Given that investors and lenders use financial statements for funds of companies, managers, obviously cares about how these reports to present the financial position and performance of their company. Managers affect the financial statements primarily through their decisions on the company's transactions and commercial agreements. Naturally, the question is whether the rules governing the financial reporting impact of the decision on the management of business transactions and arrangements. That is, financial reporting standards have undesirable economic consequences, changing solutions, managers would have done in the absence of standards? In addition, it should be standard setters such as the Financial Accounting Standards Board (FASB), consider the consequences of financial reporting standards, the economic decisions of managers? In this article, we provide some background on these issues, to explain why management decisions may be affected by accounting standards, are examples of the consequences of accounting standards for management decisions, to discuss the results of research on these issues and, finally, to offer our views on these issues. "Hide
by Christian D. Allee, Laureen A. Maines, David A. Wood Source: Business Horizons 7 pages. Publication Date: September 15, 2008. Prod. #: BH289-PDF-ENG
Related Case Solutions & Analyses:
Launch of the Ford Fiesta Diesel: The Worlds Most Efficient Car
Subhiksha: Managing Store Operations
Hermitage Fund: Media and Corporate Governance in Russia
Jeff Salett. From the Top Sort of (A)
Female Health Company
Activity-based Costing and Management
EMI Group PLC
The Gail Palmer Ashton Graduate School of Business: The Balanced Scorecard Initiative
Higher-Education Harvest
Alphatec Electronics Pcl
