Got a tricky question? Receive an answer from students like you! Try us!

Approaches to Standard Setting in Accounting - Essay Example

Masters
Author : dietrichfreda
Essay
Finance & Accounting
Pages 8 (2008 words)
Download 1

Summary

Topic: Approaches to Standard Setting in Accounting Institution Affiliation: Date: Introduction Accounting standards are developed to enhance financial information provision to relevant and interested stakeholders…

Extract of sample
Approaches to Standard Setting in Accounting

Financial statements are prepared and presented through observation of relevant accounting standards and procedures. Users of these statements, therefore, need to derive assessments that are realistic in regard to any given entity’s financial status. These users are spread across the economic context, based on the interest of each of them in the financial positions of different entities. To act in the satisfaction of these stakeholders, accounting standards are crucial in ensuring that financial reporting is effective enough. In this regard, capital markets operations are assessed for their efficacy in the context of accounting standards integration. The impacts of accounting standards on different entities can take more than one way. The impacts can be individual-entity-based or even broader to encompass several sectors of the economy or the entire economy at large, including capital and other markets. On a smaller scale, accounting standards enhance individual entity accountability and further provide strong basis upon which investors, creditors and other stakeholders are managed. In general, corporate governance is improved prior to business arrangements of different entities. ...
Download paper

Related Essays

Approaches to Standard Setting in Accounting
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…
10 pages (2510 words)
Accounting Standard AASB138 Intangible Assets
This means that as much as possible, no pieces and bits of expenses are to be left out. The collection of every amount that went into spending is supposed to be captured as part of the expenditure development (Deegan, 2012). This also entails a mandate whereby accounting for research and development expenses will not be done in isolation. Rather, it is expected that the expenses making up for the two will be integrated as one so as to have a total aggregate of the expenditure. What is more, the AASB138 requires specific items that cover cost of all internally generated intangible assets to be…
5 pages (1255 words)
International Accounting Standard Individual Assignement
Wanting to conduct business, MIBW4A identified an economical and sustainable method of providing safe and treated drinking water. "Most other efforts to bring clean water to the underserved citizens had relied on volunteerism and had ultimately failed. Those efforts were not market-based and proved to be unsustainable" Kaputt said. MIBW4A established a strong and mutually profitable partnership with the water vendors to help in the distribution of low salt level drinking water to the consumers (Salzman, 2012, p.5). Objectives of MIBW4A Public Health: To reduce the rate of death and health…
6 pages (1506 words)
FREE-MARKET APPROACH AND REGULATORY APPROACH TO STANDARD SETTING IN ACCOUNTING
The researcher analyzed the free market approach to standard setting and provided a case study analysis to this approach. Within the free-market approach, the study revealed some theories including the positive accounting theory and agency theory, which recommends that entities should have incentives to make publicly accounting information munificently. The study also examined the regulatory approach, which aims to protect the interests of the public in the marketplace. The study further examined some of the frameworks within the regulatory approaches including the public interest theory and…
8 pages (2008 words)
Critically examine and discuss the impact of lobbying on standard setting in accounting. Illustrate your discussion / your analy
Within the United Kingdom, government includes the central government, local government and the devolved government. The government may also refer to staff or members of the House of Parliament or a devolved legislature, ministries, officials and public authorities (PRCA, 2013). According to UKPAC (2013), lobbying refers to attempting to influence or advising others to influence the UK Government, devolved administrations, parliament and local governments. Therefore, lobbying refers to all the actions that interested parties carry out so as to influence the rule-making bodies (Frattini, 2007,…
8 pages (2008 words)
Critically examine and discuss the impact of lobbying on standard setting in accounting. Illustrate your discussion / your analy
Thus, it is less likely that chairman would not be influenced by the activities of lobbying in the field of setting accounting standards. The lobbying activities in the field of accounting standard setting is directed at influencing the FASB in providing more flexibility to the firm in their accounting practice with no attention towards the safeguarding the long term interests of the firm as well as the investors (Andre, Cazavan-Jeny, Dick, Richard and Walton, 2009, p.24). The intentions of the lobbies are guided by narrow interests of enhancing short term economic value of the firm by…
8 pages (2008 words)
Critically examine and discuss the impact of lobbying on standard setting in accounting. Illustrate your discussion / your analy
These standards setting have a very significant role in the determination of the profitability of the different businesses that follow these accounting standards. The meaning of political influence has been interpreted in different places in various forms. However the most appropriate definition of influence is the intervention in the entire process of standard setting with a definite purpose. This kind of intervention is generally carried out by an economic agent (Zeff, 2002, pp. 43-54). The goal of the person is to make the make affect the outcome of the accounting process which would not be…
8 pages (2008 words)