...Commercial Studies of Sfax (IHEC), University of Sfax, Tunisia. A B S T R A C T This paper empirically tests whether the low contemporaneous returns-earnings association set by previous empirical researches may be explained by lack of timeliness of accounting numbers. It hypothesises that if the criteria for accounting recognition yield a multi-period lag in earnings recognitions of economic events and if these events affect an informed market immediately when they occur, then future periods’ earnings would have explanatory for current returns as well as current earnings. To assess the significance of future earnings as an explanatory variable for stock returns we regress at first step annual returns on current earnings and at second step, annual returns on current earnings and successively next period and next two periods’ earnings. Results show that future earnings continue to explain current returns. The evidence is characteristic of a substantial recognition lag in earnings that extends to the immediate next period. However, over one year, earnings do not seem reflecting any relevant economic event impounded in security prices at previous period. The earnings recognition lag seems to decrease after one year. Keywords: Value-relevance, Accounting earnings, Lack of timeliness. INTRODUCTION Accounting recognition is “the process of formally recording or incorporating an item in the accounts and financial statements of an entity” (FASB 1980, SFAC N°. 3 par. 83)1. Most accounting...
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...The Great Depression Thomas Clay Forrest Economics 510 Professor Don Waldron February 6, 2011, 2011 The Great Depression The Great Depression was the deepest, longest and most widespread economic calamity of the twentieth century, and is the most common standard of how far things in the world’s economy can decline. Beginning with the First New Deal, which put into effect a host of relief and recovery measures designed to improve economic conditions and stimulate recovery, myriad other steps were taken to prevent another catastrophe of this magnitude from ever occurring again. Are these measure enough, though, and could the world ever experience another Great Depression? How do the events of the Great Depression era compare to recent economic downturns, including the current deep recession the world is experiencing? This essay will provide answers to these questions and provide an analysis of the causes and events that led to the Great Depression. It will also present the reasons why another Great Depression is unlikely to occur again. Debates vary as to the causes of the Great Depression, with many well-respected economists offering differing opinions to what they believe led to the historic event. British economist John Maynard Keynes felt that the Depression was driven by demand, and in his book the General Theory of Employment Interest and Money, Keynes argued that lower aggregate expenditures in the economy contributed to an enormous...
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...Alfaisal University College of Business Master of Business Administration Professional Program MBA 513 Managerial Economics Course Syllabus Instructor: Dr Declan McCrohan © The College of Business, Alfaisal University, 2013. The materials contained in this document may only be used during the Alfaisal University MBA Program. Except as stipulated under national and international copyright laws, no part of this document may be copied, reproduced, stored or transmitted in any form or by any means, or used for any commercial purpose without the written permission of the copyright owner. Contact Information and Class Times Instructor: | Dr Declan McCrohan | Address: | College of Business, Alfaisal University,PO Box 50927,Takhassusi StreetRiyadh 11533,Kingdom of Saudi Arabia | | Email: | dmccrohan@alfaisal.edu | | Office: | +96612157717 | Consultation hours: | To be confirmed | Office: | College of Business, male section. | Class Times: | Cohort 1: Mon 9-12 Cohort 2: Sun 6-9pm Cohort 3: Mon 6-9pm | Venue: | Alfaisal University. Please check your personal academic timetables for the classroom location. | Course Instructor Dr Declan McCrohan graduated with a PhD in Applied Economics and a Masters degree in International Trade from Victoria University in Australia. His PhD research examined the impact of overseas students’ social networks on international trade flows. Dr McCrohan has extensive...
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... What is the company’s progress towards these goals? Identify key performance gaps? A Fixed Base Operator (FBO) is a business that provides services at the 20,000 airports in the USA. They operate flight training schools, provide aircraft repairs and maintenance, provide fuel and provide pilot support with weather and flight planning facilities. As such they are the backbone of general aviation. Airport Tenant – An airport tenant is a person, firm, or corporation leasing or using airport property solely for the purpose of storing an aircraft and is not engaged in or providing any aviation related commercial activity or service at the airport. An airport tenant is not authorized to function as or provide the services of an FBO Current Products and Services With committed capital and deep industry experience in general aviation services transactions (having closed over thirty transactions in the last fifteen years), we can move quickly and discreetly with minimum disruption of day to day operations. Ideal FBO acquisition candidates will have: • Annual general aviation fuel uplift in excess of one million gallons • Long term lease rights at its airport operating location • Ancillary business segments such as maintenance and charter will be considered but should be anchored by a strong core line service segment • Both single operations and multi-location chains will be considered . The financial backing of Moelis Capital Partners affords us the wherewithal to...
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...The Dirty Thirties and the Emergence Of Canadian Social Assistance Grade 10 Academic-CHC2D Dec. 12, 2011 By: Kate Raatzs, Archana Selvaragan and Jennifer Joseph Table of Contents Task Page Design Plan Statement 1 Course Outline 2-5 Unit Overview 6 Unit Calendar 7-8 Enduring Understandings/Essential Questions 9-10 Lesson Summaries: a) Causes of Economic Troubles 11 b) Population Changes and Immigration 12-14 c) Technology of the 1930s 15 d) Life in the 1930s 16 e) On-To-Ottawa and Social Unrest 17 f) Social Assistance Programs 18 g) Then and Now Review Lesson 19-21 h) Then and Now Round Table Assignment 22-23 Appendix A: Round Table Discussion Handout 24 Rubric for Round Table Discussion and other Assessment ideas 25-28 Topic Organizer 29-31 Speech Planner 32 Design Process Statement Our group initially decided to work together because each of us was specifically interested in developing lessons for Grade 10 Canadian History – Academic. Some of us wanted to develop our understanding of the curriculum itself, while others wanted to focus on working with students of this age. After reviewing the curriculum...
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...Final Analytical Application of Current Microeconomic events Introduction The article ‘Financial crisis in the living room’ written by Renan Bourdeau on the 8th of September 2013 featured in the Khaleej Times. It questions the ramifications ascribed to the fact that the populace’s salaries are not increasing in congruence with housing costs. The article cites that the recovery of the residential estate in Dubai has featured in the news for quite some time and the prices of houses have soared, and have been accompanied by high rental costs for properties. As a result of the drastic increase in the housing prices which is bound to extend until the year ends, utility costs have flared up in the region. The credit crisis ascribed to the region has resulted in an increase in the cost of purchasing household equipment, as well as conducting routine household maintenance by approximately 3.69 percent (Bourdeau, n.d). The emergent question is what impact this surge is bound to have on consumer lending, debt repayment and borrowing. During the beginning of the year, over a five-month period, consumers took loans worth more than Dh9 billion, a sum that correlates with the whole of 2012’s increase. Moreover, the UAE presently represents more than 60% of the consumer debt within the GCC. Its ratio of debt to income is greater than that of the US and most countries in Europe. This is an unsettling sign that indicates mounting household debt within the country. In addition, most residents...
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...Accounting theory and conceptual frameworks After studying this chapter you should be able to: & explain what accounting theory is & describe the main attempts at constructing an accounting theory & appraise current developments in the area & describe and discuss the contents of the IASB Framework & appraise the quality and usefulness of the IASB Framework in the context of its self-declared purposes & describe and discuss the parts of IAS 1 relating to accounting concepts and policies & appraise the overall effect of the Framework and comparable parts of IAS 1. Introduction This chapter is about to deal with something that many people believe does not exist – a single generally accepted accounting theory. There is no generally accepted accounting theory at this time even though many attempts have been made to formulate one. According to Eldon S. Hendriksen in Accounting Theory (1977), Theory as it applies to accounting is the coherent set of hypothetical, conceptual and pragmatic principles forming the general frame of reference for a field of inquiry. Thus accounting theory may be defined as logical reasoning in the form of a set of broad principles that 1 Provide a general frame of reference by which accounting practices can be evaluated and 2 Guide the development of new practices and procedures. Accounting theory may also be used to explain existing practices to obtain a better understanding of them. But the most important goal of accounting theory should be to provide...
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...8 Accounting theory and conceptual frameworks After studying this chapter you should be able to: & explain what accounting theory is & describe the main attempts at constructing an accounting theory & appraise current developments in the area & describe and discuss the contents of the IASB Framework & appraise the quality and usefulness of the IASB Framework in the context of its self-declared purposes & describe and discuss the parts of IAS 1 relating to accounting concepts and policies & appraise the overall effect of the Framework and comparable parts of IAS 1. Introduction This chapter is about to deal with something that many people believe does not exist – a single generally accepted accounting theory. There is no generally accepted accounting theory at this time even though many attempts have been made to formulate one. According to Eldon S. Hendriksen in Accounting Theory (1977), Theory as it applies to accounting is the coherent set of hypothetical, conceptual and pragmatic principles forming the general frame of reference for a field of inquiry. Thus accounting theory may be defined as logical reasoning in the form of a set of broad principles that 1 Provide a general frame of reference by which accounting practices can be evaluated and 2 Guide the development of new practices and procedures. Accounting theory may also be used to explain existing practices to obtain a better understanding of them. But the most important goal of accounting theory should be to provide...
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...8 Accounting theory and conceptual frameworks After studying this chapter you should be able to: & explain what accounting theory is & describe the main attempts at constructing an accounting theory & appraise current developments in the area & describe and discuss the contents of the IASB Framework & appraise the quality and usefulness of the IASB Framework in the context of its self-declared purposes & describe and discuss the parts of IAS 1 relating to accounting concepts and policies & appraise the overall effect of the Framework and comparable parts of IAS 1. Introduction This chapter is about to deal with something that many people believe does not exist – a single generally accepted accounting theory. There is no generally accepted accounting theory at this time even though many attempts have been made to formulate one. According to Eldon S. Hendriksen in Accounting Theory (1977), Theory as it applies to accounting is the coherent set of hypothetical, conceptual and pragmatic principles forming the general frame of reference for a field of inquiry. Thus accounting theory may be defined as logical reasoning in the form of a set of broad principles that 1 Provide a general frame of reference by which accounting practices can be evaluated and 2 Guide the development of new practices and procedures. Accounting theory may also be used to explain existing practices to obtain a better understanding of them. But the most important goal of accounting theory should be to provide a...
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...Scenario 1 Energy Inc. has a present obligation (IAS 37-17) and probable liability (ASC 450-20-25-2) on December 31, 2011 as a result of a past event, the contamination of the land, because it is virtually certain that a draft law requiring cleaning up will be enacted. It is probable (more likely than not) that Energy Inc. will be required to transfer economic benefits in settlement which is an outflow of resources embodying economic benefits in settlement (IAS 37-23). The amount of the obligation or loss can also be estimated reliably since Energy Inc. has made similar payments for cleanup in other countries, which is the best estimate of the costs of the clean (IAS 37-36/ASC 450-20-25-2). As a result, according to IAS 37-14, Energy Inc. should recognize a provision in reporting to its U.K. parent under IFRSs and based on ASC 450-20-25-2, a provision needs to be recognized in reporting to its U.S.-based lender in accordance with U.S. GAAP as of December 31, 2011. However, in the case that Energy Inc. cannot reasonably estimate the cost of the cleanup, a provision should not be recognized but disclosed provision in reporting to its U.K. parent under IFRSs and U.S.-based lender in accordance with U.S. GAAP (ASC 450-20-50-5). Scenario 2 FuelSource Co. causes contamination and operates in Dirty Country where there is no environmental legislation. However, FuelSource Co. has a widely published environmental policy in which it undertakes to clean up all contamination that...
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...requirements, application and other explanatory material in the CICA Handbook – Assurance. auditing and assurance FOR PUBLIC ACCOUNTANTS PERFORMING AUDIT AND REVIEW ENGAGEMENTS BULLETIN Staff contact Chi Ho Ng, CA, CPA(IL), MBA Principal Auditing and Assurance Standards Department 277 Wellington Street West Toronto, ON M5V 3H2 Tel: (416) 204-3443 E-mail: chiho.ng@cica.ca Fax : (416) 204-3408 Auditing Considerations in an Uncertain Economic Environment Uncertainties in the current economic environment There is a possibility that the Canadian economy may weaken in the near term. This has been noted in various sources, including the economic forecast for Canada issued by the Organization for Economic Co-operation and Development. Heightened risks from renewed financial-market turmoil linked to the European sovereign debt crisis and high levels of household indebtedness are eroding consumer confidence. In January 2009, staff of the Auditing and Assurance Standards Board (AASB) issued a Risk Alert, “Auditing Considerations in the Current Economic Environment,” to highlight matters for auditors to consider when responding to higher risks of material misstatements of financial statements of entities significantly affected by the 2007/2008 downturn in the Canadian economy. This Bulletin updates the January 2009 Risk Alert to make reference to the Canadian Auditing Standards...
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...influence of the sport and leisure sector Sport and leisure sector: facilities and activities; outdoor and indoor; minority sports; professional clubs; entertainment; hospitality and exhibitions; fashionable sports and leisure activities and trends in sport and leisure; commercial and private providers; professional sport; cinemas and theatres; exhibitions; health clubs and spas; sports merchandise; voluntary eg local sports clubs, drama groups; public eg local authority leisure centres, national stadia, venues, parks and events; schools and specialist sports/drama colleges, further education centres of excellence, government organisations; other agencies and providers Growth and expansion: related to age, gender, socio-economic group, lifestyle, geographical location, disability/health status, governmental imperatives; improved choice; health clubs, specialist activities, purpose-built facilities; educational eg new sports/drama colleges and centres of excellence; events management; recreation, arts and entertainment; outdoor activities; adventure tourism; special interest tourism; sports development policy and planning; consumption; lifestyle; national governing bodies; sector skills councils; sports councils to reflect national government policy on sport and associated areas eg fitness; elite training facilities and services eg growth of youth academies for different sports; lottery funding; professional bodies eg Institute for Sport, Parks and Leisure (ISPAL) LO2 Understand the...
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...5:26 PM (CDT) Unit 4 - Individual Project Assignment Overview Go To: Type: Individual Project Unit: Market Structure and Firm Strategy Due Date: Mon, 3/14/16 Grading Type: Numeric Points Possible: 200 Points Earned: 0 Deliverable Length: 1000-1500 words Assignment Details Scenario Learning Materials Reading Assignment My Work: Online Deliverables: Submissions Assignment Details Assignment Description Weekly tasks or assignments (Individual or Group Projects) will be due by Monday and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission posting times are based on midnight Central Time. You are starting your own Internet business. You decide to form a company that will sell cookbooks online. Justcookbooks.com is scheduled to launch 6 months from today. You estimate that the annual cost of this business will be as follows: Technology (Web design and maintenance) $5,000 Postage and handling $1,000 Miscellaneous $3,000 Inventory of cookbooks $2,000 Equipment $4,000 Overhead $1,000 Part I Deliverable Length: 1 graph plus calculations You must give up your full-time job, which paid $50,000 per year, and you worked part-time for half of the year. The average retail price of the cookbooks will be $30, and their average cost will be $20. Assume that the equation for demand is Q = 40,000 – 500P, where Q = the number of cookbooks...
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...Economic Advisement Paper Team C ECO/372 September 9, 2013 Robert Freita Jr. Economic Advisement Paper The total value of the services and goods that are produced in a country, also the value of goods imported that decrease value of exports is Aggregate supply. Aggregate demand is the sum of all demand in an economy, and will be calculated investment, services and not exports. In this paper team C will discuss the economic recovery from the prospective of Unemployment, Consumer income, Interest rates, and Expectations respectively of the U.S. This information will be summarized and recommendations made to the president regarding government spending and taxes based on the aforementioned economic factors. Unemployment The easiest way to understand how aggregate supply and demand affect unemployment is to think about unemployment in its simplest form. The rise and fall of the nation’s unemployment rate is at best a simple matter of supply and demand. The numbers of people who want jobs at necessary wages (labor supply) exceeds the number of people firms are willing to hire (labor demand) (Beggs, 2012). The most fundamental of economic model suggest that when supply exceeds demand the price in that market will fall; in the labor market this means that wages fall. It stands to reason that falling wages should encourage employers to hire more workers. Moreover, if wage fall firms production cost will decline this will induce competitive firms to reduce their price...
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...Fundamentals of Macroeconomics Paper\ There are a number of economic activities that are directly related to the government, households, and businesses. With these economic activities you can also see the flow of resources from one entity to another. A few of the most common of these activities are the purchasing of groceries, a massive layoff of employees, and a decrease in taxes. These three activities, while maybe not directly related to everybody’s everyday life, affect everybody in small or major ways that are not necessarily obvious. It is important to understand how these activities affect different aspects of our lives to do our best to prevent them and decrease their negative effects. Purchasing Groceries The purchasing of groceries can affect the government, households and businesses in several different ways. This purchase can affect businesses because stores that supply groceries must supply the demand of certain products. The demand of certain products raises the demand for the business and therefore allows it to grow. Purchasing groceries affects households because in order to sustain a normal household in today’s times, you must provide groceries for your family. The prices of the groceries and how many you purchase are determined by how well your family’s income is and also the demand for certain groceries. Purchasing groceries affects the government because it keeps the economy running smoothly with a normal amount of growth. The flow of the resources for...
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