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Discretion vs. Uniformity: Choices Among GAAP.

Ronald A. Dye; Robert Verrecchia

The Accounting Review 1995

Reexamines the `uniformity versus flexibility' debate by considering the consequences of varying the amount of discretion managers have in reporting current period expenses. Effects of generally accepted accounting principles (GAAP) on the `internal agency problem' and the `external agency problem'; Exhibition of the undesirability of expanding discretion.

DOI
10.2308/tar-9508184633
Volume
70 (3)
Pages
389-415
Language
en
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