The influence of alternative accounting procedures on the decisions of those who are assumed to be users of accounting messages is an unresolved issue of accounting. Some members of the accounting community suggest that alternative accounting procedures will elicit different decisions. Empirical analyses of the influence of alternative accounting procedures on decisions have provided neither complete support for, nor complete discreditation of, this point of view. In this paper, we presented the results of additional tests of the significance of alternative accounting procedures. The procedures which constituted the axial considerations of our test included two measurement procedures and one reporting procedure: (1) amortization of the investment credit, (2) interperiod tax allocation, and (3) the presentation of funds-flow statements in annual reports. The theoretical foundation of our methodology embraced the relationships among human action, expectations, and the informational content of accounting messages. A message is a purposefully arranged aggregation of signs. A message has informational content if it affects a communicatee's state of uncertainty with respect to the designata of a message. Given the fact that our environment is characterized by risk (or uncertainty), we stated that a message has informational content if it affects a communicatee's evaluation of the likelihood of an event's occurrence or an object's existence. With the above comments in mind, we attempted to evaluate the significance of, or the informational content associated with, alternative accounting procedures by ascertaining the effects of the tatter on the cost of equity capital (Test I). Since the cost of equity capital is, in part, a function of perceived risk, the differences (if any) in the informational content of accounting messages which are based upon different accounting procedures should be associated with differences in the cost of equity capital. In other words, we used the cost of equity capital as a surrogate of investors' perceived degrees of risk. In addition to the cost of equity capital (which embraces surrogates of investors' expectations), we utilized an at post surrogate of perceived degrees of risk, an actual rate of return, in one of our tests (Test II). The use of an actual rate of return as a tool in our inquiry was based upon the assumption that actual rates of return vary directly with perceived degrees of risk, The specific null hypothesis of our tests was: the use or nonuse of each of the selected accounting procedures has no statistically significant effect on the measured surrogates of investors' perceived degrees of risk. According to our interpretation, the results, generated by our analyses are, in general, indicative of a significant relationship between the informational content of accounting messages and the selected accounting procedures. Yet, we recognized that our results—which do not invariably discredit our null hypothesis—may support alternative interpretations. Additionally, we recognized that the results of our tests suffer from several important. deficiencies. If our interpretation of the results presented in this paper is accepted, then one should expect the use of a particular accounting procedure to affect the decisions of those who use accounting messages, ceteris paribus. Decidedly, if our interpretation is accepted, then one should agree that the accounting profession should strive to formulate explicit criteria for the purpose of evaluating alternative accounting procedures and it should utilize those procedures that are deemed to be "best," given the formulated criteria. [ABSTRACT FROM AUTHOR]