. Note that the concern with controlling owners expropriating wealth through ineffective internal controls is given important weight by investors and regulators. We further examine whether the signaling function of NCSRs is more pronounced in contexts with a serious agency problem, such as is found in the high divergence of control and cash flow rights case (denoted as high excess control rights) in Taiwan. Empirical results indicate that, as conjectured, incidence of NCSRs is positively associated with the likelihood of reporting restatements. Further evidence reveals that this result is particularly pronounced in the high divergence of control and cash-flow rights subsample test. We demonstrate several diagnostic tests and show the results are robust in various specifications.

Does Financial Reporting Conservatism Mitigate Underinvestment?

2017 ◽  
Vol 34 (2) ◽  
pp. 258-283 ◽  
Author(s):  
Hyun A. Hong ◽  
Yongtae Kim ◽  
Gerald J. Lobo
Keyword(s):  
Information Asymmetry ◽  
Cash Flow ◽  
Financial Reporting ◽  
Cash Flows ◽  
Agency Conflicts ◽  
Negative Relation ◽  
Investment Projects ◽  
External Capital ◽  
Cash Flow Volatility

This study examines the role of financial reporting conservatism in mitigating underinvestment problems. Recognizing that volatile cash flows increase the need to access external capital markets and that agency conflicts and information asymmetry make external capital costlier than internal capital, which leads managers to forgo valuable investment projects, Minton and Schrand document a negative relation between cash flow volatility and investment. We draw on Minton and Schrand’s framework to isolate underinvestment problems and hypothesize and document that conservatism mitigates the negative relation between cash flow volatility and investment and that this mitigative effect is more pronounced for firms with ex ante more severe agency conflicts. We also document that conservatism mitigates the sensitivity of investment to cash flow volatility by facilitating access to external capital.

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