 Discussion of Segment Disclosure Quantity and Quality under IFRS 8: Determinants and the Effect of Financial Analysts' Earnings Forecast ErrorsGiorgio Gotti The International Journal of Accounting, 2016, vol. 51, issue 4, 462-463 Abstract: Andre, Filip, and Modovan (2016) explores the characteristics—quality and quantity—of segment disclosures under IFRS 8 and their usefulness to financial analysts in accurately estimating earnings per share (EPS). The authors measure quantity of disclosures as the number of segment-level line items disclosed in financial statements and quality as the cross-segment variation in profitability. The results provide evidence that managers solve the issue of proprietary costs by decreasing either the quantity of disclosure below the level of standards' guidance or the quality of disclosures on operating segments, thus reducing the overall information included in disclosures. Results also show that it is difficult even for a sophisticated group of financial statement users such as financial analysts to fully understand the quality of segment disclosures and that too much disclosure quantity might create a “foggy” environment, where even sophisticated investors can have troubles using disclosed information to forecast earnings. 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:462-463 DOI: 10.1016/j.intacc.2016.10.007 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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