Decision Analysis

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l 1) "Standard setting is a political process '. Explain and discuss. The essay is aim to explain why standard setting is a political process and discuss how political involvement affects the process of accounting standard setting. Accounting standard setting plays an important role in conveying users that how, when and where the financial information of a company is disclosed. Standards, particularly changes in standards, can have significant differential effects on companies, investors and creditors, and other interest groups. A change in an accounting standard or the introduction of a new standard can result in a substantial redistribution of wealth within our economy. Considering it as a political process is because of its…show more content…
In conclusion, this essay discusses the reason of why accounting standard setting is a political process as well as the impact of lobbying on the setting process. Although the basic motive of regulation or implementing a standard is public interest which means that standard setting bodies wants to make financial documents more understandable, more comparable to the final users. Anybody can 't deny from this fact that process of regulation has forced the corporations to provide all the necessary information to the users which is really good for the users. But on the other way we have to accept this truth also those standard setting bodies sometimes play in the hands of powerful players of market. So finally there is a need to find out what can be changed on the trend of political lobbying with revolution in global market and information technology. 2) Efforts towards the harmonisation of accounting standards imply a “one-size fits all approach to standard setting is appropriate.” Discuss this comment This essay is to discuss whether the efforts towards the harmonisation on accounting standards indicate that a one size fits all approach to standard setting is appropriate throughout a brief introduction of “what is harmonisation of accounting standards” , the need for harmonisation and the impact of one-size fits all approach on standard setting. Just as the words connote, ‘Harmonisation’

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