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:

Sensory Changes

Alterations in the way an individual perceives sensory inputs, which can result from aging, neurological conditions, or environmental factors.

Palliative Care

Care provided to reduce or alleviate uncomfortable symptoms but not to produce a cure; care that addresses quality of life concerns for those patients living for prolonged periods with a progressive debilitating disease.

Adolescents' Views

Perspectives or opinions held by individuals typically aged between 13 and 19 years.

Reactions of Children

The physiological or psychological responses of children to internal or external stimuli, which can vary widely depending on age, developmental stage, and individual temperament.