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ADVANCED FINANCIAL REPORTING AND ACCOUNTING, assignment help

QUESTION

The continuous demand for improved financial reporting has highlighted the decline of the usefulness of traditional financial statements in satisfying the informational needs and requirements of users. Despite there being several points of view, many proposals revolve around the increase of narrative disclosure accompanying financial statements. However, many have argued that these efforts are mostly focused on reducing the quantity of disclosures rather than increasing the quality of disclosures. While too much of disclosure can be burdensome and overwhelming for users, some believe that there is no such thing as too much useful information for users.

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Identify and explain the difficulties that may be faced in efforts of reducing excessive disclosure in annual reports. (300 words)

 
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