This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: to the company’s current market value. From what I have understood the generally accepted accounting principles provide a template from where to start telling a story. Due to the many different scenarios different companies can present, it would be very difficult to have accounting terms defined more strictly and pretend to cover every aspect. The broad nature of the GAAP curiously helps to ensure consistency in the analysis of different situations for example by excluding resources that cannot be reliably measured. It does present an opportunity for dishonest management of information but that is a risk that could present itself regardless of how strict measures are taken in any process. Special attention should be given to the foot notes on the financial statements to have a clearer picture during the analysis. References: Easton, P., Halsey, R., McAnally, M., Hartgraves, A. & Morse, W. (2010). Financial & Managerial Accounting for MBAs . Canada: Cambridge Business Publishers ....
View Full Document
This note was uploaded on 04/06/2012 for the course FINANCE 410 taught by Professor N/a during the Spring '09 term at AIU Online.
- Spring '09