3. What are the advantages of rules-based standards? 4. Do you think that future international accounting standards will need to be more principlesbased or more rules-based? Many outside the United States claim that a problem with U.S. GAAP is that there are too many rules. They argue for principles-based accounting standards in which the broad principles of accounting are emphasized and less emphasis is placed on detailed implementation rules. Americans counter that IFRS may lack quality and rigor. Additional rules are necessary to provide adequate guidance to users.

3. What are the advantages of rules-based standards? 4. Do you think that future international accounting standards will need to be more principlesbased or more rules-based? Many outside the United States claim that a problem with U.S. GAAP is that there are too many rules. They argue for principles-based accounting standards in which the broad principles of accounting are emphasized and less emphasis is placed on detailed implementation rules. Americans counter that IFRS may lack quality and rigor. Additional rules are necessary to provide adequate guidance to users.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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(b) "Financial innovation sometimes brings great rewards. It can make the financial system more accessible to underserved segments of the population and improve lives. But some innovations can lead to disaster, which usually hurts the poor more than others. Governments must find the right balance between promoting innovation and managing risk" (Source by Brookings.edu.com) Based on the statement above, discuss how the political risk will affect to pertain this situation.
Which of the following is generally true about the differences between U.S. GAAP and IFRS? O a. More professional judgment is required to apply U.S. GAAP than is required for implementing IFRS. Ob. U.S. GAAP rends to offer less choices, less flexible than IFRS. c. U.S. GAAP tends to be more principle-based and IFRS tend to be rules- X based. d. In all cases, U.S. GAAP is more detailed than the IFRS.
7 Which of the following statements is true about accounting convergence? A. B. C. D. 8 Which of the following statements is believed to be true about accounting convergence by proponents of convergence? A. B. C. Convergence is a synonym for harmonization. Convergence is the opposite of standardization. Convergence, unlike harmonization, takes place over a period of time. Convergence means developing high-quality standards in partnership with national standards. D. Convergence would not affect the feelings of nationalism. Convergence is desirable because there is very little difference among capital markets in different countries. Convergence would help to raise the quality of accounting practices internationally. None of the above statements is true.
Critically argue why IASB’s ‘one size fits all approach’ of having a single set of accounting standards for world-wide use is inherently problematic.
Answer the following question and provide detail examples to support your answer. Analyze and make an assessment of the International Accounting Standard Board's (ASB) Conceptual framework 2018 by highlighting its strength and flaws. Afterward, state how would improve it in order to further enhance the relevance and reliability of financial reporting. 2. a) Define the concept of research methodology in the context of accounting theory. Discuss the consequences of choosing an incorrect research methodology in accounting research, highlighting the strengths and limitations of quantitative and qualitative approaches to accounting research. b) Evaluate the role of accounting theories in guiding research in the field of accounting. Discuss how different accounting theories, such as agency theory, positive accounting theory, and institutional theory, influence research questions, hypotheses formulation, and empirical analysis are from each other, highlighting their strengths and…
One goal of the regulatory reforms that followed the 2007-2009 financial crisis was to address the “too big to fail” problem associated with large institutions. How did the reforms try to address this problem? Why might they not be sufficient?
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Some believe that International Financial Reporting Standards (IFRS) provide too many choices within its accounting guidance. Is this a possible concern in the area of cash flow reporting in your opinion?
How can the qualitative faithful representation (reliability) characteristic be improved in high-quality accounting information? Do not simply repeat what it is, provide suggestions as to how a particular part of the qualitative characteristics could be improved. Please provide different answers and explanations than copy and pasting: “Accounting information is reliable if these are-Complete - Financial statements should not exclude any transaction, Neutral - The degree to which information is free from bias. Note that there are subjectivity and estimation involved in financial statements, therefore information cannot be truly "neutral." However, if a company polled 1,000 accountants and took the average of their answers, that would be considered neutral and free from bias. and Free from error - The degree to which information is free from errors.”
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Which statement about the International Code of Ethics for Professional Accountants, including International Independence Standards, (international code) is not accurate? a) State accountancy boards of accountancy are required to adopt the rules in the international code. b)When the international code and the AICPA Code of Professional Conduct differ, a CPA should apply the most restrictive rule(s). c)The international code is based primarily on a conceptual framework approach. d)CPAs should apply the international code when performing services under international auditing standards.