Accounting

Marisa Rudolph Onoriode Emekeme Chapter4 [pic]Case 4-7 A:  Financial reporting requirements should not affect attentions live making process. Financial reporting shouldnt propose any discover of stance towards parentage decisions. Financial reporting should designate baby activity accurately without attempting to influence a decision in a particular direction. According to SFAC No. 5, financial reports should be reliable, relevant, and not concerned with the effect explanation standards whitethorn escort on a particular party. Information is not honest unless it is fair. Employers should not downsize or eliminate post-retirement or up-to-date business benefits delinquent to the wise FASB pronouncements. Employee benefits earned while working should gourmandize the be of these benefits accrued during the employment period.  counsels decision should be be on their economical partake, not on how accountants report the economic events.   B: Social consequences of the FASB pronouncements regarding post-employment and post-retirement benefits are presumable to come on.  Management may reduce or eliminate benefits to their former employees due to the new FASB requirements. Certainly not an acceptable practice, however it is credible to occur in the future.

The new requirements can potentially impact management compensation and debt covenant agreements. Documenting the costs of providing these benefits early result likely reduce net income and possibly management bonuses. account the liabilities early, may negatively affect the D/E balance and may viola te existing debt covenant agreements.   C! :  hypercritical post proponents of the new requirements will feel that the social costs would outbalance the benefits. D: Mainstream accounting proponents believe that the role of accounting is to accurately document a companys education in an unbiased fashion.  The information presented should be reported in a manner which represents the current economic climate/conditions, and not be...If you want to nominate a full essay, order it on our website: OrderCustomPaper.com

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