Do the missing months mask the true financial performance? In a recent study entitled, “Orphans Deserve Attention: Financial Reporting in the Missing Month When Corporations Change Fiscal Year,” the authors of the study found that out of the 1,786 public firms reviewed from 1993 to 2008, 45.4 percent shifted their fiscal year-end by intervals of up to two months and opined that these changes could “fly under the radar of investors and regulators”—or even change it by a longer duration that is not a multiple of three months. [toggle style=”closed” title=”View Orphans Deserve Attention: Financial Reporting in the Missing Month When Corporations…
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Study: More Deals Occur in Countries That Follow Similar Financial-Reporting Standards At CFO.com Kathleen Hoffelder reports that dissimilar national accounting standards and the lack of adherence to international financial reporting rules seem to be a major deterrent to companies eyeing targets beyond their borders, according to a recent academic study. Moreover, cross-border acquisitions by companies of target firms in countries with similar accounting strictures tend to relieve CFOs and other senior executives of financial and administrative burdens, says Shawn Huang, assistant professor at the University of Arkansas and one of the survey’s authors, along with Jere Francis, a professor at…