Earnings deviation of interim and annual accounts: pre and post-MASB 26
This study is to examine whether the use of discrete method may enhance the quality of interim financial accounts. It examines whether the magnitude and occurrence of earnings deviation post-MASB 26 is significantly lower than pre-MASB 26. Data is based on listed companies on Bursa Malaysia for two...
| Main Authors: | , , |
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| Format: | Article |
| Published: |
Inderscience Enterprises Ltd.
2022
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| Online Access: | http://psasir.upm.edu.my/id/eprint/101037/ |
| _version_ | 1848863477502836736 |
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| author | Fauzi Saidin, Saidatunur Malek, Mazrah Phua, Lian Kee |
| author_facet | Fauzi Saidin, Saidatunur Malek, Mazrah Phua, Lian Kee |
| author_sort | Fauzi Saidin, Saidatunur |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This study is to examine whether the use of discrete method may enhance the quality of interim financial accounts. It examines whether the magnitude and occurrence of earnings deviation post-MASB 26 is significantly lower than pre-MASB 26. Data is based on listed companies on Bursa Malaysia for two years before and after the introduction of MASB 26 in 2002. The t-test shows that the magnitude of earnings deviation pre-MASB 26 is significantly higher as compared to post-MASB 26. Sub-sample analyses also showed that the magnitude of both overstated and understated companies is significantly higher pre-MASB 26. However, Pearson chi-square shows that the occurrence of earnings deviation has increased post-MASB 26 which was contributed to by the increase in occurrence of understated quarterly earnings. This study provides evidence that the use of discrete method might enhance the quality of interim reporting. Whilst, alternative methods of accounting provide different benefits and drawbacks, this study highlighted the need for regulators to consider the objective of financial reporting in formulating the accounting standards. |
| first_indexed | 2025-11-15T13:33:32Z |
| format | Article |
| id | upm-101037 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-15T13:33:32Z |
| publishDate | 2022 |
| publisher | Inderscience Enterprises Ltd. |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-1010372023-06-19T06:24:59Z http://psasir.upm.edu.my/id/eprint/101037/ Earnings deviation of interim and annual accounts: pre and post-MASB 26 Fauzi Saidin, Saidatunur Malek, Mazrah Phua, Lian Kee This study is to examine whether the use of discrete method may enhance the quality of interim financial accounts. It examines whether the magnitude and occurrence of earnings deviation post-MASB 26 is significantly lower than pre-MASB 26. Data is based on listed companies on Bursa Malaysia for two years before and after the introduction of MASB 26 in 2002. The t-test shows that the magnitude of earnings deviation pre-MASB 26 is significantly higher as compared to post-MASB 26. Sub-sample analyses also showed that the magnitude of both overstated and understated companies is significantly higher pre-MASB 26. However, Pearson chi-square shows that the occurrence of earnings deviation has increased post-MASB 26 which was contributed to by the increase in occurrence of understated quarterly earnings. This study provides evidence that the use of discrete method might enhance the quality of interim reporting. Whilst, alternative methods of accounting provide different benefits and drawbacks, this study highlighted the need for regulators to consider the objective of financial reporting in formulating the accounting standards. Inderscience Enterprises Ltd. 2022-11-04 Article PeerReviewed Fauzi Saidin, Saidatunur and Malek, Mazrah and Phua, Lian Kee (2022) Earnings deviation of interim and annual accounts: pre and post-MASB 26. Afro-Asian Journal of Finance and Accounting, 12 (5). 594 - 606. ISSN 1751-6447; ESSN: 1751-6455 https://www.inderscienceonline.com/doi/abs/10.1504/AAJFA.2022.126962 10.1504/AAJFA.2022.126962 |
| spellingShingle | Fauzi Saidin, Saidatunur Malek, Mazrah Phua, Lian Kee Earnings deviation of interim and annual accounts: pre and post-MASB 26 |
| title | Earnings deviation of interim and annual accounts: pre and post-MASB 26 |
| title_full | Earnings deviation of interim and annual accounts: pre and post-MASB 26 |
| title_fullStr | Earnings deviation of interim and annual accounts: pre and post-MASB 26 |
| title_full_unstemmed | Earnings deviation of interim and annual accounts: pre and post-MASB 26 |
| title_short | Earnings deviation of interim and annual accounts: pre and post-MASB 26 |
| title_sort | earnings deviation of interim and annual accounts: pre and post-masb 26 |
| url | http://psasir.upm.edu.my/id/eprint/101037/ http://psasir.upm.edu.my/id/eprint/101037/ http://psasir.upm.edu.my/id/eprint/101037/ |