Empirical investigation of the discriminant and predictive ability of the SFAS No. 69 signals for business failure in the oil and gas industry

Thesis/Dissertation · Tue Jan 01 04:00:00 EST 1985

OSTI ID:5598260

Eldahrawy, K M

In 1982, the Financial Accounting Board (FASB) issued Statement of Financial Accounting Standards No. 69 (SFAS No. 69) which required oil and gas producing companies to disclose supplementary information to the basic financial statements. These disclosures include costs incurred, capitalized costs, reserve quantities, and a standardized measure of discounted cash flows. The FASB considered these disclosures to be necessary to compensate for the deficiencies in historical cost financial statements. The objective of this study is to test the usefulness of SFAS No. 69. The research strategy used to achieve that objective is to compare the discriminant and predictive power of SFAS No. 69 signals or SFAS No. 69 signals combined with financial signals to that of financial signals alone. Results indicated that SFAS No. 69 signals are useful for financial report users in detecting the deterioration of the financial position of an oil and gas company before failure.

• Research Organization: North Texas State Univ., Denton, TX
• OSTI ID: 5598260
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
03 NATURAL GAS
030600 -- Natural Gas-- Economic
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
294000 -- Energy Planning & Policy-- Fossil Fuels
ACCOUNTING
ACCURACY
DATA
FINANCIAL DATA
INDUSTRY
INFORMATION
NATURAL GAS INDUSTRY
PETROLEUM INDUSTRY