Question: What is the difference between principles-based and rules-based accounting standards? What evidence indicates that U.S. GAAP is rules-based?

What is the difference between principles-based and rules-based accounting standards? What evidence indicates that U.S. GAAP is rules-based?

Step by Step Solution

★★★★★

3.40 Rating (175 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

UK standards Chapter 3 and IFRS Chapter 8 are said to reflect principlesbased standard... View full answer

blur-text-image
Question Has Been Solved by an Expert!

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

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

127-B-A-G-F-A (731).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Q:

What is the difference between accounting profit and economic profit? How could a firm earn positive accounting profit but negative economic profit?

Q:

What is the difference between a financial accounting information system and a cost management information system?

Q:

What is the difference between the accounting treatment of overhead for a service business and for a manufacturer?

Q:

What is the difference between principles-based and rules-based accounting standards? What evidence indicates that the U.S. generally accepted accounting principles (GAAP) are rules-based?

Q:

What is the difference between principles-based and rules-based accounting standards? What evidence indicates that U.S. GAAP is rules-based?

Q:

QS 13-20 (Algo) Analyzing short-term financial condition LO A1 Following is information for Morgan Company and Parker Company, which are similar firms operating in the same industry. Current ratio...

Q:

(A) What is the difference between principles-based and rules-based accounting ? (B) Are IFRS more principles-based than U.S. GAAP? Explain.

Q:

What is the difference between principles-based and rules-based accounting standards? Can any single set of accounting standards really be purely principles-based or purely rules-based? (LO8)

Q:

Please help me to answer the questions as the following: You must use the materials that I upload to support the answers (bring theory to support the answers) Research and Theory Below appears a...

Q:

Please help me to answer the questions as the following: You must use the materials that I upload to support the answers (bring theory to support the answers) Research and Theory Below appears a...

Q:

Suppose, in Fig. 26.4a, that the distance between events A and B is 6000 m. The observer is stationed exactly in the middle as shown; however, she does not receive the signals simultaneously. Her...

Q:

According to the Organisation for Economic Co operation and Development (OECD), adults in the United States worked an average of 1,787 hours in 2011. Assume the population standard deviation is 400...

Q:

6. Which of these best describes the post-World War II recessions in the United States? (LO5) a) They were all very mild, except for the 198182 recession. b) They were all caused by rising interest...

Q:

1 Kingsley had a profit for the year of $50 000. His expenses were $15 000 and his sales were $100 000. What was his gross margin? A 15 per cent B 35 per cent C 50 per cent D 65 per cent [1]

Q:

Why has the ASB in the UK decided to converge UK standards for individual companies with IFRS?

Q:

Discuss the view that the individual company financial statements in Germany are useful only for tax purposes.

Q:

Why are leased assets accounted for differently in individual company financial statements in the UK and France?

Q:

Bellwood Corp. is comparing two different capital structures. Plan I would result in 23,000 shares of stock and $81,000 in debt. Plan II would result in 17,000 shares of stock and $243,000 in debt....

Q:

Suppose the expected returns and standard deviations of stocks A and B are E( RA ) = 0.13, E( RB ) = 0.19, A = 0.28, and B = 0.52, respectively. (a) Calculate the expected return and standard...

Q:

Consider the following scenario: Company A contracts with Company B to supply widgets. At the time of signing the contract B pays $175 in advance for the widgets, which it plans to sell in turn for...