International and National Standards and Norms of Financial Reporting: Monopoly or Competitive Coexistence
Kozminski Entrepreneurship and Management, General Accounting Theory - Evolution and Design for Efficiency, 2008
Posted: 29 Mar 2012
Date Written: September 14, 2007
In recent decades, financial reporting has shifted away from reliance on social norms towards predominance of written standards enforced by authority. This change has influenced accounting thought, practice, regulation, instruction, and research. Moreover, monopoly jurisdiction of accounting standards has made it increasingly difficult to experiment with alternative methods, slowing the discovery of better methods of accounting. The so-called "fair" value standard is a result of this process. Letting standards compete would promote the development of better financial reporting and the restoration of a balance between the role standards and social norms play in financial reporting.
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