Title: Discussion of Implications of Proposed Segment Reporting Standards for Financial Analysts' Investment Judgments
Abstract:Maines, McDaniel, and Harris experimentally investigate how a highly sophisticated group of financial statement users-financial analystsreact to alternative segment definitions. Specifically, they exa...Maines, McDaniel, and Harris experimentally investigate how a highly sophisticated group of financial statement users-financial analystsreact to alternative segment definitions. Specifically, they examine how analysts' judgments and decisions are differentially affected by the congruence of internal and external business segments and the similarity of products comprising the segments. The choice of these variables is motivated by their applicability to what were then current (SFAS No. 14) and proposed (the FASB's exposure draft-now SFAS No. 131 and the IASC's draft statement of principles-now revised IAS 14) accounting standards on segment reporting.1 The paper is an example of policy-relevant ex ante research, called for by Dennis Beresford [1994], former chairman of the Financial Accounting Standards Board (FASB). Such research provides insights into the impact of a proposed accounting standard before it has been implemented. The authors' study is commendable not only because it provides timely evidence on an important issue but also because it addresses an issue facing both domestic and international standard setters. WhileRead More
Publication Year: 1997
Publication Date: 1997-01-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 2
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