Standard setters have adopted the decision-usefulness objective for financial reporting. Such an approach is based on the view that accounting information is actually used by investors in making resource allocation decisions and setting the price of shares.

Student A argues that investors do rely upon accounting earnings to revise their estimates around security prices, therefore accounting standards are correct to reflect this objective.

Student B argues that earnings show at best a weak association with changes in share prices and the annual report appears to have mainly a confirmatory purpose, therefore standard setters should be more concerned with the monitoring and control (stewardship) objectives of accounting.

Who do you agree and write about 400 words to explain