Earnings quality, accruals and subjective goodwill accounting

Yuko Katsuo

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper analyses accounting accruals that may relate to earnings quality and its information content. The characteristics specifying earning quality are discussed according to research surveys of earnings quality. These are compared with the characteristics of accounting income specified by the concept of ‘released from risks’ in ASBJ (2006). In this context, the conversion process of subjective goodwill, which is related to the allocation problem in accounting income and its relation to earnings quality, is focussed upon. The allocation problem is examined by clarifying the conversion process of subjective goodwill, and by highlighting the portion of the allocation error that reflects managerial discretion.

Keywords: Accounting accruals; earnings quality; subjective goodwill; income measurement; allocation problem; value relevance; managerialdiscretion. (search for similar items in EconPapers)
JEL-codes: F3 G3 J01 R14 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2008-04
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://eprints.lse.ac.uk/6912/ Open access version. (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:6912

Access Statistics for this paper

More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().