An Empirical Investigation of Conservatism in Book Value Measurement

Article Abstract:

Keywords: Book Value, GAAP, Background, Earnings, LIM This study empirically examines valuation-related issues regarding the conservatism inherent in book value measurement under generally accepted accounting principles. A benchmark model is estimated in order to identify accounting methods associated with conservatism in book value measurement. Further analysis reveals that the age of fixed assets and immediate expensing of research and development costs are by far the most economically significant contributors to accounting conservatism examined in the study. Finally, the results of examining the association between conservative accounting methods and firm-specific Feltham/Ohlson conservatism parameters suggest a weak association.

A stochastic simulation approach to financial forecasting using simultaneous equations

Article Abstract:

Keywords: Accounting research, Simulation, Modelling, Predictive validity, Clothing industry, Greece Warren and Shelton developed a model which portrays the functioning of the firm as a set of twenty simultaneous equations. This system was formulated so that the impact of a range of decisions and policies can be measured in the solution of the equation system [3].

A stochastic simulation approach to financial forecasting using simultaneous equations

Article Abstract:

The financial forecasting model of James M. Warren and P. John Shelton is tested and evaluated. This model can be used by companies to forecast financial life cycle variables, to calculate capital and to evaluate total corporate value.

Statistical Data Included, Decision-making, Models, Decision making, Business forecasting