Answer
Economic consequences indicated in the letter are:
1. concerns related to the potential impact on the capital markets.
2. The weakening of companies’ ability to manage risk.
3 The adverse control implications of implementing costly and complex new rules imposed at the same time as other major initiatives, including the Year 2000 issues and a single European currency.
Work Step by Step
The above elaborate the impact of accounting reports on the wealth positions of issuers and users of financial information and the decision-making behavior resulting from that impact.
