Financial Times urges US move to 'principles-based' standards
28 Jun 2002
In an editorial titled 'The World After WorldCom', the Financial Times 27 June 2002 said: It is time for US accounting standards to move away from prescriptive rule-making towards the alternative used in many other countries, which focuses on 'substance over form'.
US regulators have been suspicious of principles-based standards drafted by the International Accounting Standards Board, arguing that the US approach is superior. As the list of US accounting scandals mounts, it is hard to maintain such a position.