Disadvantage of principles-based standards is:

Question

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Principles-based standards are often criticized for giving managers too much leeway in selecting accounting policies, which can lead to policies that don't accurately reflect the substance of a transaction. In contrast, rules-based standards tend to be overly prescriptive and inflexible. While principles-based standards allow for professional judgment and supply broad guidelines, the disadvantage stated in option A is the most significant issue associated with these standards.

Disadvantage of Principles-Based Standards Is