The issues discussed in the article are related to moral hazard issues as the decision of retaining or disclosing major restatements in financial statements could result in wrong decisions by investors and shareholders. The measurement approach in accounting relates to alternatives of valuing assets and liabilities based on either actual historical values or current values based on hypothetical measures (Belkaoui 2004). The measurement approach is not directly linked to the article in its entirety but the concept is applicable as the need for restatement arises out of improper valuation, measurement or recognition of assets and liabilities.
In my view the matter of disclosure of restatements is quite necessary as outlined in the article but with appropriate consideration of the fact that restatements which do not have much significance should not be disclosed to avoid any unnecessary confusion for users of financial statements. I would disagree with the point that regulators should convince companies to disclose restatements. In my view the regulatory bodies should aim to decrease and eventually eliminate restatements made by companies which would provide investors and shareholders with reliable and relevant information.
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