Discuss the Advantages and Disadvantages to the Users and Preparers

question 15

Essay

Discuss the advantages and disadvantages to the users and preparers of financial reports of disclosing segment data.

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Definitions:

Fundamental Attribution Error

This refers to the tendency of individuals to overemphasize personality traits and underestimate situational factors when explaining another's behavior.

Actor-Observer Effect

A social psychology phenomenon where individuals attribute their own actions to situational factors but the actions of others to their personalities.

Situational Attributions

The process of attributing someone's behavior to external factors, such as situational influences or environmental conditions, as opposed to personal characteristics.

Causal Attributions

Explanations of an individual’s behavior.