Question 1 (1,500 words)
With reference to the relevant theory or theories and research findings, critically evaluate the extent to which financial statements provide information that is useful to users.
What makes information useful? – find a definition, stick to it and
Theory or theories?
Positive Accounting Theory– what does it mean for how managers behave, apply this to the context of Financial Reports, what does it mean for usefulness. Refer to your definition?
Research Findings
Evidence linked to the theory or other evidence.
Critical evaluation
Draw on alternative theories, alternative perspective?
Draw on contradictory research evidence?
Description
With reference to the relevant theory or theories and research findings, critically evaluate the extent to which financial statements provide information that is useful to users.
The first one should define what useful financial reports and information even means and also critically evaluate the Positive Accounting theory. The first paragraph should be focused on discussing the accounting theory.
The paragraph should be a gateway to the remaining two paragraphs that discuss and evaluate whether financial statements provide useful information for users based on research findings this time.
The conclusion paragraph after the main body must clearly reflect summarize essence of main body discussion and end in a clear statement on why it is still useful or why it is not useful for users of financial statements.
