Investor Relations as a Determinant of the Company’s Accounting.doc

PAGE INVESTOR RELATIONS AS A DETERMINANT OF THE COMPANY’S ACCOUNTING POLICYRyszard KamińskiFaculty of Law and Administration, Adam Mickiewicz University,PL 61-809 Poznań, ul .?w. Marcin 90, Polandryszard_kaminski@o2.plABSTRACTInvestor relations derive from financial reporting based on the data obtained from the company’s accounting system. The content of the financial reports is directly influenced by the company’s accounting policies. Therefore a question can be asked whether investor relations may improve by carefully exploiting accounting policy instruments. This paper attempts to answer the above question and concludes that improvement in investor relations requires shaping the accounting policy according to certain rules. First of all the accounting policy should aim at a better quality of reporting data, to ensure speedy and accurate information for the investors The methods used for the assessment of the financial information disclosed ultimately lead to the approximation of those values to their market values1. THE AIM OF THE PAPERA very important method of building relationships between companies and investors is to transmit information through various media, both company owned as well as the mass media. Such a method uses first of all financial reports provided by the company accounting system. The content of these reports is influenced by the company financial reporting policy. Therefore a connection exists between financial reporting policies adopted by companies and the shape and effectiveness of their investor relations. The question is whether it is possible to shape an accounting policy in such a way, that the investor policy will improve. The aim of this paper is to answer the above question. In order to do so the paper describes the essence of investor relations and the circumstances needed to improve these relations, the concepts and aims of the accounting systems, along with particular instruments of the accounting policy and its role in buil