What Reasons Have Been Given by the Institute of Chartered

question 74

Multiple Choice

What reasons have been given by the Institute of Chartered Accountants in England and Wales (ICAEW) for following a principles-based approach to setting accounting standards?

• A)Lawmakers and standard-setters cannot anticipate every situation.
• B)Professions should be about exercising judgment and integrity.
• C)The profession needs to attract people of high intellect.
• D)All of the above.

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Definitions:

Critical Research

An approach focusing on identifying and challenging underlying assumptions, power structures, and inequalities in societal phenomena.

Induction

Reasoning from observations to a theory that might explain the observations.

Empiricism

The view that knowledge should be based on experience and observation, on empirical as opposed to theoretical knowledge.

Positivism

A philosophical theory that asserts that genuine knowledge is based on natural phenomena and their properties and relations as verified by empirical sciences.