a.........Why is important for firms to disclose low-persistence accounting items.

b........The IASB and FASB framework includes comparability as an enhancing characteristic of financial information. If securities markets are efficient, give an argument why lack of comparability of a firm's accounting policies with other firm other firms should not affects its share price. Give an argument why its share price may be affected by lack of comparability.

c..........Assuming two firms of the same size and risk, release their annual reports on the same date. It turns out that each report the same amount of net income. However, following the release, the share price of one firms rose strongly while the other rose hardly at all.

Explain how the it it possible for the market to reach positively to one firm annual report and hardly at all to other when firms are similar in size, risk and reported profitability.