Unit 1 Introduction - BFA103 FINANCIAL ACCOUNTING AND...

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BFA103 FINANCIAL ACCOUNTING AND DECISION MAKING TUTOR NOTES Unit 1 – Introduction Suggested Solutions Discussion Questions 1.10 The objective of providing accounting information is to enable users to make more informed decisions and judgements about the organisation concerned. Accounting has no other valid purpose or justification. 1.13 Stewardship or accountability is traditionally identified with objectively tracking transactions and events to ensure that they have been fully and appropriately accounted for. It would include the use of historical cost and objectivity as underlying rationale, and focuses on asset security and past transactions and events. Decision usefulness identifies the decision making process and the relevance of financia information to the decision. It would therefore tolerate greater use of estimates and future projections. 1.14 (a) Relevance relates fundamentally to ‘bearing upon’ the decision at hand in either confirmation or prediction capacity. Reliability relates to ‘faithfully representing’ what it purports to represent, and is a link
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This note was uploaded on 04/30/2011 for the course ECONOMIC 0053665 taught by Professor Allen during the Spring '10 term at American Baptist.

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Unit 1 Introduction - BFA103 FINANCIAL ACCOUNTING AND...

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