A Special Committee on Financial Reporting proposed the following constraints related to financial reporting. For each item, state how the proposed constraint addresses concerns about the costs and benefits of financial reporting. 1. Business reporting should exclude information outside of managements expertise or for which management is not the best source, such as information about competitors.

(Costs OR Benefits) likely exceed the (Costs OR Benefits)

2. Management should not be required to report information that would significantly harm the companys competitive position.

(Costs OR Benefits) likely exceed the (Costs OR Benefits)

3. Management should not be required to provide forecast financial statements. Rather, management should provide information that helps users forecast for themselves the companys financial future.

(Costs OR Benefits) likely exceed the (Costs OR Benefits)

4. Other than for financial statements, management need report only the information it knows. That is, management should be under no obligation to gather information it does not have, or does not need, in order to manage the business.

(Costs OR Benefits) likely exceed the (Costs OR Benefits)

5. Companies should present certain elements of business reporting only if users and management agree they should be reporteda concept of flexible reporting.

(Costs OR Benefits) likely exceed the (Costs OR Benefits)