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powerpoint 2 - 3 Decision Usefulness Approach to Financial...

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3. Decision Usefulness Approach to Financial Accounting
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2 Outline Users Their needs Examples of using accounting information Accounting responses Bayesian interpretation Examples Implications for accounting system Summary
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3 Decision-Making and User Needs Why decision usefulness? Non-existence of theoretically “correct” net income number Alternative: focus on users “If we cannot prepare theoretically correct financial statements, at least we can try to make financial statements more useful”
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4 Decision-Making and User Needs Conceptual framework in Section 1000 of CICA Handbook (paragraph .15) “The objective of financial statements is to communicate information that is useful to investors, creditors, contributors … in making their respective resource allocation decisions and/or assessing management stewardship”
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5 Decision-Making and User Needs II Provide what market demands.
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This note was uploaded on 05/06/2010 for the course COMM Comm 353 taught by Professor Zhang during the Spring '09 term at UBC.

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powerpoint 2 - 3 Decision Usefulness Approach to Financial...

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