Accruals Quality Measurement Improving

Precise studies of accruals quality earnings quality have problems in determine abnormal accruals as Type I and II error. In this research, an organized structure is explained for identifying accruals estimation error with precise analysis of accruals creation process at the time of company revenues and expenses recognizing and this organized structure became operational in a way that was testable.
In this study, earnings quality measure of 123 listed companies in Tehran Stock Exchange during 2001 to 2013 was calculated and compared with other measures Model from the perspective of Type I and II error.
This comparison showed that the model of this study is better than other models from the perspective of Type I and II error. In the other words, organized structure in the process of accruals identification and their time matching with cash flows, introduction of sticky accruals, using accruals in estimating their errors and developing models in industry level, improve accruals quality model.