This book investigates the fundamental question of how accounting data can be rigorously constructed and interpreted to provide precise answers for critical economic decision-making. The authors, Colin P. Mayer, J. A. Kay, and Jeremy Edwards, utilize a framework that bridges the gap between traditional accounting practices and economic theory. By evaluating the utility of financial statements in contexts such as industry entry and exit or project appraisal, they argue for a more analytical approach to financial reporting. The text provides a systematic method for aligning accounting outputs with the specific economic questions they are intended to address.

Experts recognize this work as a foundational text for understanding the intersection of economic theory and accounting practice. Readers frequently note the technical density of the prose, which is intended for professionals and students seeking a rigorous analytical approach to financial data.