New Empirical Evidence on Accounting Policy Disclosures : The Case of Critical Accounting Policies

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Rupertus, Hendrik:
New Empirical Evidence on Accounting Policy Disclosures : The Case of Critical Accounting Policies.
2018
Veranstaltung: 14th Workshop on European Financial Reporting (EUFIN) , 30.08.2018-31.08.2018 , Stockholm, Schweden.
(Veranstaltungsbeitrag: Kongress/Konferenz/Symposium/Tagung , Vortrag )

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Abstract

The growth of communicating accounting policies, estimates and underlying uncertainties has increased continuously over the last years. Since 2001, U.S.-firms are encouraged to disclose their highly uncertain accounting policies with a material impact on the presentation of the financial condition of the firm (‘critical accounting policies’, CAP). In comparison, there exist no similar regulation within the IFRS. Moreover, many outsiders criticize that current disclosures about accounting policies and estimation uncertainties within the IFRS are too unspecific. Due to this lack of disclosure, the aim of the study is to analyze whether and how CAP disclosures could serve as a basis for future discussion by standard setters to improve current disclosure requirements. Based on my findings, I conclude that CAP disclosures would be fruitful and help investors to assess information about accounting policies and estimation uncertainties in the measurement process.