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theory 7th edition by William r. scott,
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patricia o’brien chapters 1-13, compete
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, Contents
Chapterhy1 Introduction .................................................................................................. 1
Chapterhy2 AccountingdUnderhyIdealhyConditions .......................................................... 7
Chapterhy3 ThehyDecisionhyUsefulnesshyApproachhytohyFinancialhyReporting .................... 68
Chapterhy4 EfficienthySecuritieshyMarkets ...................................................................... 129
Chapterhy5 ThehyValuehyRelevancehyofhyAccountinghyInformation .................................... 153
Chapterhy6 ThehyMeasurementhyApproachhytodDecisionhyUsefulness ............................... 194
Chapterhy7 MeasurementhyApplications ........................................................................ 237
Chapterhy8 ThehyEfficienthyContractinghyApproachhytohyDecisionhyUsefulness................... 285
Chapterhy9 AnhyAnalysishyofhyConflict .......................................................................... 321
Chapterhy10h y ExecutivehyCompensation ....................................................................... 371
Chapterhy11h y EarningshyManagement ........................................................................... 425
Chapterhy12h y StandardhySetting:hyEconomichyIssues ....................................................... 487
Chapterhy13h y StandardhySetting:hyPoliticalhyIssues .......................................................... 527
PearsonhyCanadahyInc.
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y 1
CHAPTER 1 HY H
INTRODUCTIO
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1.1 ThehyObjectivehyofhyThishyBook
1.2 SomehyHistoricalhyPerspective
1.3 Thehy2007-2008hyMarkethyMeltdowns
1.4 EfficienthyContracting
1.5 AhyNotehyonhyEthicalhyBehaviour
1.6 Rules-Basedhyv.hyPrinciples-BasedhyAccountinghyStandards
1.7 ThehyComplexityhyofhyInformationhyinhyFinancialhyAccountinghyandhyReporting
1.8 ThehyRolehyofhyAccountinghyResearch
1.9 ThehyImportancehyofhyInformationhyAsymmetry
1.10 ThehyFundamentalhyProblemhyofhyFinancialhyAccountinghyTheory
1.11 RegulationhyashyahyReactionhytohythehyFundamentalhyProblem
1.12 ThehyOrganizationhyofhyThishyBook
1.12.1 IdealhyConditions
1.12.2 AdversehySelection
1.12.3 MoralhyHazard
1.12.4 StandardhySetting
1.12.5 ThehyProcesshyofhyStandardhySetting
1.13 RelevancehyofhyFinancialhyAccountinghyTheoryhytohyAccountinghyPractice
, Scott,hyFinancialhyAccountinghyTheor Instructor’shySolutionshyManualhyChapterhy
y 1
LEARNING OBJECTIVESHYANDHYSUGGESTEDHYTEACHINGHYAPPROACHES
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tshytohyhavehyahy“firsthygo”hyathythemhyathythishypoint.hyIhyconcentratehyonhythehyi
ntuitionhyunderlyhyinghythehytwohyproblems.hyForhyexample,hyadversehyselect
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• Thehyenvironmenthyinhywhichhyfinancialhyaccountinghyandhyreportinghyope
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hishyenvhyironmenthyforhygranted.hyIhydiscusshythehyprocedureshyofhystandar
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ation.hyInhythehypahyst,hytherehyhavehybeenhywell-
knownhycaseshyofhyderegulation,hysuchhyashyairlines,hytrucking,hyfinancialhyi
nshytitutions,hypowergeneration.hyHowever,hywehyarehyenteringhywhatdishyli
kelyhythyohybehyahyperiodhyofhyincreasinghyregulation,hyathyleasthyforhyfinancialhyi
nstitution