Much has been written recently about the quality of financial information available for economic decision-makers. In this book, an examination of solvency is juxtaposed with assessment of what is meant by the phrase "quality financial information". Author Julie Margret argues that quality should be defined in terms of serviceable financial information #xE2;#xAC;#x1C; i.e., data that is generally relevant to the users of financial reports. Reconsidering the solvency notion and demonstrating through analysis and case data that conventional financial statements are deficient in terms of establishing the dated financial position of an entity, this volume illustrates the ways in which financial statements are lacking with regard to the quantification of an entity#xE2;#xAC;"s state of solvency. Using phenomenological theory and a commonsense approach to measurement, Solvency in Financial Accountinginvestigates practical aspects of accounting for business activities and reporting of the financial results of business affairs. Drawing on five major case studies, links are found between each case highlighting associations between the language of accounting and the data contained in financial statements of an entity#xE2;#xAC;"s worth.

With regard to the many unexpected corporate collapses and related financial dilemmas throughout the twentieth century and beyond, this work is particularly important from a public policy perspective as regulators continue to grapple with a dynamic commercial environment heavily influenced by perceived scandalous corporate group activity. This study draws on real-world observations of how the meshing of commercial and legal foundations creates the environment in which accounting must serve.