The divorce of ownership from understanding

Article Abstract:

One objective behind the British government's policy of privatizing its national corporations has been to increase the number of shareholders in the United Kingdom (UK). Four issues of British national corporations increased the number of UK shareholders from two million in 1979 to about nine million by 1987. Because many of these first-time shareholders are not sophisticated about financial matters, accounting and corporate reporting practices need adjustment. Market efficiency does not require that all investors understand securities information, but financial accounting must fulfill both an informational and a monitoring role. Individual reports could be prepared for both new and informed investors, or a multistage report which would give a general outline to new investors and more detailed accounts to those with more experience.

United Kingdom, Evaluation, Privatization, Privatization (Business), Corporation reports, Company reports, Great Britain

---

The relevance of research in accounting and finance

Article Abstract:

Academic accounting research has major benefits for the practice of accounting, even if research does not always seem directly applicable. Accounting research has introduced many new ideas into the commercial financial accounting world including: discounting techniques; option pricing models; and capital asset pricing theories. Academic research has also influenced management accounting by introducing relevant cost models such as the use of variable costs for short-run decisions instead of absorption costs. Academic research findings are slow to be absorbed into industrial practices, however, because of the influence of ongoing arguments between researchers and the belief that precise measurement of capital changes is unnecessary.

Accounting, Study and teaching, Financial research

---

Performance-related remuneration: implications for accounting

Article Abstract:

Trends in executive remuneration packages have been changing in the past few years. Straight salaries alone are being replaced by performance bonuses, share options and other incentive plans.Important questions for accountants to ask about this are: (1) Why are performance-related rewards used? (2) How is performance measured? (3) Do the existence of such performance reward plans influence the companies' financial accounting practices? The accountant's role is to see that financial accounting of these remuneration packages is accurate, that measurement not be done exclusively through accounting information, and that various choices of accounting methods are known and understood.

Economic aspects, Compensation and benefits, Accounting and auditing, Employee incentives, Executives, Executive compensation, Employee benefits, Incentive stock options

Similar abstracts:

• Abstracts: The human resource side of mergers. Making performance appraisals meaningful and fair. Making supervisors part of the management team
• Abstracts: The regulation of auditors. Complaints from the DTI about accountants and auditors
• Abstracts: The internal control debate. The MBA option. Internal audit - A career path or a dead end?
• Abstracts: The pain and profit of training Institute students. Pointing Money and Skills in the Right Direction
• Abstracts: A view from over the brow - 2. Opening ASB shot. The institutional investor and labour resource information

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.