ARTICLE
TITLE

Events after Reporting Period and Misstatements in Quarterly Accounts

SUMMARY

The occurrence of deviation between annual and cumulative quarterly accounts has been postulated as a signal of low reliability in quarterly accounts. This study examines whether the earnings deviation is more related to misstatements rather than the occurrence of events after reporting period. Data is based on Bursa Malaysia listed companies consisting of 731 observations for the period of between 2000 until 2012. Only a total of 14 percent had declared events after reporting period, while 95 percent have declared misstatements as reasons for earnings deviation. Results of the t-test show that the magnitude of earnings deviation related to misstatements is significantly higher than those related to events after reporting period. The results suggest that earnings deviation is more related to low quality of quarterly earnings, instead of mandatory accounting adjustments. Finding suggests the need for the company and regulators to take actions to enhance the quality of quarterly accounts.Keywords: events after reporting period, misstatements, quarterly accountsJEL Classifications: M41, M42, M48

PAGES
pp. 42 - 46
COLLECTIONS
Economy

 Articles related

Glauber de Castro Barbosa,Otávio Ribeiro de Medeiros    

The study has the purpose of analyzing the behavior of the Brazilian stock market in order to verify the existence of market efficiency immediately after the occurrence of favorable and unfavorable events (shocks). To achieve this purpose, an event study... see more


Paul S. Radikonyana, Ernie Heath, Felicite Fairer-Wessels, J.J. Prinsloo, Theuns G. Pelser    

This article reports on a study that was conducted which aims to understand the optimal usage of e-marketing in sport mega-events with reference to the 2010 FIFA Soccer World CupTM which was held in South Africa. A conceptual framework to optimally ... see more


Chanyoung Eom    

This paper questions if the anomaly in the events of seasoned equity offerings has remained significant after it was first documented and analyzed in the year 1995. I find that U.S. domestic firms issuing primary and combined SEOs underperform in the thr... see more


Yakin Ekin, Onur Akbulut    

The wars that have taken place throughout the history of mankind have brought many deaths and devastation. Throughout history, visits have been realized to areas where battles have taken place. In our age of information technology with the developments e... see more


Tanja Karp, Patricia Maloney    

In this paper, we describe the successful implementation of an afterschool LEGO robotics program for elementary and middle school students that is annually offered by the Whitacre College of Engineering at Texas Tech University. Three events are held on ... see more