The International Accounting Standards Boardâ€™s Progress in Promoting Judgement Through Objectives-Oriented Accounting Standards
Tanja Lakovic () and
Jayne Fuglister ()
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Tanja Lakovic: Teaching Assistant, Faculty of Economics, University of Montenegro
Jayne Fuglister: Fulbright Professor, September â€“ December, 2012, Faculty of Economics, University of Montenegro
International Journal of Business and Social Research, 2013, vol. 3, issue 7, 28-42
This study analyzes how the International Accounting Standards Board (IASB) promotes professional judgement by issuing objectives-oriented accounting standards and exposure drafts. We focus on the the role of judgement as outlined in Phase I of the IASB Conceptual Framework (CF), Chapter 1, â€œObjective of General Purpose Financial Statementsâ€ and Chapter 3, â€œQualitative Characteristics of Useful Financial Informationâ€ (IASB 2010). We discuss how the framework, when viewed through the prism of 'objectives-oriented accounting standards' as recommended by the United States Securities and Exchange Commission (SEC) Report in its â€œStudy Pursuant to Section 108(d) of the Sarbanes-Oxley Act of 2002 on the Adoption by the United States Financial Reporting System of a Principles-Based Accounting Systemâ€ (July 2003), encourages professional judgement. We analyze International Financial Reporting Standards (IFRS) and Exposure Drafts (ED) issued by the IASB since its inception in 2002 to determine if those documents are consistent with objectives-oriented accounting standards. Our analysis is useful for gaining insights into how the IASB integrates the CF with the SECâ€™s recommended objectives-oriented accounting approach to promote judgement in the interest of IASB/FASB convergence of accounting standards.
Keywords: Conceptual; Framework; Judgement; Principles-based; Accounting; Objectives-oriented; Accounting; Standards; Objectives-based; Accounting; Standards; International; Financial; Reporting; Standards. (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:mir:mirbus:v:3:y:2013:i:7:p:28-42
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