Testing the Commitment to the Neutrality of Financial Statement Information
Abstract
Investigates the commitment of various members of the US financial community to neutrality in financial reports. The research design involves five cases in which “GAAP‐condoned” non‐neutral accounting improves a company′s accounting numbers. The populations selected were accounting academics, public accountants, financial analysts and controllers (or chief financial officers) of major corporations. Finds no significant differences among any of the populations as measured by their reactions to any of the five cases. Also there is no evidence for a strong commitment to neutrality on the part of the respondents. Rather, suggests some slight approval for accounting practices which generate favourable numbers and have no adverse impact on a company′s cash flows.
Keywords
Citation
Martens, S.C. and McEnroe, J.E. (1993), "Testing the Commitment to the Neutrality of Financial Statement Information", Managerial Auditing Journal, Vol. 8 No. 6. https://doi.org/10.1108/02686909310042776
Publisher
:MCB UP Ltd
Copyright © 1993, MCB UP Limited