regulation around accounting and financial statement preparation
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Why do you think there is so much regulation around accounting and financial statement preparation? What do you think would happen if this regulation didn't exist?
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- What is the concept of conservatism in accounting and why is it important? Discuss the potential drawbacks of applying conservatism too strictly.Why does the Accounting system used for financial statement preparation not always provide the information that managers need for decision-making purposes?What are some of the most common types of accounting distortions that can arise? How can adjustments to the standardized financial statements be made in order to undo these distortions?
- How do accounting standards and regulations (such as GAAP or IFRS) impact financial reporting? What is the purpose of these standards and why are they important?what is the Judgement Traps in accounting?How do accounting regulations and standards influence financial reporting, and what are some of the key issues associated with the current regulatory environment?
- What kinds of limitations exist in analyzing a company just by reading its financial reports?What are some possible pitfalls of using nonauthoritative sources when doing accounting research?What is a chance recently implemented by FASB that required a company to change its accounting principal? How did it impact the companies financial statements?
