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:

Rough Endoplasmic Reticulum

A network of membranous tubules within a cell, studded with ribosomes, involved in protein synthesis and folding.

Organelle

A specialized subunit within a cell that has a specific function, enclosed within its own lipid membrane.

Contracts Body

Refers to the process of muscle fibers shortening, generating force that results in movement or tension within the body.

Carries Oxygen

Refers to the function of hemoglobin in red blood cells, transporting oxygen from the lungs to the body's tissues.