What reasons have been given by the Institute of Chartered Accountants in England and Wales (ICAEW) for following a principles-based approach in setting accounting standards?
A)Lawmakers and standard setters cannot anticipate every situation.
B)Accountancy profession should be about exercising judgment and integrity.
C)The profession needs to attract people of high intellect.
D)All of the above

Question

Quizplus · Accepted Answer

The Institute of Chartered Accountants in England and Wales (ICAEW) has given all of the above reasons for following a principles-based approach in setting accounting standards. They acknowledge that lawmakers and standard setters cannot anticipate every situation and thus it is important to exercise judgment and integrity in the profession. Additionally, attracting people of high intellect also helps in maintaining the standards of the profession.

What Reasons Have Been Given by the Institute of Chartered