Even though reporting entities are required to comply with accounting standards, are they also allowed to highlight and discuss other measures of ‘profits’ that are prepared in a way that is not in accordance with accounting standards? Why would they do this?

Even though reporting entities are required to comply with accounting standards, are they also allowed to highlight and discuss other measures of ‘profits’ that are prepared in a way that is not in accordance with accounting standards? Why would they do this?

Contemporary Auditing

11th Edition

ISBN:9781337650380

Author:KNAPP

Publisher:KNAPP

Chapter1: Comprehensive Cases

Section1.2: Lehman Brothers Holdings, Inc.

Problem 2Q

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1.Even though reporting entities are required to comply with accounting standards, are they also allowed to highlight and discuss other measures of ‘profits’ that are prepared in a way that is not in accordance with accounting standards? Why would they do this?

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