To improve on the quality of standards, FASB has taken certain initiatives. They include a plan to adopt a principles-based approach to standard setting, issue standards jointly with the IASB, and shorten the commentary period. These require participation from constituents. This study examines...

In response to the sharp criticism of rules-based financial accounting standards as is presented especially by Sarbanes-Oxley Act of 2002, the U.S. Securities and Exchange Commission require the setters of these standards to accept principles-based strategy or ´objectivesoriented’ strategy....