北美財務報告(英文版)(ppt 33頁)

北美財務報告內容提要：
Outline of Presentation
Roles of standard setting bodies (FASB, CICA), Managers, Auditors and Suppliers of Capital (Investors and Creditors or lenders) [See Diagram]
Information Economics Approach and Efficiency of capital markets
WorldCom, Enron and Arthur Andersen
Incentives of Management to Manage Earnings
Steps to prevent scandals from occurring in the future?
Some Ethical Principles
An Ethical Case
Questions regarding presentation or any other (accounting) questions.
Information Economics Approach
Information Asymmetry exists between the parties in business transactions. The managers ( agents) have more information than the investors (principals).
Managers may attempt to select policies or to release biased information that benefit themselves to the expense of the owners .
Role of Accounting: to provide information useful for rational decision-making.
Decision Usefulness Approach
Section 1000 of CICA Handbook (par. 1000.15):
The objective of financial statements is to communicate information that is useful to investors, members, contributors, creditors and other users…in making their resource allocation decisions and/or assessing management stewardship.
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