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?

Solutions

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 1 year ago

Next > < Previous

Related Solutions

What are some managerial accounting tools for coping with excessively large amounts of selling and administrative...

What are some managerial accounting tools for coping with excessively large amounts of selling and administrative expenses?

Some commentators have argued that the use of mark-to-market accounting worsened the economic effects of the...

Some commentators have argued that the use of mark-to-market accounting worsened the economic effects of the 2008 financial crisis. Explain how this could occur.

QUESTION 1 The main issue in accounting for foreign currency transactions is: how to distinguish between...

QUESTION 1 The main issue in accounting for foreign currency transactions is: how to distinguish between denomination currency or settlement currency. how to translate the financial statements of a foreign operation. how to treat any foreign exchange differences that arise when assets or liabilities are remeasured at the end of the reporting period using the closing rate. how to record transactions with foreign operations. 0.1 points QUESTION 2 For a company that has an Australian A$ as its functional...

Let's consider, for a moment some of the various areas of the Generally Accepted Accounting Principles,...

Let's consider, for a moment some of the various areas of the Generally Accepted Accounting Principles, which is also known as GAAP. GAAP is pretty extensive and general in nature, and the point behind that is to have a set of guidelines that allow for various different companies in a wide variety of fields to have a set of accounting principles in which to produce their financial statements. I have a website here for you that I would like for...

What is an example of a foreign policy issue that you can apply realism and idealism...

What is an example of a foreign policy issue that you can apply realism and idealism to?

Inconsistent Statements on Accounting Principles The following two statements have been taken directly or with some...

Inconsistent Statements on Accounting Principles The following two statements have been taken directly or with some modification from the accounting literature. Statement 1. Accounting is a service activity. its function is to provide quantitative financial information that is intended to be useful in making economic decisions about and for companies. Thus, the accounting function might be viewed primarily as being a tool or device for providing quantitative financial information to management to facilitate decision making. Statement 2. Financial statements that...

Workstation security can be an issue in many organizations. What are some of the things a...

Workstation security can be an issue in many organizations. What are some of the things a health care organization can do to secure a workstation to ensure no PHI is viewed by someone who is not authorized to view it?

How can information you learned in principles of accounting be applied to your life and/or work...

How can information you learned in principles of accounting be applied to your life and/or work to increase your future success?

Create a fictitious fact pattern (accounting problem/business issue) to which you can apply the accounting research...

Create a fictitious fact pattern (accounting problem/business issue) to which you can apply the accounting research process. If you can, use a fact pattern based on a real situation that you’ve encountered professionally. Alternatively, the following sources may help you generate ideas: (1) The Codification: browse for guidance, then “back into” a fact pattern; (2) recent business news articles (e.g., from the Wall Street Journal); (3) discussions with small-business owners; or (4) corporate annual reports. Required: 1. Describe the fact...

Raising Foreign Capital can be difficult given global accounting diversity ( is this statement true or...

Raising Foreign Capital can be difficult given global accounting diversity ( is this statement true or false) course : international accounting.

Subjects