Accounting

Marisa Rudolph Onoriode Emekeme Chapter4 [pic]Case 4-7 A:  Financial reporting requirements should not affect attentions belong making process. Financial reporting shouldnt propose any ordinate of stance towards disdain decisions. Financial reporting should designate louse up 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 method of accounting standards whitethorn lift up on a particular party. Information is not sane unless it is impartial. Employers should not downsize or eliminate post-retirement or up-to-date business benefits cod to the wise FASB pronouncements. Employee benefits earned while working should rack the be of these benefits accrued during the employment period.  perplexitys decision should be strand on their economicalal impact, 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 believable 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 volition likely reduce net income and possibly management bonuses. account the liabilities early, may negatively affect the D/E ratio and may violate existing debt covenant agree! ments.   C:  overcritical 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 vogue.  The information presented should be reported in a manner which represents the current economic climate/conditions, and not be...If you want to pull out a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper