Rules-based accounting reduces judgment to be exercised by preparers and auditors; it also makes it easier for regulators to check compliance and can be a deference against litigation. It is also said to enhance comparability and consistency. On the other hand, it can lead to structuring the form of transactions to achieve a particular accounting result within the letter of the rules. It also puts pressure on the rule-makers who may have to respond whenever new developments arise. It will be interesting to see if all major markets make the change. What are most accountants thoughts on the potential adoption of IFRS?

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Accountants thoughts on potential adoption of IFRS Globalisation along with opening up the economy h... View the full answer