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Rule-Based vs. Principle-Based Accounting Standards

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At issue herein is the question of whether the accounting profession should have rules-based or principle-based standards that function to provide both normative guidance and regulatory oversight for members of the field. Nobes (2005) noted that in September 2002, the Financial Accounting Standards Board (FASB) sought input into this issue, stating that the International Accounting Standards Board (IASB) required a principles-based approach whereas under the aegis of the Sarbanes-Oxley Act of 2002, rules-based accounting standards predominate. Interestingly, the question itself may be moot in that Benston, Bromwich, and Wagenhofer (2006) state that rules-based accounting standards are, for the most part, derived fr

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Approximate Word count = 486
Approximate Pages = 2 (250 words per page)

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