We make the following general observations in Table 2
with respect to the attributes of the 19 general-purpose
accounting standards summarized in Table 1. Limiting
bright lines should diminish transaction structuring that
may result in bias and less representative reporting. Standards
developed based on definitions of assets and liabilities
should improve the representational faithfulness of
the balance sheet and may have a positive impact on balance-
sheet oriented accounting quality metrics and less
earnings management, possibly to the detriment of earnings
and earnings-based metrics. This is because measuring
assets and liabilities can introduce measurement
errors and possible earnings volatility, which could negatively
affect accounting quality measures based on
earnings.