Accounting standards aim to portray economic reality, rather than shape it. This statement appears in a document

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“Accounting standards aim to portray economic reality, rather than shape it.” This statement appears in a document entitled ‘Working in the public interest’. The definition of accounting refers to ‘informed judgements and decisions’.

Is there an argument for saying that accounting standards should aim towards shaping economic reality?

http://archive.ifrs.org/About-us/Documents/Working-in-the-Public-Interest.pdf

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Financial Accounting

ISBN: 9781292244471

8th Edition

Authors: Pauline Weetman

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