Corporate Accounting

Corporate Accounting

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Part I  Discuss why accounting standard setting bodies have chosen to use a mix of rules and principles-based standards for the development of accounting standards? (HINT: To achieve a reasonable score you need to research this question beyond the Bradbury and Schroder (2012) article.

Part II Access the annual reports of two (2) publicly listed companies from different industries, and: 1. Identify  and explain one rules-based standard that the companies have adopted and 2. Identify and explain one principles-based standard that the companies have adopted. (Hint: choose a rules and principles-based standard from the corporate accounting topics covered in lectures  during weeks 1-8) Evaluate the financial consequences of using the rules-based compared with the principles-based standards on the financial statements of each company.

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