Compare and contrast the Rules Based as opposed to the Principles Based Approach to developing accounting standards.
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Compare and contrast the Rules Based as opposed to the Principles Based Approach
to developing accounting standards.
Step by step
Solved in 3 steps
- The theoretical principles are beneficial in the. a. Evaluation of standard which are in existence b. Discarding the existing standards c. Formation of rules of accounting d. Working of IASBDiscuss about the accounting policies, selection, relevance, reliability, faithful representation aspects in detail.Which of the following are considered secondary characteristics of accounting information? a. varifiability and feedback value b. predictive value and timeliness c. comparability and consistency d. representational faithfulness and neutrality
- How does FASB use their conceptual framework (objectives, qualitative characteristics, elements, and recognition and measurement), and what are accounting principles, assumptions and constraints.Between Principles- Based and Rules-Based Accounting Standards, which would you use and do you think that this is the right way to create accounting standards?What does the conceptual framework intend to establish? a. the objectives and cocepts foruse in developing IFRSs b. the hierarchy of sources of accounting standards and principles c. the true concept of "present fairly in accordance with IFRSs' d. IFRS
- Briefly discuss the difference between (A) a “rules-based" approach to accounting standard setting and (B) a “principles- based" approach to accounting standard setting.What are the primary advantages of having a Codification of generally accepted accounting principles?Which of the following is most closely linked to accounting conservatism? a. Lower-of-cost-or-market rule b. Materiality concept c. Disclosure principle d. Consistency principle