Towards a theory of interim reporting for a seasonal business : a behavioral approach

摘要: RECENTLY, a discussion of the various interim reporting theories for seasonal business has appeared in literature.' These were classified as follows: (1) discrete approach where income quarter is determined independently any other quarter; (2) predictive considered an approximation current year; and (3) disclosure not computed, but some method presented to provide user with information. The includes following theories: strict-discrete accounting period theory, modifieddiscrete orthodox direct costing theory. management anticipation seasonalized absorption (4) deseasonalizing by collective activity levels (5) modified standard cost (6) seasonally adjusted annual rate syncopated theory velvet To foregoing schools thought could also be added nondisclosure provided A number accountants corporation executives believe that reports are useful "most probably cause more harm than good."2 Advocates this average investor would misinterpret quarterly results businesses. only two studies date shed light on validity particular done Cook Bruns, they produced conflicting findings.3