Beattie, V., Goodacre, A. and Thomson, S. (2000) Recognition versus Disclosure: An Investigation of the Impact on Equity Risk Using UK Operating Lease Disclosures. Journal of Business Finance and Accounting, 27(9 and), pp. 1185-1224. (doi: 10.1111/1468-5957.00352)
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Jo_Business_Fin&Acc_27(9&10)1185-1224.pdf 183kB |
Publisher's URL: http://dx.doi.org/10.1111/1468-5957.00352
Abstract
This study examines the equivalency of accounting recognition versus disclosure. OLS regression analysis is used to determine whether there is an association between equity risk and an adjustment to financial risk for off-balance sheet operating leases. Two methods of adjustment are considered: constructive capitalisation and a simple factor method. The observation of a reliably positive association suggests that UK investors/analysts view operating leases from a property rights perspective rather than an ownership perspective. This supports the argument for recognition of all lease rights and obligations 'on-balance sheet', as proposed in the recent G4+1 discussion paper ASB (1999).
Item Type: | Articles |
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Status: | Published |
Refereed: | Yes |
Glasgow Author(s) Enlighten ID: | Beattie, Prof Vivien |
Authors: | Beattie, V., Goodacre, A., and Thomson, S. |
Subjects: | H Social Sciences > HF Commerce > HF5601 Accounting |
College/School: | College of Social Sciences > Adam Smith Business School > Accounting and Finance |
Journal Name: | Journal of Business Finance and Accounting |
Publisher: | Blackwell Publishing |
ISSN: | 0306-686X |
Copyright Holders: | © Blackwell Publishing |
First Published: | First published in Journal of Business Finance and Accounting 27(9and 10):1185-1224 |
Publisher Policy: | Reproduced in accordance with the copyright policy of the publisher |
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