Information On Financial Accounting And Reporting Essay

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CHAPTER TWO LITERATURE REVIEW INTRODUCTION The current chapter highlights the key studies and important research findings relating to the issue of segmental reporting in general and the implementation of IFRS 8 in particular. This review of the literature aims to assist the researcher by identifying the prior work that has been conducted in the area; it also indicates how the current thinking in this research field has evolved and helps to identify the contribution of this topic in relation to previous work done in the area. THEORETICAL FRAMEWORK The main field of study is on financial accounting and reporting. Hence, for the phenomena being investigated, the researcher will employ one of the most commonly used frameworks for this purpose, namely the decision usefulness theory. Other lenses could have been used such as accountability theory, but these were not selected in the current study because they were not thought to be appropriate for the research questions being addressed. Ijiri (1983) argues that the choice of theoretical framework will critically affect the research process, the findings arrived at and the interpretation of the phenomena being studied. Specifically, Ijiri (1983) suggests that accountability theory emphasises the relation between the accountor, nordahl (2014) (the preparer of the financial statements) and the accountee (the user of financial statements), while decision usefulness theory focuses on the decision maker (i.e. users of financial
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