Research background: As you know, one of the main accounting principles that determine methodology for assessing facts economic life is business continuity. Compliance with this principle by commercial organizations associated many factors, which their ability to provide funding continuation and development activities. Carrying out activities acquisition new or modernization technical re-equipm...

In seeking to meet the objectives of financial reporting stated in the IASB’s Conceptual Framework, the current ‘balance-sheet’ approach is necessary but not sufficient. Critical, but largely overlooked in the Framework, is the role of uncertainty, which we argue defines the role of accrual accounting in providing useful information to investors. This role is in some sense paradoxical: on the o...

We exploit a unique setting of accounting regulation change to examine how accounting information quality affects the well-documented accrual anomaly. We show a significant reduction in the negative return predictability of accruals among UK companies with poorer accounting information quality following the introduction of Financial Reporting Standard No. 3: Reporting Financial Performance (FRS...