Ann Tarca Delivered The Cpa Philip Brown Annual Lecture 2818376

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ARTICLE for question 1: Check the numbers: Accounting information still matters to you, me and investors around the world When: 9 August 2018 Where: University of Western Australia, Perth, Australia Ann Tarca delivered the CPA Philip Brown Annual Lecture, which is organised annually by CPA Australia together with the University of Western Australia Business School and Curtin Business School. Introduction Good evening. It is with great pleasure that I deliver the Philip Brown CPA Lecture this evening. I will discuss three things: (1) the relationship between accounting information and share prices, that is, what we know about the impact of accounting information in capital markets, based on empirical accounting research, (2) whether current accounting practices and changes in the economy have diminished the role for accounting information, and (3) the ways the International Accounting Standards Board (Board) is addressing the issues raised by those who consider accounting has lost its relevance. I first met Professor Philip Brown in 1996 when I commenced post graduate studies at the University of Western Australia. I was immediately impressed by Philip’s enquiring mind and the rigour with which he examined research questions. Subsequently Philip was one of my PhD supervisors and then my coauthor on several research papers. Like many of Philip’s PhD students, I have continually referred to principles, techniques and strategies I learned from Philip – applicable to accounting research and beyond. Background—Ball & Brown 1968 Philip’s own career received a crucial boost from a paper he published with Ray Ball in 1968. In this paper Philip and Ray investigated whether (or, rather, to what extent) accounting information was useful in capital markets, that is, they investigated whether the release of accounting earnings was reflected in stock prices. Today this seems a question with an obvious answer—yes. But at the time the answer was not obvious. In the 1960s…