Reference no: EM132887506

Problem a) Professional judgement plays an important role in financial reporting. Identify five areas in which the accountant preparing financial statements must make professional judgements that will affect the content of the statements. You are required to indicate at least two affected accounts in each area you identified.

Problem b) Nobes (1998) suggests that for countries that have organisations that rely relatively heavily on equity markets, as opposed to other sources of finance, there will be a greater propensity for such organisations to make public disclosures of information. Evaluate this argument.