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Critical appraisal of the International Accounting Standard Dissertation

Category: Finance & Accounting Pages: 42 Type: Dissertation Level: Master
dards Board (IASB) is to formulate a singular guideline that would establish accounting standards of high quality that must be comprehensible, as well as practical and practicable for the sake of public interest. Such guideline would encompass the accounting framework across the globe, which mandates transparent and analogous data of financial statements dedicated to a universal rationale (IASB) (Ashbaugh & Pincus 2001). With that philosophy in mind, the IASB has made the necessary measures to eliminate permissible accounting practices and policies that would serve as alternatives (Leuz et al 2003; Tarca 2004). In addition, the board has necessitated that the accounting measures enforced in IAS mirror the performance of a firm based on its economic position (Street & Gray 2001; Tarca 2004; Hung & Subramanyam 2004). With these two premises in mind, one can note that the application of IAS is directed towards the development of accounting quality among firms. A firm's accounting quality poses the probability to improve provided that alternatives are eliminated and the perusal of developing the degree to which the concept of accounting measurements aim to echo the limit of a firm's economic position, which would then be based on the prerogative of the management in reporting accounting amounts that pose an inferior representation of a firm's economic performance, such as the process of managing earnings (Bartov, Goldberg & Kim 2004; Daske 2006; Leuz 2003). With that concept in mind, the researcher aims to identify whether accounting amounts that have been identified with the help of IAS present higher quality, as opposed to those determined through GAAP (Leuz 2003). However, one factor to consider in evaluating the quality of accounting amounts is based on the regulatory,