Accounting Standards Setting

Annotation

Research can describe current practices which can help the AASB identify whether any potential reporting problems exist (e.g., excessive diversity in accounting for a particular type of transaction). Research, to the extent it informs theory, can potentially assist the AASB to predict what the consequences might be (or at least some of those consequences) if alternative accounting choices are mandated in a proposed standard and Research can provide feedback on what the actual consequences were once a standard hasbeen implemented and identify whether there were any unanticipated effects. Such research can inform the Post-Implementation Review (PIR) process that has become more formalised among standard setters.