 Segment Disclosure Quantity and Quality under IFRS 8: Determinants and the Effect on Financial Analysts' Earnings Forecast ErrorsPaul Andre, Andrei Filip and Rucsandra Moldovan The International Journal of Accounting, 2016, vol. 51, issue 4, 443-461 Abstract: Focusing on segment disclosures under the management approach, we investigate managers' choices with respect to both segment reporting quantity and quality and the usefulness of these two characteristics for financial analysts. We measure quantity as the number of segment-level line items and quality as the cross-segment variation in profitability—arguing that more managerial discretion can be exercised over quality than over quantity. We find that managers solve proprietary concerns either by deviating from the suggested line-item disclosure in the standard, or, if following standard guidance, by decreasing segment reporting quality. Moreover, financial analysts do not always understand the quality of segment disclosures, suggesting that a business-model type of standard creates difficulties even for sophisticated users. Our results inform standard setters as they start working on a disclosure framework and as they consider the business model approach to financial reporting. Date: 2016 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:accoun:v:51:y:2016:i:4:p:443-461 DOI: 10.1016/j.intacc.2016.10.008 Access Statistics for this article The International Journal of Accounting is currently edited by A. R. Abdel-Khalik More articles in The International Journal of Accounting from Elsevier |
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