Interpreting accruals as working capital investment, we hypothesize based on q-theory that firms optimally adjust their accruals in response to discount rate changes. A higher discount rate means less profitable investments and lower accruals, and a lower discount rate means more profitable investments and higher accruals. Our evidence supports this optimal investment hypothesis: (1) adding an ...

Motivated by the findings that the aggregate (discretionary) accruals positively predicts oneyear-ahead firm-level stock returns and that there is a considerable amount of co-movement in firm-level (discretionary) accruals, we decompose firm-level (discretionary) accruals into a market-wide component and a firm-specific component. We document robust evidence that the two orthogonal (discretiona...

CV Satu Holiday Tour and Travel is a servicencompany engaged in the travel agency. In managing, calculating recording transactions at Holiday, it still done using cash book making financial reports spreadsheet, as well accounting records that company does not fully describe assets, liabilities, equity of company. The purpose thisfresearch to implement system can help manage accrual-based record...

In 2001, the Fund adopted the Government Finance Statistics Manual of 2001 (GFSM 2001) as the new framework for collection and dissemination of government finance statistics. GFSM 2001 is based on the accrual accounting concept, in contrast with the previous cash accounting based framework (GFSM 1986). In November 2005, the IMF Executive Board reaffirmed its commitment to GFSM 2001 and agreed, ...

INTRODUCTION Management of financial resources in health systems is one of the major issues of concern for policy makers globally. As a sub-set of financial management, accounting system is of paramount importance. In this paper, which presents part of the results of a wider research project on transition process from a cash accounting system to an accrual accounting system, we look at the impa...

This study examines the association between auditor-provided tax services (APTS) and financial reporting quality to determine if APTS impairs auditor independence or generates knowledge spillover. Lower (higher) financial reporting quality is generally viewed as evidence supporting auditor independence impairment (knowledge spillover). We use the quality of the income tax accrual estimate from ...