microsoft accessibility standards rule 25a

Firstly, in competitive equilibrium earnings tend to gravitate toward the cost of equity capital. Perfect matching provides a series of implications. Matching is considered to be perfect in the case where all expenses can be traced directly and specifically to specific revenues. If expenses are not properly matched against the resulting revenues, it is defined as a poor matching and is regarded as a noise in the economic relation of advancing expenses to obtain revenues. 123) and state that the purpose of accounting is to properly match the expenses against the resulting revenues. The objective of this study is to introduce a novel approach to do that.ĭichev and Tang (2008) follow Paton and Littleton (1940, p. Consequently, it is of importance to investigate and improve the methods to assess the quality of matching. Therefore, an inquiry into matching can potentially provide valuable insights into the properties of accounting earnings ( Dichev and Tang, 2008). This makes also matching very important, as the accuracy of matching plays a key role in assessing earnings. Earnings are regarded as the most important output of the accounting system ( Graham et al., 2005). For the accounting period, matching thus brings in the income statement together expenses and resulting revenue enabling to assess the earnings of the firm as the difference between revenue and expenses. In the matching process, revenues are first recognized and expenses are then matched against these revenues. Matching of expenses to revenues is defined as the process of collecting all revenues which are earned during the accounting period and matching these revenues with the expenses incurred to produce those revenues. The matching principle of accounting plays in financial reporting a central role. The full terms of this licence may be seen at Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Copyright © 2019, Erkki Kalervo Laitinen.

Microsoft accessibility standards rule 25a