Financial Times urges US move to 'principles-based' standards

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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.

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