'Big-6' joint paper on principles-based accounting standards
15 Jan 2008
The six largest global accounting networks, including Deloitte Touche Tohmatsu, have jointly published a paper on Principles-Based Accounting Standards.
- Faithful presentation of economic reality
- Responsive to users' needs for clarity and transparency
- Consistency with a clear Conceptual Framework
- Based on an appropriately defined scope that addresses a broad area of accounting
- Written in clear, concise, and plain language
- Allows for the use of reasonable judgment
Over the past several years, a growing dialogue has developed about the future of financial reporting and the public company audit profession. In order to advance that dialogue, during the past year, we have engaged in discussions with stakeholders around the world on a number of issues critical to the longterm strength and stability of global capital markets. In these talks, we have been struck by the breadth of support for International Financial Reporting Standards (IFRSs) as a single set of high-quality, accounting standards that ultimately can be used around the world. Stakeholders indicated their support for IFRS in part because it is more principles-based than US GAAP. There was, however, a lack of consensus on the key characteristics of principles-based standards. |