Social norms are the practice of finance report based on general principle. Simply stated, it provides a conceptual basis for accountants to follow instead of a list of detailed rules (Rebecca, Mark 2010). Principle-based accounting is starting with the federal regulation of securities, maintained through an informal process of social as well as internal sanctions(Kathy,2010).
Recent year, the failures of accounting and auditing raise queries about the prevalent way which is transform from norms to standards. “Some aspects of local, social, national and international behaviors continue to be governed by mechanisms in which norms play an important role. The accounting standardization becomes a pendulum matter which is concerned by people” (Sunder, 2009). Current article is going to try to research and discuss the both side of the social norms and written standard in corporate financial reporting.
Accounting standard contribute to social finance in following ways. Firstly, accountants can access to detailed implementation guidance to increase financial accuracy as well as reduce the ambiguity by the rule-based system. When financial reporting issues arise, the accountant can... [continues]
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