As the senior accountant of an asset management firm you have been approached by Caleb an intern in your company, to get some advice regarding the usefulness of financial statements.
Caleb found the following information when reading through an accounting textbook “Because the Management Discussion and Analysis section provides insight into the company from the manager’s point of view, financial statement users should read it carefully to obtain all of the information available” (Wahlen et al 1st edition p:30). However Caleb also came across research that shows that investors place more value on the numerical section of the financial statements than on management reports. See Abraham et al 2012, https://www.icas.com/__data/assets/pdf_file/0006/7647/43-Risk-Reporting-Clairty-Relevance-Location-ICAS.pdf, Table 2 on p.35 as one example. Caleb is confused and is not sure whether he should only focus on the financial statements and/or the Management Discussion and Analysis section of the annual report for his investment reports. Discuss what advice you would provide Caleb on the advantages and disadvantages of relying on the Management Discussion and Analysis section of the annual report.
Caleb also wants to know whether accounting information matters to the outside world and in particular whether financial reporting has economic consequences. Discuss how you would respond to Caleb using evidence on the economic consequences of financial reporting.
•Wahlen, J. M., Jones, J. P., & Pagach, D. P. (2013). Intermediate accounting: Reporting. (1st ed.). Cengage Learning.
•Chapter 1: The Demand for and Supply of Financial Accounting Information
•Online Writing Lab from the Internet (APA Style):
•American Psychological Association. (n.d.). APA Style. Retrieved from https://www.apastyle.org/
•Angeli, E., Wagner, J., Lawrick, E., Moore, K., Anderson, M., Soderlund, L., & Brizee, A. (2010, May 5). General format. Online Writing Lab. Retrieved fromhttps://owl.english.purdue.edu/owl/resource/560/01/
In addition to your textbook, please use the EC Library for more information on the discussion topics. Provide appropriate APA in-text citations and references.
Post your primary response (200 words). 
Be sure to check your work and correct any spelling or grammatical errors before you post it.


Place your order now to enjoy great discounts on this or a similar topic.

People choose us because we provide:

Essays written from scratch, 100% original,

Delivery within deadlines,

Competitive prices and excellent quality,

24/7 customer support,

Priority on their privacy,

Unlimited free revisions upon request, and

Plagiarism free work,


Order Similar Assignment Now!

  • Our Support Staff are online 24/7
  • Our Writers are available 24/7
  • Most Urgent order is delivered within 4 Hrs
  • 100% Original Assignment Plagiarism report can be sent to you upon request.

GET 15 % DISCOUNT TODAY use the discount code PAPER15 at the order form.

Type of paper Academic level Subject area
Number of pages Paper urgency Cost per page: