Rules-Based Accounting Standards and SEC Enforcement

ACCOUNTING WORKSHOP A Model of Principles-Based vs. Rules-Based Standards

We develop a theoretical framework to examine the trade-offs between principlesbased standards and rules-based standards. By relying on quantifiable evidence, a rules-based standard induces evidence management whereas by relying on the auditor’s professional judgement, a principles-based standard induces audit failure. Given evidence management and audit failure, we derive the optimal standard ...

Legal Standards, Enforcement, and Corruption

Stricter laws require more incisive and costlier enforcement. Because enforcement activity depends both on available tax revenue and the honesty of officials, the optimal legal standard of a benevolent government is increasing in per capita income and decreasing in officials’ corruption. In contrast to the “tollbooth view” of regulation, the standard chosen by a self-interested government is a ...

Rules, Standards and Geeks

An Evaluation of Sec Accounting Policies and Regulation

John Evans contends that the regulatory relationship that has evoh'ed between the SEC and tie accounting profession has resulted in satisfactory accounting standards by enabling the goternment to utilze the expertise within the accounting profession at linted expense to the governnent. He supports the Conussion's position that the accounting profession should be given the opportiunit to self -r...

The Role of Financial Instruments and Derivatives Disclosure on the Excess Return and Company Value Based on Iran Accounting Standards

Based on IFRS laws, British companies have started providing their reporting systems according to International Standards Requirements regarding disclosing their financial derivatives since January 2005. In 2013, Iran revised its Accounting Standard No. 15 to include the derivative instruments. The present study aims at investigating the effect of this revision on financial derivatives and inst...