Which of the following is an acceptable justification for a departure from generally accepted accounting principles (GAAP)?

A departure from generally accepted accounting principles (GAAP) is justified primarily when the strict adherence to these standards would lead to misleading financial statements. This scenario emphasizes the importance of transparency and the accurate representation of a company's financial position. The concept rests on the principle of fair presentation; if GAAP application distorts the true economic reality of a business, management may choose a different accounting method that aligns more closely with the actual financial situation.

For example, suppose strict GAAP application would prevent the recognition of certain revenue that truly reflects ongoing operations. In that scenario, management may reasonably justify a departure to provide stakeholders with a clearer picture of financial performance.

The other options do not provide acceptable justifications. Making a company appear more profitable through departure from GAAP is primarily misleading and can violate ethical accounting practices. Costs associated with following GAAP do not justify a departure, as financial reporting standards exist to maintain consistency and trust in financial statements, not to reduce expenses. Therefore, option A is the only one that aligns with the intention of accounting standards and the ethical obligations of financial reporting.