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Net Assets (net + asset)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting100%
Distribution within Business, Economics, Finance and Accounting
Financial Accounting50%

Terms modified by Net Assets

  • net asset value
    		•

    Selected Abstracts

    The Why and How of the New Capital Asset Reporting Requirements

    PUBLIC BUDGETING AND FINANCE, Issue 3 2001
    Terry K. Patton
    New requirements for reporting capital assets associated with the governmental funds of state and local governments are among the most significant changes that will be required by Government Accounting Standards Board (GASB) Statement No. 34. Under Statement No. 34, the historical cost of these assets, including general infrastructure assets (for example, roads and bridges), must be reported in the government-wide Statement of Net Assets. The cost of using those assets,generally depreciation expense,must be reported in the government-wide Statement of Activities. This article explores why the GASB established these requirements and how it worked with preparers and others to make meeting these requirements less costly. [source]

    Tests of a Deferred Tax Explanation of the Negative Association between the LIFO Reserve and Firm Value,

    CONTEMPORARY ACCOUNTING RESEARCH, Issue 1 2000
    DAN S. DHALIWAL
    Guenther and Trombley (1994) and Jennings, Simko, and Thompson (1996) document a negative association between a firm's last-in, first-out (LIFO) reserve and the market value of its equity. In this paper, we test a deferred tax explanation of this negative association. Specifically, we argue that investors, conditional on adjusting inventory to as-if first-in, first-out (FIFO), estimate a firm's future LIFO liquidation tax burden as its LIFO reserve multiplied by the appropriate corporate tax rate and include this tax-adjusted LIFO reserve in the valuation of a LIFO firm's net assets. On the basis of this argument, the tax-adjusted LIFO reserve is in effect an estimate of an off-balance-sheet deferred tax liability and, as a result, we predict a negative association between the tax-adjusted LIFO reserve and market value of equity. We test our deferred tax explanation by estimating a valuation model in which a firm's market value of equity is expressed as a function of the firm's assets, liabilities, deferred tax liability, and tax-adjusted LIFO reserve; the model is estimated separately in years preceding and following the reduction of tax rates mandated by the US Tax Reform Act of 1986. Test results provide strong support for the deferred tax explanation of the negative association between a firm's LIFO reserve and the market value of its equity. [source]

    The Allowance for Uncollectible Accounts, Conservatism, and Earnings Management

    JOURNAL OF ACCOUNTING RESEARCH, Issue 3 2010
    SCOTT B. JACKSON
    ABSTRACT We study the interrelation between conservatism and earnings management by examining the allowance for uncollectible accounts and its income statement counterpart, bad debt expense. We find that the allowance is conservative and that it has become more conservative over time. Conservatism may, however, facilitate earnings management. We find that firms manage bad debt expense downward (and even record,income-increasing,bad debt expense) to meet or beat analysts' earnings forecasts and that conservatism accentuates the extent to which firms manage bad debt expense. Further, we find that firms manage bad debt expense downward by drawing down previously recorded over-accruals of bad debt expense that have accumulated on the balance sheet. An implication of our study is that tighter limits on the amount by which firms are permitted to understate net assets may reduce their ability to manage earnings. [source]

    SOCIALLY RESPONSIBLE INVESTING AND PORTFOLIO DIVERSIFICATION

    THE JOURNAL OF FINANCIAL RESEARCH, Issue 1 2005
    Zakri Y. Bello
    Abstract I use a sample of socially responsible stock mutual funds matched to randomly selected conventional funds of similar net assets to investigate differences in characteristics of assets held, portfolio diversification, and variable effects of diversification on investment performance. I find that socially responsible funds do not differ significantly from conventional funds in terms of any of these attributes. Moreover, the effect of diversification on investment performance is not different between the two groups. Both groups underperform the Domini 400 Social Index and S&P 500 during the study period. [source]