Presidential Scholars Theses (1990 – 2006)
Awards/Availabilty
Open Access Presidential Scholars Thesis
First Advisor
Tim Lindquist, Advisor
Keywords
Accounting standards;
Abstract
In the above analysis I considered the impact of amending APB No. 18 to a principles-based standard upon implementation, accounting objectives, and management manipulation. The analysis has uncovered both positive and negative aspects to a change in the accounting standards setting process. Implementation would be more costly and require more resources due to applying judgment instead of objective tests. Accounting objectives of comparability and reliability could arguably be improved assuming implementation is accurate. Principles-based accounting standards would not significantly improve consistency. Management structuring of transactions could be decreased assuming accurate implementation. The analysis has discovered that the potential success of principles-based accounting standards depends upon accurate judgment being used by auditors and management in analyzing transactions. I do not believe the potential benefits of principles-based accounting standards outweigh the extra resources necessary to ensure the use of accurate judgment and the doubt currently inherent in the assumption of accurate implementation.
Date of Award
2004
Department
Department of Accounting
Presidential Scholar Designation
A paper submitted in partial fulfillment of the requirements for the designation Presidential Scholar
Date Original
2004
Object Description
1 PDF file (21 pages)
Date Digital
1-18-2018
Copyright
©2004 Jodi E. Ferring
Type
document
Language
EN
File Format
application_pdf
Recommended Citation
Ferring, Jodi E., "Rules-based vs. principles-based accounting standards: Analyzing the impact of amending APB No. 18 to a principles-based standard" (2004). Presidential Scholars Theses (1990 – 2006). 68.
https://scholarworks.uni.edu/pst/68
Comments
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