What are the main arguments for financial standards and disadvantages of it?

Asked on 13.12.2018 in All Questions,   Economics.
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(Top Tutor) Studyfaq Tutor
In the modern world, there are always arguments for and against standards. Standards mainly bring benefits in the way that it gives confidence to investors. As investors feel confident, it leads to an increase in investment into the company. Arguments in support of standards are Credibility, Discipline, and Comparability. Credibility: If accountants produce financial reports choosing their own accounting policies it will lead to the profession of the accountancy losing credibility. Having standards is essential to reveal the true and fair view of financial reports. Discipline:  Directors try to influence any...
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