1. Why does the IASB (and many other organizations including the SEC) believe that a principles-based approach to standard setting is superior to a rules-based perspective?(choose the best answer)

A.Studies have shown that a principles-based approach encourages greater economic development.

B.Principles-based standard setting is less costly to undertake than rules-based standard formulation.

C.Detailed prescriptions or rules encourage accountants to look for ways to circumvent the rules rather than trying to provide useful information.

D.It is desirable to have all corporations in all countries using the same accounting practice.