- Join over 1.2 million students every month
- Accelerate your learning by 29%
- Unlimited access from just £6.99 per month
The Nature of Income measurements
The first 200 words of this essay...
University Of Hertfordshire
De Havilland Business School
Module Title: Financial Reporting and Analysis
Module (course) Code: MBSP 00o5
Module Tutor: Jane Waksman
Academic Year: Semester B-2004
Financial Reporting and Analysis
Title: The Nature of Income measurements
Word count: 1,864
By ZhenZheng MAO
Hand in Date: 30th -Apr-2004
To discuss whether the financial statements are usefulness, the most important criteria are whether they can provide useful information to the users (Scott 2003). Theory and practice of financial reporting are typically centered on the notion of income measurement. However, Beaver and Demski (1979) argued that income measurement exists in a world of complete and perfect markets, but not necessarily otherwise. Thus, the financial statements will be little useful in the real world since they are more centered on the income measurement.
According to the FASB's conceptual framework, the primary purpose of financial statements is to provide information to some defined class of users, and financial statement must communicate useful information to the market, not just to existing investors in the firm. There is another important purpose of financial statements, which is future-oriented, is to provide
Found what you're looking for?
- Start learning 29% faster today
- Over 150,000 essays available
- Just £6.99 a month
Not the one? We have 100's more
Accounting & Finance (view all)
- Business Finance. There are a number of sources of finance, ...
- effective cashflow management
- Cash flow. A cash flow forecast is a document that predicts ...
- Unit 5 Introduction to Accounting
- This report has been produced as evidence for Unit 9 - 'Fina...
- I will be illustrating the financial state of SR building by...
- R.J. Reynolds International (RJR) is currently facing a deci...
- Tullow Oil - case study
- Financial report. I will be talking about the financial perf...
- Advantages of using credit cards
""Sarah. Sociology, Politics, Economics, Psychology. University Student.
""Nikolay. Business Studies. BTEC Student.