chap5 - CHAPTER 5 Communicating and Interpreting Accounting...

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1 Acct 284 Chap. 5 CHAPTER 5 Communicating and Interpreting Accounting Information
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2 Acct 284 Chap. 5 Players in the Accounting Communication Process management independent auditors information services investors: private and institutional lenders financial analysts SEC and FASB
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3 Acct 284 Chap. 5 Role of Analysts and Earnings Estimates Financial analysts study companies and prepare reports including forecasts of quarterly earnings Various services compile “consensus earnings estimates” There is great pressure to meet these targets and strong market reactions when they are not met
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4 Acct 284 Chap. 5 Qualitative Characteristics of Accounting Information Relevance: Reliability: Comparability: Consistency:
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Acct 284 Chap. 5 Constraints Materiality – If not large enough to influence decisions, deal expeditiously with the item. Conservatism –
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This note was uploaded on 03/27/2008 for the course ACCT 284 taught by Professor Clem during the Spring '08 term at Iowa State.

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chap5 - CHAPTER 5 Communicating and Interpreting Accounting...

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