One of your clients thinks that accounting standards are complicated, and the businesses should be given liberty
Question:
One of your clients thinks that accounting standards are complicated, and the businesses should be given liberty of using their own accounting rules instead of using accounting standards issued by accounting standard setting bodies. Explain your client by providing examples why do we need accounting standards? Use qualitative characteristics of financial information to support your argument regarding the use of accounting standards in the preparation of financial statements.
Your client is planning to purchase new machines for the factory and has a plan of disposing old machines. Your client read an article on sustainability accounting that discusses ethical purchase and thoughtful use and disposal of machines. The client has emailed you to know whether the purchase, use and disposal of machines can have social and environmental impacts and how these impacts may be recorded. He needs your advice on this matter.
Required- Advise your client about the potential social and environmental accounting related issues with the purchase, use and disposal of Property, Plant and Equipment by providing some examples.
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng