What question did this study set out to answer?

The aim is to explore how electric utilities respond to the accounting mandates of SFAS No. 106 and its implications for their financial reporting.

March 18, 2026The Accounting Review

Rate-Regulated Enterprises and Mandated Accounting Changes: The Case of Electric Utilities and Post-Retirement Benefits Other than Pensions (SFAS No. 106).

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Authors

JDJulia M. D'SouzaCornell University

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Implication

This analysis examines how electric utilities adjust financial reporting in response to SFAS No. 106, suggesting implications for financial management.

Key Points

The aim is to explore how electric utilities respond to the accounting mandates of SFAS No. 106 and its implications for their financial reporting.
Investigated the reporting responses of electric utilities to SFAS No. 106
Analyzed the effect of accounting changes on net income and liabilities
Compared reactions of regulated versus nonregulated firms to expense-increasing standards
Documented manager decisions related to uncertainties in future rate recoveries
Rate-regulated firms adjust their financial statements to enhance the impact of accounting changes
Greater uncertainties in rate recoveries lead to intensified financial reporting strategies
Expense-increasing standards positively affect cash flows for rate-regulated firms, unlike for nonregulated firms

Cite This Study

Julia M. D'Souza (1998) studied this question.

synapsesocial.com/papers/69ba431a4e9516ffd37a4095 https://doi.org/10.2308/tar-902588

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Implication

This analysis examines how electric utilities adjust financial reporting in response to SFAS No. 106, suggesting implications for financial management.

Rate-Regulated Enterprises and Mandated Accounting Changes: The Case of Electric Utilities and Post-Retirement Benefits Other than Pensions (SFAS No. 106).

Discussion

Member takes

Implication

Key Points

Cite This Study

Rate-Regulated Enterprises and Mandated Accounting Changes: The Case of Electric Utilities and Post-Retirement Benefits Other than Pensions (SFAS No. 106).

Discussion

Member takes

Implication

Key Points

Cite This Study

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