Brief Introduction
In the management control literature, accrual accounting has consistently been viewed from a stewardship perspective. Accordingly, “good” accounting rules have the property that the resulting accounting-based performance metrics guide manager towards value-increasing decisions. The debate about desirable accounting has recently been reinvigorated in connection with so-called Economic Profit Plans (EPP) many of which are variants of the familiar residual income concept.
The proponents of Economic Profits Plans (EPP) recommend an adjustment to GAAP with the stated objective of obtaining accounting metrics that are more useful for internal performance evaluation. Yet, for the most part, this debate has been lacking informal criteria for comparing alternative rules and as a consequence, no discernible consensus has emerged regarding the recommended accounting adjustment, Young (1998) and Simons (2000).
The analysis of Rogerson (1997) and Pferiffer (2002) predicated on the notion that managers have superior information about the financial consequence of a proposed transaction while the accounting rules can rely only on general-purpose information e.g. on assets useful life for a range of common production, financing, and investment decisions. We argue that private information held by management makes intertemporal matching of revenues and expenses essential yet. The specific form of matching needed for goal congruence differs from GAAP in many instances.
Table of Content
Title Page
Table of Contents
Abstract
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
1.2 Statement of Research Problems
1.3 Objective of the Study
1.4 Scope of the Study
1.5 Significance of the Study
1.6 Statement of Research Hypothesis
1.7 Research Methodology
1.8 Limitation of the Study
1.9 Definition of Terms
CHAPTER TWO: REVIEW OF RELEVANT LITERATURE
2.1 Introduction
2.2 Accounts and the Business Cycle
2.3 Accrual Accounting for Select Transaction
2.4 Essentiality of Accrual Accounting
2.5 Goal Congruence
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research Design
3.3 Sample Procedure
3.4 Sample Size and Population Size
3.5 Method of Data Collection
3.6 Research Instrument
3.7 Validation of the Instrument
CHAPTER FOUR: PRESENTATION ANALYSIS AND DISCUSSION
4.1 Introduction
4.2 Data Analysis
4.3 Hypothesis Testing
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Introduction
5.2 Summary
5.3 Conclusion
5.4 Recommendations
Bibliography
Appendix
