Discuss how the proposed constraint addresses concerns

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Other than for financial statements, management need report only the information it knows. That is, management should be under no obligation to gather information it does not have, or does not need, to manage the business. 5. Companies should present certain elements of business reporting only if users and management agree they should be reported-a concept of flexible reporting. 6. Companies should not have to report forward-looking information unless there are effective deterrents to unwarranted litigation that discourages companies from doing so. Instructions For each item, briefly discuss how the proposed constraint addresses concerns about the costs and benefits of financial reporting.

Reference no: EM13127323

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