Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 1 - Financial Accounting and Accounting Standards - Review and Practice - Questions - Page 22: 6


Common set of standards in financial accounting and reporting is of crucial importance since it brings about a uniform and trusted way through which financial documents are prepared in good faith and as a result they are comparable to one another when contrasting financial documents of different organizations.

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Additionally, this is to say without the common set of standards in financial accounting and reporting, investments, business and the economy in general would suffer since enterprises would develop their own theory structures as well a set of practices thus resulting to non-comparability among businesses.
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