scholarly journals Analysts Forecast Accuracy And The Presentation Of A Mandated Accounting Change

2011 ◽  
Vol 13 (4) ◽  
pp. 93 ◽  
Author(s):  
C. Patrick Fort
Keyword(s):  
Regression Model ◽  
Financial Analysts ◽  
Forecast Accuracy ◽  
Cumulative Effect ◽  
Income Taxes ◽  
Forecast Horizon ◽  
Presentation Method ◽  
Presentation Methods ◽  
Accounting For Income Taxes

<span>This paper examines whether the presentation method of a mandated accounting change affects financial analysts forecasts. SFAS 96, Accounting for Income Taxes (FASB, 1987), allowed companies to use either the cumulative effect or the retroactive restatement method to account for the adoption of the change. In addition to the comparison of the two presentation methods, a regression model was developed to include the number of analysts making forecasts, the dispersion of their man forecast, prior disclosure of the accounting change, and the relative year of adoption. Analysts forecasts for companies using the two different methods were compared over several periods to determine if the alternative presentations enhanced forecast accuracy and if that was dependent on the forecast horizon. While some of the covariates were significantly correlated, the results indicate that analysis gained no forecast accuracy advantage from having the increased disclosure.</span>

Inferring U.S. Tax Liability from Financial Statement Information

2009 ◽  
Vol 31 (1) ◽  
pp. 29-63 ◽  
Author(s):  
Petro Lisowsky
Keyword(s):  
Stock Options ◽  
Accounting Standards ◽  
Financial Statements ◽  
Income Taxes ◽  
Financial Accounting ◽  
Financial Statement ◽  
Corporate Tax ◽  
Data Set ◽  
Accounting For Income Taxes ◽  
Tax Expense

Abstract: Using a multi-year matched tax return-financial statement data set, this study builds empirical models that infer U.S. tax liability on the corporate tax return from publicly available financial statement disclosures, including those of Statement on Financial Accounting Standards No. 109, Accounting for Income Taxes. Results show that current U.S. tax expense, the tax benefit from stock options, current-year tax cushion accrual, consolidation book-tax differences, and R&D are informative in inferring actual tax, while intraperiod tax allocation is not. Additionally, the sign of pretax book income and the existence of net operating loss carryforwards are useful partitioning variables in estimating actual tax. In general, for every dollar of current U.S. tax expense reported on the financial statements, approximately $0.70 is reported in U.S. tax liability on the tax return. The models are validated using a holdout sample, providing support for the notion that public parties can reliably use these results to estimate a firm's tax position. Additional tests reveal a hierarchy of subsamples that researchers may employ when maximizing the usefulness of tax-related disclosures in inferring U.S. tax liability.

The Accuracy of Financial Analysts' Forecasts after Mergers

1994 ◽  
Vol 9 (3) ◽  
pp. 465-483 ◽  
Author(s):  
In-Mu Haw ◽  
Kooyul Jung ◽  
William Ruland
Keyword(s):  
Financial Analysts ◽  
Forecast Accuracy ◽  
Capital Intensity ◽  
Financial Leverage ◽  
Prediction Bias ◽  
Before And After ◽  
Intensity Changes ◽  
Industry Diversification

This paper examines forecasts developed by financial analysts before and after mergers. The study finds that forecast accuracy decreases sharply after mergers. These accuracy reductions tend to be more pronounced when financial leverage changes, when the merger does not provide earnings or industry diversification, when the purchase method of accounting is used to record the transaction, when capital intensity changes, and when the size of the target corporation is large compared to the size of the acquiring corporation. The data also show that reductions in forecast accuracy after mergers tend to be temporary. Accuracy returns to approximately the premerger level within four years after the merger. The study also finds that overprediction bias increases sharply in the year immediately following the merger. This increase in over-prediction bias, however, is also temporary. Overprediction bias returns to approximately the premerger level within the four-year postmerger study period.

Does Forecast Accuracy Matter to Security Analysts?

1999 ◽  
Vol 74 (2) ◽  
pp. 185-200 ◽  
Author(s):  
Michael B. Mikhail ◽  
Beverly R. Walther ◽  
Richard H. Willis
Keyword(s):  
Forecast Accuracy ◽  
Earnings Forecast ◽  
Statistical Relation ◽  
Security Analysts ◽  
Forecast Horizon ◽  
Stock Recommendations ◽  
Period Effects ◽  
Time Period ◽  
Turn Over ◽  
Relative Profitability

We investigate if earnings forecast accuracy matters to security analysts by examining its association with analyst turnover. Controlling for firm- and time-period effects, forecast horizon and industry forecasting experience, we find that an analyst is more likely to turn over if his forecast accuracy is lower than his peers. We find no association between an analyst's probability of turnover and his absolute forecast accuracy. We also investigate another observable measure of the analyst's performance, the profitability of his stock recommendations. There is no statistical relation between the absolute or relative profitability of an analyst's stock recommendations and his probability of turnover. We interpret our findings as indicating that forecast accuracy is important to analysts.

Pre-Empting Disclosure? Firms’ Decisions Prior to FIN No. 48

2010 ◽  
Vol 85 (3) ◽  
pp. 791-815 ◽  
Author(s):  
Jennifer L. Blouin ◽  
Cristi A. Gleason ◽  
Lillian F. Mills ◽  
Stephanie A. Sikes
Keyword(s):  
Cumulative Effect ◽  
Income Taxes ◽  
Retained Earnings ◽  
Tax Reserves ◽  
Historical Levels

ABSTRACT: FIN No. 48, Accounting for Uncertainty in Income Taxes (FASB 2006), requires firms to disclose tax reserves and to record changes in tax reserves at adoption of FIN No. 48 as cumulative effect adjustments in stockholders’ equity. We predict that between the enactment and adoption of FIN No. 48, relative to historical levels, firms settle disputes more often to potentially decrease visibility to the IRS and release reserves more often to reduce scrutiny and increase earnings (as opposed to retained earnings). We analyze 2005 and 2006 10-Qs and 10-Ks for the 100 largest nonfinancial, nonutility firms followed by analysts. Between enactment and adoption of FIN No. 48, relative to historical levels, firms report more settlements with tax authorities and release reserves more frequently. In addition, firms with higher IRS deficiencies are more likely to settle disputes. Between enactment and adoption of FIN No. 48, firms increased earnings by releasing $4.4 billion of tax reserves, nearly equaling the $4.5 billion released at adoption.

Examination of Information Presentation Method for Teleoperation Excavator

2012 ◽  
Vol 24 (6) ◽  
pp. 967-976 ◽  
Author(s):  
Taketsugu Hirabayashi ◽  
Keyword(s):  
Depth Information ◽  
Information Presentation ◽  
Work Situation ◽  
Construction Machinery ◽  
Naked Eye ◽  
Presentation Method ◽  
Presentation Methods

In the teleoperation of construction machinery, the work situation is usually determined from images shown on several screens. However, because images displayed on screens are flat, information presented is poor compared to information obtained with the naked eye, such as the view angle, resolution, and depth information. Focusing on information presentation during the teleoperation of construction machinery, this report investigates information presentation methods in mound-leveling work, grasping work, and drilling positioning conditions.

Integrating AIS and Accounting for Income Taxes: From Calculation to Disclosure

2010 ◽  
Vol 25 (3) ◽  
pp. 583-597 ◽  
Author(s):  
Tina M. Loraas ◽  
Kimberly Galligan Key
Keyword(s):  
Control Problem ◽  
Internal Control ◽  
Word Processing ◽  
Internal Controls ◽  
Income Taxes ◽  
Online Retailer ◽  
Organic Foods ◽  
And Control ◽  
Accounting For Income Taxes

ABSTRACT: TK Foods, Inc. is a leading online retailer of whole and organic foods, and while this company is doing well, management is struggling with accounting for income taxes. The case requires you to take the role of a consultant who has been hired to calculate the provision of income taxes and to create a template for the footnote disclosure using spreadsheet and word processing tools. Further, TK requires documentation regarding both the process and internal controls surrounding this calculation. This case will further your understanding of accounting for income taxes, expose you to a significant internal control problem faced by many corporations, and develop your spreadsheet skills from both computational and control standpoints.

scholarly journals Verification as a service to bring more transparency on forecast accuracy to weather services and users

2021 ◽  
Author(s):  
Evelyn Müller ◽  
Jan Hoffmann ◽  
Dennis Schulze
Keyword(s):  
Forecast Accuracy ◽  
Cost Benefit ◽  
Forecast Horizon ◽  
Weather Forecasts ◽  
Industry Applications ◽  
Cost Benefit Ratio ◽  
The Cost ◽  
Available Information ◽  
Forecast Quality

&lt;p&gt;Actual, continuously available information on the accuracy of forecasts can support both weather services and users of forecasts in quality assurance during operations and identify systematic weaknesses. Comparing the forecast success of different forecasting methods allows decision makers in the weather service and on the user side to evaluate the cost-benefit ratio of available forecasting approaches, be it different models, DMO and post-processing, or different providers. Finally, in addition to on-off experiments for version comparison, the success of developments to the forecast system can be seen in the comparison of time series of verification results against those of other forecasts.&amp;#160;&lt;/p&gt;&lt;p&gt;From the development of the forecasting process to daily operations to the use of forecasts in subsequent industry applications, stakeholders have very different questions about the quality of weather forecasts. From the weather room, there is a particular need for up-to-date information on the previous day's forecast success and rapid access to case verification analyses following unusual events. Especially in B2B, case-specific comparison with the success of other forecasts is also in demand. For management, on the other hand, longer-term trends in forecast quality are the focus of interest. Finally, users often base their choice of a forecasting provider not only on procurement costs and convenience of access, but also take into account the current forecast accuracy of their relevant parameters, in their region, in the forecast horizon relevant to them. Especially weather-sensitive industries such as road weather services, energy production and transmission, but also media often agree with forecast suppliers on continuous monitoring of forecast quality.&amp;#160;&lt;/p&gt;&lt;p&gt;We present different perspectives and questions and show possible answers as use cases in a verification portal.&lt;/p&gt;

scholarly journals Earnings Forecast Optimism For U.S. Vs. Non-U.S. Firms

2013 ◽  
Vol 12 (11) ◽  
pp. 1491
Author(s):  
David Salerno ◽  
Nathan Jeppson
Keyword(s):  
Task Complexity ◽  
Financial Analysts ◽  
Forecast Accuracy ◽  
Earnings Forecasts ◽  
International Investment ◽  
Growth Potential ◽  
Earnings Forecast ◽  
Level Measurement ◽  
Investment Opportunities

This study examines whether financial analysts are more optimistic in their earnings forecasts for non-U.S. firms than they are for U.S. firms. Several areas of research motivate this examination. First, research shows that global economic influences, such as economic downturns and the desire to increase the international content of portfolios, encourage investors to seek out international investment opportunities in new markets. Second, literature also reveals that emerging markets provide superior growth potential; however, analyzing such firms could introduce task complexity which research finds to be associated with lower forecast accuracy. Finally, research shows that financial analysts cover firms of which they have a favorable opinion. Therefore, because of this literature, it is reasonable to expect that analysts make more optimistic forecasts (over-estimate errors) of the earnings potential of the non-U.S. firms that they choose to follow vs. U.S. firms. Using a summary level measurement of forecast optimism, the authors find that analysts forecasts are more optimistic for non-U.S. firms over both short and long-term horizons. In analyst-level tests, it was found that individual analysts produce more optimistic forecasts for non-U.S. firms in relation to their peers in the long-term; however, that optimism is reduced under short horizons. As portfolios become more internationally diversified, the result of this study will be useful to investors seeking analyst guidance about international investment opportunities.

scholarly journals PENERAPAN PERYATAAN STANDAR AKUNTANSI KEUANGAN NOMOR 46 TENTANG AKUNTANSI PAJAK PENGHASILAN DAN UNDANG-UNDANG NOMOR 36 TAHUN 2008 TENTANG PAJAK PENGHASILAN ATAS PAJAK PENGHASILAN BADAN PADA PT.MEGA JASAKELOLA

2014 ◽  
Vol 8 (3) ◽  
Author(s):  
Ray Marcel Letlora ◽  
Jantje J. Tinangon ◽  
Lintje Kalangi
Keyword(s):  
Analytical Method ◽  
Income Tax ◽  
Descriptive Analysis ◽  
Income Taxes ◽  
Corporate Income Tax ◽  
Business Services ◽  
Taxable Income ◽  
Research Results ◽  
Deferred Tax ◽  
Accounting For Income Taxes

The application of PSAK No. 46, Accounting for Income Taxes expected to bridge between accounting and tax laws with provisions. The purpose of this study is to investigate the application of PSAK No. 46 and Act No. 36 of 2008 on corporate income tax on PT.mega Jasakelola. The analytical method used is descriptive analysis. The application of PSAK No.46 of research results 46 top corporate income tax has been applied on PT.Mega Jasakelola especially regarding deferred tax, taxable income and tax payable now. Implementation of Act No. 36 of 2008 on income tax on business services is appropriate PT Mega Jasakelola Taxation existing regulations. PT.Mega Jasakelola has implemented reporting income tax on their annual tax return, in accordance with the provisions of this is evidenced by the positive correction done at the expense of the non- taxable.

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