Journal of Accounting and Management Information Systems (JAMIS)

What kind of accounting standards should the IASB write?

Vol. 14, Nr. 3/2015 ,   439-452

Mary Tokar

Keywords:   IFRS,IASB, accounting standard-setting, financial statements, judgement, comparability, materiality, business model

Abstract:   This paper focuses on a long-standing challenge forstandard setters:  what kind of standardsshould they write?  How specific andprescriptive should standards be?  Howshould cost considerations influence requirements?  How should standard setters balancecomparability with effective communication of an entity’s strategy and businessmodel?  What are reasonable expectationsfor the use of judgement?  And what isthe interaction of the types of standards with the training – both skills andsubject matter knowledge – of accountants. These issues are explored using examples from recent IASB standardsetting, primarily the IASB’s new revenue standard.  The author concludes that there is no singleanswer.