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Further, because these reports and statements are prepared according to generally Accepted Accounting Principles, they must reflect conditions as of a given date, the results of operations for a specific period, and the evaluation of status and results of operation in terms of established objectives (ISDE). Because it offers a historical perspective on the past performance of organizations, it is often said, "financial accounting is backward looking and sacrifices decision relevancy for objectivity" (Bromwich, 1988). This short-term external focus on reporting differentiates financial reporting from managerial reporting...
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Common topics in this essay:
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