财务会计理论(司可脱)文件13_scott_im_ch13

1、CHAPTER 13Standard Setting: Political Issues1Two Theories of Regulator BehaviourPublic 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 balan

2、cing demands of investors and managers2Investors Demands On Standard SettingInvestors Represented by OSC, SEC, IOSCOWant Full Disclosure, Fair Values, TransparencyWant to Predict Future Firm Performance3Managements Demands on Standard SettingWants Flexibility to Control (Manage) Reported Net incomeW

3、ants Net Income to be Highly Informative About Effort4Role of Standard-SetterRole 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 managementT

4、ext: Section 13.6.1 re SFAS 1155Structure of Accounting Standard-Setting BodiesMost Consistent with Interest Group TheoryBroad representationExposure draftsSuper-majority votingThe Interest Group Theory in ActionSee Chapter 13, Question 5To “kill the FASB6Rules-Based v. Principles-Based Accounting S

5、tandardsRules-Based StandardsLay down detailed rulesPossible?Principles-Based StandardsLay down general rulesAuditor professional judgement to prevent opportunistic manager behaviourPossible?7Criteria For a Successful StandardDecision UsefulReduce Information AsymmetryNo Serious Economic Consequence

6、sConsensus8Other Comprehensive IncomePresented 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 efficient9International Accounting StandardsThe IASBIASB-AcSB CooperationAcSB proposal to move to IASB standardsFASB and AcSBMoving towards standards harmonizationSEC and IASBShould SEC allow IASB standards