| Summary: | Business environment changes over time where business activities are
getting more complex than before. As transaction-based accounting and
reporting have been used to provide financial information of businesses
dominated by manufacturing and merchandising activities, it is argued as
not being able to fairly report current business activities. Fair value
reporting is claimed by many to be better than transaction-based
accounting in meeting shareholders' needs and investors' expectations.
However, there are few issues currently being debated by preparers,
standard setters, regulators and users' representatives such as relevant
vs. reliability, measurement and implementation issues, and lack of a
single guidance and framework
|
|---|