Approaches to standard setting in accounting Name: Institution: Course: Date: Since the 1960s’, the accounting profession has been downplayed upon for its failures. This has led to the accounting practitioners to look for a way to legitimize the accounting standard setting…
The body also cited the reasons at which it was setting these accounting settings and some of them included; to give users of accounting information about their financial situation, their financial performance, and the financial conduct of a firm (LeRoy, 2007). Another reason was to assist public accountants with steps to enable them perform their work with care in offering their services in the accounting market. These standards were set so that all financial statements were consistent and had the ability to describe their financial performance. These accounting standards can also be known as Generally Accepted Accounting Principles (GAAP), they are generally accepted because there is an authoritative accounting body that set them and the body oversees the implementation of these standards. Without these standards the consumers of financial statements would need to learn accounting rules of different firms, this would be a difficult task for multi investors to compare these financial statement accounting rules. Some of the bodies that regulate these accounting standards are the Securities and Exchange Commission (SEC). This body was formed to establish these accounting standards for the public traded firms. ...
Then the financial Accounting Standards Board (FASB) was created after the wheat committee suggested the replacement of the GAAP board with new standards. After the dissolving the FASB board a new board International Accounting Standards Committee (IASC) was formed in 1973. This board was created to encourage a worldwide implementation of the accounting standards. This board was succeeded by a private sector body that was structured in a similar way as FASB (Sharpe, 1982). The accounting standards and regulations are very important. This is because they regulate accounting assumptions and methods. They also enable us to have consistency in the methods that are used to organize company’s financial statements. Although there are differences within these regulations, reliable conclusions can be deduced when comparing firms’ financial data for specific industries. If there were no accounting standards then the people who use financial statements like investors, banks and other institutions would require learning these accounting rules in a different manner for each firm. The accounting standards instill relevance to day to day accounting procedures and processes; this results into better financial performance from firms and represents faithfulness and accuracy (Sharpe, 1982). These standards ensure that neutral information is used hence eliminating the possibility of biasness in the financial statements. They give relevant information by enabling investors to know their specific points of investments to make. They save a lot of time since they give or point out clarity in the financial statements. The growth of financial transactions is making the compliance with accounting standards become an issue which require addressing immediately ...
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This information is basically about entities in which different parties are involved and interested in. Parties herein refer to individual and group investors, markets and securities analysts, creditors as well as different entities in that regard. The underlying need for financial information provided through set accounting standards is to aid the decision making process, where the interest is to reach informed, effective and efficient decisions about resource allocation.
The lobbying involves the activities that businesses carry out for the intention of influencing the government or providing advice to other businesses on how to influence the government. Within the United Kingdom, government includes the central government, local government, and the devolved government.
The Securities and Exchange Commission (SEC) overviews the functions of the FASB in line with its objective of ensure a level playing ground for the public investors. The chairman of SEC is selected through political appointment by the federal government (Amershi, Demski and Wolfson, 1982, p.22).
The accounting standards boards of all the countries of the world have always involved themselves into various kinds of politics, both at the national as well as the international level and this had its effect on the course of the formulation of the standards.
However additional efficiency may be obtainable in the water industry, it is reasonable to say that future gains will be poorer and that higher standards may effect as an augmented prices for services.
My research is based on the water-board and its customer service.
The Terminology of Cost Accountancy defines standard costing as “the preparation and use of standards costs, their comparison with actual costs, and analysis of variances to their causes and points of incidence.” The technique of standard
Knowing the impact or influence of something on another thing could be a way determining the desired status of the latter thing. This paper presupposes the existence of an impact of lobbying on standard setting and this would become more evident meaningful after a critical examination and discussion of their relationships with relevant examples.