Give better, not lesser company information
Article Abstract:
The UK Department of Trade and Industry (DTI) issued a consultative document in August 1989 which proposes that directors of publicly listed companies should have the discretion on whether or not to issue their shareholders summary financial statements in lieu of full annual reports. The DTI proposal is based on the assumption that a brief summary based on the historical cost general purpose model will provide for shareholders' needs. Financial reporting would be improved if information were targeted to the different needs of users rather than being based on the historical cost model targeted to equity investors. The issue of whether summaries can adequately meet inexperienced shareholders' needs would be moot if companies could ascertain users' needs and supply them with the requisite information.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1989
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An asset that shouldn't be written off
Article Abstract:
The Accounting Standards Committee of the Institute of Chartered Accountants in England and Wales has issued an exposure draft of an accounting standard for research and development (R & D). The proposed standard would require R & D expenditures to be disclosed in the year they are made. The draft also recommends that companies discuss R & D activities more thoroughly in their accounts. The draft is an improvement over the existing standard for R & D accounting, but it falls short in two respects: it overemphasizes purely scientific research at the expense of other types of development, and it allows companies to account for successful development expenditures as being unsuccessful.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1987
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