Accounting Theories
“The theories we use to help us understand standard-setting in national arenas (such as Australia) don't work so well at the international level where the . . . International Accounting Standard Board (IASB) is taking a leading role. We will have to modify them or expand our theoretical repertoire”
Discuss the above statement, clearly indicating your agreement or otherwise about the basis for your views.
Abstract:
The theories that are presented in this paper all assume the importance of a national framework/regulation. Thus this suggests that maybe the theories are not suitable at the international level and we will have to modify and expand our theoretical repertoire.
Introduction:
This paper examines whether the theories used in standard setting in national arenas are still applicable at the international level. The theories that will be examine are public interest theory, the regulatory capture theory, the private interest theory and the market-state-community model under the context of Australia, while at the same time standard setting experience in Australia will also be compare to other national arenas such as Bangladesh (a weak non-Western nation) and USA (a similar but strong nation). Key players, the resources available to them and the relationship/dynamics between them within each theory will be analysed prior to the IASB-convergence era and the current IASB-convergence era. In that light, the paper attempts to explore whether the theories helps us to understand the international standard setting.
Furthermore, if the theories is to guide the international accounting standard setting process, can the IASB realistically develop a workable conceptual framework (CF) that will be acceptable on a global level? And what will be the impediments and obstacles to the development of such a framework? Also, will the CF continue to serve the same standard setting objectives and priorities that it has traditionally performed in Australia?
To address
Discuss the above statement, clearly indicating your agreement or otherwise about the basis for your views.
Abstract:
The theories that are presented in this paper all assume the importance of a national framework/regulation. Thus this suggests that maybe the theories are not suitable at the international level and we will have to modify and expand our theoretical repertoire.
Introduction:
This paper examines whether the theories used in standard setting in national arenas are still applicable at the international level. The theories that will be examine are public interest theory, the regulatory capture theory, the private interest theory and the market-state-community model under the context of Australia, while at the same time standard setting experience in Australia will also be compare to other national arenas such as Bangladesh (a weak non-Western nation) and USA (a similar but strong nation). Key players, the resources available to them and the relationship/dynamics between them within each theory will be analysed prior to the IASB-convergence era and the current IASB-convergence era. In that light, the paper attempts to explore whether the theories helps us to understand the international standard setting.
Furthermore, if the theories is to guide the international accounting standard setting process, can the IASB realistically develop a workable conceptual framework (CF) that will be acceptable on a global level? And what will be the impediments and obstacles to the development of such a framework? Also, will the CF continue to serve the same standard setting objectives and priorities that it has traditionally performed in Australia?
To address