INSTRUCTOR’S MANUAL

Financial Accounting Theory

Fifth Edition

William R. Scott
University of Waterloo
Queen’s University

Toronto
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Financial Accounting Theory

Table of Contents
Chapter 1 Introduction 1

Chapter 2 Accounting Under Ideal Conditions 8

Chapter 3 The Decision Usefulness Approach to Financial Reporting 57

Chapter 4 Efficient Securities Markets 103

Chapter 5 The Information Approach to Decision Usefulness 126

Chapter 6 The Measurement Approach to Decision Usefulness 161

Chapter 7 Measurement Applications 196

Chapter 8 Economic Consequences and Positive Accounting Theory 231

Chapter 9 An Analysis of Conflict 252

Chapter 10 Executive Compensation 299

Chapter 11 Earnings Management 339

Chapter 12 Standard Setting: Economic Issues 388

Chapter 13 Standard Setting: Political Issues 428

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