can someone explain to me briefly why A) (FRA, Financial Reporting Standards, EOC question 15) is correct?
15 Which of the following disclosures regarding new accounting standards provides
the most meaningful information to an analyst?
A The impact of adoption is discussed.
B The standard will have no material impact.
C Management is still evaluating the impact.
Answer: “A is correct. A discussion of the impact would be the most meaningful,
although B would also be useful.”
In my opinion, A offers me a discussion of the topic but the discussion might be high level and does not help me to evaluate the impact on financial statements. When choosing B, I know for sure that there will be no impact - so why is A the better choice in your opinion?
Thanks a lot!