MANAGERIAL REMUNERATION AND ACCOUNTING FOR RECURRING EXTRAORDINARY ITEMS

Hoffman T. and Zimmer I. (1994) MANAGERIAL REMUNERATION AND ACCOUNTING FOR RECURRING EXTRAORDINARY ITEMS. Accounting & Finance, 34 2: 35-48. doi:10.1111/j.1467-629X.1994.tb00268.x


Author Hoffman T.
Zimmer I.
Title MANAGERIAL REMUNERATION AND ACCOUNTING FOR RECURRING EXTRAORDINARY ITEMS
Journal name Accounting & Finance   Check publisher's open access policy
ISSN 1467-629X
Publication date 1994-01-01
Sub-type Article (original research)
DOI 10.1111/j.1467-629X.1994.tb00268.x
Open Access Status Not yet assessed
Volume 34
Issue 2
Start page 35
End page 48
Total pages 14
Subject 1402 Applied Economics
2001 Communication and Media Studies
2003 Language Studies
Abstract The Australian standard on income statements (AAS 1) was recently amended to require that extraordinary items be non‐recurring. Although the amendment applies from 1990, the Corporations Law requires that comparative financial statements for 1989, complying with the new rule, be included with the 1990 financial statements. Comparison of these with actual financial statements for 1989 indicates how the statements would have differed in 1989 if the standard had then required extraordinary items to be non‐recurring. The differences are investigated to partially explain cross sectional differences in firms' classification criteria. Results imply that managers who are remunerated highly (relative to the magnitude of the earnings of the firm) prefer to classify gains as operating and losses as extraordinary.
Q-Index Code C1
Institutional Status Unknown

Document type: Journal Article
Sub-type: Article (original research)
Collection: Scopus Import - Archived
 
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Created: Tue, 20 Sep 2016, 11:05:46 EST by System User