A fundamental property of accrual accounting is to smooth temporary timing fluctuations in operating cash flows, indicating an inherent negative correlation between accruals and cash flows. We show that the overall correlation between accruals and cash flows has dramatically declined in magnitude over the past half century and has largely disappeared in more recent years. The adjusted R 2 from ...

the main purpose of this study is to identify the share of public sector accounting in accounting papers as well as its research areas. in addition, this study seeks to present more clear directions about the research opportunities of public sector accounting based on iran’s situation. in this study, research based journals are reviewed from 1992 to 2014. they are analyzed and categorized based...

This paper studies accrual accounting and equity valuation in the context of a firm that makes repeated and overlapping investments in productive capacity. The analysis identifies a particular accrual accounting (depreciation) rule which is termed replacement cost accounting because the book value of existing capacity assets is set equal to the value that such assets would have if a competitive...

Purpose – The aim of this paper is to examine the process of change in an Australian not-for-profit organization, from a cash-based to an accrual-based accounting system. Its particular focus is the relationship between the image portrayed by accrual accounting adoption and the technical realities of the new system. Design/methodology/approach – Data were gathered from interviews, documents and...

Stock prices reflect persistence differences across a wide range of accrual types that are categorized in Richardson, Sloan, Soliman, and Tuna (Journal of Accounting and Economics, 2005). Moreover, stock prices reflect short-term persistence differences more strongly than longterm persistence differences. These findings suggest that investors understand persistence of accrual types during the y...

Earnings management is an important part of current accounting studies. Many of those studies concentrate on accruals. This study critically evaluates frequently used accrual models. The Jones model was the first econometric approach to estimating discretionary accruals. Even though it is subject to several limitations, such as model misspecification, omitted-variables, and errors-in-variables ...