Arguments against the regulation of accounting information include:
A) Mandated disclosures are cheap to provide and by their nature will devalue the worth of the information being provided.
B) That by making so many choices of accounting methods available under the standards, the efficiency with which the information is provided will be enhanced.
C) Companies will be motivated to disclose good news but not disclose bad news if they are not forced to make certain mandated disclosures (the "lemons" argument).
D) Managers of the organisation are in the best place to determine what information should be produced to increase the confidence of external stakeholders.
E) None of the given answers.

Question

Quizplus · Accepted Answer

Managers are considered to have the best understanding of their organization and can decide what information is most relevant and beneficial for stakeholders, arguing against the need for regulation.

Arguments Against the Regulation of Accounting Information Include