CIMA F1 Syllabus A. Regulatory Environment Of Financial Reporting - Rules or Principles - Notes ^{3 / 7}

Makes the user think about ethics rather than just a list of rules

Stops people finding loop-holes to the laws

Can be used in many situations

Can contain certain rules where principles are not enough

Shows the minimum standards

Needs a very good understanding of the principles

Doesn't take into account regional and cultural differences

Difficult to legally enforce

Straightforward

Companies know what they must do as a minimum