Article: Advice to ignore `bumpy accounting surprises'


New Straits Times
08-31-2009
Advice to ignore `bumpy accounting surprises'
Edition: Main/Lifestyle
Section: Business Times
Type: News

IN THE run-up to the introduction of new accounting standards for listed companies, HwangDBS Vickers Research Sdn Bhd has advised investors to ignore "bumpy accounting surprises" in locally listed companies' earnings or book value.

Instead, they should focus on the companies' core operating performance and its implication on valuation models.
"As it gets increasingly hard to project the (companies') accounts due to the presence of erratic accounting distortions, investors are expected to ignore bumpy accounting surprises in earnings or book value," the ...

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