The Comparison of Current and Total Accruals Quality in the Firms Accepted in the Tehran Stock Exchange

Accounting earnings and its components, such information is considered when decisions are taken by individuals. An accrual based accounting earnings, in terms of many users of financial information, is an instrument for measuring the company's performance. Accruals are temporary adjustments which transfer cash flows in the periods. The main benefit of this transition is that the adjusted figures are offering more accurate picture of the economic performance of companies. Because of the ability to manipulate, accruals may affect earnings quality. Expected to decrease earnings quality by increase accruals and the market reaction should be followed. The accruals quality is the close of earnings to cash. So the poor accruals quality causes increase the ambiguous of information and increase the risk of investment. In this study, the current accruals quality and total accruals quality using data from 176 companies listed in Tehran Stock Exchange during the period 1386-1390 are compared. The results show that total accruals quality is more than current accruals quality and there is a significant relationship between total accruals quality and current accruals quality. Key words: Total Accruals Quality, Current Accruals Quality, Earnings Quality.