A PRESCRIPTION TO RETIRE THE RHETORIC OF "PRINCIPLES-BASED SYSTEMS" IN CORPORATE LAW, SECURITIES REGULATION, AND ACCOUNTING.

The article examines the misconception about whether complex regulatory systems can be described as either rules-based or principles-based. It relates that excessive use of the terms have increased since the implosion of Enron Corp. and users show an increasing habit of celebrating systems dubbed principles-based and scoring those called rules-based. According to the author, it needs an analysis for the application and interaction of all provisions in order to describe of design systems as principles-based or rules-based.