Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter B, Problem 5DQ
To determine
Examine the differences between (A) rules-based approach, and (B) principles-based approach, in setting the accounting standards.
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What is the difference between a conceptual framework and accounting standards ?
Briefly discuss the difference between (A) a “rules-based" approach to accounting standard
setting and (B) a “principles- based" approach to accounting standard setting.
What can be interpreted from Accounting Standards Codification (ASC), of FASB?
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- Which of the following is a fundamental quality of useful accounting information? Select one: Comparability Consistency Relevance Materialityarrow_forwardCompare and contrast the Rules Based as opposed to the Principles Based Approachto developing accounting standards.arrow_forwardDescribe rules-based accounting standards.arrow_forward
- Discuss about the accounting policies, selection, relevance, reliability, faithful representation aspects in detail.arrow_forwardWhat are the primary advantages of having a Codification of generally accepted accounting principles?arrow_forwardDiscuss Practical Implementations of any one generally accepted accounting Principle (GAAP), discussion may be elaborated with example.arrow_forward
- Which FASB accounting standard(s) are next in line to converge with an IFRS standard?arrow_forwardBetween Principles- Based and Rules-Based Accounting Standards, which would you use and do you think that this is the right way to create accounting standards?arrow_forwardBriefly explain the following generally accepted accounting principles withyour own words and examples. a) Consistency Principlearrow_forward
- What does the conceptual framework intend to establish? a. the objectives and cocepts foruse in developing IFRSs b. the hierarchy of sources of accounting standards and principles c. the true concept of "present fairly in accordance with IFRSs' d. IFRSarrow_forwardWhich of the following are considered secondary characteristics of accounting information? a. verifiability and feedback value b. predictive value and timeliness c. comparability and consistency d. representational faithfulness and neutralityarrow_forwardWhich of the following is most closely linked to accounting conservatism? a. Lower-of-cost-or-market rule b. Materiality concept c. Disclosure principle d. Consistency principlearrow_forward
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