IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Changes In The Depreciation Of Buildings In An English Building Society, Circa 1959: Financial And Governance Implications

Listed author(s):
  • Batiz-Lazo, Bernardo

This article explores the manipulation of published financial reports in order to counter perceived unfavourable impact, on an entity, of newly introduced regulations. The article departs from the traditional analysis of asset depreciation in manufacturing or mining and the link between market efficiency and stock market performance. This by looking at the depreciation of fixed assets in a mutual financial organisation. The change in the depreciation of free-hold buildings was a reaction to limited possibilities for asset management, was taken in the context of substantial growth in mortgage assets and was not followed by any notification in the financial statements. Issues in favour and against qualifying are then analysed in the context of the mid-term performance of the building society as well as the performance of net reserve ratios at other major building societies. CHANGEMENT DE LA METHODE D'AMORTISSEMENT DES BÂTIMENTS : LE CAS DE LA SOCIÉTÉ DE CONSTRUCTION ANGLAISE CIRCA (1959) AVEC SES INCIDENCES EN TERMES FINANCIERS ET EN MATIERE DE GOUVERNANCE Résumé Cet article présente un cas de manipulation des rapports financiers visant à éviter une baisse du résultat comptable perçue comme défavorable. En dépit du lien posé habituellement entre l'information comptable retraitée et l'efficience du marché, l'organisation a changé le taux de d'amortissement de ses actifs sans toutefois en faire état dans ses comptes financiers. Ce changement de méthode d'amortissement des bâtiments intervenait dans un contexte limitant les possibilités de gestion des actifs, et de croissance significative des prêts sous hypothèques. Les problématiques de la certification des comptes sont examinées, de même que l'évolution à moyen terme de la performance de cette société de construction comparativement à ses concurrentes.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
File Function: original version
Download Restriction: no

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 4617.

in new window

Date of creation: Aug 2006
Handle: RePEc:pra:mprapa:4617
Contact details of provider: Postal:
Ludwigstraße 33, D-80539 Munich, Germany

Phone: +49-(0)89-2180-2459
Fax: +49-(0)89-2180-992459
Web page:

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

in new window

  1. Dye, Ronald A. & Magee, Robert P., 1991. "Discretion in reporting managerial performance," Economics Letters, Elsevier, vol. 35(4), pages 359-363, April.
  2. Andrew E. Baum, 1993. "Quality, Depreciation, and Property Performance," Journal of Real Estate Research, American Real Estate Society, vol. 8(4), pages 541-566.
  3. Nelson, Karen K. & Barth, Mary E. & Cram, Donald, 2001. "Accruals and the Prediction of Future Cash Flows," Research Papers 1594r, Stanford University, Graduate School of Business.
  4. Alain Burlaud & Michel Messina & Peter Walton, 1996. "Depreciation: concepts and practices in France and the UK," European Accounting Review, Taylor & Francis Journals, vol. 5(2), pages 299-316.
  5. Bernardo Batiz-Lazo, 2004. "Strategic alliances and competitive edge: insights from Spanish and UK banking histories," Business History, Taylor & Francis Journals, vol. 46(1), pages 23-56.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:4617. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.