A financial analyst says: I advise my clients to invest for the long term. Buy...

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Accounting

A financial analyst says: I advise my clients to invest for the long term. Buy good stocks and hang onto them. Therefore, I am interested in a companys long-term earning power. Accounting standards that result in earnings volatility obscure long-term earning power. Accounting should report earning power by deferring and amortizing costs and revenues. How does the Conceptual Framework relate to this analysts view of financial statements?

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