Download Free A Survey Of Financial Reporting And Accounting Practices Of Government Contractors Based On 1975 Reporting Book in PDF and EPUB Free Download. You can read online A Survey Of Financial Reporting And Accounting Practices Of Government Contractors Based On 1975 Reporting and write the review.

This dissertation examines the association between government contracting and financial reporting issues. I define government contracting companies to include any company awarded a U.S. federal government contract in the current year. I examine two research questions related to these companies. In the first study, I investigate whether contracting with the federal government is associated with the likelihood of reporting material weaknesses in internal control over financial reporting. Government contracting has distinct laws, regulations, and monitoring activities not common to commercial contracts. I hypothesize that these institutional features create opposing influences on the effectiveness of companies' internal control over financial reporting because the government contracting setting influences both the existence and detection of internal control problems. I find that government contracting is negatively associated with the likelihood of reporting a material weakness in internal control over financial reporting and that government contracting companies are more likely to remediate a material weakness in the following year. Collectively, these findings suggest that the government contracting setting is associated with the effectiveness of internal control over financial reporting. In the second study, I investigate whether disaggregating revenues based on contract characteristics is useful to investors. Beginning in 2018, the Financial Accounting Standards Board will require companies to disclose disaggregated revenues based on customer contract characteristics. This disaggregated information could be useful if revenues associated with different contract characteristics are also associated with differential company performance or value. I use existing data on the contracts of companies that have been awarded at least one government contract to test this assertion. The results show that in several cases contract characteristics are useful in identifying differences in the persistence of company performance. Also, I find that certain contract characteristics can influence the pricing of earnings and are associated with the presence of an unrecorded intangible asset. These findings provide ex ante evidence on the usefulness of this yet-to-be implemented accounting standard, suggesting that disaggregated revenue disclosures have the potential to provide relevant information to investors.
Contains the contract agreement, the Committee request for a proposal, and the Arthur Anderson & Company's response and exhibits.