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Do principles-based accounting standards lead to biased financial reporting?

April 26, 2017Accounting biased financial lead Standards

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Do principles-based accounting standards lead to biased financial reporting?

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The present paper describes a study that analysed the consolidation judgements of senior accounting officials from Australian listed companies. Participants made consolidation judgements based on AASB 1024 “Consolidated Accounts”. Although AASB 1024 is not identical to IAS 27 “Consolidated and Separate Financial Statements”, there are many similarities and both follow a principles-based approach. In aggregate, the present study finds that principles-based accounting standards do not necessarily lead to biased financial reporting. Copyright (c) The Authors Journal compilation (c) 2007 AFAANZ. Download InfoTo download: If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.