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Public interest theory in accounting?

In: Business Accounting and Bookkeeping [Edit categories]

Answer:

Public interest theory of accounting is concerned with achieving publicly desired results which, if left to the market, would not be obtained. The main galvanizer of Public Interest theory is to respond to the demands from the general public in regards to correcting market inefficiencies (i.e. accounting inconsistencies between firms). However, it is difficult to meet demands from all people because competition between demanders is not formally acknowledged by the regulator.

First answer by ID1178960401. Last edit by ID0000000000. Question popularity: 12 [recommend question].

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