Journal of Accounting Advances
Year:2012 | Volume:4 | Issue:1 (62/3)|Papers Count:7

Introduction: Fund or capital which is needed to finance a business or invest in a plan is prepared by different groups, those groups expecting a significant rate of return. Cost of equity of a business is equal to the minimum expected returns which a plan should include, and in this case investors will become eager to pay their fund for business. Research shows that various factors have effect on expected rate of return. Basu (1977) mentioned in his studies that those stocks that have larger P/E ratios will have a larger expected return. Bhandari (1988) described in his studies that depth ratio to total equity of shareholders as one of leverage ratios, have a relationship with expected return....

Introduction: Investment is one of the fundamental and crucial elements in the process of economical development of any countries. Stock markets as the symbol of investing fluctuate due to economical changes. Investing managers, managers and other people exchange their stock and other properties in this market. In order to sustain their funds and gain more profits these investors need to scrutinize factors affecting these markets under different economical situations. They try to invest their properties to gain the most profits and the least risk....

Introduction: Since the 1960s there has been an increased interest in accounting disclosure studies. In broad terms two significantly different approaches to researching accounting disclosure have emerged in the literature. The first approach is primarily based on sending questionnaire forms to a number of financial accounting users requesting them to rank specified accounting items in accordance with their degree of importance for decision-making processes. The second group addresses the association between a constructed disclosure index of mandatory, voluntary or total accounting disclosure and certain firm characteristics....

Introduction: High-profile corporate failures that occurred at the beginning of this century have raised concern about the reliability of companies' financial statements. While the primary responsibility for preparing accurate financial statements rests with company management and boards, questions also have been raised about the quality and independence of external auditors. Regulators and standard setters have attempted to enhance audit quality through rules impacting on auditor independence (For example, the Sarbanes-Oxley Act of 2002)...

Introduction: The financial reporting system has always been confronted with crisis in attracting public trust. The increase in the number of managers' frauds which has often accompanied fracture of great companies with the world had caused some worries about quality of financial statement along. So, prevention or detection of fraud in financial statement has always been the focus of inventors, managers and auditors. Thus, because of its controlling trait (detecting & deterrent), using independent auditing services results in quality increase of financial statement creating enhanced value of accounting information...

Introduction: According to the preface to the Iranian Accounting Standards, the range of the application of the accounting standards is related to the preparation of the financial standards with the public aim of providing useful information about the financial situation, financial performance and flexibility of the business units for various decision makers (Iranian Accounting Standards, 2010: 5)...