decision. An efficient securities market is one where the prices of securities trades on that market at all time fully reflect all information that is publicly know about those securities. The fundamental value of a share is the value it would have in an efficient market if there is no inside information. That is‚ all information about the share is publicly available. The information approach to decision usefulness is an approach to financial reporting that recognizes individual responsibility
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always behave in accordance with the efficient market hypothesis‚ then should we reject the research that has embraced the EMH as a fundamental assumption? In this regard we can return to earlier chapters of this book in which we emphasised that theories are abstractions of reality. Capital markets are made of individuals and as such it would not (or perhaps‚ should not) be surprising to find that the market does not also act in the same predictable manner. Nevertheless‚ the EMH has helped provide
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Companies omit items that cannot be measured reliably. * Income is affected by the accounting methods employed. * Income measurement involves judgment. Earnings Quality Companies have incentives to manage income to meet or beat Wall Street expectations‚ so that * the market price of stock
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earnings quality since net income does not representatively portray the economic performance of the business entity for the period. Income smoothing relies not on falsehoods and distortions but on the wide leeway existing in alternatively accepted accounting principles and their interpretations. It is conducted within the structure of gaap. In effect‚ it redistributes income statement credits and charges among periods. The prime objective is to moderate income variability over the years by shifting
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CHAPTER 2 THE HISTORY AND DEVELOPMENT OF MANAGEMENT ACCOUNTING 2.1 INTRODUCTION The previous chapter defined the research problem and stated the main hypothesis for the study‚ namely that management accountants may not be able to contribute fully to the strategic management process in the future‚ as the skills required and displayed by management accountants do not meet the needs of the changing business environment. This hypothesis also indicates a growing gap between current tertiary management
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the society. In this report‚ it will use Legitimacy theory to explain BP’s response to this event. Legitimacy theory can be treated as a explanation for voluntary corporate disclosures in annual report. As (Dowling&Pfeffer‚ 1975) says a corporation must act in congruence with norms and society value. First of all‚ Legitimacy theory is based on the concept of substantive rationality and replies upon the notion of a social contract. This theory asserts that organizations seek to ensure that they
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prays that the defence be called on all the charges preferred against the four accused persons. 1 THE CHARGES PRINCIPAL CHARGES – DEEMING PROVISION (OKT1‚ OKT2‚ OKT3 and OKT4 deemed to have committed the offence committed by GP Ocean) SUBMITTED MISLEADING INFORMATION DIRECTORS DEEMED TO HAVE COMMITTED OFFENCE Offence committed under section 32B(1)(a)(aa) of the Securities Commission Act read together with section 138 of the same Act ALTERNATIVE CHARGES – OKT1‚ OKT2 AND OKT3
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to infection. Development of the first Masters Degree Program at Yale University in 1929 allowed for the expansion of educational opportunities for nurses (Burns & Grove‚ 2003‚ p. 9). This program allows for nurses with an MSN to lead a health care team in making changes in nursing practice and within the health care system based on research (Burns & Grove‚ p. 7). MSN trained nurses may also collaborate in projects with other nurse scientists (Burns & Grove‚ p. 7). The development of the Masters
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The Importance of Accounting Theory to the Field Of Accounting The objective of theory is to explain and predict. One of the basic goals of the theory of a particular discipline is to have a well-defined body of knowledge that has been systematically accumulated‚ organized‚ and verified well enough to provide a frame of reference for future actions. The Webster’s definition of theory is the systematically organized knowledge‚ applicable in a relatively wide variety of circumstances‚ a system
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There are many accounting concepts which underpin GAAP such as the accruals and going concern concepts in particular. Going concern-it is assumed that the organisation will continue to operate indefinitely. This just means that when we draw up financial summaries‚ we do not assume the organisation is in severe financial difficulties. Accruals concept-when calculating the profit or loss of an organisation‚ all income and related expenditure for a specified period should be included‚ not simply
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