Читать книгу Transparency in Financial Reporting - Ruth Ann McEwen - Страница 5

In recent years, the transparency debate has largely focused on US GAAP and whether its proper application could offset Wall Street greed. Many believe that even with proper application, US accounting principles are too complex and proscriptive, and result in a system in which entities tend to follow form over substance while violating the underlying spirit of transparency. IFRS guidelines focus on broader principles and give entities more leeway to reflect those principles. Managers are provided with guidance that encourages reporting which reflects the true underlying substance of financial transactions. There is an expectation that convergence of US GAAP and IFRS will take the best practices of rules-based and principles-based accounting standards, resulting in the highest quality financial reporting possible. Under such a setting, transparency would be greatly enhanced.