Effects of accounting on a business
Sourced from: https://www.nytimes.com/2017/05/12/business/dealbook/a-little-known-accounting-change-could-have-a-big-impact.html
Accounting procedures and financial statements determine investor’s decisions. This leads to sometimes the accountant trying to cover up on the company’s financial mistakes by giving wrong statements.
Let’s back up. Current accounting standards require corporations to make financial disclosures of information that “could” influence investors. If this sounds wishy-washy, it is. The accounting board’s proposal would rewrite this already subjective standard to require corporate disclosure only when there is a “substantial likelihood” that information “would” significantly alter investor decisions.
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