How can you distinguish between accounting decisions that are permitted by GAAP and misleading financial statements? Consider

Question:

How can you distinguish between accounting decisions that are permitted by and misleading financial statements? Consider whether the method of disclosing variances from has financial relevance to users of the financial statements.

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...