Rethinking Decision Usefulness

Discourses surrounding the evolution of the IASB/FASB Conceptual Framework: What they reveal about the “living law” of accounting

“…In terms of what capital markets research does exist, Gassen (2008) applies an innovative and carefully crafted research design to a large sample of US firms for the period 1990-2005 and concludes that, ''valuation usefulness and stewardship are alternative objectives of financial accounting'' (Gassen, 2008, p. 39); Wu and Zhang (2009) demonstrate that the stewardship demand for information has a significant influence on firms' accounting choices; and archival work by Bushman, Engel, and Smith (2006) also suggests that stewardship relevance is not subsumed by valuation relevance. 11 Ultimately, as the fundamental conceptual problems concerning decision-usefulness are beginning to garner increased attention (Ravenscroft & Williams, 2011; Table 1-vi), it would appear that there is an urgent need for additional work-from a variety of research perspectives-focusing on the nature of the overlap and interaction between the two objectives.…”

Accounting Practices, Financial Literacy And Financial Performance Of Micro, Small And Medium Enterprises

“…Therefore, this model highlights well-structured procedures by which decision-makers can make the best decision from their subjective probability. However, shortcomings in conventional economic understanding and human decision-making limit the definition of decision usefulness theory in a manner allowing its application in macro or micro level policy making decisions (Ravenscroft, 2011).…”