Linking virtue to representational faithfulness in making judgments in a principles-based environment

Abstract

This chapter explores the link between virtue and representational faithfulness in making judgments in a principles-based environment. The motivation for the chapter is the impending adoption of International Financial Reporting Standards (IFRS) in the United States and its principles-based approach to accounting. Even in a rules-based system, there are principles that provide a foundation for making decisions about the selection and implementation of accounting standards, financial statement presentation, estimates, and the sufficiency of evidence. A model is presented that reflects these judgments informed by virtue considerations that support substance over form decisions and a true and fair view. Implications for accounting education are discussed including the readiness of faculty to incorporate IFRS into the curriculum.

Citation

Mintz, S.M. (2010), "Linking virtue to representational faithfulness in making judgments in a principles-based environment", Jeffrey, C. (Ed.) Research on Professional Responsibility and Ethics in Accounting (Research on Professional Responsibility and Ethics in Accounting, Vol. 14), Emerald Group Publishing Limited, Leeds, pp. 113-136. https://doi.org/10.1108/S1574-0765(2010)0000014009