Question: The Website of the FASB(as at early 2009) states that FASB intends:
To promulgate standards only when the expected benefits exceed the perceived costs. While reliable, quantitative cost-benefit calculations are seldom possible, the Board strives to determine that a proposed standard will meet a significant need and that the costs it imposes, compared with possible alternatives, are justified in relation to the overall benefits.
Do you think that cost-benefit considerations will be different in different countries? If so, how would cost-benefit considerations be determined by a global accounting standard-setter such as the IASB.
Critically analyse and evaluate the arguments for and against, for the above paragraph and which argument do you consider to be more compelling.
Hints:what to mention in the case study(800 words approx)
Direct answer:
1st
para: Accountant job is to make decision with effectiveness accounting concept for accounting relation.
cost benefit analysis? How much will be the company’s expectation?
2nd
para: why cost benefit analysis are different in different countries?( tax systems like gst, vat etc)
Recommendations?(uniformity of accounting). Give arguments (standardization- emphasis) not harmonization.
Discussionon varieties of choices by countries, cultures, cost benefit calculations made by bodies such as the FASB or IASB might have little relevance in some other countries.
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Question: The Website of the FASB(as at early 2009) states that FASB intends: To promulgate standards only when the expected benefits exceed the perceived costs. While reliable, quantitative cost-benefit calculations are seldom possible, the Board strives to determine that a proposed standard will meet a significant need and that the costs it imposes, compared with possible alternatives, are justified in relation to the overall benefits. Do you think that cost-benefit considerations will be different in different countries? If so, how would cost-benefit considerations be determined by a global accounting standard-setter such as the IASB. Critically analyse and evaluate the arguments for and against, for the above paragraph and which argument do you consider to be more compelling. Hints: what to mention in the case study(800 words approx) Direct answer: 1st para: Accountant job is to make decision with effectiveness accounting concept for accounting relation. cost benefit analysis? How much will be the company’s expectation? 2nd para: why cost benefit analysis are different in different countries?( tax systems like gst, vat etc) Recommendations?(uniformity of accounting). Give arguments (standardization- emphasis) not harmonization. Discussion on varieties of choices by countries, cultures, cost benefit calculations made by bodies such as the FASB or IASB might have little relevance in some other countries. conclusion