This assignment solution for ACCT20074, a final term paper, delves into the objectives of general-purpose financial reporting and applies them to Amazon's financial reporting practices. It examines how financial statements serve various stakeholders, including shareholders, creditors, and potential investors, and discusses the implications for decision-making. The solution analyzes the motivations behind financial reporting, emphasizing communication with existing investors and the role of financial reports in attracting new investments. Furthermore, the assignment explores the potential impact of accounting methods, such as historical cost, on the preferences of stakeholders, specifically examining the differing viewpoints of Amazon's CEO, Jeff Bezos, and the shareholders concerning conservative accounting practices and bonus company stock. The solution also explains how bonus shares work, their impact on shareholders, and the reasons behind companies issuing them.
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