Question 1 Essay
Find the comment letters received on a current exposure draft or proposal for a new accounting standard. (These can be found on the websites of most standard setting organizations such as IASB, AASB or FASB. Hint: These websites can be quite difficult to navigate, so as a first step try to type "IASB comment letters" in to Google or other search engine of your choice). Read a sample of the comments from a range of respondents and select five respondents, for example from professional accounting bodies, industry, companies or corporate bodies. Include copies of the comment letters you wish to discuss and complete the following task.
a) Describe on your own words the issues that the exposure draft/proposal and comments letters dealt with.
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 (Public interest theory, Economic interest group theory [Private interest] and Capture theory) explain the comment letters? Justify your answer.
Question 2 Essay
Read the following article which is available online at https://ro.uow.edu.au/cgi/viewcontent.cgi?article=1298&context=buspapers
Cortese, C. L. (2013). Politicisation of the international accounting standard setting process: evidence from the extractive industries. Journal of New Business Ideas and Trends, 11 (2), 48-57.
The article details many issues of relevance to the accounting theories we have studied this semester.
Relate the concepts, ideas and facts of the article to the following topics;
1. International Accounting Theory
2. The Standard Setting Process
3. Accounting Regulation and Politics
For each theory, outline its major ideas and assumptions and discuss if the article supports or does not support the major ideas of the theory.
Rationale
These assessments are designed to assist you:
- In gathering and integrating knowledge on the theories which you have learned from topics 4 to 7.
- In developing your learning through the application of the concepts covered in topics 4 to 7
- To demonstrate your level of understanding and the level of your research efforts.
Content assessed: Accounting regulation and politics and standard setting process and international accounting.
Key generic skills: Research, critical thinking and analytical writing