Problem:
Select one accounting practice that has caused major problems for standard setters internationally (i.e. where practice varies considerably from country to country). Explain the problem and how standards setters have attempted to harmonise practice. Desribe and evaluate the current situation.
Guidelines:
· The paper must follow academic rules i.e. preface, introduction,main discussion , conclusion , bibliography and references.
· Length:2500 words +/- 10%
· Your mark will be a combination mark taking into account the academic content and style of the paper.
· Please refer to the University’s policy on plagiarism
It means choose one accounting area which has caused problems in a number of countries and would enable you to discuss their approaches and how and if they have solved the problems.
Typical areas would include Foreign currency translation, accounting for goodwill, valuing brands, research and development. You could also explore how the IASB has dealt with it. The discussion may analyse whether they (the standard setters in a country) have selected the theoretically best solution or that which they think is the popular/political/easy solution. This is to do with public interest versus private interest theory.