Recognition v. Disclosure, Auditor Tolerance for Misstatement, and the Reliability of Stock-Compensation and Lease Information

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Evidence that Market Participants Assess Recognized and Disclosed Items Similarly when Reliability is Not an Issue (2013, methodology): “July 2013 simple present value technique (Libby et al. 2006; Imhoff et al. 1991) that is taught in introductory accounting textbooks (e.g., Libby et al. 2011, 470–477; Stickney et al. 2010, 490–491).”
Recognition versus Disclosure of Fair Values (2015, background): “Regarding differential reliability, we expect that recognized fair values are subject to greater internal (i.e., by management) and external scrutiny (e.g., by auditors or other monitors; Libby et al. 2006, Goncharov et al. 2014), reducing measurement error.”
Implications for GAAP from an Analysis of Positive Research in Accounting (2010, background): “For some experimental research on this question see Maines and McDaniel (2000), Libby et al. (2006).”
What financial and non‐financial information on intangibles is value‐relevant? A review of the evidence (2008, unknown): “Consistent with this idea, external auditors appear to permit more misstatement in footnotes compared with recognised amounts (Libby et al., 2006).”