Evaluating Statements on Financial Reporting Quality

In the context of financial reporting, the quality of the reported financial information plays a critical role in providing reliable insights to investors and stakeholders. High-quality reporting adheres to applicable financial reporting standards, is free from significant misstatement, enhances comparability across firms and industries, and promotes transparency.

Consider the following statements about financial reporting quality:

• Statement I: Financial statements prepared using International Financial Reporting Standards (IFRS) are inherently of higher quality than those prepared under Generally Accepted Accounting Principles (GAAP).
• Statement II: A company that employs aggressive revenue recognition practices may still provide high-quality financial reporting, depending on other factors.
• Statement III: Disclosure of accounting policies and estimates enhances the quality of financial reporting by providing users with critical information relating to the financial statements.

Which of the above statements are true regarding the quality of financial reporting?