US in fear of principles-based accounting

As the Financial Times says in the following quote:

"US companies and their auditors are reluctant to exercise more judgment in work on accounts despite the Securities and Exchange Commission's call for a principles-based approach.

They fear challenges by regulators, lawyers or the media, according to the head of the body that writes US financial reporting rules."

The problem for companies, their advisors, their auditors and the regulators is that we are still in transition of what is expected. This transition is subject to powerful lobbying and also internationally linked, as companies, their advisors, their auditors and the regulators from many countries are trying to get it right.

Getting it right has to mean having the sufficient rules and regulations as well as conventions and procedures in place to ensure that the companies and their advisers do the right thing in terms of disclosure, etc. but not too much that we stifle business or create a costs that are prohibitive.

Related links:
US in fear of principles-based accounting
Auditors afraid of making judgments, says FASB chief
Companies wary of rushing to judgment