Download or read book The Decision Usefulness of Financial Accounting Measurement Concepts written by Joachim Gassen and published by . This book was released on 2009 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: In their current framework project, the IASB and the FASB identify decision usefulness as the objective of financial reporting. Unfortunately, accounting research has neither yet come up with an undisputed measure of decision usefulness, nor with a satisfying method to rank competing measurement concepts, such as fair value or historical cost, with regard to their relative decision usefulness. Thus, assessing the decision usefulness of different accounting measurement concepts ultimately poses an empirical question. We provide evidence to this question by surveying an important user group, namely professional investors and their advisors, about their opinions on the decision usefulness of different accounting measurement concepts. We find that our respondents clearly differentiate between mark-to-market and mark-to-model fair values: While they consistently rank mark-to-market fair values as most decision-useful, they generally rank mark-to-model fair values as least decision-useful. Also, the ranking differs across asset classes. Multivariate analyses show that the differentiation between mark-to-model and mark-to-market increases with work experience and with an investing background in the financial services industry.

Download or read book The Decision Usefulness Theory of Accounting written by George J. Staubus and published by Routledge. This book was released on 2013-02-01 with total page 336 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book ties together selected contributions by George Staubus to the early development of the decision-usefulness theory of financial accounting--the theory that has become generally accepted accounting theory in the last half of the twentieth century and is the basis for the FASB's conceptual framework.

Download or read book Fair Value Measurement in Financial Reporting written by Leslie Hodder and published by Now Publishers. This book was released on 2014-12-19 with total page 142 pages. Available in PDF, EPUB and Kindle. Book excerpt: This monograph provides a historically informed discussion of conceptual and procedural issues related to the use of the fair value measurement attribute in financial reporting. Our goal is to provide a structure, based on the conceptual frameworks of the Financial Accounting Standards Board and International Accounting Standards Board, for researchers' evaluations of empirical research studies that investigate the informational properties of all measurement bases, including fair values. We begin by defining, addressing misconceptions about, and providing a brief history of the fair value measurement attribute. We next discuss decision usefulness of fair value and other measurement bases, and describe and evaluate examples of empirical research that documents the decision usefulness of recognized and disclosed fair value information, focusing on predictive ability, value relevance, and risk relevance.We also discuss the role of verifiability in the context of relevant and faithfully represented accounting information; describe three untested, verifiability-related maintained assumptions that arise in discussions of fair-value-measurement research; and discuss research designs for investigating questions related to accounting measurement verifiability. Finally, we discuss claims that use of the fair value measurement attribute causes procyclical behavior among financial institutions and that accounting standards have become increasingly fair-value-oriented during the last two decades.

Download or read book Principles of Accounting Volume 1 Financial Accounting written by Mitchell Franklin and published by . This book was released on 2019-04-11 with total page 1056 pages. Available in PDF, EPUB and Kindle. Book excerpt: The text and images in this book are in grayscale. A hardback color version is available. Search for ISBN 9781680922929. Principles of Accounting is designed to meet the scope and sequence requirements of a two-semester accounting course that covers the fundamentals of financial and managerial accounting. This book is specifically designed to appeal to both accounting and non-accounting majors, exposing students to the core concepts of accounting in familiar ways to build a strong foundation that can be applied across business fields. Each chapter opens with a relatable real-life scenario for today's college student. Thoughtfully designed examples are presented throughout each chapter, allowing students to build on emerging accounting knowledge. Concepts are further reinforced through applicable connections to more detailed business processes. Students are immersed in the "why" as well as the "how" aspects of accounting in order to reinforce concepts and promote comprehension over rote memorization.

Download or read book Value and Profit written by Geoffrey Whittington and published by Cambridge University Press. This book was released on 2017-08-03 with total page 367 pages. Available in PDF, EPUB and Kindle. Book excerpt: The measurement methods used in financial accounting affect our perception of the value and performance of businesses by determining the amount of reported profit or loss and the resources of the business. Thus, measurement affects shareholders and other stakeholders in the business. It has even been suggested that the world financial crisis of 2007–2010 was partly due to the mis-measurement of financial instruments. In this book, Geoffrey Whittington provides a unique survey of the theory and practice of measurement in financial accounts. It seeks to define and illustrate alternative methods, using simple numerical examples, and to analyse their theoretical properties. Also, it summarises extensive empirical evidence and the historical development of ideas and practice. It is essential reading for advanced undergraduate and postgraduate students studying financial accounting, as well as practitioners and policy-makers concerned with accounting standards.

Download or read book Statements of Financial Accounting Concepts written by Financial Accounting Standards Board (FASB) and published by Wiley. This book was released on 2002-08-29 with total page 380 pages. Available in PDF, EPUB and Kindle. Book excerpt: The FASB Statements of Financial Accounting Concepts contains the full text of the seven Statements of Financial Accounting Concepts issued to date. The existing concepts are intended to serve the public interest by setting the objectives, qualitative characteristics, and other concepts that guide selection of economic events to be recognized and measured for financial reporting. Unlike a Statement of Financial Accounting Standards, a Statement of Financial Accounting Concepts does not establish Generally Accepted Accounting Principles.

Download or read book The Decision Usefulness of Fair Value Accounting A Theoretical Perspective written by Joerg-Markus Hitz and published by . This book was released on 2007 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Regulators such as the SEC and standard setting bodies such as the FASB and the IASB argue the case for the conceptual desirability of fair value measurement, notably on the relevance dimension. Recent standards on financial instruments and certain non-financial items adopt the new measurement paradigm. This paper takes issue with the notion of decision usefulness of a fair-value-based reporting system from a theoretical perspective. Emphasis is put on the evaluation of the theoretical soundness of the arguments put forward by regulators and standard setting bodies. The analysis is conducted as economic (a priori) analysis. Two approaches to decision usefulness are adopted, the measurement or valuation perspective and the information perspective. Findings indicate that the decision relevance of fair value measurement can be justified from both perspectives, yet the conceptual case is not strong. The information aggregation notion that underlies standard setters' endorsement of fair value measurement turns out to be theoretically restricted in its validity and applicability. Also, comparative analysis of fair value accounting vs. historical cost accounting yields mixed results. One immediate implication of the research - a condition for the further implementation of fair value accounting - is the need to clarify standard setters' notion of accounting income, its presumed contribution to decision relevance and its disaggregation.

Download or read book Accounting Standards written by and published by . This book was released on 2004 with total page 386 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Routledge Companion to Financial Accounting Theory written by Stewart Jones and published by Routledge. This book was released on 2015-05-22 with total page 559 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial accounting theory has numerous practical applications and policy implications, for instance, international accounting standard setters are increasingly relying on theoretical accounting concepts in the creation of new standards; and corporate regulators are increasingly turning to various conceptual frameworks of accounting to guide regulation and the interpretation of accounting practices. The global financial crisis has also led to a new found appreciation of the social, economic and political importance of accounting concepts generally and corporate financial reporting in particular. For instance, the fundamentals of capital market theory (i.e. market efficiency) and measurement theory (i.e. fair value) have received widespread public and regulatory attention. This comprehensive, authoritative volume provides a prestige reference work which offers students, academics, regulators and practitioners a valuable resource containing the current scholarship and practice in the established field of financial accounting theory.

Download or read book Financial Accounting in an Economic Context written by Jamie Pratt and published by . This book was released on 2006 with total page 808 pages. Available in PDF, EPUB and Kindle. Book excerpt: Fully updated and revised, the sixth edition of Financial Accounting explores important concepts from an economic perspective. By focusing on three elemental themes--economic factors, measurement issues, and decision-making perspective--you will gain a better understanding of the relevance of principles as applied in the real world. Virtually every concept covered refers to a real company, a real situation, or a real event. The sixth edition: Presents a new corporate governance theme that is integrated throughout the book. Places an increased emphasis on analysis in the middle chapters. Provides new EOC materials that require readers to analyze the financial statements of real companies using a new database available on the Pratt BCS. Reflects the most current thinking in the field with the help of over 10,000 relevant references to actual events and real companies. Includes in-depth discussions of legal liability, ethical issues, and management's incentives and influence on financial reports.

Download or read book Accounting Standards written by Financial Accounting Standards Board and published by . This book was released on 1983 with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book A Comparative Analysis of Selected Income Measurement Theories in Financial Accounting written by James Alan Anderson and published by . This book was released on 1976 with total page 142 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Theory Base of Accounting English written by Navneet Singh and published by Navneet Singh. This book was released on with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: The theory base of accounting refers to the conceptual framework, principles, assumptions, and standards that guide accounting practices and the preparation of financial statements. It provides a theoretical foundation for understanding and applying accounting principles in practice. Here are the key components of the theory base of accounting: Conceptual Framework: The conceptual framework of accounting establishes the fundamental concepts and objectives that underlie financial reporting. It provides a framework for developing accounting standards and principles and helps ensure consistency and comparability in financial reporting. The conceptual framework addresses issues such as the qualitative characteristics of financial information, the elements of financial statements, and the criteria for recognition and measurement. Accounting Principles: Accounting principles are fundamental guidelines that govern the recording, measurement, and reporting of financial transactions and events. These principles include: Revenue Recognition Principle: Revenue should be recognized when earned and realized or realizable, regardless of when cash is received. Matching Principle: Expenses should be recognized in the same period as the revenues they help generate, regardless of when cash is paid. Historical Cost Principle: Assets should be recorded at their original cost, rather than their current market value. Conservatism Principle: Accountants should err on the side of caution when uncertain about the future outcomes, by recognizing losses but not gains until they are realized. Accounting Assumptions: Accounting assumptions are underlying concepts that shape the accounting process and financial reporting. Common accounting assumptions include: Going Concern Assumption: Assumes that the entity will continue to operate indefinitely, allowing for the recognition of assets and liabilities over the long term. Monetary Unit Assumption: Assumes that transactions and events are measured and recorded in a stable currency unit, such as the US dollar or euro. Time Period Assumption: Assumes that financial information is reported over specific time periods, such as monthly, quarterly, or annually. Accounting Standards: Accounting standards are rules and regulations established by accounting standard-setting bodies, such as the Financial Accounting Standards Board (FASB) in the United States and the International Accounting Standards Board (IASB) globally. These standards provide guidance on how to apply accounting principles in practice and ensure consistency and comparability in financial reporting. Ethical Considerations: The theory base of accounting also encompasses ethical considerations that govern the conduct of accountants and financial professionals. Ethical principles such as integrity, objectivity, confidentiality, and professional competence and due care are essential for maintaining public trust and confidence in financial reporting. Overall, the theory base of accounting provides a framework for understanding the principles, assumptions, and standards that guide accounting practices and financial reporting. It serves as a foundation for developing accounting policies, procedures, and practices that ensure the accuracy, reliability, and relevance of financial information for decision-making and accountability purposes.

Download or read book Accounting Theory written by Harry I. Wolk and published by SAGE. This book was released on 2008 with total page 697 pages. Available in PDF, EPUB and Kindle. Book excerpt: Presents complex materials in a clear and understandable manner. Incorporating the latest accounting standards and presenting the most up-to-date accounting theory from the top academic journals in accounting and finance throughout the world.

Download or read book Principles of Financial Accounting written by Belverd E. Needles and published by . This book was released on 2002 with total page 914 pages. Available in PDF, EPUB and Kindle. Book excerpt: Principles of Financial Accounting offers balanced, flexible content supported by an array of truly integrated print and technology supplements. Whether an instructor wants to present a user or procedural orientation, incorporate new instructional strategies, develop students' core skills and competencies, or integrate technology into the classroom, the 2002e edition provides a total solution.This text--intended for use in a single semester or one-quarter course--assumes no previous training in accounting or business and is appropriate for both majors and non-majors. Principles of Financial Accounting is designed for financial accounting programs that prefer to start with a sole proprietorship approach and move at a slower pace than a corporate financial accounting course.New! Blackboard Course Cartridges and WebCT e-Packs deliver course content over the Internet and can be used in a traditional classroom setting or as a complete distance learning solution. Customized course materials include reviews, quizzes, activities, solutions, PowerPoint slides, and more.New! Teaching Accounting Online, an interactive Web-based workshop, allows faculty to design and deliver online accounting courses.New! Discussion and assignment materials include more financial statements and excerpts from real company reports to promote decision making through the use of real-world financial information.New! An increased focus on cash flow throughout the text highlights the effect of business activities on cash flow.New! Focus on Business boxes emphasize business strategy as it relates to the key themes of ethics, practice, technology, and international issues. Each box provides insights into realcompanies, including start-ups and e-commerce businesses.New! Decision Points, based on excerpts from annual reports and business journals, promote critical thinking and decision making by presenting students with a situation that requires them to make a decision using accounting information. Decision Points in the financial chapters are presented from A User's Focus while the Decision Points in the managerial chapters provide A Manager's Focus.New! In most chapters, the opening Learning Objective highlights the focus on management by exploring how managers use accounting information to make decisions.New! The text examines performance measurement by integrating the concept of using financial information in performance evaluation.New! An annotated Chapter 1 helps students understand the purpose and value of the book's pedagogical framework and how to use it to their advantage.

Download or read book Statement on Accounting Theory and Theory Acceptance written by American Accounting Association. Committee on Concepts and Standards for External Financial Reports and published by . This book was released on 1977 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Unveiling Financial Veracity Accounting Essentials written by Harshwardhan Soni and published by Harsh Wardhan Soni. This book was released on 2024-09-08 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt: *Foundations of Financial Reporting: Principles, Standards, and Frameworks in Accounting* explores the core principles, concepts, and conventions that form the foundation of modern accounting practices. The book delves into key accounting principles such as accrual, going concern, and dual aspect, while also examining conventions like materiality and consistency. It offers a comprehensive overview of financial statements, emphasizing their qualitative characteristics like relevance, reliability, and comparability. Designed for students and professionals, this guide demystifies the complexities of financial reporting, promoting clarity and integrity in financial practices.