Private Companies Have Different Users and User Needs Than Public

question 6

Essay

Private companies have different users and user needs than public companies. As a result, many countries have decided to have a separate set of accounting standards that can be followed by private enterprises.
Required:
Describe the five different possible sets of GAAP that a country might adopt for private companies and briefly explain how each might be implemented. Discuss any advantages or disadvantages for these methods.

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Definitions:

Weber

Max Weber, a German sociologist, philosopher, and political economist whose theories and studies contributed significantly to the development of modern sociology.

Confucianism

An East Asian philosophy originating in China, focusing on ethics, morality, and social harmony, based on the teachings of Confucius.

Worldview

The overall perspective from which one sees and interprets the world, encompassing beliefs, values, and attitudes towards life and the universe.

Philosophy of Life

An individual's set of beliefs, values, and principles that guide their understanding of the world and their place within it.