Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter B, Problem 5DQ
To determine
Examine the differences between (A) rules-based approach, and (B) principles-based approach, in setting the accounting standards.
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What can be interpreted from Accounting Standards Codification (ASC), of FASB?
What is the difference between a conceptual framework and accounting standards ?
Which of the following is a fundamental quality of useful accounting information?
Select one:
Comparability
Consistency
Relevance
Materiality
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- Discuss about the accounting policies, selection, relevance, reliability, faithful representation aspects in detail.arrow_forwardCompare and contrast the Rules Based as opposed to the Principles Based Approachto developing accounting standards.arrow_forwardDescribe rules-based accounting standards.arrow_forward
- What are the primary advantages of having a Codification of generally accepted accounting principles?arrow_forwardDiscuss Practical Implementations of any one generally accepted accounting Principle (GAAP), discussion may be elaborated with example.arrow_forwardBetween Principles- Based and Rules-Based Accounting Standards, which would you use and do you think that this is the right way to create accounting standards?arrow_forward
- Briefly discuss the difference between (A) a “rules-based" approach to accounting standard setting and (B) a “principles- based" approach to accounting standard setting.arrow_forwardWhich FASB accounting standard(s) are next in line to converge with an IFRS standard?arrow_forward1. Explain any three fundamental reasons that accounting bodies should keep in mind when developing standards.arrow_forward
- What does the conceptual framework intend to establish? a. the objectives and cocepts foruse in developing IFRSs b. the hierarchy of sources of accounting standards and principles c. the true concept of "present fairly in accordance with IFRSs' d. IFRSarrow_forwardWhich of the following are considered secondary characteristics of accounting information? a. verifiability and feedback value b. predictive value and timeliness c. comparability and consistency d. representational faithfulness and neutralityarrow_forwardBriefly explain the following generally accepted accounting principles withyour own words and examples. a) Consistency Principlearrow_forward
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