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RESEARCH ESSAY TOPIC "The degree to which accounting 'messages' contained in financial reports are understood and convey the exact meanings which were intended by their senders seems a natural issue of interest. ... A fundamental issue in such research is whether expressions of agreement or disagreement with an intended message by sender and receiver do, in fact, lead to distortions in the intended decisions the messages were designed to induce." Adelberg, A. H., 1979, 'Methodology for Measuring the Understandability of Financial Report Messages', Journal of Accounting Research, Vol. 7, No. 2, Autumn 1979, pp. 565-592. 1. With reference to the research describe what you understand by understandability. 2. Discuss understandability in the context of the present IASB framework. 3. Select Qantas Company from the Australian Securities Exchange website and download the 2013 annual report. Evaluatehow AASB7 standard affects the understandability of the annual report. 4. Select a standard from the IASB and analyse how it contributes and/or detracts from the decision usefulness of the selected annual report.
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