The Senior Partner of the firm you work for has appointed you to a new role. It is now your responsibility to review upcoming accounting standards and provide a report to the partners on the proposed standard and the opinions of other industry players on the changes.
Firstly, you are required to find a current exposure draft or proposal for a new accounting standard which has been opened for public comments. (These can be found on the websites of most standard-setting organisations, such as the IASB, AASB and FASB. Hint: These websites can be quite difficult to navigate, so as a first step try typing “IASB exposure draft and comment letters”/”FASB exposure draft and comment letters” into Google or other search engine of your choice). Read a sample of the comments from a range of respondents. Select four respondents, ideally from different types of organisations for example, from accounting bodies, industry, companies or corporate bodies. If you are having a problem finding suitable comments letters then contact your subject coordinator.
In your own words, supporting your evaluation with appropriate citations, appropriately referenced in APA 6 style, you are required to include the following information in the report.
- An outline of the major issues covered in the exposure draft (what is the exposure draft introducing or changing?).
- An assessment as to whether (or not) the behaviour of the regulator in introducing the exposure draft can be explained by public interest theory.
- An outline of the views presented in the comments letters which highlights the areas of agreement and disagreement with the exposure draft.
- An assessment as to whether the comments letters can be interpreted as being ‘for’ or ‘against’ regulation which provides relevant examples.
- An application of each of the theories of regulation (public interest, private interest and capture) to the comments letters and a justification as to which theory best explains the comments.
View current exposure drafts or proposals for a new accounting standard here:
- FASB Exposure Draft and Comment Letters
2. IASB exposure draft and comment letters