Modelling Receivables and Deferred Revenues to Detect Revenue Management

Autor:	Jenny Zha Giedt
Rok vydání:	2018
Předmět:	050208 finance Revenue management business.industry Accrual 05 social sciences 050201 accounting Earnings management Accounting Income statement 0502 economics and business Revenue recognition Econometrics Revenue Cash flow business Accounts receivable
Zdroj:	Abacus. 54:181-209
ISSN:	1467-6281 0001-3072
DOI:	10.1111/abac.12119
Popis:	This study develops and calibrates a revenue accruals model. Changes in accounts receivable and deferred revenues are modelled using the respective income statement and cash flow numbers (i.e., revenues and cash flows from sales) that relate directly to the accruals’ origination and reversal. Compared to existing models, the proposed specification explains more variation in the data and, in simulations with seeded revenue manipulation, exhibits greater detection power and less bias. Furthermore, the abnormal revenue estimates are positively associated with cases of revenue misstatements identified by the Securities and Exchange Commission. Results imply that researchers, auditors, and regulators interested to detect earnings management should focus on modelling specific accruals. As a practical matter, to detect revenue management, they should consider broadening their scope to examine not only accounts receivable but also current and long‐term deferred revenues. [ABSTRACT FROM AUTHOR]
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::30fc24eb11130e9824b24b244a4d41d7 https://doi.org/10.1111/abac.12119 Zobrazit plný text záznamu Plný text ve formátu PDF Plný text ve formátu HTML
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