Finance-TheFastForwardMbaInFinance（推荐PDF英语版337）
Finance-TheFastForwardMbaInFinance（推荐PDF英语版337）内容简介
strike zone” is determined, and this depends heavily on which
particular accounting methods are selected to measure profIT.
External financial reports are the primary means of communication
to fulfill the stewardship fiduciary function of
management—that is, to render a periodic accounting of what
has been done with the capITal entrusted to management. The
credITors and shareowners of a business are the sources of, as
well as having claims on, the assets of the business. Therefore,
they are entITled to a periodic accounting by their stewards
(agents is the more popular term these days).
Please keep in mind that managers have a fiduciary responsibilITy
to the outside world. They are responsible for the
fairness and truthfulness of the financial statements. There’s
no doubt that top management has the primary responsibilITy
for the business’s financial statements—this cannot be shifted
or “outsourced” to the CPA auditor of ITs financial statements.
Nor can legal counsel to the business be blamed if top management
issues misleading financial statements, unless they were a
party to a conspiracy to commIT fraud.
Because external financial reports are public in nature, disclosure
is limITed, especially in the profIT performance report
of a business. Disclosure standards permIT the business to
withhold information that credITors and external investors
probably would like to know. The theory of this, I belIEve, is
that such disclosure would reveal too much information and
cause the business to lose some of its competITive advantages.
The internal accounting profIT report presented in the next
chapter contains confidential information that the business
wouldn’t want to reveal in ITs external financial report to the
outside world.
Publicly owned corporations are rEQuired to include a management
discussion and analysis (MD&A) section in their
annual financial reports to sTOCkholders, which deals wITh the
brOAd factors and main reasons for the company’s profIT
..............................
particular accounting methods are selected to measure profIT.
External financial reports are the primary means of communication
to fulfill the stewardship fiduciary function of
management—that is, to render a periodic accounting of what
has been done with the capITal entrusted to management. The
credITors and shareowners of a business are the sources of, as
well as having claims on, the assets of the business. Therefore,
they are entITled to a periodic accounting by their stewards
(agents is the more popular term these days).
Please keep in mind that managers have a fiduciary responsibilITy
to the outside world. They are responsible for the
fairness and truthfulness of the financial statements. There’s
no doubt that top management has the primary responsibilITy
for the business’s financial statements—this cannot be shifted
or “outsourced” to the CPA auditor of ITs financial statements.
Nor can legal counsel to the business be blamed if top management
issues misleading financial statements, unless they were a
party to a conspiracy to commIT fraud.
Because external financial reports are public in nature, disclosure
is limITed, especially in the profIT performance report
of a business. Disclosure standards permIT the business to
withhold information that credITors and external investors
probably would like to know. The theory of this, I belIEve, is
that such disclosure would reveal too much information and
cause the business to lose some of its competITive advantages.
The internal accounting profIT report presented in the next
chapter contains confidential information that the business
wouldn’t want to reveal in ITs external financial report to the
outside world.
Publicly owned corporations are rEQuired to include a management
discussion and analysis (MD&A) section in their
annual financial reports to sTOCkholders, which deals wITh the
brOAd factors and main reasons for the company’s profIT
..............................
Finance-TheFastForwardMbaInFinance（推荐PDF英语版337）简介结束