Securities regulation Essay Example | Topics and Well Written Essays - 250 words - 1

Securities regulation - Essay Example As such, it reduces the events of unwarranted lawsuits. Additionally, the regulation is perceivably accurate, owing to its elimination of unjustifiable errors. However, there may be events of complexity in the preparation of financial statements emanating from this procedure. Besides, the principles-based regulations usually employ the commonly conventional accounting principles as their accounting foundations. Set objectives aid in the creation of accurate financial records. There is usually an example that serves as a guideline in the preparation of such financial statements. A significant merit in this principle is the fact that it may be applicable in the effortless creation of financial records in numerous accounting circumstances as opposed to its rules-based counterpart. However, its key setback may emanate from its lack of uniformed guidelines, thereby producing inconsistent information, thereby making it difficult in the comparison of dissimilar organizations. Besides, in cases of litigation, the accountants may compel themselves into unwarranted legal