Quality of earnings is reduced if earnings management results in information that is less useful for predicting future earnings and cash flows. Ref: Kieso Weygant ed 13Ĭompanies have incentives to manage income to meet or beat Wall Street expectations, so that market price of stock increases and value of stock options increase. Income is affected by the accounting methods employed.
Ref: Kieso Weygant ed 13Ĭompanies omit items that cannot be measured reliably.
Help assess the risk or uncertainty of achieving future cash flows. Timeliness (no real time financial information)ģ Income Statement Usefulness Evaluate past performance. Forward-looking Information Soft Assets (a company’s know-how, market dominance, marketing setup, well-trained employees, and brand image). On the topic, “Challenges Facing Financial Accounting,” what did the AICPA Special Committee on Financial Reporting suggest should be included in future financial statements? Non-financial Measurements (customer satisfaction indexes, backlog information, and reject rates on goods purchases). Laporan Laba Rugi menurut PSAK 1 Operasi dalam Penghentian PSAK 58 Laporan Laba Rugi menurut US-GAAP 1. 2 Topik Kegunaan dan Keterbatasan Income Statement Manajemen Laba
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