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Recognition versus disclosure:an investigation of the impact on equity risk using UK operating lease disclosures

Beattie, Vivien and Goodacre, Alan and Thomson, Sarah Jane (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&10). pp. 1185-1224. ISSN 0306-686X

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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: Article
Journal or Publication Title: Journal of Business Finance and Accounting
Uncontrolled Keywords: constructive capitalism ; leasing ; equity risk ; off-balance sheet finance ; recognition vs. disclosure
Subjects:
Departments: Lancaster University Management School > Accounting & Finance
ID Code: 66449
Deposited By: ep_importer_pure
Deposited On: 17 Sep 2013 09:11
Refereed?: Yes
Published?: Published
Last Modified: 21 Sep 2017 05:48
Identification Number:
URI: http://eprints.lancs.ac.uk/id/eprint/66449

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