George J. Benston, Michael Bromwich, Robert E. Litan, and Alfred Wagenhofer
- Published in print:
- 2006
- Published Online:
- February 2006
- ISBN:
- 9780195305838
- eISBN:
- 9780199783342
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195305833.001.0001
- Subject:
- Economics and Finance, Financial Economics
This book provides readers with reasonably concise descriptions of the state of global markets, the benefits and limitations of financial accounting and accounting/auditing standards, and the ...
More
This book provides readers with reasonably concise descriptions of the state of global markets, the benefits and limitations of financial accounting and accounting/auditing standards, and the development, status, and current policy issues of corporate financial reporting in major countries and the European Union. The globalization of financial markets has contributed to a growing consensus that national financial reporting standards should give way to a single, harmonized set of global reporting standards. This book takes a more practical approach and reaches a different conclusion: that global standards are unlikely to be achieved, and in any event, are not likely to remain unified in the face of continued changes in markets and financial practices. National accounting standards are likely to continue to be relevant for the foreseeable future, and for that reason, the book discusses the national systems and their origins in some detail. The authors also consider a range of other substantive reporting issues, notably the debate over the issue of “fair value” measurement of assets and liabilities, which the authors reject in favor of a system that marks to market only those assets with deep traded markets, coupled with additional disclosures, where relevant.Less
This book provides readers with reasonably concise descriptions of the state of global markets, the benefits and limitations of financial accounting and accounting/auditing standards, and the development, status, and current policy issues of corporate financial reporting in major countries and the European Union. The globalization of financial markets has contributed to a growing consensus that national financial reporting standards should give way to a single, harmonized set of global reporting standards. This book takes a more practical approach and reaches a different conclusion: that global standards are unlikely to be achieved, and in any event, are not likely to remain unified in the face of continued changes in markets and financial practices. National accounting standards are likely to continue to be relevant for the foreseeable future, and for that reason, the book discusses the national systems and their origins in some detail. The authors also consider a range of other substantive reporting issues, notably the debate over the issue of “fair value” measurement of assets and liabilities, which the authors reject in favor of a system that marks to market only those assets with deep traded markets, coupled with additional disclosures, where relevant.
George J. Benston, Michael Bromwich, Robert E. Litan, and Alfred Wagenhofer
- Published in print:
- 2006
- Published Online:
- February 2006
- ISBN:
- 9780195305838
- eISBN:
- 9780199783342
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195305833.003.0010
- Subject:
- Economics and Finance, Financial Economics
Standard setters are attempting to structure a single set of global accounting standards. This chapter examines the costs and benefits of such convergence and finds that it is not a viable solution. ...
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Standard setters are attempting to structure a single set of global accounting standards. This chapter examines the costs and benefits of such convergence and finds that it is not a viable solution. It outlines a system of “constrained competition” in standards, within which a small set of high-quality standards would offer the most feasible and flexible setting that would cope with increasingly global capital markets. Three alternatives of such competition — among countries, between exchanges, and competition at the firm level — are outlined and discussed. The chapter also discusses harmonization of audit oversight and enforcement worldwide, and stresses that quality assurance is more important than the convergence of accounting standards.Less
Standard setters are attempting to structure a single set of global accounting standards. This chapter examines the costs and benefits of such convergence and finds that it is not a viable solution. It outlines a system of “constrained competition” in standards, within which a small set of high-quality standards would offer the most feasible and flexible setting that would cope with increasingly global capital markets. Three alternatives of such competition — among countries, between exchanges, and competition at the firm level — are outlined and discussed. The chapter also discusses harmonization of audit oversight and enforcement worldwide, and stresses that quality assurance is more important than the convergence of accounting standards.
George J. Benston, Michael Bromwich, Robert E. Litan, and Alfred Wagenhofer
- Published in print:
- 2006
- Published Online:
- February 2006
- ISBN:
- 9780195305838
- eISBN:
- 9780199783342
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195305833.003.0003
- Subject:
- Economics and Finance, Financial Economics
Following a description of the ways that standards benefit users and producers of financial statements, this chapter considers alternative organizational procedures for setting those standards. The ...
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Following a description of the ways that standards benefit users and producers of financial statements, this chapter considers alternative organizational procedures for setting those standards. The benefits and costs of having standards determined by the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) rather than by professional accountancy organizations are analyzed. Principles-based versus rules-based accounting standards are also examined.Less
Following a description of the ways that standards benefit users and producers of financial statements, this chapter considers alternative organizational procedures for setting those standards. The benefits and costs of having standards determined by the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) rather than by professional accountancy organizations are analyzed. Principles-based versus rules-based accounting standards are also examined.
Lucia Quaglia
- Published in print:
- 2014
- Published Online:
- August 2014
- ISBN:
- 9780199688241
- eISBN:
- 9780191767517
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199688241.003.0006
- Subject:
- Political Science, European Union
The regulatory capacity of the EU in accounting was very limited until 2002, when the EU decided to download international accounting standards through an endorsement process. By contrast, the US had ...
More
The regulatory capacity of the EU in accounting was very limited until 2002, when the EU decided to download international accounting standards through an endorsement process. By contrast, the US had a strong regulatory capacity in accounting. Hence, the governance structure of the International Accounting Standards Board (IASB) and most of its accounting standards were uploaded by the US. The regulatory capacity of the EU in auditing was very limited until the late 2000s. In the US, the Sarbanes-Oxley Act (2002) strengthened US regulatory capacity. Certain provisions of the Act also had extraterritorial effects. As a response, the EU beefed up its regulatory capacity. After the crisis, the Commission proposed new legislation, whereby member states are required to use international auditing standards. In light of the EU’s decision to adopt international auditing standards, the governance structure of the International Auditing and Assurance Standards Board (IAASB) was reformed and its standards were revised to make them better suitable for adoption in the EU as well as worldwide.Less
The regulatory capacity of the EU in accounting was very limited until 2002, when the EU decided to download international accounting standards through an endorsement process. By contrast, the US had a strong regulatory capacity in accounting. Hence, the governance structure of the International Accounting Standards Board (IASB) and most of its accounting standards were uploaded by the US. The regulatory capacity of the EU in auditing was very limited until the late 2000s. In the US, the Sarbanes-Oxley Act (2002) strengthened US regulatory capacity. Certain provisions of the Act also had extraterritorial effects. As a response, the EU beefed up its regulatory capacity. After the crisis, the Commission proposed new legislation, whereby member states are required to use international auditing standards. In light of the EU’s decision to adopt international auditing standards, the governance structure of the International Auditing and Assurance Standards Board (IAASB) was reformed and its standards were revised to make them better suitable for adoption in the EU as well as worldwide.
Ian Dewing and Peter Russell
- Published in print:
- 2014
- Published Online:
- June 2014
- ISBN:
- 9780199683963
- eISBN:
- 9780191763410
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199683963.003.0007
- Subject:
- Business and Management, Finance, Accounting, and Banking
This chapter explores recent EU and international developments in audit policy, and focuses on the adoption of International Standards on Auditing (ISAs) issued by the International Auditing and ...
More
This chapter explores recent EU and international developments in audit policy, and focuses on the adoption of International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board (IAASB). Under the harmonization of company law program, the EU has adopted international accounting standards as the basis for preparing the financial statements of EU listed companies, and is currently in the process of adopting international auditing standards as the basis for audit. The chapter examines the debates and developments pre- and post-financial crisis at international and European levels to create transnational governance structures and oversight processes for IFAC and IAASB to safeguard the public interest and to enable the adoption of ISAs in the EU. The result has been the creation of linkages at international, regional and national levels involving a wide range of private, professional and public actors.Less
This chapter explores recent EU and international developments in audit policy, and focuses on the adoption of International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board (IAASB). Under the harmonization of company law program, the EU has adopted international accounting standards as the basis for preparing the financial statements of EU listed companies, and is currently in the process of adopting international auditing standards as the basis for audit. The chapter examines the debates and developments pre- and post-financial crisis at international and European levels to create transnational governance structures and oversight processes for IFAC and IAASB to safeguard the public interest and to enable the adoption of ISAs in the EU. The result has been the creation of linkages at international, regional and national levels involving a wide range of private, professional and public actors.
