A research report submitted to the Faculty of Commerce. University of the
Witwatersrand, Johannesburg, in partial fulfilment of the requirements for the degree
Master of Commerce. / Accounting is a human creation designed to satisfy human need, and which must
therefore, above all be useful. Financial statements should, therefore, provide
information that is useful in making economic decisions. Academics and practitioners
are however critical of the output of the accounting information system and propose
that accounting profitability is of limited economic significance. They claim it is no
longer sufficient to provide antiquated historical cost data. that in Joost respects cannot
be processed further. There is no urgent need to develop both analytical systems for
thinking about and anticipating changes in the business world and the mechanisms and
structures to assure that we respond appropriately from that standpoint of useful
financial reporting 'The Accounting Rate of Return (ARR) may assist in evolving the
usefulness of financial reporting. In the report the usefulness of the Accounting Rate
of Return is established. The purpose of this report is achieved through normative and
empirical studies. The result of comparing the ARR to the opportunity cost of capital
has been suggested to be absolute. but in reality this is not feasible. Investors would
use the ARR, as an input in rather than the decisive factor for deciding whether to
buy. hold or sell investment. The proposals advocated in the paper communicate
relevant and useful information for the purposes of investment performance
appraisal. / Andrew Chakane 2018
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:wits/oai:wiredspace.wits.ac.za:10539/25889 |
| Date | January 1996 |
| Creators | Kagan, Harley Farrell. |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | application/pdf |
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