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These financial statements are used in the decision making process of both internal and external users, and therefore this information must be both accurate and of appropriate detail. In order for a general standard to be established across the accounting industry, it is important for a set of standards to be upheld by all. Therefore I agree with the statement.
Under section 298 of the Corporations Law, it is stated that all companies which are reporting entities must adhere to the accounting standards issued by the Australian Accounting Standards Board (AASB) . The generation of statements of financial position, financial performance and cash flow are all required under the section and they assist in giving an unbiased picture of the company's current position...
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