Bright-line rules to principle-based standards


Explain how "rules-based" accounting standards differ from "principles-based" standards. How might fundamentally changing accounting standards from bright-line rules to principle-based standards help prevent another Enron-like fiasco in the future? Are there dangers in removing bright line rules? What difficulties might be associated with such a change?

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Accounting Basics: Bright-line rules to principle-based standards
Reference No:- TGS093179

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