Double-entry bookkeeping, Accounting history

The term sounds like a reference to the simple business event of one business combining with another. A perceptive look at the process of combining, however, reveals a series of complex problems, accounting and otherwise. Valuation and disposition of intangible assets are inherent in almost every combination as are the problems of specific asset revaluations and price level adjustments; usually differences between tax accounting and general accounting arise. Unfortunately, these problems all appear simultaneously and beg for answers. The accounting profession's interest in business combinations is, in part, evidenced by Accounting Research Bulletins 40, 43, and 481; these necessarily lack the color provided in the following description:

ABSTRACT Investors, regulators, academics, and researchers all emphasize the importance of financial statement comparability. However, an empirical construct of comparability is typically not specified. In addition, little evidence exists on the benefits of comparability to users. This study attempts to fill these gaps by developing a measure of financial statement comparability. Empirically, this measure is positively related to analyst following and forecast accuracy, and negatively related to analysts? dispersion in earnings forecasts. These results suggest that financial statement comparability lowers the cost of acquiring information, and increases the overall quantity and quality of information available to analysts about the firm.

Laureen A. Maines, Linda S. McDaniel, Mary S. Harris, Implications of Proposed Segment Reporting Standards for Financial Analysts' Investment Judgements, Journal of Accounting Research, Vol. 35, Studies on Experts and the Application of Expertise in Accounting, Auditing, and Tax (1997), pp. 1-24

Estimation Problem, Capital allocation, Verifiability, Decomposition Model

Lawrence D. Brown, John S. Hughes, Michael S. Rozeff, James H. Vanderweide, Expectations Data and the Predictive Value of Interim Reporting: A Comment, Journal of Accounting Research, Vol. 18, No. 1 (Spring, 1980), pp. 278-288

Auditing, Management Advisory Services, Contracting, Economies of scope

Performance evaluation systems, Control system, Investigation region, Moral hazard

Control data, Time-series properties, Cost variance, Time-series properties

David S. Ng, Jan Stoeckenius, Auditing: Incentives and Truthful Reporting, Journal of Accounting Research, Vol. 17, Studies on Auditing-Selections from the "Research Opportunities in Auditing" Program (1979), pp. 1-24