The Standards Based on Norms and The Unsuitable Usage Of Accounting Principles

Subject Areas : Management Accounting

Aliakbar Chaharmahali ^{1 *} , Farzad Nazemi ^{2 *}

1 - ندارد
2 - ندارد

Received: 2009-11-08 Accepted : 2010-01-10 Published : 2009-12-22

Keywords: Financial Reporting, standards based on principles, standards based on norms, professional judgement, Comparability,

Abstract :

Accounting standards can based on principles or a set of partly norms. Standard_based_ principles codification approach proponents believe that the standards based on principle make possible to professional judgements for accountants and they lead to more transparent and simple standards. Standard_based_ norms codification approach proponents believe that the standards based on principle annihilate the comparability of  financial informations , but the standards based on norms cause a increase in comparability of  financial information and a decrease in the probably legal claims against accountants and also in  profit_management. In this research, these views, are surveyed and finally are compared three accounting standards in international, FASB and Iran levels.