1.

Principles-based versus rules-based standards What is the difference between principles-

based and rules-based accounting rules? Are IFRS more principles-based than U.S.
GAAP? Explain.
2. Why would it be advantageous for U.S. GAAP and IFRS to be the same?
3. What is the objective of general-purpose financial reporting by business enterprises?
4. List and discuss the characteristics of the International Accounting Standards Board
(IASB) that reinforced the importance of an open, transparent and independent process.
5. The steps in the development of an IFRS are:
a. Topics are identified and placed on the Board's agenda.
b. Research and analysis are conducted and preliminary views of pros and cons are
issued.
c. A public hearing on the proposed standard is held.
d. The Board evaluates the research and public response and issues an exposure draft.
e. The Board evaluates the responses and changes the exposure draft, if necessary. The
final standard is then issued.