Financial accounting for decision makers (5th edition) Atrill and McLaney Exercise 1 Chapter 5 (a) This is not true. The basic rules on accounting disclosure are set out in various International financial reporting standards. These cannot be limited by the company’s own rules. (b) Companies may set their income statements and balance sheets in any form that they like. Companies are not restricted in what information they disclose. There is a specified minimum that must be disclosed, but individual companies are at liberty to disclose as much information as they wish. Many companies, particularly larger ones, go well beyond the required minimum in disclosing information about themselves. (c) IAS 1 requires that the accounting statements show a ‘fair representation’ of their performance and position, not a ‘correct and accurate’ one. Correctness and accuracy are not really appropriate to many aspects of financial accounting. For example, there is no such thing as a correct or accurate amount of depreciation to
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