文档介绍：本科毕业论文(设计)
外文翻译
外文题目The Economic Consequences of the Statement of Financial Accounting Standards (SFAS) No. 150
外文出处 International Advances in Economic Research 2006
外文作者 RICHARD G. SCHROEDER
原文:
The Economic Consequences of the Statement of Financial Accounting Standards (SFAS) No. 150
Abstract
SFAS No. 150, "Accounting For Certain Financial Instruments with Characteristics of Both Liabilities and Equity" (SFAS 150), panies to report mandatorily redeemable preferred stock (MRPS) as a liability, and the dividends on these securities as interest expense. The purpose of this study is to examine the economic consequences of SFAS 150_s adoption on a sample of panies. Our analysis indicates that adoption resulted in both intended and possible unintended economic consequences. Specifically: (1) the impact of SFAS 150 on non-panies caused the FASB to review its position on the disclosures concerning MRPS; (2) panies redeemed their MRPS prior to the adoption date of the standard; and (3) approximately 4% of sample firms were required to disclose MRPS as a liability. (JEL M41)
Keywords: economic consequences, Financial Accounting Standards Board, SFAS 150
Introduction
The economic consequences of accounting standards have been a topic of interest for over two decades. FEconomic consequences_ refer to the impact of accounting reports on various segments of our economic society [Zeff, 1978, ]. Since the identification of this issue, there have been a number of studies that have investigated the economic consequences of accounting standards [Guay et al., 2003; Dechow et al., 1996; Khurana and Loudder, 1994; Wasley and Linsmeier, 1992; Stone and Ingram, 1988].
Background
The amount of pany’s long-term debt relative to its equity is relevant because the debt-to-equity ratio is directly related to the risk associated with investing in the firm’s stock [Hamada, 1972; Rubinstein, 1973]. As the debt-to-equity ratio of a firm increases, the market’s perception of t