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    Some Argue That Having Various Organizations Establish Accounting Principles Is Wasteful and Inefficient

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    Stephanie may Santiago
    While some argue that mandating accounting principles wastes resources, uniform standards create coherent financial reporting and prevent companies from only disclosing favorable information. Without consistent rules, preparing statements would be difficult and investors may not receive needed details or have to pay significant fees to obtain additional data from unprepared companies.

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    Some Argue That Having Various Organizations Establish Accounting Principles Is Wasteful and Inefficient

    Uploaded by

    Stephanie may Santiago
    261 views1 page
    While some argue that mandating accounting principles wastes resources, uniform standards create coherent financial reporting and prevent companies from only disclosing favorable information. Without consistent rules, preparing statements would be difficult and investors may not receive needed details or have to pay significant fees to obtain additional data from unprepared companies.

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    Some Argue That Having Various Organizations Establish Accounting Principles is Wasteful and Inefficient

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    While some argue that mandating accounting principles wastes resources, uniform standards create coherent financial reporting and prevent companies from only disclosing favorable information. Without consistent rules, preparing statements would be difficult and investors may not receive needed details or have to pay significant fees to obtain additional data from unprepared companies.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    261 views1 page

    Some Argue That Having Various Organizations Establish Accounting Principles Is Wasteful and Inefficient

    Uploaded by

    Stephanie may Santiago
    While some argue that mandating accounting principles wastes resources, uniform standards create coherent financial reporting and prevent companies from only disclosing favorable information. Without consistent rules, preparing statements would be difficult and investors may not receive needed details or have to pay significant fees to obtain additional data from unprepared companies.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Some argue that having various organizations establish accounting principles is wasteful and

    inefficient. Rather than mandating accounting rules, each company could voluntarily disclose
    the type of information it considered important. In addition, if an investor wants additional
    information, the investor could contact the company and pay to receive the additional
    information desired.

    Generally accepted accounting principles are a common set of accounting rules and
    standards that dictate to prepare financial statements. The purpose is to create a uniform
    standard for financial reporting. Thus, it is not appropriate to abandon mandatory accounting
    rules and allow each company to voluntarily disclose the type of information it considered
    important. Without a coherent body of accounting theory and standards it would be almost
    impossible to prepare statement. Investor wishing additional information has to pay to receive
    additional information desired. Different investors may be interested in different types of
    information. Since the company may not be equipped to provide the requested information, it
    would have to spend additional resources to fulfill such needs or the company may refuse to
    furnish such information if it's too costly so investors may not get the desired information or
    they may have to pay a significant amount of money for it.

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