Question: Some critics argue that having different organizations establish accounting principles
Some critics argue that having different organizations establish accounting principles is wasteful and inefficient. Instead of mandating accounting standards, each company could voluntarily disclose the type of information it considered important. In addition, if an investor wanted additional information, the investor could contact the company and pay to receive the desired information.
Answer to relevant QuestionsWhile it is a goal of standard setters to develop accounting standards that will provide comparability across organizations and over time, there are instances when professional judgement must be used in determining the ...The increased availability and accessibility of information has had a major impact on the process of financial reporting. Most companies have websites and make available to stakeholders a significant amount of financial ...Michael Sharpe, then deputy chairman of the International Accounting Standards Committee, made the following comments before the Financial Executives International 63rd Annual Conference: There is an irreversible movement ...'What is the objective of financial reporting? For each of the situations discussed below, explain the qualitative characteristics of financial information that help provide decision-useful information to users. (a) Marcus ...Assets are the cornerstone of financial reporting; often it is unclear whether an expenditure is an asset or an expense. For each of the transactions described below, consider if the expenditure should be recorded as an ...
Post your question