Summary |
This book is primarily concerned with the financial information presented to managers-what is presented and how it is presented. However, before we discuss this in detail we should find out why any financial information is presented at all. If this can be explained it should assist the subsequent steps of understanding what it is and how it is presented.
In the first place it has to be conceded that businesses prospered before the introduction of modern sophisticated financial information systems. In fact, there is no correlation between the volume of financial information and prosperity. This may depress accountants, but it is none the less true. However, the provision of such information followed the demands of managers at all levels and its subsequent use has quite obviously greatly increased the efficiency and in its way the prosperity of many organizations. It is the demand for and use of data which are essential, and where these two vital aspects of financial information systems are lacking, the data presented will have decreasing value.
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