Which of the following disclosures regarding new accounting standards provides the most meaningful information to an analyst? The impact of adoption is discussed. The standard will have no material impact. Management is still evaluating the impact ANSWER WITH REASON PLEASE

The answer would likely be A - an analyst would most likely be concerned with any impact of adoption of new accounting standards, so A would provide the most meaningful information. In absence of A, B would provide the next most meaningful info. C basically states that the impact is still unknown, so there is no meaningful info.

A CFA General Discussion About Financial Statement Analysis: Answer With "most Meaningful Information"

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This topic has 1 reply, 2 voices, and was last updated Jul-213:34 pm by Zee Tan.

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- ERIC22T
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  - CFA Level 1
  28 Jul 2021 at 6:37 pm
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  Which of the following disclosures regarding new accounting standards provides the most meaningful information to an analyst?
  1. The impact of adoption is discussed.
  2. The standard will have no material impact.
  3. Management is still evaluating the impact
  ANSWER WITH REASON PLEASE
  
  Jump to the accepted answer
- Zee Tan
  Keymaster
  - CFA Charterholder
  30 Jul 2021 at 3:34 pm
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  The answer would likely be A – an analyst would most likely be concerned with any impact of adoption of new accounting standards, so A would provide the most meaningful information.
  
  In absence of A, B would provide the next most meaningful info.
  
  C basically states that the impact is still unknown, so there is no meaningful info.
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