accrual


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Related to accrual: accrual basis, Accrual accounting
References in periodicals archive ?
My study contributes to the literature of agency theory in corporate finance and that of accrual anomaly in accounting.
They hypothesize that the accrual anomaly documented by Sloan (1996) is a growth effect caused by diminishing returns on investment or conservative accounting.
These accrual policies and rules enhancements are estimated to reduce the time required to configure accruals policies and rules by 80%.
Rather than require many months of expensive professional services, we can now deliver an unlimited combination of top-end customer accrual policies and rules using a standard toolset included with our accruals engine.
Under the cash basis, revenue is recognized when cash is collected from customers and expenses are recognized when they are paid; under the accrual basis, however, revenue is recognized when it is earned and expenses are recognized as they are incurred.
Because revenues can be collected before or after they are earned, the differences between the cash basis and accrual basis for revenue recognition purposes are represented by amounts in accounts such as accounts receivable (collection after revenue is earned) and unearned revenue (collection before revenue is earned).
As a consequence, companies with high (low) levels of accruals obtain negative (positive) abnormal returns, a phenomenon known as accrual anomaly.
One group of studies relates accrual anomaly with other anomalies, such as the works of Collins and Hribar (2000), Desai, Rajgopal and Venkatachalam (2004), and Fama and French (2008).
Because the price of insurance is available at the individual company level, we use individual company-level observations to examine the effects of accrual quality on the price of insurance.
In such cases, the increase of the accruals is due to signaling the market and reduces the information asymmetries.
2009) maintain that the dual system implemented in continental European countries may be one reason for the dissemination of accrual accounting, because it does not require the introduction of deep organizational changes and answers citizens' democratic demands for higher responsiveness, transparency and accountability.
Once potential discretionary accrual outliers, risk indicators, and risk factors have been identified, public company directors, audit committee members, and auditors should analyze the underlying reasons for the findings.