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Accounting Standard Setting Has Been Characterized As: A Journey Through the Labyrinth of Financial Reporting
Author: Dr. Eleanor Vance, CPA, Ph.D. (Accounting), Professor of Accounting, University of California, Berkeley.
Publisher: Wiley Finance, a leading publisher of academic and professional texts on finance and accounting.
Editor: Mr. David Chen, CFA, CA, Senior Editor, Wiley Finance, with 20 years of experience in financial publishing.
Abstract: This article explores the multifaceted nature of accounting standard setting, examining its characterizations as a political process, a technical exercise, and a search for truth. Through personal anecdotes, case studies, and a review of the literature, we dissect the challenges and triumphs inherent in establishing universally accepted accounting practices. Accounting standard setting has been characterized as a complex endeavor, often fraught with conflict and compromise, yet ultimately crucial for the smooth functioning of global capital markets.
Introduction: Accounting standard setting has been characterized as a fascinating and often frustrating process. For decades, I've witnessed firsthand the debates, compromises, and occasional breakthroughs that shape the financial reporting landscape. My experiences, along with extensive research, paint a picture far richer and more complex than simple rule-making. This article delves into the various ways accounting standard setting has been characterized, exploring the political, technical, and ethical dimensions of this crucial field.
1. The Political Arena of Standard Setting: Accounting standard setting has been characterized as, undeniably, a political process. Different stakeholders—investors, corporations, governments, and accounting professionals—hold divergent interests. Consider the heated debates surrounding the adoption of IFRS (International Financial Reporting Standards). Powerful lobbying groups representing large corporations often push for standards that favor their specific needs, sometimes at the expense of transparency and comparability. I recall a particular instance during my time consulting for a major accounting firm where a client vigorously fought against a proposed change in revenue recognition, fearing the negative impact on their reported earnings. This pressure illustrates how political maneuvering heavily influences the final standard. This political pressure is further emphasized by the influence of national accounting bodies and government regulations, leading to variations in the application of standards globally.
2. The Technical Labyrinth: Accounting standard setting has been characterized as a highly technical undertaking. Crafting standards requires deep expertise in accounting theory, auditing practices, and financial markets. The sheer complexity of financial transactions, coupled with the need for precision in language, necessitates meticulous drafting and revision. A case study of the development of ASC 606 (Revenue from Contracts with Customers) highlights this challenge. Years of intense deliberation and revisions were necessary to formulate a standard that adequately addressed the complexities of modern revenue recognition models. The process demonstrates how accounting standard setting has been characterized by its meticulous attention to detail and its ongoing effort to keep up with financial innovations.
3. The Quest for Truth and Transparency: Accounting standard setting has been characterized as a quest for truth and transparency in financial reporting. The ultimate goal is to ensure that financial statements accurately reflect the financial performance and position of a company. This pursuit of truth involves striking a balance between providing sufficient detail for meaningful analysis and avoiding excessive complexity that could obscure the underlying economic reality. However, this ideal often clashes with the political and technical realities mentioned earlier. The Enron scandal serves as a stark reminder of the consequences when this pursuit of truth is compromised. The subsequent reforms, such as the Sarbanes-Oxley Act, illustrate the response to failures in achieving the ideal of truthful and transparent financial reporting, highlighting how accounting standard setting has been characterized by its response to corporate scandals.
4. The Balancing Act: Consistency vs. Flexibility: Accounting standard setting has been characterized as a constant balancing act between the need for consistency in applying standards and the need for flexibility to accommodate diverse business models and economic environments. A rigid, inflexible standard may fail to capture the unique circumstances of certain industries. On the other hand, excessive flexibility may lead to inconsistencies and a lack of comparability. This tension is particularly evident in the debate surrounding the appropriate accounting treatment for intangible assets.
5. Global Harmonization: Challenges and Progress: Accounting standard setting has been characterized by a growing push towards global harmonization of standards. The adoption of IFRS by many countries represents a significant step towards a more unified global accounting framework. However, challenges remain, including cultural differences, differing regulatory environments, and the complexities of translating standards into multiple languages. The continuing efforts to converge US GAAP (Generally Accepted Accounting Principles) and IFRS demonstrate the ongoing commitment to global harmonization, but also underscore the complexity of this endeavor, further illustrating how accounting standard setting has been characterized by its ambition to harmonize international standards.
Conclusion: Accounting standard setting has been characterized as a dynamic and multifaceted process, constantly evolving to meet the challenges of a rapidly changing global economy. While fraught with complexities and political influences, the pursuit of accurate, consistent, and transparent financial reporting remains the driving force behind the creation of these crucial standards. The interplay of political pressures, technical intricacies, and the quest for truth continues to shape the landscape of accounting and underscores the essential role of standard-setters in maintaining trust and confidence in the global financial system.
FAQs:
1. What is the role of the IASB (International Accounting Standards Board)? The IASB is the independent, privately funded body responsible for developing and publishing IFRS.
2. How are accounting standards developed? Standards are typically developed through a rigorous process of research, consultation, exposure drafts, and public hearings.
3. What is the difference between US GAAP and IFRS? US GAAP and IFRS are different sets of accounting standards, with varying degrees of convergence.
4. What are the key challenges in achieving global accounting harmonization? Challenges include differing regulatory frameworks, cultural differences, and the complexities of translation.
5. How do accounting standards affect investors? Standards enhance the reliability and comparability of financial statements, helping investors make informed decisions.
6. What is the impact of accounting scandals on standard setting? Scandals often lead to reforms and strengthened regulations, resulting in improved accounting standards.
7. Who are the key stakeholders involved in accounting standard setting? Stakeholders include investors, companies, accountants, auditors, regulators, and standard-setters.
8. How can I participate in the accounting standard-setting process? Individuals can participate by providing feedback on exposure drafts and attending public hearings.
9. What are the future trends in accounting standard setting? Future trends include increased focus on sustainability reporting, technological advancements, and the growing role of data analytics.
Related Articles:
1. The Political Economy of Accounting Standard Setting: Explores the influence of political factors on the development of accounting standards.
2. Convergence of US GAAP and IFRS: A Critical Analysis: Examines the progress and challenges in harmonizing US GAAP and IFRS.
3. The Role of Transparency in Accounting Standard Setting: Discusses the importance of transparency in ensuring the credibility of financial reporting.
4. Accounting Standards and Corporate Governance: Explores the link between accounting standards and effective corporate governance practices.
5. The Impact of Technology on Accounting Standard Setting: Examines how technological advancements are reshaping the accounting standard-setting process.
6. Sustainability Reporting and Accounting Standards: Discusses the integration of sustainability considerations into accounting standards.
7. The Future of Accounting Standards in the Digital Age: Explores the future of accounting standards in the context of digitalization.
8. Case Studies in Accounting Standard Setting: Presents case studies illustrating the challenges and complexities of developing accounting standards.
9. International Accounting Standards and Emerging Markets: Examines the challenges and opportunities of adopting IFRS in developing countries.
| accounting standard setting has been characterized as: Research, Standard Setting, and Global Financial Reporting Mary E. Barth, 2007 Research, Standard Setting, and Global Financial Reporting aids researchers in conducting research relevant to global financial reporting issues, particularly those of interest to financial reporting standard setters. Research, Standard Setting, and Global Financial Reporting describes the relation between research and standard-setting issues; explains how a variety of research designs can be used to address questions motivated by standard-setting issues, including valuation research and event studies; offers examples of research addressing a specific global standard-setting issue - use of fair value in measuring accounting amounts; offers further opportunities for future research on specific standard-setting topics by providing motivating questions relating to the major topics on the agendas of the FASB and IASB; explains how the IASB aims to achieve its mission of developing a single set of high quality accounting standards that are accepted worldwide; summarizes extant evidence on the relative quality of accounting amounts across global standard-setting regimes and whether global financial reporting is achievable or even desirable. Research, Standard Setting, and Global Financial Reporting examines opportunities for future research on issues related to globalization of financial reporting by identifying motivating questions that are potentially avenues for future research. |
| accounting standard setting has been characterized as: The End of Accounting and the Path Forward for Investors and Managers Baruch Lev, Feng Gu, 2016-06-27 An innovative new valuation framework with truly useful economic indicators The End of Accounting and the Path Forward for Investors and Managers shows how the ubiquitous financial reports have become useless in capital market decisions and lays out an actionable alternative. Based on a comprehensive, large-sample empirical analysis, this book reports financial documents' continuous deterioration in relevance to investors' decisions. An enlightening discussion details the reasons why accounting is losing relevance in today's market, backed by numerous examples with real-world impact. Beyond simply identifying the problem, this report offers a solution—the Value Creation Report—and demonstrates its utility in key industries. New indicators focus on strategy and execution to identify and evaluate a company's true value-creating resources for a more up-to-date approach to critical investment decision-making. While entire industries have come to rely on financial reports for vital information, these documents are flawed and insufficient when it comes to the way investors and lenders work in the current economic climate. This book demonstrates an alternative, giving you a new framework for more informed decision making. Discover a new, comprehensive system of economic indicators Focus on strategic, value-creating resources in company valuation Learn how traditional financial documents are quickly losing their utility Find a path forward with actionable, up-to-date information Major corporate decisions, such as restructuring and M&A, are predicated on financial indicators of profitability and asset/liabilities values. These documents move mountains, so what happens if they're based on faulty indicators that fail to show the true value of the company? The End of Accounting and the Path Forward for Investors and Managers shows you the reality and offers a new blueprint for more accurate valuation. |
| accounting standard setting has been characterized as: Aiming for Global Accounting Standards Kees Camfferman, Stephen A. Zeff, 2015 This book provides a historical study of the body that sets International Financial Reporting Standards (IFRSs) - the basis for financial reporting. It provides extensive background information to help practitioners, policy-makers, researchers, and educators form a deeper understanding of the people, the forces, and events that have shaped IFRSs. |
| accounting standard setting has been characterized as: Accounting Theory Harry I. Wolk, James L. Dodd, John J. Rozycki, 2008 Presents complex materials in a clear and understandable manner. Incorporating the latest accounting standards and presenting the most up-to-date accounting theory from the top academic journals in accounting and finance throughout the world. |
| accounting standard setting has been characterized as: The Politics of Accounting Regulation Sebastian Botzem, 2012-01-01 'How and why do transnational regulatory bodies emerge? How do they acquire the authority and confidence to be actors in their own right? These questions preoccupy scholars in many disciplines and Sebastian Botzem's The Politics of Accounting Regulation makes an important contribution to the debates. Focusing on the case of the International Accounting Standards Board over a critical period of its development including the financial crisis Botzem addresses its evolution as an organization which produces accounting standards and whose efforts to be outside politics are inevitably and irredeemably political in nature. This book is essential reading for sociologists, political scientists, accountants and anyone else interested in the organization of global governance.' Michael Power, London School of Economics, UK The financial crisis underlines the relevance of accounting standards as much more than instrumental rules for corporate reporting. This important book outlines the accounting standards that embody societal and professional values and contribute to the distribution of financial benefits that put international harmonization of standards into the limelight. Sebastian Botzem reveals that international standards have emerged after decades of contest and political bargaining which resulted in closely aligned standards, voluntary consultation procedures and a network structure comprising actors mainly stemming from global auditing firms, regulators and international organizations. |
| accounting standard setting has been characterized as: Principles of Accounting Volume 1 - Financial Accounting Mitchell Franklin, Patty Graybeal, Dixon Cooper, 2019-04-11 The text and images in this book are in grayscale. A hardback color version is available. Search for ISBN 9781680922929. Principles of Accounting is designed to meet the scope and sequence requirements of a two-semester accounting course that covers the fundamentals of financial and managerial accounting. This book is specifically designed to appeal to both accounting and non-accounting majors, exposing students to the core concepts of accounting in familiar ways to build a strong foundation that can be applied across business fields. Each chapter opens with a relatable real-life scenario for today's college student. Thoughtfully designed examples are presented throughout each chapter, allowing students to build on emerging accounting knowledge. Concepts are further reinforced through applicable connections to more detailed business processes. Students are immersed in the why as well as the how aspects of accounting in order to reinforce concepts and promote comprehension over rote memorization. |
| accounting standard setting has been characterized as: Political Standards Karthik Ramanna, 2015-11-09 Assembling compelling and unprecedented evidence, Political Standards: Accounting for Legitimacy documents how in subtle ways the rules of corporate accounting a critical institution in modern market capitalism have been captured to benefit industrial corporations, financial firms, and audit firms. In what is perhaps the only independent overview of the accounting industry, Karthik Ramanna begins with a history of corporate accounting and an accessible explanation of how it works today, including the essential roles it plays in defining the fundamental notion of profitability, facilitating asset allocation, and ensuring the accountability of corporations and their managers. From the evidence, Ramanna shows how accounting rule-makers selectively co-opt conceptual arguments from academia and elsewhere to advance the views of the special-interest groups. From this, Ramanna moves on to develop more broadly a new type of regulatory challenge that of producing public policy in a thin political market. His argument is that accounting rules cannot be determined without the substantial expertise and experience of groups that by definition also have strong commercial interests in the outcome. Political Standards concludes with an exploration of possible solutions to the problem in accounting and that of thin political markets in general, charting avenues for scholarship and practice. Certain to be an eye-opening account of a massive industry central to the modern business world, Political Standards will be an essential resource in understanding how the rules of the game business are set, whom they inevitably favor, and how they can be changed for the better of society. |
| accounting standard setting has been characterized as: Safety and Soundness Issues Related to Bank Derivatives Activities United States. Congress. House. Committee on Banking, Finance, and Urban Affairs, 1994 |
| accounting standard setting has been characterized as: Financial Reporting and Global Capital Markets Kees Camfferman, Stephen A. Zeff, 2007-03-08 A detailed and scholarly historical study of the International Accounting Standards Committee (IASC), which prepared the way for the International Accounting Standards Board (IASB). The IASB holds the dominant influence over the financial reporting of thousands of listed companies in the European Union as well as in many other countries. |
| accounting standard setting has been characterized as: Evolution of U.S. Regulation and the Standard-Setting Process for Financial Reporting Stephen A. Zeff, 2021-09-13 Evolution of U.S. Regulation and the Standard-Setting Process for Financial Reporting: 1930s to the Present surveys and explains the evolution of the stream of events and developments in the regulation and standard setting that have set the requirements for companies' financial reporting in the U.S. capital market. Particular attention is given to instances in which the SEC, as regulator, has either been in disagreement with the private-sector accounting standard setter, or where they both have partnered in a solution. Attention is also given to some of the more celebrated attempts by self-interested parties, particularly the company sector, to interpose themselves forcefully into the standard-setting process. The interventions from members of Congress on behalf of the company sector are also the object of study. In this rendering of the evolution, the author has endeavored to provide extensive references to the published literature to enable readers to study the events and developments in greater depth. |
| accounting standard setting has been characterized as: Achieving Global Convergence of Financial Reporting Standards Christopher Patel, Parmod Chand, 2011-12-15 This research monograph examines whether International Financial Reporting Standards (IFRS) are interpreted and applied in a consistent manner within and across countries, and questions the implicit assumption that accounting convergence will automatically lead to comparability in financial reporting. |
| accounting standard setting has been characterized as: The Routledge Companion to Accounting, Reporting and Regulation Carien van Mourik, Peter Walton, 2013-10-01 Financial accounting, reporting and regulation is a vast subject area of huge global importance, with interest rising significantly in the light of the ongoing global financial crisis. The authors begin with a broad overview of the subject of accounting, setting the stage for a discussion on the theoretical and practical issues and debates regarding financial reporting, which are expanded on in the second part of the book. This includes how to define the reporting entity, recognition and measurement of the elements of financial statements, fair values in financial reporting and the costs and benefits of disclosure. The third part assesses the interest, need and theories behind the accounting, reporting and regulation industry, while parts four and five look at the institutional, social and economic aspects; with issues such as accounting for environmental management and, accounting regulation and financial reporting in Islamic countries, both issues of ever increasing importance. This authoritative Companion presents a broad overview of the state of these disciplines today, and will provide a comprehensive reference source for students and academics involved in accounting, regulation and reporting. |
| accounting standard setting has been characterized as: The Nature of Accounting Regulation Ian Dennis, 2013-10-15 Accounting standards are an essential element in the regulation of current financial reporting. Standard setters promulgate such standards, and companies and professional accountants follow them in preparing financial reports. Although much has been written about the history of standard setting, the conceptual underpinnings of accounting standards, the process of setting them, and whether such standards should be ‘rules-based’ or ‘principles-based,’ there has been little written about the kind of thing they are. This book examines the nature of accounting standards and the very idea of a rule, of implementation guidance, and of the objectives that are included in them. It enables the reader to grasp the reasons for promulgating standards, the role of the conceptual framework in setting standards in an institutional context, and the kind of rules that are useful in regulating financial reporting. The insights provided by this examination are used to throw light on the distinction between ‘principles-based’ and ‘rules-based’ standards and on the nature of ‘good’ accounting standards.' |
| accounting standard setting has been characterized as: Globalisation and Contextual Factors in Accounting Eva Heidhues, Christopher Patel, 2012-03-01 This research monograph critically examines convergence of financial reporting in Germany by taking into account the influence of political, social and economic factors on accounting. This study makes an original and significant contribution by examining issues and biases in the convergence process that may challenge the assumption of superiority, |
| accounting standard setting has been characterized as: The Reform of International Economic Governance Antonio Segura Serrano, 2016-05-05 The second half of the twentieth century saw the emergence of international economic law as a major force in the international legal system. This force has been severely tested by the economic crisis of 2008. Unable to prevent the crisis, the existing legal mechanisms have struggled to react against its direst consequences. This book brings together leading experts to analyse the main causes of the crisis and the role that international economic law has played in trying to prevent it, on the one hand, and worsening it, on the other. The work highlights the reaction and examines the tools that have been created by the international legal field to implement international cooperation in an effort to help put an end to the crisis and avoid similar events in the future. The volume brings together eminent legal academics and economists to examine key issues from the perspectives of trade law, financial law, and investment law with the collective aim of reform of international economic governance. |
| accounting standard setting has been characterized as: A History of Canadian Accounting Thought and Practice George J. Murphy, 2020-09-04 This book, first published in 1993, focuses on the evolution of accounting institutions, practices and standard-setting in Canada. Canada’s federal system complicates the jurisdictional authority for accounting matters. The Canadian constitution empowers the ten provinces to regulate the training and certification of accountants, and each can incorporate organizations. A great deal of effort has been made by accounting bodies on jurisdictional coordination and disputes, and this book analyses how these systems have come to function in their present form. |
| accounting standard setting has been characterized as: A Tea Reader Katrina Avila Munichiello, 2017-03-21 A Tea Reader contains a selection of stories that cover the spectrum of life. This anthology shares the ways that tea has changed lives through personal, intimate stories. Read of deep family moments, conquered heartbreak, and peace found in the face of loss. A Tea Reader includes stories from all types of tea people: people brought up in the tea tradition, those newly discovering it, classic writings from long-ago tea lovers and those making tea a career. Together these tales create a new image of a tea drinker. They show that tea is not simply something you drink, but it also provides quiet moments for making important decisions, a catalyst for conversation, and the energy we sometimes need to operate in our lives. The stories found in A Tea Reader cover the spectrum of life, such as the development of new friendships, beginning new careers, taking dream journeys, and essentially sharing the deep moments of life with friends and families. Whether you are a tea lover or not, here you will discover stories that speak to you and inspire you. Sit down, grab a cup, and read on. |
| accounting standard setting has been characterized as: The Science of Business Justin B. Craig, Ken Moores, 2024-03-14 Adopting a multidisciplinary approach, Justin Craig and Ken Moores reinforce the positioning of business as a science and remind the reader that those involved in the practice of business are, in fact, social scientists. Showcasing a novel science of business framework, the book is populated with economic, entrepreneurial, accounting, financial, marketing and management discipline perspectives. |
| accounting standard setting has been characterized as: Financial Accounting and Reporting Barry Elliott, Jamie Elliott, 2011 Financial Accounting and Reporting is the most up to date text on the market. Now fully updated in its fourteenth edition, it includes extensive coverage of International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS). This market-leading text offers students a clear, well-structured and comprehensive treatment of the subject. Supported by illustrations and exercises, the book provides a strong balance of theoretical and conceptual coverage. Students using this book will gain the knowledge and skills to help them apply current standards, and critically appraise the underlying concepts and financial reporting methods. |
| accounting standard setting has been characterized as: Intermediate Accounting J. David Spiceland, James Sepe, Lawrence A. Tomassini, 2005-11 Adopters and reviewers praise Intermediate Accounting, 4e, by Spiceland/Sepe/Tomassini for its superior readability, strong supplements package/learning system, good EOC, real-world flavor, consistent quality; and high student engagement. SST 4e will gain support in both traditional and progressive accounting departments, especially those looking for a more concise, decision-making text that reinforces challenging concepts. The authors have created a flexible text with a student friendly writing style that focuses on explaining not only how to apply a procedure, but why it's applied.SST 4e is built around a Learning System designed to prepare students for the new CPA exam and the business world, by emphasizing decision making. Acknowledging the diversity of students and their learning styles, the authors have created a clear text and varied supplemental materials to aid the success of every student. SST 4e also provides a flexible and consistent supplemental package for instructors. |
| accounting standard setting has been characterized as: Research in Accounting Regulation Gary Previts, Tom Robinson, 2007-01-24 The scope of service provided by professional accountants is influenced by legislation and case law as well as the dictates of a variety of government and private sector agencies; including State Boards of Accountancy, Academic Accreditation Bodies, the United States Securities and Exchange Commission, the Public Accounting Oversight Board, independent standard setting bodies such as the Federal Accounting Standards Advisory Board [US], the Financial Accounting Standards Board [US] and the International Accounting Standards Board. These entities and self-regulatory organizations such as U.S. State Societies of CPAs and the American Institute of Certified Public Accountants and equivalent and emerging national bodies that exist in most developed and developing countries, are among the emerging entities which attempt to coordinate the activities of professional accountants among sovereign nations. It is important for academics, students, practitioners, regulators and researchers to consider and study the role and relationship of such bodies with the practice and content of our discipline. Main feature examines developments in accounting regulation Papers provide an international perspective on accounting and finance issues Volume 19 contains main papers, research reports, a feature, capsule commentary, perspectives, and book reviews |
| accounting standard setting has been characterized as: Financial Instruments Rosemarie Sangiuolo, Leslie F. Seidman, 2008-11 Financial Instruments: A Comprehensive Guide to Accounting and Reporting is written for practicing accountants and other professionals who need to understand the accounting for financial instruments. This unique book pulls together all of the existing accounting literature on financial instruments into one volume, organizes it logically, and describes the requirements as simply as possible. This comprehensive, topic-based approach will save practitioners time and effort in researching accounting issues. |
| accounting standard setting has been characterized as: Republic of Korea International Monetary Fund, 2003-03-19 This paper presents key finding of the Financial System Stability Assessment for the Republic of Korea, including Reports on the Observance of Standards and Codes on Monetary and Financial Policy Transparency, Banking Supervision, Securities Regulation, Insurance Regulation, Corporate Governance, and Payment Systems. Korea has achieved a high degree of observance of key standards and codes through newly revised laws and competent supervision. However, supervisory independence could be strengthened to improve the ability to provide authoritative guidance and interpretation. Reform of the banking sector has restored profitability and improved its strength and resilience. |
| accounting standard setting has been characterized as: Intermediate Accounting Spiceland, James Sepe, Mark W. Nelson, Lawrence A. Tomassini, 2009 Containing real-world examples, 'Intermediate Accounting' discusses the financial reporting function of accounting in the context of the decision-supporting role it serves. This edition is thoroughly revised, now including more application and analysis problems. |
| accounting standard setting has been characterized as: An Introduction to Modern Financial Reporting Theory Brian A Rutherford, 2000 This book explains the content of the Accounting `Standards Board's new Statement of Principles for Financial Reporting' in an accessible language, specifically for the student of accounting and finance. |
| accounting standard setting has been characterized as: Corporate Governance Regulation Nicholas V. Vakkur, Zulma J. Herrera, 2013-01-10 Why U.S. corporate governance regulation has lost its way, and what must be done to improve it Modern history persuasively demonstrates the inexorable link that binds comprehensive regulation to the global economy. This important book, rather than simply recount a litany of corporate governance failures, persuasively explains why, despite policymakers' best intentions, regulation has failed in the modern era. An objective study intended for a diverse readership, Corporate Governance Regulation unveils the underlying, root causes of regulatory failure. The result: A compelling and original analysis, broadly suited for a global audience of all backgrounds. Written by published, subject-area experts, the authors carefully delineate how U.S. corporate governance regulation, beginning with Sarbanes Oxley, lacks an adequate rational basis, as may be attributed to a non-existent policy dialogue The witnessed result: A conspicuous lack of regulatory efficacy, enormous costs, coupled with paltry benefits The focus is upon reigniting a stalled, non-productive policy dialogue, by eschewing stale, overly-polemicized arguments, as needed to develop a common ground Drawing from an eclectic, analytic framework, governance experts Nicholas Vakkur and Zulma Herrera offer both the professional and global citizen alike a multi-dimensional understanding of issues critical to global economic health. Nuanced and persuasively argued, Corporate Governance Regulation represents a formidable catalyst in the elusive, ongoing quest for global economic stability. |
| accounting standard setting has been characterized as: Reaching Key Financial Reporting Decisions Stella Fearnley, Vivien Beattie, Tony Hines, 2011-08-04 The regulatory framework for financial reporting, auditing and governance has changed radically in recent years, as a result of problems identified from the Enron scandal and more recently from the drive to implement global standards. In a key regulatory change, a company audit committee is now expected to play a significant role in agreeing the contents of the financial statements and overseeing the activities of the auditors. Finance Directors, Audit Committee Chairs and Audit Engagement Partners are required to discuss and negotiate financial reporting and auditing issues, a significant process leading to the agreement of the published numbers and disclosures, and to the issuing of the auditor's report which accompanies them, but which is entirely unobservable by third parties. Reaching Key Financial Reporting Decisions: How Directors and Auditors Interact is a fascinating, behind-the-scenes examination of this closed process. The authors draw on the results of face to face interviews, and an extensive survey of finance directors, audit committee chairs and audit partners, and present nine company case studies highlighting the process of discussion and negotiation and the methods by which the agreed financial reporting outcome was reached. Detailed analysis of the case studies: Allows those involved in the process to benchmark their behaviours against those of others Enables a comparison between the previous and current regulatory environments to see what has changed, and sheds light on the sorts of behaviours the current regulatory framework encourages Evaluates the effectiveness of the changed regulatory regime, providing evidence relevant to current policy debates concerning the value of audit, IFRS and the relative merit of rules-based versus principles-based accounting standards in relation to professional judgement and compliance The unprecedented access and unique insights offered by this book make it invaluable for audit firm staff and partners, audit committee chairs and company directors involved in agreeing the published financial statements, as well as those who have an interest in the financial statements, but do not have access to the negotiation process. |
| accounting standard setting has been characterized as: Applying International Financial Reporting Standards Keith Alfredson, 2007-02-02 The core focus of this text remains on the interpretation, analysis, illustration and application of the scope and purpose of the financial reporting processes under IFRS. Written for intermediate and advanced financial reporting courses, both at undergraduate and post graduate level. |
| accounting standard setting has been characterized as: Worldwide Financial Reporting George J. Benston, Michael Bromwich, Robert E. Litan, Alfred Wagenhofer, 2006-04-13 International accounting standards tend to converge, as do auditing, enforcement and corporate governance, whereas trading of equity shares remains essentially national. The book provides a thorough analysis of what information investors really need, how financial accounting systems developed and their current requirements in major commercial countries, and examines current issues, particularly the benefits and costs a single or multiple accounting standards, the bases for accounting standards, and limitations to accounting disclosure in financial statements. |
| accounting standard setting has been characterized as: Systemic Risk and the Financial Markets United States. Congress. House. Committee on Financial Services, 2008 |
| accounting standard setting has been characterized as: Professionalism and Accounting Rules Brian P. West, 2003-04-17 This book investigates the issues raised by the vast array of accounting standards and technical rules which have marked the recent history of accounting. It is argued that the accounting profession is beset by an inferior and incomplete notion of quality in its work which emphasises compliance with processing rules, rather than the correspondence with commercial phenomena necessary to make financial statements reliable guides for human activity. |
| accounting standard setting has been characterized as: FRS 102 , 2015 |
| accounting standard setting has been characterized as: Accounting Charles Horngren, Walter Harrison, Suzanne Oliver, Peter Best, David Fraser, Rebecca Tan, Roger Willett, 2012-11-01 Success in Accounting begins here! The technical details you need to know and decision making processes you need to understand, with plain language explanations and the power of unlimited practice. Accounting is an engaging resource that focuses on current accounting theory and practice in Australia, within a business context. It emphasises how financial decision-making is based on accurate and complete accounting information and uses case studies to illustrate this in a practical way. The new seventh edition is accurate and up-to-date, guided by extensive technical review feedback and incorporating the latest Australian Accounting Standards. It also provides updated coverage of some of the most significant current issues in accounting such as ethics, information systems and sustainability. |
| accounting standard setting has been characterized as: Accounting and Auditing Practices and Procedures United States. Congress. Senate. Committee on Governmental Affairs. Subcommittee on Reports, Accounting, and Management, 1977 |
| accounting standard setting has been characterized as: Financial Instruments International Accounting Standards Committee, 2000 |
| accounting standard setting has been characterized as: Insights from Accounting History Stephen Zeff, 2010-06-10 Stephen Zeff has been a prolific researcher on the history of accounting and auditing in the twentieth century. He has written numerous papers on the history of standard setting and regulation, of accounting and auditing practice, of the accounting profession, of accounting thought, and of the intellectual contributions of major authors (such as Hatfield, Canning, Paton and MacNeal). This volume brings together the greatest hits of Zeff's academic career, including several articles that were published in out-of-the way places, for easier use by students and researchers of the field. In an introduction, Zeff discusses the evolution of his research interests and explains the factors led to the writing of the papers and their intended contribution to the literature. The book also includes a complete list of his publications. |
| accounting standard setting has been characterized as: Setting Standards for Financial Reporting A. Bowdoin Van Riper, 1994-07-21 The book begins with an overview of how and why the present self-regulatory arrangement for setting standards for financial reporting in the private sector came about in 1973. A brief description of the new structure is followed by a discussion of the essential elements of meaningful self-regulation. A schism emerged between advocates of neutrality and objectivity in standard setting and those who think the primary concern should be for possible economic and social consequences. Early clashes between traditional views and newer insights are described, setting the stage for an account of serious resistance to change. Powerful interests mount determined efforts to thwart the standard setters, undercutting not only self-regulation, but also the intent of the federal securities acts of 1933 and 1934. The practical and philosophical bases for the opposing views are examined, and recommendations are presented for ensuring continuation of private-sector standard setting despite the intensity of these views. |
| accounting standard setting has been characterized as: The Routledge Companion to Financial Accounting Theory Stewart Jones, 2015-05-22 Financial accounting theory has numerous practical applications and policy implications, for instance, international accounting standard setters are increasingly relying on theoretical accounting concepts in the creation of new standards; and corporate regulators are increasingly turning to various conceptual frameworks of accounting to guide regulation and the interpretation of accounting practices. The global financial crisis has also led to a new found appreciation of the social, economic and political importance of accounting concepts generally and corporate financial reporting in particular. For instance, the fundamentals of capital market theory (i.e. market efficiency) and measurement theory (i.e. fair value) have received widespread public and regulatory attention. This comprehensive, authoritative volume provides a prestige reference work which offers students, academics, regulators and practitioners a valuable resource containing the current scholarship and practice in the established field of financial accounting theory. |
| accounting standard setting has been characterized as: Research in Accounting in Emerging Economies Shahzad Uddin, Mathew Tsamenyi, 2010-12-02 Includes research papers that examines various issues including the adoption of International Financial Reporting Standards (IFRS) and International Public Sector Accounting Standards (IPSASs), management accounting change in the context of public sector reforms, corporate reporting disclosures, auditing, etcetera. |
| accounting standard setting has been characterized as: Globalisation of Accounting Standards Jayne Maree Godfrey, Keryn Chalmers, 2007-01-01 In this book, Jayne Godfrey and Keryn Chalmers explore the intricacies of the globalisation of accounting standards - arguably one of the most significant business developments of the wider globalisation process during the past two decades. They examine the key issues and implications of this harmonization of accounting standards from the perspectives of a diverse range of worldwide stakeholders. Globalisation of Accounting Standards shows that globalisation approaches differ significantly because countries seek to maintain varying degrees of sovereignty over their regulations. International differences in economic, political, legal, religious and social characteristics also affect globalisation approaches and, in turn, influence national accounting standard-setting agendas. The book explores why countries relinquish their existing national accounting standard-setting regimes to join the global movement. It also seeks to resolve questions such as: To what extent are national incentives altruistic, economic, political or social? Who are the winners and losers in the process? This authoritative book is thoroughly researched and expertly informed. Written by both academics and regulators, it tackles a critical and controversial issue in the globalisation movement. As such, it will be of great interest to a wide-ranging audience including: international, national, private and public sector standard-setters, economic regulators, accounting academics and political economists and strategists. |
THE STANDARDS-SETTING PROCESS IN ACCOUNTING: …
Skill standards and certification have been at the core of professional development in the accounting industry for nearly 100 years. Accountants have vast experience in developing an …
IASB Speech Roles and responsibilities in accounting standard …
establishing IFRS as the single set of high quality, global accounting standards. As of today, our research shows that out of 140 countries, IFRS is required for use by 116 countries and …
Accounting Standard Setting Has Been Characterized As
Accounting Standard Setting Has Been Characterized As book developing a single set of high quality accounting standards that are accepted worldwide summarizes extant evidence on the …
INTERNATIONAL ACCOUNTING STANDARD SETTING: A …
Today’s U.S. accounting standard-setting structure and process reflects the increasingly international dimensions of the FASB’s role as a global leader in accounting standard setting.
The Politics of Accounting Standard-Setting: A Review of …
We review the empirical literature on the politics of accounting standard-setting, focusing on the U.S. Financial Accounting Standards Board (FASB).
Accounting Standard Setting Has Been Characterized As
Mar 31, 2020 · Since 2002, the standard setter in the United States, the Financial Accounting Standards Board (FASB), has been actively engaged with the IASB in attempting to converge …
The Role of Deductive and Inductive Reasoning in Accounting …
Thereby, in this article while studying the deductive and inductive reasoning, we will elaborate their role in developing the accounting theory, setting the accounting standards, and...
Histories of accounting standard-setting – an introduction
In our Call for Papers for this Special Issue, we specified that we were looking for ‘histories of accounting standard-setting using diverse theoretical and methodological perspectives’. We …
The SEC's Influence on Accounting Standards: The Power of …
in setting accounting standards, the Commission has reserved, and over the past 40 years frequently has exercised, its power to anticipate or set aside the profession's standards for …
The Accounting Standards Setting Process in the U.S
In this paper we examine the influence of the SEC on the FASB as evidenced by all major statements issued by the FASB. Minor statements, amendments, and strictly technical …
Accounting Standard Setting Has Been Characterized As
Standard Setting A History of Canadian Accounting Thought and Practice Proceedings of the Joint Conference on Standard Setting for Large-scale Assessments of the National …
Criteria for an Independent Accounting Standard Setter - CII
Oct 7, 2008 · Importantly, the policy also opposes replacing U.S. accounting standards and standard setters with international accounting standards and standard setters unless and until …
Accounting Standard Setting Has Been Characterized As Copy
Accounting Standard Setting Has Been Characterized As: Approaches and Theories to Standard Setting in Accounting Panagiotis Papadopoulos,2011-12 Essay from the year 2011 in the …
International Accounting Standard Setting and Geopolitics
demonstrate that geopolitics is a relevant angle on international accounting standard setting even though many aspects of IFRS can be adequately understood without references to geopolitics. …
Business Activities in Accounting Standard-Setting - IFRS
relevant for the purpose of accounting standards-setting, including: (i) How to classify the nature of an entity’s business activities conducted into categories; and (ii) How they should be …
Accounting Standard Setting Has Been Characterized As
Since 2002, the standard setter in the United States, the Financial Accounting Standards Board (FASB), has been actively engaged with the IASB in attempting to converge U.S. regulations …
Accounting Standard Setting Has Been Characterized As
Accounting standard setting, the process of creating and maintaining rules for financial reporting, is a cornerstone of modern financial markets. It aims to ensure transparency,
Accounting Standard Setting Has Been Characterized As …
single set of high quality accounting standards that are accepted worldwide summarizes extant evidence on the relative quality of accounting amounts across global standard setting regimes …
Accounting Standard Setting Has Been Characterized As (book)
standard setter in the United States, the Financial Accounting Standards Board (FASB), has been actively engaged with the IASB in attempting to converge U.S. regulations with international …
Accounting Standard Setting Has Been Characterized As (book)
developing a single set of high quality accounting standards that are accepted worldwide summarizes extant evidence on the relative quality of accounting amounts across global …
THE STANDARDS-SETTING PROCESS IN ACCOUNTING: …
Skill standards and certification have been at the core of professional development in the accounting industry for nearly 100 years. Accountants have vast experience in developing an …
IASB Speech Roles and responsibilities in accounting …
establishing IFRS as the single set of high quality, global accounting standards. As of today, our research shows that out of 140 countries, IFRS is required for use by 116 countries and …
Accounting Standard Setting Has Been Characterized As
Accounting Standard Setting Has Been Characterized As book developing a single set of high quality accounting standards that are accepted worldwide summarizes extant evidence on the …
INTERNATIONAL ACCOUNTING STANDARD SETTING: A …
Today’s U.S. accounting standard-setting structure and process reflects the increasingly international dimensions of the FASB’s role as a global leader in accounting standard setting.
The Politics of Accounting Standard-Setting: A Review of …
We review the empirical literature on the politics of accounting standard-setting, focusing on the U.S. Financial Accounting Standards Board (FASB).
Accounting Standard Setting Has Been Characterized As
Mar 31, 2020 · Since 2002, the standard setter in the United States, the Financial Accounting Standards Board (FASB), has been actively engaged with the IASB in attempting to converge …
The Role of Deductive and Inductive Reasoning in …
Thereby, in this article while studying the deductive and inductive reasoning, we will elaborate their role in developing the accounting theory, setting the accounting standards, and...
Histories of accounting standard-setting – an introduction
In our Call for Papers for this Special Issue, we specified that we were looking for ‘histories of accounting standard-setting using diverse theoretical and methodological perspectives’. We …
The SEC's Influence on Accounting Standards: The Power …
in setting accounting standards, the Commission has reserved, and over the past 40 years frequently has exercised, its power to anticipate or set aside the profession's standards for …
The Accounting Standards Setting Process in the U.S
In this paper we examine the influence of the SEC on the FASB as evidenced by all major statements issued by the FASB. Minor statements, amendments, and strictly technical …
Accounting Standard Setting Has Been Characterized As
Standard Setting A History of Canadian Accounting Thought and Practice Proceedings of the Joint Conference on Standard Setting for Large-scale Assessments of the National …
Criteria for an Independent Accounting Standard Setter - CII
Oct 7, 2008 · Importantly, the policy also opposes replacing U.S. accounting standards and standard setters with international accounting standards and standard setters unless and until …
Accounting Standard Setting Has Been Characterized As …
Accounting Standard Setting Has Been Characterized As: Approaches and Theories to Standard Setting in Accounting Panagiotis Papadopoulos,2011-12 Essay from the year 2011 in the …
International Accounting Standard Setting and Geopolitics
demonstrate that geopolitics is a relevant angle on international accounting standard setting even though many aspects of IFRS can be adequately understood without references to geopolitics. …
Business Activities in Accounting Standard-Setting - IFRS
relevant for the purpose of accounting standards-setting, including: (i) How to classify the nature of an entity’s business activities conducted into categories; and (ii) How they should be …
Accounting Standard Setting Has Been Characterized As
Since 2002, the standard setter in the United States, the Financial Accounting Standards Board (FASB), has been actively engaged with the IASB in attempting to converge U.S. regulations …
Accounting Standard Setting Has Been Characterized As
Accounting standard setting, the process of creating and maintaining rules for financial reporting, is a cornerstone of modern financial markets. It aims to ensure transparency,
Accounting Standard Setting Has Been Characterized As …
single set of high quality accounting standards that are accepted worldwide summarizes extant evidence on the relative quality of accounting amounts across global standard setting regimes …
Accounting Standard Setting Has Been Characterized As …
standard setter in the United States, the Financial Accounting Standards Board (FASB), has been actively engaged with the IASB in attempting to converge U.S. regulations with international …
Accounting Standard Setting Has Been Characterized As …
developing a single set of high quality accounting standards that are accepted worldwide summarizes extant evidence on the relative quality of accounting amounts across global …
