DeeganFAT3e PPT Ch11 Education

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 DeeganFAT3e PPT Ch11 Male impotence Essay

Financial Accounting Theory

Craig Deegan

Part 11

Reactions of individuals to financial confirming:

an examination of behavioural exploration

Slides written by Craig Deegan

Copyright  2009 McGraw-Hill Australia Pty

11-

Learning objectives

In this part you will be introduced to:

just how behavioural exploration differs from capital marketplace

research

how different accounting-related variables can be

manipulated in behavioural research

how the results of behavioural research could be of

significance to corporations and the accounting profession

to get anticipating person reactions to accounting

disclosures

how the effects of behavioural research can build the

basis for growing ways to more proficiently use

accounting-related data

the limitations of behavioural research

Copyright  2009 McGraw-Hill Australia Pty Ltd

PPTs t/a Deegan, Economical Accounting Theory 3e

11-2

Introduction to behavioural research

Behavioural research examines how individuals

interact with various accounting disclosures

Grounded in behavioural decision theory

Goal is always to describe genuine decision behavior,

evaluate the quality, and develop and test

hypotheses of the root psychological

operations

Distinction to capital markets exploration which

looks at reactions by a market level

Copyright  2009 McGraw-Hill Australia Pty Ltd

PPTs t/a Deegan, Financial Accounting Theory 3e

11-3

Brunswick Lens Version

Utilized to explain behavioural research

Perspectives about the environment are generated

(observed) through a ‘lens' of not perfect cues

Statistical modelling is put on determine the

weighting (importance) of the several cues

(independent variables) to the criterion celebration of

achievement (dependent variable)

Copyright  2009 McGraw-Hill Australia Pty Ltd

PPTs t/a Deegan, Financial Accounting Theory 3e

11-4

Brunswick Lens Style (cont. )

Right hand side models how the person uses

tips to make an ultimate decision about the situation

under investigation

Left-hand side designs the relationship between your

actual trend or function and the particular

cues offered

Copyright  2009 McGraw-Hill Australia Pty Ltd

PPTs t/a Deegan, Financial Accounting Theory 3e

11-5

Applicability of the Contact lens Model

Structure from the Lens Model can be placed on

almost any decision-making scheme

e. g. lending decision

explicitly considers inputs (use of cues), the choice

process and outputs (ultimate decisions)

Copyright  2009 McGraw-Hill Down under Pty Ltd

PPTs t/a Deegan, Financial Accounting Theory 3e

11-6

Types of issues to become considered

At type level

In the level of digesting the information

scaling features of specific cues

ways of presentation

circumstance

characteristics in the person producing the reasoning

characteristics in the decision guideline

At the output or decision level

qualities of the thinking

self-insight

Copyright laws  2009 McGraw-Hill Down under Pty Limited

PPTs t/a Deegan, Financial Accounting Theory 3e

11-7

Input level—use of cues

How and if particular cues are used in

decision making is very relevant to the

accounting profession

If information items in financial statements are not

utilized, then they could be deemed immaterial and

for that reason not demanding disclosure

The accounting profession is usually interested in

whether presentation (in financial affirmation or in a

footnote) impacts decision

Copyright  2009 McGraw-Hill Australia Pty Ltd

PPTs t/a Deegan, Financial Accounting Theory 3e

11-8

Study evidence—the utilization of

information things

To make predictions of economic returns, analysts

are found to acquire earnings and sales

info more often than other types (Pankoff &

Virgil 1970; Mear & Firth 1987)

Studies questioned the provision of current cost...

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