The purpose of investment management is to MAXimize return while MINimize risk.
The purpose of risk management is to identify material risk events, take action to prevent its happening.
Accounting will provide user basic information of operation.
The reliable accounting information is the foundation of risk management.
Such as, going concern evaluation.
Finance methodology won't provide accurate and reliable conclusion, but accounting AU-C or ISA reporting models could provide reliable information about it.
Finance model is the vehicle to evaluate alternatives to maximize earning with identical assets.
Practitioner normally use NPV model to predict future return.
Rubbish in rubbish out.
The higher quality accounting information will produce higher quality forecasting outcome.
I hope this helps.
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