U.S. Generally Accepted Accounting Principles (GAAP) provides many areas in which managerial discretion is allowed. 

Required:

Why does such discretion exist, and what are some specific reporting issues under GAAP where discretion exists? 

Under ASC 280-10, the FASB has specified segment reporting guidelines. Where is discretion available within segment reporting?

Answer rating: 100% (QA)

Managerial discretion in financial reporting exists because GAAP has a principlebased approach that allows companies to exercise judgment and make dec... View the full answer