Article Review Caylor,

Strategic Revenue
Recognition
Aninditra Nurauf
Rainner Marcellino
Whanegi Skar Al Khalif
 To examine whether managers use discretion in
Tujuan revenue recognition to avoid three earning
benchmarks :
Avoidance of losses
Avoidance of earning decrease
Negative earnings surprise

Metode Melihat gross account receivable untuk mengetahui

perubahan AFDA dan melihat perubahan dalam
short-term deferred revenue.
Hypotheses H1: Perusahaan dengan pre-managed earnings yang
gagal dalam analisis benchmark mengalami kenaikan
Developmentabnormal atas gross account receivable
H2: Perusahaan dengan pre-managed earnings yang
gagal dalam analisis benchmark mengalami
penurunan abnormal pada deferred revenue jangka
pendek
H3: Perusahaan dengan deferred revenue akan
mengguakan discretion yang lebih sedikit pada akun
gross account receivable untuk menghindari negative
earnings surprise,
Results
Results

Discretion in revenue recognition -> using

account receivable and deferred revenue
Firms use gross account receivable to
reduce their earnings

To smooth future earnings if they have

achieved the analyst benchmark.
Results

Sebelum SOX
Manajemen memiliki preferensi untuk
memilih deferred revenue -> least real cost

Setelah SOX
Manajemen tidak peduli tentang real costs
imposed on shareholders
 Deferred revenue dan gross account receivable
untuk mempercepat revenue recognition ketika
pre-managed earnings have not met the analyst
Conclusion benchmark yet.
Deferred revenue -> before SOX -> least real
and cost.
Implication
s Joint project between IASB and FASB -> asset
and liability model for recognizing revenue ->
replace current earning process model
managerial estimation error.
Current earning process model: estimates have to be
made by managers as to when revenue has been
recognized and changes in assets and liabilities are
residuals of this revenue.
Asset and liability model: recognizes revenue based on