Which of the following is a commonly cited disadvantage of having a new unified set of accounting standards?
A)Acquiring foreign companies would become a more confusing proposition.
B)Corporations may find themselves more susceptible to lawsuits due to the principles-based system.
C)Time and money would not be saved in accessing capital markets abroad.
D)The SEC would be dissolved if international accounting standards were adopted.

Question

Quizplus · Accepted Answer

A disadvantage of a principles-based system is that it allows for more interpretation, potentially leading to lawsuits if different parties interpret the standards differently.

Which of the Following Is a Commonly Cited Disadvantage of Having