Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Recognition versus disclosure
T2 - an investigation of the impact on equity risk using UK operating lease disclosures
AU - Beattie, Vivien
AU - Goodacre, Alan
AU - Thomson, Sarah Jane
PY - 2000/11
Y1 - 2000/11
N2 - 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).
AB - 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).
KW - constructive capitalism
KW - leasing
KW - equity risk
KW - off-balance sheet finance
KW - recognition vs. disclosure
U2 - 10.1111/1468-5957.00352
DO - 10.1111/1468-5957.00352
M3 - Journal article
VL - 27
SP - 1185
EP - 1224
JO - Journal of Business Finance and Accounting
JF - Journal of Business Finance and Accounting
SN - 0306-686X
IS - 9&10
ER -