TAILIEUCHUNG - Valuation and Clean Surplus Accounting for Operating and Financial Activities*

We begin with an assumption about the sales generating process rather than the operating cash flow generating process because the sales contract determines both the timing and amount of the cash inflows (and often related cash outflows) and the recognition of earnings. The sales contract specifies when and under what conditions the customer has to pay. Those conditions determine the pattern of cash receipts and so the sales contract is more primitive than the cash receipts. The sales conditions also determine when a future cash inflow is verifiable and so included in earnings (along with associated cash outflows). Usually that. | Valuation and Clean Surplus Accounting for Operating and Financial Activities GERALD A. FELTHAM University of British Columbia JAMES A. OHLSON Columbia University Abstract This paper models the relation between a firm s market value and accounting data concerning operating and financial activities. Book value equals market value for financial activities but they can differ for operating activities. Market value is assumed to equal the net present value of expected future dividends and is shown under clean surplus accounting to also equal book value plus the net present value of expected future abnormal earnings which equals accounting earnings minus an interest charge on opening book value . A linear model specifies the dynamics of an information set that includes book value and abnormal earnings for operating activities. Model parameters represent persistence of abnormal earnings growth and accounting conservatism. The model is sufficiently simple to permit derivation of closed form expressions relating market value to accounting data and other information. Three kinds of analyses develop from the model. The first set deals with value as it relates to anticipated realizations of accounting data. The second set examines in precise terms how value depends on contemporaneous realizations of accounting data. The third set examines asymptotic relations comparing market value to earnings and book values and how earnings relate to beginning of period book values. The paper demonstrates that in all three sets of analyses the conclusions hinge on the extent to which the accounting is conservative as opposed to unbiased. Further the absence presence of growth in operating activities is relevant if and only if the accounting is conservative. Résumé. Les auteurs présentent sous forme de mođèle la relation enfre la valeur marchande d une entreprise et les données comptables relatives à ses activités d exploitation et ses activités financieres. La valeur comptable est égale à .

Đã phát hiện trình chặn quảng cáo AdBlock
Trang web này phụ thuộc vào doanh thu từ số lần hiển thị quảng cáo để tồn tại. Vui lòng tắt trình chặn quảng cáo của bạn hoặc tạm dừng tính năng chặn quảng cáo cho trang web này.