The challenge to those who create generally accepted accounting principles is to develop a set of principles that is both technically and behaviorally sound. Too many of our current principles have undesirable behavioral implications that lead to corporate actions that give the illusion of performance where none exists. Control systems with behavioral attributes that allow and encourage responsible management by self control, rather than command through inflexible rules, are the most appropriate in times of change within complex business environments. Such an approach is needed today for our financial accounting system if we are to encourage positive managerial operating and reporting responses.
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