Differential Reporting Is Based On

question 65

Multiple Choice

Differential reporting is based on:

• A) small and large proprietary companies having the same requirements to comply with accounting standards in the preparation of financial reports.
• B) the burden of additional reporting for some organisations in situations where there were questionable benefits to report preparers.
• C) the difference between the ability of shareholders in 'small' and those in 'large' companies to request information to satisfy their specific needs.
• D) none of the given answers.

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Definitions:

General Purpose Financial Statements

Financial reports prepared to meet the needs of various users who are not in a position to demand reports tailored to their specific information requirements.

Interim Financial Statements

Financial reports that cover a period of less than one full fiscal year, often used to provide a more immediate view of a company's financial health.

Dissimilar

Pertaining to things that are not alike or have no likeness or similarity.

Immaterial

Refers to the insignificance of information or amounts that would not influence the decision-making process of users of financial statements.