Do principles-based accounting standards lead to biased financial reporting?: an Australian experiment

Title: Do principles-based accounting standards lead to biased financial reporting?: an Australian experiment
Creator: Psaros, Jim
Relation: Accounting and Finance Vol. 47, Issue 3, p. 527-550
Relation: http://www3.interscience.wiley.com/journal/117978284/abstract
Publisher: Wiley-Blackwell Publishing Asia
Resource Type: journal article
Date: 2007
Description: International accounting standards are deliberately designed to be principles-based (i.e. 'substance over form'). With Australia's recent adoption of international accounting standards, a relevant question is, do principles-based accounting standards lead to biased financial reporting? 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.
Subject: accounts; consolidation; judgement; principles-based
Identifier: http://hdl.handle.net/1959.13/44516
Identifier: uon:5792
Identifier: ISSN:0810-5391
Language: eng
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