本文是加拿大会计论文代写范文：Principles Based Accounting Advantages，主要内容是讲述以原则为基础的会计准则允许会计师在评估交易实质时运用专业判断。
The primary advantage of principles-based accounting rests in its broad guidelines that can be applied to numerous situations.Broad principles avoid the pitfalls associated with precise requirements that allow contracts to be written specifically to manipulate their intent.
A 1981 study sponsored by FASB found evidence that managers purposefully try to structure leases as operating leases to avoid incurring additional liabilities.Providing broad guidelines may improve the representational faithfulness of financial statements.
Principles-based accounting standards allow accountants to apply professional judgement in assessing the substance of a transaction.This approach is substantially different from the underlying"box-ticking"approach common in rules-based accounting standards.
FASB Chair Robert Herz has stated that he believes the professionalism of financial statements would be enhanced if accountants are required to utilize their judgment instead of relying on detailed rules.
A principles-based system would result in simpler standards.Herz has claimed that a principles-based system would lead to standards that would be less than 12 pages long,instead of over 100 pages(BusinessWeekÂonline,2002).Principles would be easier to comprehend and apply to a broad range of transactions.
Harvey Pitt,former SEC chairman,explained this as follows:"Because standards are developed based on rules…they are insufficiently flexible to accommodate future developments in the marketplace.This has resulted in accounting for unanticipated transactions that is less transparent."
The use of principles-based accounting standards may provide accounting statements that more accurately reflect a company's actual performance.It can be proved by the statement made by Australian Securities and Investments Commission Chair David Knott-"an increase in principles-based accounting standards would reduce manipulations of the rules"(Nationwide News,2002).
Financial statements that are prepared under accounting standards that clearly state the accounting objectives,have few,if any,exceptions,and do not include bright-line tests should benefit users.They should be easier to understand,more meaningful and informative,are likely to result in similar transactions and events being accounted for similarly,and more likely to reflect the economic substance of a transaction,in part,because there will be less opportunity for financial engineering.(Heffes,Ellen M,2004)