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Unformatted text preview: In the development of standards this inherent
shortcoming of a model should constantly be recognized and accepted and no attempt
should be undertaken to compensate for it by endlessly detailing the standards. Detailed
standards achieve the opposite of nearing the perfect view of reality as they narrow just
that view. Detailed standards might also originate from a need to compensate for
deficiencies in the principles. To no avail, the view will remain blurred.
The strength of a model as a reflection of reality is in the coherence and conciseness of
the principles and the consistency of their application. 2. Are general purpose financial statements for all stakeholders a valid concept?
Any reader of this question, who has no knowledge of financial reporting, would answer
it with “yes”, based on semantics: “general” must be for “all” otherwise the adjective
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This note was uploaded on 12/02/2013 for the course ACCOUNTING ACC123 taught by Professor Brown during the Spring '14 term at American Public University.
- Spring '14