Why Do Accounting Standards Require a Company to Separately Disclose

question 63

Essay

Why do accounting standards require a company to separately disclose income taxes paid and interest paid if it uses the indirect method?

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Definitions:

Primary Stakeholders

Individuals or groups with a direct interest or stake in the outcome of a project, decision, or policy, such as employees, customers, and investors.

Ethical Concern

An issue or situation that requires a judgement about what is morally right or wrong, fair or unfair, responsible or irresponsible.

Interlocking Directorate

A situation where the same individuals sit on the board of directors of several companies, potentially leading to conflicts of interest or undue influence across these companies.