The accuracy of cash flow estimation procedures

Article Abstract:

Prior research uses mechanical procedures to estimate cash flow data. This study examines the accuracy of these procedures by measuring errors between estimated cash flows and reported cash flows. The results indicate that mechanical rules provide poor estimates for reported cash flows. We also show that the errors between cash flow estimates and reported cash flows can be reduced by adjustments made from footnote disclosures. However, large errors remain, even after adjustments are made from footnote disclosures. These remaining errors are correlated with firm specific characteristics such as sales (firm size), extraordinary items, foreign currency gains and losses, and changes in inventory. (Reprinted by permission of the publisher.)

Research, Cash management, Cash flow

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An analysis of disclosures of derivative financial instruments in Australia and New Zealand

Article Abstract:

An analysis of disclosures of derivative financial instruments in Australia and New Zealand shows that in New Zealand there is much more disclosure in this area. That can be attributed to differing regulations. Likely the regulations that exist in Australia will be strengthened to resemble those of New Zealand. The integrated instruments approach is used more in New Zealand and the separate transactions approach is used more in Australia. Harmonization may bring some kind of change, but if disclosure is full and complete the differences may not be important.

Accounting and auditing, Derivatives (Financial instruments), Comparative analysis, Disclosure statements (Accounting)

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A regional study of listed companies' compliance with international accounting standards

Article Abstract:

An evaluation is presented on the speed and manner in which the Australian Accounting Standards Board is harmonizing its processes with those promoted by the International Accounting Standards. Findings indicate that the nation in which a corporation makes financial reports is the primary influence in driving or hampering harmonization.

Australia, Standards, Statistical Data Included, Evaluation, Accounting, Economic policy, Harmonization of laws

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