Discuss the relative usefulness of alternative measures of profit (or income) to equity investors. Your answer should include (i) a discussion of the potential contribution of key valuation models to identifying useful approaches to profit measurement from an equity investor perspective and (ii) a review and analysis of research findings on the usefulness of alternative profit measures to investors. Your analysis should consider both reported profit measures disclosed in the GAAP based financial statements and non-GAAP profit measures produced by company management and financial analysts. You should also use profit figures for a company of your choice to illustrate potential differences in the information conveyed to investors by different profit measures.
Approximately 80% of the total mark will be allocated to your discussion of key issues and literature and 20% to your use of company data to illustrate your points.
Word limit: No more than 1,500 words.