A look into the development of the current accounting standards opens the eyes to the seemingly invisible forces behind them and the impacts this has had on all stakeholders. There are always winners and losers in a battle for power and self-interests and we will look at what the outcomes for these are. We will also look at the goals of the IASB, AASB and FRC as we untangle the web of financial influences over non-financial prey as well as the positive impacts the changes have brought with them. In summary, the political nature of setting accounting standards has had many influences and impacts depending on the stakeholders involved.
History proves standard-setting to be a political process
1946 – ‘Recommendations of Accounting Principles’ first issued. (Walker 1987 pp. 269)
1970’s – Statement of accounting standards issued
1977 – Accounting Standards Review Committee appointed. (Walker 1987 pp. 272)
1978 – Amalgamation of ASCPA and ICAA becoming AcSB
1980’s – Accounting bodies seek the support from the Federal government to enforce the accounting standards.... [continues]
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