Why Does the IASB Believe That a Principles-Based Approach to Standard

question 53

Multiple Choice

Why does the IASB believe that a principles-based approach to standard setting is superior to a rules-based approach?

• A) Detailed guidance or rules encourage accountants to look for ways around the rules rather than trying to provide useful information.
• B) Principles-based standard setting is less costly to undertake than rules-based standard formulation.
• C) It is desirable to have all corporations in all countries using the same accounting practice.
• D) A conceptual framework for standard setting has demonstrated to encourage the greatest economic development.

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Definitions:

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Laboratory tests that check for the presence of bacteria, fungi, or other microorganisms in the blood, often used to identify infections.

Antibiotic

Medications used to treat infections by killing or inhibiting the growth of bacteria, essential in managing bacterial infections.

Allergic Response

An allergic response is the body's immune system reacting to a substance it considers harmful, resulting in symptoms like itching, swelling, and difficulty breathing.

Generalized Itchy Rash

A widespread rash that causes itching, affecting multiple parts of the body, potentially due to various medical conditions or allergic reactions.