财务会计理论(司可脱)ppt文件13_scott_im_ch13

2006 Pearson Education Canada Inc.,13-1,CHAPTER 13,Standard Setting: Political Issues, 2006 Pearson Education Canada Inc.,13-2,Two Theories of Regulator Behaviour,Public Interest TheoryA “first best” theoryGoal is to maximize social welfareInterest Group TheoryImplies conflict between constituenciesA “second best” theory, since regulator takes own interests into account, while balancing demands of investors and managers, 2006 Pearson Education Canada Inc.,13-3,Investors Demands On Standard Setting,Investors Represented by OSC, SEC, IOSCOWant Full Disclosure, Fair Values, TransparencyWant to Predict Future Firm Performance, 2006 Pearson Education Canada Inc.,13-4,Managements Demands on Standard Setting,Wants Flexibility to Control (Manage) Reported Net incomeWants Net Income to be Highly Informative About Effort, 2006 Pearson Education Canada Inc.,13-5,Role of Standard-Setter,Role is DifficultNo “true” net incomeThe fundamental problem of financial accounting theoryImplies conflict between investors and managersMediation and CompromiseStandards must be acceptable to both investors and managementText: Section 13.6.1 re SFAS 115, 2006 Pearson Education Canada Inc.,13-6,Structure of Accounting Standard-Setting Bodies,Most Consistent with Interest Group TheoryBroad representationExposure draftsSuper-majority votingThe Interest Group Theory in ActionSee Chapter 13, Question 5To “kill” the FASB, 2006 Pearson Education Canada Inc.,13-7,Rules-Based v. Principles-Based Accounting Standards,Rules-Based StandardsLay down detailed rulesPossible?Principles-Based StandardsLay down general rulesAuditor professional judgement to prevent opportunistic manager behaviourPossible?, 2006 Pearson Education Canada Inc.,13-8,Criteria For a Successful Standard,Decision UsefulReduce Information AsymmetryNo Serious Economic ConsequencesConsensus, 2006 Pearson Education Canada Inc.,13-9,Other Comprehensive Income,Presented with Income StatementNet income from operations xxxExtraordinary itemsxxxNet incomexxxOther comprehensive incomexxxComprehensive incomexxxAlternative PresentationAs part of statement of changes in shareholders equityLess transparent, especially if securities markets not fully efficient, 2006 Pearson Education Canada Inc.,13-10,International Accounting Standards,The IASBIASB-AcSB CooperationAcSB proposal to move to IASB standardsFASB and AcSBMoving towards standards harmonizationSEC and IASBShould S