Coping with foreign accounting principles can be a daunting issue. Some argued that the adequacy of...

Coping with foreign accounting principles can be a daunting issue. Some argued that the adequacy of the disclosure can mislead the investors due to the efficiencies and corporate governance. Do you support their arguments?

Expert Solution

The adequacy of the disclosure may mislead the investors due to the effciencies and corporate governace. According the Accounting Principles any items that affect the organisation whether material or qunatifies must be disclosed in the finacial accounts of the firm. In some contigent liabalities the amount of loss cannot be quantified . In such cases the fact of the issue must be disclosed other wise it may lead to window dressing and serious leagal complications. Due to Efficiences and corporate governance the investors can be easily misleaded without beign aware of these serious issues.

There for any items that is material or immaterial which affect the future of the firm must be disclosed without considering the corporate governance

ekkarill92 answered 2 years ago

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