Dump dumbing down
Article Abstract:
The Accounting Standards Board argues that corporate financial statements may not meet the needs of private investors, because they may be too complex. There is little reason to simplify accounts simply becasue of a possibility of information overload. The board has brought in a number of changes which should mean that stockholders can use highlighted data in corporate accounts and not be too concerned about how the calculations have been made. British companies could produce annual reports which are similar to the 10-K reports thet are sent by US companies to their regulators.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 2000
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Yearning for an easy answer to earnings
Article Abstract:
Corporate earnings can be described in a number of ways. Earnings per share are more relevant to investors than profits, and diluted earnings per share take into account shares that are due to be issued. Earnings per share may be calculated using Financial Reporting Standard 3 (FRS3) which means that extradordinary items cannot be omitted. The Institute of Investment Management and Research (IIMR) figure may leave out losses and profits arising from the disposal of assets and subsidiaries.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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Current assets are cook's delight
Article Abstract:
Current assets are complex and may be large when compared to profits so can be used for creative accounting. Stocks are shown in terms of raw materials, goods being made, and finished goods, with the last two including labor costs. Stock write-offs can be grouped together with other provisions when a company is undergoing downsizing. There is also lack of clarity about how long-term profits are dealt with, and bad debt provisions, both of which offer opportunities for creative accounting.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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