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Has accounting become too interesting?
In recent years, accounting has become front-page news and has been a key talking point among those connected with world of business. Regrettably, attention which accounting has attracted has been for all the wrong reasons. We have observed that investors depend on financial reports to help to keep an eye both on the performance of the managers and on their investment. What, however, if managers provide misleading financial reports to investors? Recent revelations suggest that managers of some large businesses have been doing just this.
Notes to financial statements
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Accountants frequently cite the going-concern assumption to justify using historical costs rather than market values in measuring assets. Market values are of less implication to a
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