Contracting parties understand that financial reporting flexibility affects how contracts are written and enforced.

Question

Quizplus · Accepted Answer

Financial reporting flexibility can impact the financial performance of a company, which in turn affects how contracts are written and enforced. For example, if a company is allowed more flexibility in its financial reporting, it may be able to meet certain financial targets in a contract more easily, which could impact the terms of the contract or its enforcement.

Contracting Parties Understand That Financial Reporting Flexibility Affects How Contracts