Teori Akuntansi Case 2

Topics: European Union, International Financial Reporting Standards, European Commission Pages: 3 (876 words) Published: April 10, 2013
Accounting Theory
Report PBL Task 2

Prepared by:

Nadya Azahra R(023100004)

Trisakti University
Case Study 3.3
Step 1
Kind of task: Problem Task
Step 2
Main Problem
“Determining the theories of regulation relevant for each of five events.” Step 3
Methods: Brainstorming
Step 4
Analyze Problems:
1. What would be possible theories of regulation relevant for each event? 2. Explain about the reason of theories of regulation for each event! Step 5
Learning Objectives:
* Understand about the theories of regulation
* Understand how theories of regulation apply to accounting pratice Step 6
1. June 2002: The European Commision announces plans to adopt international accounting standards (IAS) for consolidated financial statement of all listed companies in European Union (EU) member states from 1 January 2005. Explanation:

Based on events that occurred on this first event, we can see the party that dominates, namely the European Commission, which announced the use IAS to present consolidated financial statements of listed companies in the European Union. From this event we can connect with the theory of regulatory capture theory, in which the European Commission as the dominating party make regulations with altruistic entity.

2. October 2004: The European Commision endorse IAS for use in the EU, with the exception of certain provisions of IAS 39 relating to hegde accounting and fair value measurements of financial instruments. When complying with IASB standards from 2005, companies will not be required to follow the excluded provision of IAS 39. Explanation:

Based on regulatory capture theory, this theory maintains that although the purpose in fact or origin of regulation is to protect the public interest, this purpose is not achieved because, in the process of regulation, the regulatee comes to control or dominate the regulator. In this event, we knew that European Commission had already settle the...
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