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...

1 answer below »
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
Document Preview:

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

Answered Same DayDec 20, 2021

Answer To: Question : The Website of the FASB(as at early 2009) states that FASB intends: To promulgate...

David answered on Dec 20 2021
47 Votes
Introduction:
Accounting concepts just try to input financial data into proper format taking into account the
concepts of relevance and materiality. The acc
ountant just stops his work with this. The
elationship between accounting standards and FASB framework aligns the work of the
accountant towards proper disclosures and allows for transparency in recording of transactions.
Accounting framework is basically to understand that relationship between the accountant and
the accounting work just relates to this aspect of transactional efficiencies. He cannot comment
of the cost benefit analysis that a firm may like to compute or is in no way empowered to make
decisions relating to cost benefit analysis which is basically the purview of management
accounting because it is a decision making g process and hence allows for strategic cost efficient
functioning. The cost benefit analysis draft as laid by the FASB and the IASB pertains to a
systematic process of calculating and comparing benefits accruing to project decisions . it
determines the feasibility of a project and also looks for justification of an investment decision.
Hence it is a basis for comparing projects. Though the concept of comparison begins with the
cost and the benefits accruing to it, the cash flows that are associated with the project, there are
no set rules for accountants to mark up on. Though the board does not suggest any specific ways
of understanding the cost benefit analysis structure it is always better to use the Net present value
method as pitted against the free...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here