Question: 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

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?

Step by Step Solution

★★★★★

3.48 Rating (174 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

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

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

It would be much easier to compare financial reports if all companies were following the same standards. It would seem the IFRS would be the best benchmark since many companies operate in the global...

What is the difference between comparability and consistency as they relate to the use of accounting information?

Will Samsung likely achieve its goals in markets where it does not dominate, such as smart phones? Why or why not? In the world of consumer electronics, copycat brands are a dime a dozen. These are...

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...

Please read first document and then answer the second document's questions. Please answer the questions about 3 pages and use paraphrasing. Do not copy the article. Thank you! Personal Reections on...

Required: Using the AREA framework, answer the following question: the following media coverage of Slater and Gordon?s financial performance and position is published and available on Blackboard...

Hi, This subject is financial accounting, here is a short essay type question, approximately 5 paragraphs. ''Drawing on private interest theory, what powers do you believe the Australian Accounting...

Please help me to answer the question: why is IFRS an appropriate direction for accounting practice to ensure consistency and comparability of accounting practice across the world? Use the attach...

6.In his 2009 paper titled ?Market and Political/Regulatory Perspective on Recent Accounting Scandals?, Ray Ball discusses accounting scandals in 2001 and 2002. Provide a summary of the market...

General trends and innovations in digital technology applicable to workplaces. You will need to research at least 5 trends or innovations, give an overview of each, and briefly discuss what the...

Exercise 1 Jam llc unexpectedly executed a share buy-back. Before the buy-back the number of outstanding shares was 11,123,000, the market price of one share was $2.04 and the return on levered...

1. Suppose the random variable X represents the failure or not of Edward's speaker woofer while listening to reggae on Friday. Assume there is probability 0.8 that Edward blows up his woofer (woofer...

Please use the following topology to complete the following tasks. INTERFACE IP ADDRESS SO/0 7172.16.1.2/26 Loopback 10 10.10.10.3/25 R1 S0/0 (DCE). 172.16.1.1/26 R3 Loopback20 10.20.20.3/28...

The critical path assumes four facts. What are they? What is a useful scheduling tool to keep track of the critical path and increase the probability of on time completion?

Turner Products develops its manufacturing overhead rate from the current annual budget. The manufacturing overhead budget for 2017 is based on budgeted output of 660,000 ?units, requiring 3,300,000...

1. How can the opportunity cost of an investment be defined? 2.. What is the difference between an ordinary annuity and an annuity due? 3. What is the definition of a perpetuity?

Uniform electric field in Figure a uniform electric field is directed out of the page within a circular region of radius R = 3.00 cm. The magnitude of the electric field is given by E = (4.50 x 10-3...

Does accounting translation exposure matter? Explain your reasoning.

Is it easier to reach agreement on international standards on auditing than on international accounting standards? If so, why?

To what extent do global management accounting practices exist regardless of national boundaries?

FIGURE P3.26 shows vectors Write your answer in component form. Figure P3.26

1. Is the Tesla Model S a radical innovation or an incremental innovation? Competence enhancing or destroying, and from whose perspective? Is it a component or an architectural innovation? 2. What...

While vacationing in the mountains you do some hiking. In the morning, your displacement is After lunch, your displacement is a. At the end of the hike, how much higher or lower are you compared to...