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Question 1
The IASC (1998, p. 50) stated that ‘many developing and newly industrialised countries are using International Accounting Standards as their national requirements, or as the basis for their national requirements. These countries have a growing need for relevant and reliable financial information to meet the requirements both of domestic users and of international providers of the capital that they need.’ Do you think that IASs/IFRSs will provide ‘relevant and reliable information’ that meets the needs of all financial statement users in all countries?
Question 2
In the early 1990s, US Financial Accounting Standards Board’s chairperson Dennis Beresford claimed that the US accounting and reporting system was regarded by many as ‘the most comprehensive and sophisticated system in the world’. Evaluate this statement. How do you think its validity might have changed in the aftermath of accounting failures at Enron, WorldCom and Andersen in 2001/02? Do you think that the US system would be regarded as sophisticated in all cultural contexts?
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