Financial Accounting Theory (5th Edition)

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Matt Steger Accounting 803 Seminar 23 – Standard Setting: Economic Issues In the first section of Chapter 12, Scott introduces to us to the overriding theories on information in the market as it relates to disclosure within financial statements. Dye and Sunder discuss the possible implications of allowing competition in the standard setting process; specifically, what might happen if domestic firms were allowed to choose between IASB and FASB standards for reporting purposes. Finally, Schipper and Yohn discuss the standard setting issues that surround accounting for financial asset transfers between firms. In Chapter 12, Standard Setting: Economic Issues , Scott begins the discussion by point out, “The fundamental problem of financial accounting theory . . . is how to reconcile the financial reporting and efficient contracting roles of accounting information or, equivalently, how to determine the socially ‘right’ amount of information” (Scott, 443). He proceeds to offer us the economic definition of the “right” by writing, “We define the right amount as that amount that equates the marginal social benefits of
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This document was uploaded on 04/06/2010.

Page1 / 2

Seminar_23_StandardSettingEconomicIssues - M att Steger...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online