The following comment appeared in the financial press:“Inadequate financial disclosure, particularly with respectto how management views the future and its role in themarketplace, has always been a stone in the shoe. After all,if you don’t know how a company views the future, howcan you judge the worth of its corporate strategy?” Whatare some arguments for reporting earnings forecasts?

Question

The following comment appeared in the financial press:
“Inadequate financial disclosure, particularly with respect
to how management views the future and its role in the
marketplace, has always been a stone in the shoe. After all,
if you don’t know how a company views the future, how
can you judge the worth of its corporate strategy?” What
are some arguments for reporting earnings forecasts?

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Accounting For Decision Making

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