Process of Standards Setting in UK and USA Homework Help

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Process of Standards Setting in UK and USA Assignment Help

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Standard setting is the strategy used to describe steps of acquirement or expertise. Standards setting are analytical to producing sound student- as well as policy-level judgments. It is important that the content of the test and its complexity level be suitable for the judgments made based on the results. Many academic accountants proposed research programs to explore the probability of establishing accounting standards.

The standard setting process involves the following steps

  • Add subject to the program
  • Investigate band examine the matter
  • Discuss with stake holders
  • Issue quality or other declaration

U.S. and UK accounting standard-setting process has evolved efficiently. There is a close relationship between the Securities and Exchange Commission (SEC), and the Financial Accounting Standards Board (FASB), a private sector body to whom the SEC has commissioned this duty and, a governmental agency legally accountable for establishing accounting standards.

The accounts setting process intends to achieve its goals by-

  1. Establishing principles to advise it in forming quality and to supply a structure in which others can carry understanding in settling accounting problems.
  2. Developing new accounting standards, or modifying already present ones.To evolve new business applications, new economic growths and to recognize the inadequacy of present practices.
  3. Meeting important problems immediately.
  4. To arrange public
  5. To reduce confusion when making necessary modifications.
  6. To review past decisions and to make changes when necessary.

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