Knowledge that Transforms

Reviews the book "Financial Accounting: A Canadian Casebook With Multiple-Subject Cases," by L.S. Rosen.

Reviews the book "Accountants' Reports on Profit Forecasts," by Alan V. Ashton.

Reviews the book "Intermediate Accounting," by Paul B.W. Miller, D. Gerald Searfoss and Kenneth A. Smith.

Reviews the book "Modern Internal Auditing: Appraising Operations and Controls," Victor Z. Brink and Herbert Witt.

Reviews the book "Financial Reporting Rules and Corporate Decisions: A Study of Public Policy," by Bertrand Horwitz and Richard Kolodny.

The article presents information on comments made by Franklin Lowenthal on the article "Product Warranty Period: A Markovian Approach to Estimation and Analysis of Repair and Replacement Costs," by K.R. Balachandran, R.A. Maschmeyer and J.L. Livingston. Lowenthal has said that the article by Balachandran, Maschmeyer and Livingston [1981] contains a mathematical error. The conclusion that the exponential distribution is the only distribution that leads to a failure rate constant during the warranty period is certainly correct. However, the mathematical formulation of the postulated condition of time independence as expressed in Equation (3) on page 117 in that paper is incorrect. The incorrect equation expresses a quite different but exceedingly fundamental concept of probability theory: independence of events. In fact, the word "independence," which generally refers to independence of events, is used by the authors immediately prior to their incorrect equation. A reader who attempted to combine the incorrect Equation (3) and correct Equation (1) would be led to an incorrect conclusion.

This study examines U.S. securities market responses to two annual reporting events of non-U.S, multinational corporations: (1) the annual earnings announcement made in the United States, and (2) the annual Form 20-K filing made with the U.S. Securities and Exchange Commission. The market reacts to the U.S. earnings announcements of these firms despite the fact that reported earnings amounts are typically not based on U.S. GAAP. Moreover, the intensity of the reactions to the U.S. earnings announcements of non-U.S. multinationals and a control sample of matched U.S. firms is comparable. No immediate response to the 20-K filing is observed.

Reviews the book "Accounting for Oil & Gas Producing Companies, Part 2: Amortization, Conveyances, Full Costing and Disclosures," by Horace R. Brock, John P. Klingstedt and Donald M. Jones.

Reviews the book "Economics, Accounting and Property Theory," by David P. Ellerman.

Reviews the book "Recognition in Financial Statements: Underlying Concepts and Practical Conventions," by L. Todd Johnson and Reed K. Storey.