Here is the synopsis of our sample research paper on PRINCIPLES VS. RULES-BASED ACCOUNTING: AN ETHICAL STUDY. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 4-page paper provides commentary about principles-based accounting vs. rules-based accounting, and how ethicical judgment fits into each one. Bibliography list 2 sources.
Page Count:
3 pages (~225 words per page)
File: D0_MTprbasacc.rtf
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Unformatted sample text from the term paper:
accounting. Though most U.S. corporations then - and now - follow rules-based, Generally Accepted Accounting Principles (US GAAP) as set forth by the Financial Accounting Standards Board (FASB), the question
raised has been whether organizations have pushed the envelope by technically meeting the rule while violating the principle, or intent, involved. Technically,
however, most organizations in the United States are encouraged to understand the FASBs conceptual framework, which is a collection of accounting objectives and fundamentals that are related (Foster and Johnson,
2001). The objectives encompass the reason for financial reporting, and underlying concepts to help achieve the objectives (Foster and Johnson, 2001). The underlying concepts statements cover financial reporting objectives, qualitative
characteristics of useful accounting information, reporting elements (such as financial statements), criteria for recognizing and measuring the elements and use of present value information and cash flow when it comes
to measurement (Foster and Johnson, 2001). In theory, the framework and its concepts were formulated to promote efficiency for the FASB, as they standardize and provide a common frame of
reference (Foster and Johnson, 2001). The difficulty, however, as we pointed out above, is that its possible, even within the specific rules, to bend the rules to the point that
serious ethical situations could occur. In 2008, the SEC began allowing foreign corporations to file financial information using International Financial Reporting Standards
(IFRS) instead of US GAAP. Given the growing global nature of business (among other things), the SEC has indicated that U.S. corporations will likely make the shift from the rules-based
US GAAP and move to the more principles-based IFRS by the end of 2012. Interestingly enough, George Batavick, who was appointed to
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