What is time orientation - financial accounting, Accounting Basics

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What is Time orientation

Financial accounting reports reflect position and performance of business for the past period. Essentially, they are backward looking. Management accounting reports, instead, often provide information concerning future performance and past performance. It's an oversimplification, though, to suggest that financial accounting reports never incorporate expectations concerning the future. Sometimes, businesses would release projected information to other users in an attempt to raise capital or to fight off unwanted takeover bids. Even preparation of routine financial accounting reports mainly requires making some judgements about the future.


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