As accounting standards globalise the standard setting

Question

Part A

As accounting standards globalise, the standard setting bodies face the challenge of accommodating the Islamic prohibition on interest, and other aspects of Sharia law, into money making.

There are two contrasting views on how to account for Islamic financial transactions.

a)      A separate set of Islamic accounting standards is required; or

b)      International Financial Reporting Standards can be applied to Islamic financial transactions.

The differing approaches to accounting for Islamic financial transactions can be generally attributed to opposing views on two main points of contention.

a)      The acceptability of reflecting a time value of money in reporting an Islamic financial transaction; and

b)      The conventional approach of recognising and measuring the economic substance of a transaction, rather than its legal form.

Discuss

Part B

In the Australian accounting sphere the concept of due process is applied within the institutional arrangements for regulating financial reporting and falls particularly within the promulgation of accounting standards.

a)      What is due process.

b)      Is there a difference in due process in law and the due process as applied within the accounting standard setting regime

c)      What is procedural due process and substantive due process. Is there a difference and if so what is it.

 

Part C

It is well documented that the setting of accounting standards is the outcome of a political, rather than a technical or economic, process. Regulatory bodies endeavour to balance the competing demands and views of lobbyists, while also being mindful of their own situation and the extent to which their activities fall within the ambit of their political masters.

If accounting rules have widespread and significant economic and social implications, then proposed accounting rules would be of interest to many individuals and groups, whose wealth and welfare may be affected.

Lists of Exposure Drafts

Proposed Amendments to AASB 132 Financial Instruments: Presentation and AASB 101 Presentation of Financial Statements	150
Australian Additions to, and Deletions from IFRSs	151
Proposed Amendments to AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards - Cost of an Investment in a subsidiary	152
Proposed Amendments to AASB 124 - Related Party Disclosures - State-controlled Entities and the Definition of a Related Party	153
Proposed Amendments to AASB 102 - Inventories Held for Distribution by Not for Profit Entities	154
Financial Reporting by Whole of Governments	155
Proposals Arising from the Short-term Review of the Requirements in AAS 27, AAS 29 and AAS 31"	156
Joint Arrangements	157
Proposed Amendments to AASB 139 Financial Instruments: Recognition and Measurement - Exposures Qualifying for Hedge Accounting	158
Proposed Improvements to Australian Accounting Standards	159
Proposed Amendments to AASB 1 First-time Adoption of International Financial Reporting Standards and AASB 127 Consolidated and Separate Financial Statements - Cost of an Investment in a Subsidiary, Jointly-Controlled Entity or Associate	160
Proposed Amendments to AASB 2 Share-based Payment and AASB Interpretation 11 AASB 2 - Group and Treasury Share Transactions - Group Cash-settled Share-based Payment Transactions	161
Proposed Amendments to Key Management Personnel Disclosures by Disclosing Entities	162
Proposed Amendments to AASB 1049 for Consistency with AASB 101	163
An improved Conceptual Framework for Financial Reporting: The Objective of Financial Reporting and Qualitative Characteristics and Constraints of Decision-useful Financial Reporting Information	164
Proposed Improvements to Australian Accounting Standards	165

 

Simplifying Earnings per Share: Proposed Amendments to AASB 133	166
Discontinued Operations: Proposed Amendments to AASB 5	167
Additional Exemptions for First-time Adopters: Proposed amendments to AASB 1	168
Improving Disclosures about Financial Instruments: Proposed amendments to AASB 7	169
Relationships with the State Proposed amendments to AASB 124	170
Consolidated Financial Statements	171
Embedded Derivatives (Proposed Amendments to AASB Interpretation 9 and AASB 139)	172
Investments in Debt Instruments (Proposed Amendments to AASB 7)	173
Amendments to Australian Accounting Standards to facilitate GAAP/GFS Harmonisation for Entities within the GGS	174
Post-implementation Revisions to AASB interpretations	175
Proposed Amendments to Australian Accounting Standards - Borrowing Costs of Not-for-Profit Public Sector Entities	176
Derecognition (Proposed Amendments to AASB 139 and AASB 7)	177
Income tax	178
Superannuation Plans and Approved Deposit Funds	179
Income from Non-exchange Transactions (Taxes and Transfers)	180
Fair Value Measurement	181
Prepayments of a Minimum Funding Requirement	182
Management Commentary	183
Financial Instruments: Classification and Measurement	184
Rate-regulated Activities	185
Classification of Rights Issues (proposed amendment to AASB 132)	186
Discount Rate for Employee Benefits (proposed amendments to AASB 119)	187
Improvements to IFRSs	188
Financial Instruments: Amortised Cost and Impairment	189
Limited Exemption from Comparative AASB 7 Disclosures for First-time Adopters (proposed amendment to AASB 1)	190
Measurement of Liabilities in AASB 137 (Limited re-exposure of proposed amendment to AASB 137)	191
Revised Differential Reporting Framework	192
Conceptual Framework for Financial Reporting: The Reporting Entity	193
Request for Comment on IPSASB Exposure Draft 'Service Concession Arrangements: Grantor'	194
Defined Benefit Plans (proposed amendments to AASB 119	195
Fair Value Option for Financial Liabilities	196
Exposure Draft 197 - Presentation of Items of Other Comprehensive Income	197
Revenue from Contracts with Customers	198
Measurement Uncertainty Analysis Disclosure for Fair Value Measurements (Limited re-exposure of proposed disclosure	199
200A Proposals to Harmonise Australian and New Zealand Standards in Relation to Entities Applying IFRSs as Adopted in Australia and New Zealand	200
200B Proposed Separate Disclosure Standards

 

Choose ten Exposure Drafts between ED150 and ED200 and comment on who is submitting (Go to the AASB site) and any other generalities you consider interesting.