Principle-Based Versus Rules-Based

At the end of the year, every public company in the United States is required to provide financial statements to the public. The main purpose of financial statements is to provide relevant and reliable information to investors so they can make informed decisions (Shortridge & Myring, 2009). Financial statements are created using principle-based accounting standards or rules-based accounting standards (Adkins, n.d.). Rules-based accounting is better than principle-based accounting because it makes financial statements comparable and consistent.

The difference between rules-based accounting and principle-based accounting is that under a rules-based accounting system, accountants have to follow detailed rules, whereas a principle-based accounting system provides general guidelines (Shortridge & Myring, 2009). A benefit of a rules-based system is that financial statements are comparable between companies (Adkins, n.d.). Under a principle-based system, investors would not be able to reliably compare financial statements between companies because each company can use different methods to prepare their financial statements.

Under a rules-based accounting system investors can trust the financial statements because they are consistent (Adkins, n.d.). Rules-based accounting systems do not leave much room for interpretation, which makes the information more consistent and reliable.

A rules-based accounting system is a good way to create financial statements that help investors make informed decisions. Rules-based accounting is better than principle-based accounting, because it makes financial statements that are comparable and consistent.

References

Adkins, W. D. (n.d.). The difference between principles &rules based accounting standards. Retrieved from http://smallbusiness.chron.com/difference-between-principles-rules-based-accounting-standards-81972.html             

Shortridge, R. T., & Myring, M. (2009). Defining principles-based accounting standards. Retrieved from http://www.nysscpa.org/cpajournal/2004/804/essentials/p34.htm

Becoming an Exceptional Employee

Successful businesses want more than just a warm body to fill their positions; they want employees who will add value and help their business reach its goals (Ingram, 2014, para 1). According to Ken Sundheim (2013), CEO of KAS Placement, intelligent companies are more concerned about who their potential employees are, rather than what they know. Exceptional employees are honest, hardworking, and proactive.

            

One of the most important characteristics a great employee can have is honesty. Honesty can help employees build trust with their associates and establish themselves as a professional employee (Ingram, 2014, para 5). Exceptional employees do not try to hide their mistakes; they take responsibility for their actions (Ingram, 2014, para 5).  

         

Exceptional employees are not afraid to work hard and put forth the extra effort to achieve great results. Ron Alvesteffer (2014), the CEO of Service Express, stated that he looks for employees who are willing to tackle tough projects and who work hard to meet his company’s goals. 

           

The ability to act without being told what to do is a very desirable trait for employees to have. The last thing employers want to do is hold their employees’ hand and walk them through every task (Sundheim, 2013). Exceptional employees need to be proactive (Alvesteffer, 2014).

        

Employers are not only looking for skills and abilities in their potential employees; they are also looking for employees who are honest, hardworking, and proactive. These important characteristics are necessary to become an exceptional employee.

References

Alvesteffer, R., (2014, June). 10 characteristics of a great employee. Retrieved from http://ronalvesteffer.com/10/

Ingram, D., (2014). The qualities of a good & professional employee. Retrieved from http://smallbusiness.chron.com/qualities-good-professional-employee-10963.html

Sundheim, K., (2013). 15 traits of the ideal employee. Retrieved from http://www.forbes.com
/sites/kensundheim/2013/04/02/15-traits-of-the-ideal-employee/