Critics of the IFRS argue that the more principles-based IFRS is not as precise and therefore is easier to manipulate than the more rules-based U.S. GAAP. The reason being is that IFRS requires more professional judgment from both auditors and corporate accountants with regard to the practical application of the rules. The application of professional judgment opens up the door to increased opportunities for earnings management. Do you agree with these concerns expressed about principles-based IFRS? Relate your discussion to the research results discussed in this chapter.
Answer to relevant QuestionsThe following statements about virtue were made by noted philosophers/writers:a. MacIntyre, in his account of Aristotelian virtue, states that integrity is the one trait of character that encompasses all the others. How does ...Assume you have been hired by the head of a tobacco industry group to do a cost–benefit analysis of whether the tobacco firms should disclose that nicotine is addictive. Assume this is before the federal government ...What is the difference between legal and ethical compliance with corporate governance provisions? Discuss what might be the ethical compliance mechanisms from a virtue ethics perspective.What is the purpose of having a Global Code of Ethics? Do you think a Global Code is necessary given that codes of ethics already exist for public companies in virtually all countries?1. Evaluate the ethics of the actions taken by Siemens with respect to Josephson’s Six Pillars of Character and virtue decision making, as discussed in Chapter 1.2. Under the German Criminal Code, much like the U.K. ...
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