Preliminary Earnings Announcements
A project on Preliminary Earnings Announcements (PEAs) is being undertaken by the Corporate Reporting Research Team, in order to understand recent developments in PEAs; and to develop our understanding how investors use the information contained in preliminary statements to make investment decisions.
We have conducted outreach with investors, and the this will be broadened by outreach to auditors and preparers of financial statements.
In conjunction with this project, research is also being conducted by the Corporate Financial Information Environment Project (‘CFIE Research)’, the aim of which is to study the tone and other language properties of preliminary report narratives. The project also compares PEAs with annual financial reporting to determine the degree of alignment between the preliminary report commentary and annual financial report narratives.
We are co‑ordinating this work with that of the Audit Policy Team—see Discussion Paper - Invitation to comment: Auditors and Preliminary Announcements