publication . Article . 2013

The Value Relevance of Direct Cash Flows under International Financial Reporting Standards

Alan J. Duboisée de Ricquebourg; Allan Hodgson; Iain Clacher;
Open Access English
  • Published: 01 Jan 2013
  • Publisher: Wiley
  • Country: United Kingdom
Abstract
This study examines if there has been a change in the value relevance of direct cash flow components since the adoption of International Financial Reporting Standards (IFRS) in Australia. Our results show that for both industrial and extractive firms direct cash flow statements are value relevant under Australian Generally Accepted Accounting Principles (AGAAP) and remain so after the adoption of IFRS. In addition, for industrial firms there is a significant increase in the value relevance of direct cash flows after IFRS, along with an increase in the value relevance of accruals. These results are consistent with the proposition that direct cash flows play a rei...
Subjects
free text keywords: Accounting, Operating cash flow, Accounting standard, Cash management, Intrinsic value (finance), Cash conversion cycle, Cash flow statement, Cash flow, business.industry, business, Cash flow forecasting
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