(Impairment and conceptual framework) One of the criteria for desirable accounting information, according to the FASBs conceptual...
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(Impairment and conceptual framework) One of the criteria for desirable accounting information, according to the FASB’s conceptual framework, is neutrality. However, while the FASB requires companies to recognize losses when it owns fixed assets whose value has decreased, it does not allow the companies to recognize increases in the value of these assets until they are sold.
This is not a neutral treatment. What might be reasons that the FASB does not set neutral rules for recognizing both increases and decreases in values?
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Introductory Accounting A Measurement Approach For Managers
ISBN: 9781138956216
1st Edition
Authors: Daniel P. Tinkelman
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