Events after Reporting Period and Misstatements in Quarterly Accounts

Volume: 6 Number: 7 October 1, 2016
  • Saidatunur Fauzi Saidin
  • Mazrah Malek
  • Daing Nasir Ibrahim
  • Phua Lian Kee
International Journal of Economics and Financial Issues Cover
International Journal of Economics and Financial Issues
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Events after Reporting Period and Misstatements in Quarterly Accounts

Abstract

The occurrence of deviation between annual and cumulative quarterly accounts has been postulated as a signal of low reliability in quarterly accounts. This study examines whether the earnings deviation is more related to misstatements rather than the occurrence of events after reporting period. Data is based on Bursa Malaysia listed companies consisting of 731 observations for the period of between 2000 until 2012. Only a total of 14 percent had declared events after reporting period, while 95 percent have declared misstatements as reasons for earnings deviation. Results of the t-test show that the magnitude of earnings deviation related to misstatements is significantly higher than those related to events after reporting period. The results suggest that earnings deviation is more related to low quality of quarterly earnings, instead of mandatory accounting adjustments. Finding suggests the need for the company and regulators to take actions to enhance the quality of quarterly accounts.

Keywords

Details

Primary Language

English

Subjects

-

Journal Section

-

Authors

Saidatunur Fauzi Saidin This is me

Mazrah Malek This is me

Daing Nasir Ibrahim This is me

Phua Lian Kee This is me

Publication Date

October 1, 2016

Submission Date

October 1, 2016

Acceptance Date

-

Published in Issue

Year 2016 Volume: 6 Number: 7

IZ

https://izlik.org/JA23HR69FC

Cite

RIS / Bibtex
APA
Saidin, S. F., Malek, M., Ibrahim, D. N., & Kee, P. L. (2016). Events after Reporting Period and Misstatements in Quarterly Accounts. International Journal of Economics and Financial Issues, 6(7), 42-46. https://izlik.org/JA23HR69FC
AMA
1.Saidin SF, Malek M, Ibrahim DN, Kee PL. Events after Reporting Period and Misstatements in Quarterly Accounts. IJEFI. 2016;6(7):42-46. https://izlik.org/JA23HR69FC
Chicago
Saidin, Saidatunur Fauzi, Mazrah Malek, Daing Nasir Ibrahim, and Phua Lian Kee. 2016. “Events After Reporting Period and Misstatements in Quarterly Accounts”. International Journal of Economics and Financial Issues 6 (7): 42-46. https://izlik.org/JA23HR69FC.
EndNote
Saidin SF, Malek M, Ibrahim DN, Kee PL (October 1, 2016) Events after Reporting Period and Misstatements in Quarterly Accounts. International Journal of Economics and Financial Issues 6 7 42–46.
IEEE
[1]S. F. Saidin, M. Malek, D. N. Ibrahim, and P. L. Kee, “Events after Reporting Period and Misstatements in Quarterly Accounts”, IJEFI, vol. 6, no. 7, pp. 42–46, Oct. 2016, [Online]. Available: https://izlik.org/JA23HR69FC
ISNAD
Saidin, Saidatunur Fauzi - Malek, Mazrah - Ibrahim, Daing Nasir - Kee, Phua Lian. “Events After Reporting Period and Misstatements in Quarterly Accounts”. International Journal of Economics and Financial Issues 6/7 (October 1, 2016): 42-46. https://izlik.org/JA23HR69FC.
JAMA
1.Saidin SF, Malek M, Ibrahim DN, Kee PL. Events after Reporting Period and Misstatements in Quarterly Accounts. IJEFI. 2016;6:42–46.
MLA
Saidin, Saidatunur Fauzi, et al. “Events After Reporting Period and Misstatements in Quarterly Accounts”. International Journal of Economics and Financial Issues, vol. 6, no. 7, Oct. 2016, pp. 42-46, https://izlik.org/JA23HR69FC.
Vancouver
1.Saidatunur Fauzi Saidin, Mazrah Malek, Daing Nasir Ibrahim, Phua Lian Kee. Events after Reporting Period and Misstatements in Quarterly Accounts. IJEFI [Internet]. 2016 Oct. 1;6(7):42-6. Available from: https://izlik.org/JA23HR69FC