In 1981 the FASB issued a new standard for accounting for foreign currency translation, SFAS 52. The standard provided a gradual transition period, allowing firms to select from several possible adoption dates. This study extends the research on the positive theory of accounting choice to examine the factors associated with a management's choice of adoption date. The comparison reveals that early adopters were smaller, typically decreased in pre-charge earnings the year before adoption, had less stock owned by directors and officers, and were more constrained on dividend payouts and interest coverage ratios than later adopters.

Foreign currency, SFAS No. 8, SFAS No. 52, Accounting method changes

Reviews the book "Accounting for the Translation of Foreign Currencies: The Effects of Statement 52 on Equity Analysts," by Paul A. Griffin and Richard P. Castanias.

Reviews the book "The FASB Conceptual Framework 1973-1985: An Analysis," by Pelham Gore.

An area of concern to tax policymakers is the role of third-party preparers in Income tax reporting. This research examines the degree of consistency in judgments of preparers subject to differing degrees of governmental regulation. Economic theory of regulation suggests that CPAs, who are subject to a higher degree of government regulation, would be expected to recommend and justify more pro-taxpayer positions in ambiguous areas of tax law than would unlicensed preparers. This hypothesis was tested by administering a set of tax cases with a high degree of uncertainty regarding the correct tax status to groups of CPA and non-CPA tax practitioners. CPAs were found to be consistently more pro-taxpayer than were non-CPAs.

[An area of concern to tax policymakers is the role of third-party preparers in income tax reporting. This research examines the degree of consistency in judgments of preparers subject to differing degrees of governmental regulation. Economic theory of regulation suggests that CPAs, who are subject to a higher degree of government regulation, would be expected to recommend and justify more pro-taxpayer positions in ambiguous areas of tax law than would unlicensed preparers. This hypothesis was tested by administering a set of tax cases with a high degree of uncertainty regarding the correct tax status to groups of CPA and non-CPA tax practitioners. CPAs were found to be consistently more pro-taxpayer than were non-CPAs.]