In the development of standards this inherent

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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 general would...
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