The more transparent in changes in accounting policies, the more useful and reliable the financial statements

How To Refute The Following Statement To Be Evaluated:
Financial statements are useless because they are incomplete. Not all assets or liabilities are in included.
 
Response:
The more transparent in changes in accounting policies, the more useful and reliable the financial statements are. For instance, FASB’s and the Auditing Standards helps discuss how Financial Reporting is more transparent, by helping auditors analyze changes. The principle we can consider here is the Retrospective Approach, which implies:

• Previous years financial statements are revised
• Statements are made to appear as the new accounting method choice had been applied all along
• Journal entries are created to adjust all account balances affected