The FASB carries out its mandate through a comprehensive and independent process that encourages broad participation, objectively reflects all views of stakeholders and is subject to oversight by the Board of Trustees of the Financial Accounting Foundation.
The Due Process of the IFRS Foundation is described in its charter and in more detail in the Due Process Manual. The proper process allows stakeholders around the world to contribute to and challenge standards-setting, and helps us ensure that the world’s best thinking is incorporated into the development of requirements.
The IASB’s research program includes analyzing potential financial reporting problems by gathering evidence about the nature and extent of the perceived deficiency and evaluating possible ways to improve financial reporting or to remedy a deficiency.
In the context of educational assessment, standard setting remains a particularly critical element because it is complex and largely non-standardised. Instruments established by means of standardized procedures such as Proficiency Levels (PL) therefore appear partly arbitrary.
Accounting standards are authoritative standards for financial reporting and the primary source of generally accepted accounting principles (GAAP). Accounting standards specify how transactions and other events should be recognized, measured, presented and disclosed in financial statements.
IFRS requires that financial statements be prepared according to four core principles: clarity, relevance, reliability and comparability.
Because IFRS is more principle-based, it arguably represents and captures the economics of a transaction better than GAAP.
The four basic limitations associated with GAAP include Objectivity, Materiality, Consistency and Prudence.
International Accounting Standards (IAS)
The International Accounting Standards Board is the independent standard-setting body of the IFRS Foundation. The task of the International Accounting Standards Board is to develop enforceable, globally accepted International Financial Reporting Standards (IFRS).
Environmental standards are usually set by the government and may include prohibiting certain activities, mandating the frequency and methods of monitoring, and requiring permits for land or water use. The standards differ depending on the type of environmental activity.
Default is the process of choosing intersection numbers in a test. An intersection score is the score that defines the minimum performance required for a given level of performance on an exam.
The difficulties are: 1. Definition difficulties 2. Political bargaining in setting standards 3. Conflict in accounting theories 4.
A standardized test is a test that is administered and scored in a uniform or “standard” manner. Standardized tests are designed so that the questions and interpretations are consistent and are administered and scored in a predetermined, standardized way.
Income Statement / Income and Expense Statement. Cash flow statement. Statement of Changes in Equity.