ABSTRACT
The most compelling argument for accounting standards is that if they are good ones they speed up the process of communication. The definition of the standard provides, as it were, a dictionary reference which can be looked up if need be, and which becomes widely known. This avoids having to explain methods every time they are used. 1 Standards can only do this however to the extent that they are accepted and used. An important question therefore arises: should particular accounting standards achieve acceptance through individual choice or social and economic pressure, because they are found to be useful? Or should on the other hand adherence be imposed under the threat of legal or quasi-legal sanction? I shall suggest below that this question is closely related to the kind of standard under discussion.
