Understanding the pros and cons of principles-based accounting standards

The "U.S. Perspective" panel at the AICPA/IASC Foundation Conference on International Financial Reporting Standards (IFRS) featured six financial industry heavyweights. It evolved into a discussion about the merits and challenges of a principles-based system of accounting. An article by the American Institute of Certified Public Accountants (AICPA) offers a glimpse into their opinions and insights on the two different accounting approaches, as well as the far-reaching ramifications of the US transitioning to IFRS. (Read the article Merits and Challenges of Having Fewer Rules at IFRS.com.)