Derivative accounting and financial reporting quality: A review of the literature |
| |
| Institution: | 1. School of Accountancy, Georgia Southern University, Georgia;2. Department of Accounting & Information Systems, University of Nevada, Reno, United States;1. Binghamton University – SUNY, USA;2. The Ohio State University, USA;1. School of Accounting, College of Business Administration, Florida International University, USA;2. Accounting Department, College of Business, San Francisco State University, USA;3. Department of Accounting, Finance and Economics, College of Business and Public Policy, California State University, Dominguez Hills, USA;1. Florida International University, United States of America;2. University at Albany – SUNY, United States of AmericaThis article was accepted by Roger Graham;1. School of Accounting, Central Michigan University, Mount Pleasant, MI, United States;2. Department of Accounting, College of Business, Iowa State University, Ames, IA, United States;3. Department of Accounting, Belk College of Business, University of North Carolina, Charlotte, NC, United States;4. Department of Accounting, University of Illinois, Chicago, IL, United States;1. Maine Business School, The University of Maine, 5723 Donald P. Corbett Business Building Room 313, Orono, ME 04469-5723, United States;2. Manning School of Business, The University of Massachusetts Lowell, Pulichino Tong Business Center, Lowell, MA 01854, United States;3. Department of Accounting, College of Business, The University of Texas at San Antonio, One UTSA Circle, San Antonio, TX 78249, United States |
| |
| Abstract: | The financial crisis of 2008 increased the call for standard setters and financial regulators to review the effectiveness of derivative regulation in improving financial reporting quality. Prior literature defines financial reporting quality as the extent to which financial statements provide information that is useful to investors and creditors in their investment decisions (Schipper, 2003; Schipper & Vincent, 2003). This review summarizes the empirical evidence regarding the effectiveness of derivative regulation in achieving its stated objective. Extant literature shows that although derivative regulations have improved information provided to investors, there is still room for improvement. Recommendations from this stream of literature suggest that the Financial Accounting Standards Board (FASB) require managers to provide more complete, transparent, and forward-looking disclosures surrounding their derivative positions (Campbell, 2015; Franco-Wong, 2000). This review may be useful to standard setters, practitioners, and accounting academics by providing a synthesis of extant academic literature on the effectiveness of current derivative regulation. As the FASB and International Accounting Standards Board (IASB) continue to expand derivative accounting rules, this review may also be useful in identifying areas for future academic research. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
