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The two chapters identify what financial reporting is(Rankin, Stanton, McGowan, Ferlauto, & Tilling, 2012, pp. 160-175,383-400). Chapter six argues the length and frequency of reporting period as well as reporting process and explains the activities excluded from the financial reporting process and voluntary disclosure(Rankin et al., 2012, pp. 160-175). Chapter fourteen gives the definitions, recognition issues and implications of intangibles assets and heritage assets(Rankin et al., 2012, pp. 383-400). The major difference between the two chapters is chapter six argues the exclusion of intangibles and intellectual capital briefly, while chapter fourteen primarily analyses the special reporting issues: whether intangible and heritage assets should be recognized in financial statements(Rankin et al., 2012, pp. 160-175).

The main problem in chapter six is the recognition of intangible assets prevented by current accounting standards, which is useful for shareholders and stakeholders to make financial decisions(Rankin et al., 2012, p. 174). However chapter fourteen mentions another problem as intangible and heritage assets are not allowed to be reported, which may results in “inaccurate company assessments”(Rankin et al., 2012, p. 386). Both chapters argue the problem about intangible assets and heritage assets in the financial reporting process”(Rankin et al., 2012, p. 166).

Nowadays, companies are encouraged to improve quality of financial reports (Boesso & Kumar, 2007, pp. 269-296); thus understanding disclosure and information under these is meaningful for investors like me. Moreover, we need to consider in a critical way since Deegan stated(2002, pp. 282-312) that People who researched non-traditional disclosures would find shortages and perfect them.

Reference

Boesso, G., & Kumar, K. (2007). Drivers of corporate voluntary disclosure: A framework and empirical evidence from Italy and the United States. Accounting, Auditing & Accountability Journal, 20(2),...