FinancialAccountingTheorychapter财务会计理论—财务报告环境.pptVIP

People will be prepared to pay for information to the extent that it has use capital markets act to punish organisations that fail to provide information no news deemed to imply bad news regulation will lead to oversupply of information as users who do not bear the cost of supply tend to overstate their needs Copyright ? 2000 McGraw-Hill Book Co. Aust. PPT t/a Financial Accounting Theory by Deegan 2.* Regulation restricts the accounting methods able to be used so organisations may be prohibited from using methods which best reflect their particular performance and position Copyright ? 2000 McGraw-Hill Book Co. Aust. PPT t/a Financial Accounting Theory by Deegan 2.* Public-interest theory of regulation regulation introduced to protect the public capture theory of regulation although regulation introduced to protect the public, regulatory mechanisms often controlled by groups most affected by regulation private interest theory of regulation government not neutral arbiter and will regulate based upon impacts to key voters and campaign finances discussed further in chapter 3 Copyright ? 2000 McGraw-Hill Book Co. Aust. PPT t/a Financial Accounting Theory by Deegan 2.* Private sector regulation accounting profession best able to develop accounting standards because of expertise and greater likelihood rules will be accepted by business public sector regulation government has greater enforcement powers, hence rules more likely to be followed, may be less responsive to pressure from business and more likely to consider public interest Copyright ? 2000 McGraw-Hill Book Co. Aust. PPT t/a Financial Accounting Theory by Deegan 2.* While the accounting treatment of many transactions and events is regulated, many others are unregulated accountants expected to be objective and free from bias information generated should faithfully represent underlying transactions and be neutral and verifiable Copyright ? 2000 McGraw-Hill Book Co. Aust. PPT