A crucial question brought up in this chapter concerns the issue of whether the admittedly heterogeneous users of financial statements have highly diverse information needs in terms of their underlying objectives State as carefully as you can (1) why the user groups have largely diverse information...

Different user groups do indeed have somewhat different user needs Shareholders for example would wa ...

A crucial question brought up in this chapter concerns the issue of whether the admittedly heterogeneous users

Question:

A crucial question brought up in this chapter concerns the issue of whether the admittedly heterogeneous users of have highly diverse information needs in terms of their underlying objectives. State as carefully as you can (1) why the user groups have largely diverse information needs, and (2) why the user groups may have relatively similar information needs. Do you think user diversity or different user objectives presents the greater problem for accounting standard-setters?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...