A careful analysis of four documents related to the formulation of objectives of financial statements\r\n(reporting) reveals that they are dominated by the pure form of capitalism. Two documents (the\r\nTrueblood Committee�s Report and SFAC No.1) are constructed as normative theories based explicitly\r\non the U.S. culture. The other two documents (the IASB�s CF and the IASB-FASB�s Joint CF) are not\r\nconstructed in a theory form but implicitly based on the U.S. cultural background. The first two\r\ndocuments are more particular and clear regarding the formulation of the objectives of financial\r\nstatements (reporting) and supporting arguments (logic). On the other hand, the other two documents\r\nare general and vague. Their generality and vagueness are attributed to the unnamed belonging to the\r\ncultural background on which the objective of financial statements (reporting) is based. The reason for\r\nnot declaring the belonging of the cultural background is the fear that the objective of financial\r\nstatements (reporting) and standards based on them might face an outright rejection by the\r\noverwhelming majority of countries in the world.
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