• Register
Search Questions / Answers

Welcome to AccountantAnswer Forum, where you can ask questions and receive answers. Although you need not be a member to ask questions or provide answers, we invite you to register an account and be a member of our community for mutual help. You can register with your email or with facebook login in few seconds

Get AccountantAnswer App

Categories


Will adoption of IFRS increase the possibility or frauds in Accounting?
in General IFRS Discussion by Level 2 Member (2.8k points)

2 Answers

0 votes
It depends. Since IFRS is principle-based as apposed to rule-based such as US GAAP, some may argue that there may be more room  for creative accounting practices. However even rule based standards like US GAAP have never been able to rule out the possibility of accounting scandals. Eg. Enron, Tyco, Worldcom,etc. On the other hand principles may make the IFRS stronger in fraud prevention as evasion of a principle may be more difficult to justify.
by Level 1 Member (2.5k points)
0 votes
I too accept that principle based standards are more appropriate in fraud prevention.
by


...