Accounting: Ethics and the Conceptual Framework
Since the scandals of the late ’90s, a discussion has taken place about principles-based and rules-based systems for accounting. Many of the scandals involved issues where the organization technically may have met the rule while clearly violating the principle involved.
Please review the attachments:
Considering George Batavick’s comments regarding principles-based accounting, prepare a 700-1,050 word paper in which you do the following:
a. Evaluate the conceptual framework developed by the Financial Accounting Standards Board (FASB)
b. Analyze the role and ethical considerations of judgment and decision making in accounting.
c. Take sides on whether principles-based accounting or rules-based accounting more adequately includes the role of ethics and fits best within the conceptual framework. In your paper, state the main arguments of each side, along with evidence to substantiate the arguments. You should conclude with a brief discussion of which side of the argument is stronger and why.
Book: Abdolmohammadi,(2002), Applied research and financial reporting, New York: McGraw-Hill.
Please show references and thank you in advance.