Can Global Standards be Principle Based?

Journal of Applied Research in Accounting and Finance (JARAF), Vol. 2, No. 1, pp. 3-8, 2007

9 Pages Posted: 5 Sep 2007

See all articles by David Tweedie

David Tweedie

International Accounting Standards Board


This paper examines issues pertaining to standard setting in an increasingly interconnected world. It is argued that many present day accounting standards are flawed, generally because of inherent compromises welded into their structure, yielding needless complexity and sometimes absurd results.

Using examples drawn from contemporary practice, including pension accounting, financial instruments and lease accounting, an argument for a move towards more simplified, principles based accounting is made. Some of the potential gains from such a project are discussed, as well as potential barriers and how these might be avoided in the quest for better accounting.

Keywords: accounting standards, pension accounting, financial instruments, lease accounting

JEL Classification: M41, M44, M47

Suggested Citation

Tweedie, David, Can Global Standards be Principle Based?. Journal of Applied Research in Accounting and Finance (JARAF), Vol. 2, No. 1, pp. 3-8, 2007, Available at SSRN:

David Tweedie (Contact Author)

International Accounting Standards Board ( email )

30 Cannon Street
London, EC4M 6XH
United Kingdom


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