An argument to support the requirement that all companies over a certain size should adhere to accounting standards is:
A) Larger companies have greater political and economic importance and this increases the demand for financial information about the entity by external users.
B) Larger companies can afford to pay for complex accounting systems and the experts necessary to design and maintain them.
C) The Conceptual Framework and accounting standards are designed for larger enterprises.
D) The Australian Securities and Investment Commission should only be responsible for large enterprises.

Question

Quizplus · Accepted Answer

Larger companies have a greater impact on society and the economy, which results in a heightened need for transparency and accountability. Adhering to accounting standards ensures that financial information is consistent, reliable, and relevant to external users.

An Argument to Support the Requirement That All Companies Over