(b) Discuss the relative costs to the preparer and benefits to the users of financial statements of increased
disclosure of information in financial statements. (14 marks)
Quality of discussion and reasoning. (2 marks)
(b) Discuss the relative costs to the preparer and benefits to the users of financial statements of increased
disclosure of information in financial statements. (14 marks)
Quality of discussion and reasoning. (2 marks)
(b) Increased information disclosure benefits users by reducing the likelihood that they will misallocate their capital. This isobviously a direct benefit to individual users of corporate reports. The disclosure reduces the risk of misallocation of capita
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