Disclosures, Firm size, Public listing, Financial reporting

Abstract This article presents response of the author on comments made by scholars Jack Hayya, William Ferrara, and Erwin Saniga on the paper "Extending the Applicability of Probabilistic Management Planning and Control Models" that was published in the January 1974 issue of the periodical "The Accounting Review." One of the main points in the comment seems to revolve around the contention that recent advances in nonparametric statistical tests and the corresponding computer routines have made obsolete the use of Tchebycheff-type inequalities in probabilistic models. There are at least two possible reference points for defining the term obsolete. First, the term can be defined by referencing to the current level of technological feasibility, that is, what does one knows about the problems and techniques under consideration from a purely technological standpoint. Hayya and others are correct in stating that great advances have been made in the area of nonparametric statistics and the related computer routines. These advances have extended the technological feasibility of applying probabilistic planning and control models.

Abstract This article presents a study on selected items of information and their disclosure in annual reports in accounting in the U.S. This study has presented the results of a mailed questionnaire survey of financial analysts which sought to determine the relative importance of 38 selected items of information. The extent of disclosure of the 38 items was then measured for a sample of annual reports from 88 small and medium size companies. The results indicated that many of the items were inadequately disclosed in the sample and that the correlation between the relative importance of the items and the extent of their disclosure was small. On the basis of these results, the writer has concluded that an opportunity exists for an expansion of the extent of disclosure in the annual reports of small and medium size companies.

Abstract Presents information on a study which applied probabilistic models to management planning and control in accounting. Mathematical expression of nonprobabilistic approach to management planning and control; Problem with the traditional nonprobabilistic approach and probabilistic approach.

Abstract ABSTRACT: This paper presents the results of a mail questionnaire survey of 500 university chief financial officers. The survey attempted to assess the demand for and importance of nine social items of information to universities as investors. Despite the available literature which suggests a growing demand by universities for external corporate social responsibility reporting, the authors advance the tentative conclusion, based on their analysis of 292 usable returns, that university investors may not be a strong source of demand for information about social responsibility.

Abstract The article is a comment on the article "An Empirical Analysis of the Quality of Corporate Financial Disclosure," by researchers, Surendra S. Singhvi and Harsha B. Desai, published in the January 1971 issue of the journal "The Accounting Review." Singhvi and Desai report on a research project in which they attempted, to identify some of the characteristics of corporations in the United States which are associated with, and the possible implications of, the quality of corporate disclosure. To accomplish their purpose, an index of disclosure was constructed. According to the author, Singhvi and Desai have little to say about how they applied the index. Presumably, they constructed a list of criteria to be met by each item if it were to receive the requisite number of points. However, no mention is made of such a procedure in the article. The lack of specific criteria would tend to give greater play to the variability of human judgment in applying the index. The test, as described by Singhvi and Desai is somewhat misleading.

Abstract Reviews the book `Retiree Health Benefits: Field Test of the FASB Proposal,' by Coopers & Lybrand.

Abstract Reviews the book "Basic Accounting Concepts," by Hershel M. Anderson, James W. Giese and Bernard A. Coda.

Abstract The federal income tax laws and regulations allow a certain latitude for businessmen to either capitalize or expense certain expenditures. One major area where such a latitude exists is repairs. When a company makes an expenditure for repairs which could be either capitalized or expensed without forseeable objection from the Internal Revenue Service, then a capitalize-expense decision must be made by management which will optimize profits. When an expenditure has been made which falls within a discretionary area for income taxes (e.g., it may be expensed or capitalized) a decision which maximizes the tax savings over time is desired. In general, the analysis will be the same as that used to determine the optimal depreciation policy for capitalized expenditures. In most practical situations salvage value on a particular asset is of no great concern. The revenue code allows the tax payer to reduce the amount of salvage by 10% of the cost of the depreciable property. Since most items of expenditure do not involve salvage values in excess of 10% of cost, salvage value presents no problem.