Soonawalla, Kazbi (2006) Accounting for joint ventures and associates in Canada, UK, and US: do US rules hide information? Journal of business finance and accounting, 33 (3-4). pp. 395-417. ISSN 1468-5957
Abstract
Unlike US GAAP, accounting principles in Canada and the UK require disclosure of disaggregated components of joint ventures and associates. Using comparative analysis of Canadian, UK and US data, this study investigates the potential loss of forecasting and valuation relevant information from aggregating joint venture and associate accounting amounts. Findings show that aggregating joint venture and associate investment numbers, and aggregating joint venture revenues and expenses, each leads to loss of forecasting and valuation relevant information. Thus, current US accounting principles likely mask information that financial statement users could use to predict future earnings and explain share prices.
| Item Type: | Article |
|---|---|
| Official URL: | http://www.blackwell-synergy.com/loi/jbfa |
| Additional Information: | © 2006 Blackwell Publishing |
| Uncontrolled Keywords: | joint ventures, associates, international accounting, value relevance, earnings forecasting |
| Library of Congress subject classification: | H Social Sciences > HF Commerce > HF5601 Accounting |
| Sets: | Departments > Accounting and Finance |
| Rights: | http://www.lse.ac.uk/library/rights/LSERO.htm |
| URL: | http://eprints.lse.ac.uk/3048/ |
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