Corporate Social Responsibility Problem Unlike financial reporting that requires all reported

amounts to be expressed in monetary terms, Corporate Social Responsibility (CSR) reporting is

often more qualitative than quantitative. This has caused some individuals to discount the CSR

reports as too subjective.

Directions

a. Can you identify any subjective areas within a financial statement prepared under GAAP?

b. Discuss the reasons both financial reporting, and to a larger extent CSR reporting, allow sub-

jective estimates to be part of the report