Describe the reasons for the political involvement during the accounting standards setting process.

Question

In establishing financial accounting standards, two basic premises of the FASB are (1) The FASB should be responsive to the needs and viewpoints of the entire economic community, not just the accounting profession. (2) It should operate in full view of the public through a "due process" system that gives interested persons ample opportunity to make their views known. To ensure achievement of these goals, what steps does the FASB follow in the development of a typical FASB standard?

Answer 1

Question

Chapter 1, Problem 2C

To determine

Describe the reasons for the political involvement during the accounting standards setting process.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Students have asked these similar questions

In establishing financial accounting standards, two basic premises of the FASB are (1) The FASB should be responsive to the needs and viewpoints of the entire economic community, not just the accounting profession. (2) It should operate in full view of the public through a "due process" system that gives interested persons ample opportunity to make their views known. To ensure achievement of these goals, what steps does the FASB follow in the development of a typical FASB standard?

Which of the following are elements of a single, widely accepted set of high-quality accounting standards? a) Common laws and common application of accounting standards. b) Common education of market participants and common currency. c) Common boards of directors and common enforcement. d) Common delivery systems and common high-quality auditing standards. The objective of financial reporting a) is focused on stewardship. b) is focused on management decisions. c) is focused on equity investors, lenders, and other creditors in making decisions. d) is communicated in the president's letter. A company is viewed as separate and distinct from its owners when a(n) ________ perspective is adopted. a) entity b) proprietary c) governance d) stewardship A company using IFRS to prepare its financial statements will use a hierarchy to determine what recognition, valuation, and disclosure requirements should be used.1. IFRS, IAS, IFRS Interpretations2. Pronouncements of other…

“A key component of the Accounting Conceptual Framework (ACF) is the qualitative characteristics of useful financial information that includes relevance, faithful representation, and other enhancing qualities for identifying and disclosing financial information.” Requirements: By reviewing IFRS 15 and/or IFRS 16, critically evaluate how accounting regulators and practitioners reflect the qualitative characteristics in practice. Your analysis may also highlight any advantages and challenges in respect of applying the qualitative characteristics in any context(s). Your answer must clearly mention the IFRS(s) chosen and support your critical evaluation by drawing on evidence and arguments from credible, verifiable, and accessible sources e.g., peer-reviewed academic journals, professional publication, books etc.