Ed Trott, a former member of FASB writes in the
The Struggle to Simplify Accounting
Answers
Trott said, "The board creates complexity by trying to limit the amount of major change in standards. It has a hard time identifying a basis for a standard and sticking with that basis."
This statement is in my opinion why there is a need for a principle based set of standards, instead of the rules based standards we have now.
I agree with Mr. Trott's conclusion. Companies, and their shareholders, aren't concerned about
It is a bit aggressive. It couldn't be done in a couple of years, in my opinion.