An argument for a broad, principles-based approach to standard-setting is that
A) It leaves specific accounting decisions to the professional judgment of the accountants involved.
B) There will be greater consistency in how different companies handle identical transactions.
C) Accountants who are challenged in how they handled a transaction will be able to point to a specific rule to justify their decision.
D) There will be detailed specific accounting guidance for each important industry and country.

Question

Quizplus · Accepted Answer

A broad, principles-based approach allows for professional judgment and flexibility in handling unique situations, rather than relying on strict, narrow rules that may not be applicable or relevant in all cases. This approach recognizes that accounting is not a one-size-fits-all endeavor and allows for creativity and innovation in financial reporting.

An Argument for a Broad, Principles-Based Approach to Standard-Setting Is