You will reflect on the value-add of GAAP accounting standards and consider ethical issues presented by rules vs. principles-based standards.

 

This week, you learned about the rules of GAAP and the role GAAP plays in defining accounting standards, discuss whether you think GAAP should remain rules-based:

• Should U.S. accounting standards follow international accounting standards and become principles-based? What are the pros and cons of rules vs. principles-based accounting? What method do you favor and why?
  What are the potential ethical issues presented by rules vs. principles-based standards? Would you see events and/or circumstances differently between the two approaches or not? Present a specific scenario in which you believe this could play out differently under each approach.  This example can be either professional or personal?