The effects of regulatory and contracting costs on banks' choice of accounting method for other postretirement employee benefits

• 成果类型: Article
• 署名作者: Ramesh, K; Revsine, L
• 署名单位: Charles River Associates; Northwestern University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/S0165-4101(01)00003-9
• 发表日期: 2000
• 关键词: LOAN LOSS PROVISIONS; earnings management; PERSPECTIVE; STANDARDS; adoption; IMPACT

摘要

This paper examines banks' choice of accounting methods in a new regulatory environment that more closely ties regulatory monitoring to GAAP numbers. The study finds that banks' choice of the implementation method for SFAS 106 is consistent with an attempt to balance the increased regulatory costs with earnings management benefits. Moreover, banks strategically chose the adoption timing of both SFAS 106 and SFAS 109 to further reduce regulatory costs. The implementation method choice is consistent with a portfolio approach where managers simultaneously consider the existing discretionary accrual levels vis-a-vis the financial reporting effects of impending accounting standards. (C) 2001 Elsevier Science B.V. All rights reserved.