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All of these questions relate to the choice of standard setters between strict and vague accounting...

All of these questions relate to the choice of standard setters between strict and vague accounting rules.

Are vague rules superior when accountants are highly ethical? yes or no?

Are strict rules superior when accountants are wise? yes or no?

Does US GAAP have more strict rules than IFRS? yes or no?

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Answer #1
Sr.No Answer:
1) Yes, vague rules are superios when accountants are ethical, because when accountants are ethical they will focus on what's right and what shall be the exact financial reporting be and therefore, stricter rules will harm the financial reporting when accountants are really ethical
2) Yes, stricter rules are superior when accountants are wise, because wise accountants do not gurantee ethical practice. Wise accountant can manipulate accounts when rules are not stricter to showcase the better performance of their organisation.
3) Yes, US GAAP have more stricter rules than IFRS, because US GAAPs are made considering US Financial reporting framework and world and they are not IFRS coverged standards.
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