Why this is mistaken
Management can propose a change; that act does not prove the new acceptable principle is preferable. The memo connects transaction economics, faithful representation, comparability, user needs, authority, and consistent population scope. Desired results are investigated, not offered as the conclusion.
Where to watch
When this mistake may appear
- Management wants to move between acceptable methods.
Check your work
Your work may contain this mistake if:
- Uses desired earnings or implementation cost as the primary justification.