Question 1 - Short report
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.
Question 2 Short report
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. If you are having trouble with finding suitable comment letters, then contact SarathUkwatte ([email protected]). Once you find suitable comment letters you wish to discuss, complete the following tasks:
a) Describe in your own words the issues dealt by the exposure draft/proposal and comment letters.
b) Is there agreement among the various groups? Describe the issues where there is agreement/disagreement and provide examples.
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.