Question: a) What are the advantages and disadvantages with principles-based standards? For example, how do such standards relate to managerial incentives? b) Within a regulatory framework

a) What are the advantages and disadvantages with principles-based standards? For example, how do such standards relate to managerial incentives?

b) Within a regulatory framework such as IFRS, the extent to which standards are principles-based varies between standards. Give an example of a highly principles-based standard within IFRS and discuss why the IASB chose to make the standard principles-based."

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