EMH: Long on Theory, Short on Performance?
Article Abstract:
The efficient market hypothesis (EMH) represents the theory that prices of securities in an efficient market reflect all available information and does so instantaneously. EMH is usually used in terms of stock markets. Market efficiency can exist in weak, semi-strong or strong forms. Accountants affect this as they prepare company reports and are provider of information of past performance. The amount of information to be disclosed and the level of sophistication at which they should be written is disputed. Lee and Tweedie in a survey, found that private shareholders are not capable of understanding financial statements. They could be assisted by educating them and simplifying statements. However, accountants are not the only supplier of information nor does their knowledge necessarily influence the market. Reports should be prepared for all users. One theory is that if a market is efficient, the mix in an investment portfolio is unimportant. However, an individual should choose his portfolio carefully according to his needs for capital gains or income.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1984
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Is This the Way to Improve Charity Accounts?
Article Abstract:
The issue of accounting standards necessary for consistency and greater disclosure is discussed in a new Accounting Standards Committee discussion paper which is summarized. The financial reports of charities are utilized by donors, regulatory bodies, potential donors and others. They have been criticized because they are not compiled according to commercial accounting practices. They are usually more concerned with level of services and thereby can be better compared to local government reports. Charity financial reports should be simple emphasizing administrative costs in comparison to charity work directly. Specific handling in different situations is included. Several applicable accounting practices are cited.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1984
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Property Company Accounts revisited
Article Abstract:
The authors of Property Company Accounts discuss the laws that have affected property company accounts since 1978. The Companies Act of 1980 established new rules for the distribution of profits. The Companies Act of 1981 introduced new accounting rules for property companies, and increased confusion in areas such as the treatment of revaluation deficits. The Finance Act of 1981 simplified the transfer of interest in development properties. Also in 1981, Statement of Standard Accounting Practice number 19 provided new guidelines for the accounting of investment properties.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1987
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