第二章chapter_2.pptVIP

Choi/Meek, 6/e * Several variables are closely associated. Common law legal system, strong equity markets, and separation of financial and tax accounting. Code law legal system, credit-based financing, and accounting rules that conform to tax law. Result is two basic orientations of accounting. Fair presentation Legal compliance Choi/Meek, 6/e * Fair presentation accounting Substance over form. Oriented toward decision needs of external investors. Helps judge managerial performance and predict future cash flows and profitability Extensive disclosures IFRS are aimed at fair presentation. Foun