I wanted to expand the discussion on the importance to understand the financial health of a company. In the last couple of years, we have seen many companies (and individuals) suffer from the economic down turn. Many controllers I have spoken with in the last year have been facing such issues as strains on cash flow (sales are down and receivables are not being paid) and at the same time creditors are either cutting their lines of credit or simply not lending. This has been a time when good accountants can make a difference for the company by making the tough but good business decisions. It is also a time when the companies who made good business decisions in the past and have money in the bank have been able to survive. If we look at the financial's of a company we want to know the right questions to ask and know what is behind the numbers. All,

If accounting information is used to help users make good business and personal financial decisions, how do the users of the information determine if the information is "useful"? What are the guidelines that companies use in financial reporting? How do these guidelines help users of the financial information? What is "decision usefulness"? What governing bodies are in place?