EQUITY INCOME OF ENERGY FIRMS: EXAMINATION OF NON-CASH INCOME
The energy sector has reported robust profits in recent years with some energy firms reporting record profits, drawing botii public and political scrutiny. Reported accounting profits, however, can include amounts that do not necessarily result in an increase in cash flow to a firm. One such amount...
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| Format: | article |
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2010
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| Online Access: | http://hdl.handle.net/11073/8202 |
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| Summary: | The energy sector has reported robust profits in recent years with some energy firms reporting record profits, drawing botii public and political scrutiny. Reported accounting profits, however, can include amounts that do not necessarily result in an increase in cash flow to a firm. One such amount that is a material component of die earnings of some energy firms is that of equity income, a proportion of an investee's earnings required to be included m investor earnings (Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 323). This paper examines the presence of equity income in the earnings of energy firms and finds that it is a material amount. |
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