IASB retains principles for global rules
The International Accounting Standards Board has opted to retain its principles-based approach in accounting standards dispelling concerns that the board was veering towards a US-style rules-based method.
Today (Thursday) the IASB issued its updated preface to its global accounting rules setting out how preparers of company accounts are to apply the new standards.
The bold type/plain type format will be retained to distinguish between the main principles and more detailed rules. The preface however emphasises that both typefaces have equal authority.
Sir David Tweedie, IASB chairman, said: ‘The preface provides a brief description of the purpose and function of the main structures of the new arrangements for setting global standards.’
Peter Holgate, senior technical partner at PricewaterhouseCoopers said he viewed the decision as a victory for the principles over rules debate. ‘It sounds like a printing thing, but it’s a very big issue. It’s about how to read [the standards].’