accounting-Critics of the IFRS argue that the more principles-based IFRS

Critics of the IFRS argue that the more principles-based IFRS is not as precise and therefore is easier to manipulate than the more rules-based U.S. GAAP. The reason being is that IFRS requires more professional judgment from both auditors and corporate accountants with regard to the practical application of the rules. The application of professional judgment opens up the door to increased opportunities for earnings management. Do you agree with these concerns expressed about principles-based IFRS? Relate your discussion to the research results discussed in this chapter.

 

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