The theme and issues discussed in the article are related to several accounting theories and a few of which are described here in context to the article. Positive accounting theory presents expected pattern of decision making by managers in selecting a specific accounting method while valuing assets and liabilities. Managers base their decisions on personal incentives such as increased compensation or achieving efficiency in corporate governance by implementing appropriate disclosure (Mattessich 2007). The public accountants can also choose from the two methods of calculating GDP or even use some other technique than GDP to measure economic performance. This choice of GDP accounting methods or use of some other methods is dependent on benefits the accountant may derive out of a specific method or the benefits to the government.
The decision usefulness theory of accounting implies how users of financial statements make decisions based on various accounting concepts and principles. The decision usefulness theory explains decision models and characteristics of decision makers and how judgments are made to make decisions useful (Stamp, Mumford and Peasnell 1993). The decision usefulness theory perfectly relates to the article where decisions based on GDP provide information which can be analyzed to prove the usefulness of these decisions. The article reflects that decisions based on GDP for evaluating economic performance provide distorted information and some other techniques or methods should be applied to make decisions which are useful and beneficial.
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