December 12, 2018

easy conclusions

Study: Rules-based Accounting Shields Firms From Lawsuits

According to groundbreaking research by Richard Mergenthaler, assistant professor of accounting at the University of Iowa Tippie College of Business, shareholders are more likely to sue firms that use principles-based accounting standards over rules-based standards. The short: Some claim that rules-based accounting standards shield firms from litigation, while others argue that violations of detailed rules […]