... firms to examine to what extent principle-based accounting standards affect the comparability of financial statements. The study follows prior literature to measure a firm’s comparability and the degree to which it applies principles-based standards. Specifically, the study use Folsom et al.’s...

...$ recognition recommendations is partially mediated through the nature of the conservatism judgment. Practical implications The finding that less experienced accountants report more aggressively than more experienced accountants when applying a principles-based standard supports the call for using judgment...