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Here is the heart of the debate between GAAP and IFRS: Describe the difference between rules-based...

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Accounting

Here is the heart of the debate between GAAP and IFRS:

Describe the difference between rules-based and principles-basedfinancial statements. Which do you think is better?

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3.7 Ratings (589 Votes)
Soluton Rulesbased accounting is basically a list of detailed rules to be followed when preparing financial statements Many accountants favor the prospect of applying rulesbased standards because in the absence of rules they could be brought before the court if their judgments in the financial statements were incorrect When there are strict rules that need to be followed the possibility of legal action is diminished Having a set of rules can increase accuracy and reduce the ambiguity that can trigger aggressive management reporting decisions However the complexity of the rules may    See Answer
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Here is the heart of the debate between GAAP and IFRS:Describe the difference between rules-based and principles-basedfinancial statements. Which do you think is better?

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