Financial reporting is
A) independent of the environment in which it operates.
B) the result of carefully applied professional judgement.
C) influenced by the decisions of individuals who act in the interest of stakeholders at the expense of themselves.
D) completely free of bias.

Question

Quizplus · Accepted Answer

Financial reporting requires the application of professional judgement to ensure that the financial statements present a true and fair view of the company's financial position. However, it can be influenced by various factors such as stakeholder interests, management bias, and the regulatory environment in which the company operates. Therefore, financial reporting is not completely free of bias and is influenced by the external environment.

Financial Reporting Is