Filling Gaps: Why Consistency of Accounting Standards Matters - Normative Evidence from the U.S. and Germany as Related to IFRS

摘要: Many accounting regimes, such as U. S. GAAP, IFRS, German GAAP (GoB) and Japanese pursue internal consistency. One central methodical practical problem in all regimes is how management shall develop apply policies when specific guidance relating to particular transactions events does not exist. With regard the so-called filling of gaps, we show that an internally consistent regime required choose comparable issues absence guidance. According our analysis, present IFRS fails ensure this because dealing with are partly inconsistent. We also find complete elimination rules reliance on principles only − requested by many theory adequate solution since broad do provide a sufficient structure frame management's judgment choice policies. propose should consist well be consistently derived from high-level principles. Due consistency between standards addressing issues, discretion would be, normative perspective, ideally limited one acceptable treatment. Our assessment includes arguments propositions international discussion refers other related fields research, legal theory.