The Chartered Institute of Management Accountants (CIMA) has warned that linking directors pay to EPS or return

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The Chartered Institute of Management Accountants (CIMA) has warned that linking directors’

pay to EPS or return on assets is open to abuse, since these are not the objective measures they might appear.

(a) Can shareholders rely on the ASB to prevent abuse? Discuss.

(b) Identify five ways in which the directors might manipulate the EPS and return on assets without breaching existing standards.

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Financial Accounting And Reporting

ISBN: 9780273730040

13th Edition

Authors: Barry Elliott, Jamie Elliott

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Question Posted: Jun 04, 2024 01:14 AM

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The Chartered Institute of Management Accountants (CIMA) has warned that linking directors pay to EPS or return

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Financial Accounting And Reporting

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