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Edith Cowan University

Management Sciences and Quantitative Methods

Disclosure in accounting -- Australia

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Voluntary Disclosure Of Cash Flow Information In Australia, Salleh B. Hassan Jan 1994

Voluntary Disclosure Of Cash Flow Information In Australia, Salleh B. Hassan

Theses : Honours

The purpose of this study is to investigate the economic incentives of firms to voluntarily disclose cash flow information prior to the operation of the approved standard AASB 1026 Statement of Cash Flows in 1992. This study theorises that firms voluntarily disclose such financial information because they believe that (1) the cash flow information is useful and relevant (in addition to information in income statement, balance sheet and funds statement), and (2) by voluntarily disclosing cash flow information, it will reduce the agency cost and the political cost. A review of contracting theory and the literature on voluntary disclosure identified …