Question 1
Refer to the article Cortese, C. (2013). Politicization of the international accounting standard setting process: evidence from the extractive industries. Journal of New Business Ideas & Trends 11(2), pp. 48-57
Do you believe that the IASB always act in an 'independent' manner. Further, can the 'engagement with powerful stakeholders around the world' have potential implications for claims that IFRS are developed to provide financial information that is representationally faithful? Discuss this statement referring to the Cortese, C. 2013 article.
Subject Learning Outcome for Question 2: Be able to critically analyse complex issues in theory development based on established body of knowledge.
Instructions:
First give definitions of following in answer:
1. Definition of IASB and mention about what's his job exactly? (Developing the standards)
2. Definition of independent or independency
3. Definition of stakeholders and who are they
4. Definition of IFRS
5. Definition for representationally faithful can be google
6. It is a positive theory so explanation of positive theory (page 7 of the article)
Then give answer of the question,
Question has three parts;
Part1. Do you believe that the IASB always act in an 'independent' manner
Part2. Further, can the 'engagement with powerful stakeholders around the world' have potential implications for claims that IFRS are developed to provide financial information that is representationally faithful?
Part3. Discuss this statement referring to the Cortese, C. 2013 article.
Note(VVNB): In answering the each question, All points/steps and criteria of MARKING CRITERIA file must be covered.
Note: Books/articles/journals must be used for making this assignment, as this teacher doesn't like work from websites, please mention page numbers of books, articles, and journals while referencing
Question 2
Search for 5 comment letters from IASB AASB and FASB websites, received on a current exposure draft or proposal for a new accounting standard. You may find comment letters from a range of respondents, for example; Accounting bodies, industries, companies or corporate bodies.
a) Describe in your own words the issues dealt by the exposure draft/proposal and comment letters.
Instructions:
Describing the issue
b) Is there agreement among the various groups? Describe the issues where there is agreement/disagreement and provide examples.
Instructions:
Argue that this comment letter is agreed or disagreed.
It is better to find 2 agree comment and 3 disagree.
c) In your opinion, which of the three theories of regulation (eg. public interest theory, private interest or capture theory) best explains the comment letters? Justify your answer.