Commentaries on principles- vs. rules-based standards. (Commentary).

Accounting Horizons, March, 2003 by James A.Largay

The following three commentaries examine different facets of the escalating debate over the degree of specificity or "rules" appropriate in financial accounting standards, prompted to some extent by the Sarbanes-Qxley Act of 2002 and the fraudulent financial reporting scandals that preceded it. These articles are based in part on materials prepared for other purposes, but are assembled here as a forum of views on this important subject. Written to appeal to a broad audience, these articles should be accessible to those with little previous exposure to the issues.

Some of you attended Katherine Schipper's highly acclaimed discussion of many of these issues presented at the American Accounting Association Annual Meeting in San Antonio, August 2002. Immediately following...