Answer
(d)
Work Step by Step
(d) accounting standards can have detrimental impacts on the wealth of the providers of financial information.
Accounting standards provide the rules, procedures, and guidelines for the preparation and publishing of information to various stakeholders. In the event of setting up an accounting standard without much thought, the result can be an incorrect view of the financial position of a company which in turn can cause huge economic consequences.
For example, the revenue recognition principle provides "that revenue should be recorded when earned and not when received". If the principle were to be changed to "the recognition of revenue to be recorded when received and not when earned" then it would result in the financial statements showing a deflated view of the actual position of the company. This can deter the investors from making investments thereby causing loses for the company.
