Recognition and Disclosure Reliability: Evidence from SFAS No. 106*

Davis‐Friday, Paquita Y.; Liu, Chao‐Shin; Mittelstaedt, Horst

doi:10.1506/t0vc-q15y-w5qv-4ukq

Cited by 126 publications

(56 citation statements)

References 8 publications

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“…For example, Davis‐Friday et al. [] and Davis‐Friday, Liu, and Mittelstaedt [] provide archival evidence that OPEB liabilities receive lower valuation weights when disclosed than when recognized. Ahmed, Kilic, and Lobo [] provide similar evidence for fair values of derivatives.…”

Section: Building a Literature With Multiple Methodsmentioning

confidence: 99%

Gathering Data for Archival, Field, Survey, and Experimental Accounting Research

Bloomfield

Nelson

Soltes

2016

J of Accounting Research

210

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In the published proceedings of the first Journal of Accounting Research Conference, Vatter [1966] lamented that “Gathering direct and original facts is a tedious and difficult task, and it is not surprising that such work is avoided.” For the fiftieth JAR Conference, we introduce a framework to help researchers understand the complementary value of seven empirical methods that gather data in different ways: prestructured archives, unstructured (“hand‐collected”) archives, field studies, field experiments, surveys, laboratory studies, and laboratory experiments. The framework spells out five goals of an empirical literature and defines the seven methods according to researchers’ choices with respect to five data gathering tasks. We use the framework and examples of successful research studies in the financial reporting literature to clarify how data gathering choices affect a study's ability to achieve its goals, and conclude by showing how the complementary nature of different methods allows researchers to build a literature more effectively than they could with less diverse approaches to gathering data.

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Section: Building a Literature With Multiple Methodsmentioning

confidence: 99%

Gathering Data for Archival, Field, Survey, and Experimental Accounting Research

Bloomfield

Nelson

Soltes

2016

J of Accounting Research

210

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“…133 disclosed derivatives are not. More pertinent to the subject matter of this study, Davis-Friday, Liu, & Mittelstaedt (2004) find that the market treats disclosed information concerning OPEB obligations as less reliable than recognized information.…”

Section: Disclosure Versus Recognitionmentioning

confidence: 82%

An Event Study Analysis of Statement of Financial Accounting Standards No. 158

Fried

2013

AFR

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This study examines the economic consequences of the Statement of Financial Accounting Standards (SFAS) No. 158 requirement to recognize previously disclosed net pension and postretirement benefit obligations on the balance sheet. The study documents a negative stock price reaction around the release of the SFAS No. 158 Exposure Draft. Additionally, the results indicate that the market reaction varies cross-sectionally with the magnitude of the balance sheet adjustment required by SFAS No. 158 and is driven by the other postretirement plan adjustment rather than the pension plan adjustment. The findings have important implications for the recognition versus disclosure debate because they document a significant market reaction to the relocation of already disclosed information from the financial statements footnotes to the balance sheet.

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“…Marking-to-market of the assets that dropped in value does not have a negative effect only to the businesses holding them [2]. It has also a negative effect to all the investors, shareholders and creditors of those particular companies.…”

Section: Background Information Fair Value and The Crisismentioning

confidence: 92%

Credit Crisis with Focus on Level Three Valuations and FAS 157: Analysis and Recommendations for Change

Hoti¹

2012

J Account Mark

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The paper examines the effect of level three valuations and FAS 157 implications on investors, auditors' work, valuation disclosures and gives recommendations for improvements based on best practices. The aim of this research is to demonstrate that the fair value measurements should not be suspended. The standards provide for measurement of fair value in all market conditions. Therefore, level 3 measurements or mark-to-model is an answer for many issuers that are not sure how to measure their assets and liabilities at the fair value. The paper concludes that fair value measurement has not caused the current crisis and has no pro-cyclical effect and suggests several recommendations for policy makers and regulators.

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Recognition and Disclosure Reliability: Evidence from SFAS No. 106*

Cited by 126 publications

References 8 publications

Gathering Data for Archival, Field, Survey, and Experimental Accounting Research

Gathering Data for Archival, Field, Survey, and Experimental Accounting Research

An Event Study Analysis of Statement of Financial Accounting Standards No. 158

Credit Crisis with Focus on Level Three Valuations and FAS 157: Analysis and Recommendations for Change

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