Question: The Website of the FASB(as at early 2009) states that FASB intends:

To promulgate standards only when the expected benefits exceed the perceived costs. While reliable, quantitative cost-benefit calculations are seldom possible, the Board strives to determine that a proposed standard will meet a significant need and that the costs it imposes, compared with possible alternatives, are justified in relation to the overall benefits.

Do you think that cost-benefit considerations will be different in different countries? If so, how would cost-benefit considerations be determined by a global accounting standard-setter such as the IASB.

Critically analyse and evaluate the arguments for and against, for the above paragraph and which argument do you consider to be more compelling.

Hints: what to mention in the case study(800 words approx)

Direct answer:

1^st para: Accountant job is to make decision with effectiveness accounting concept for accounting relation.

cost benefit analysis? How much will be the company's expectation?

2^nd para: why cost benefit analysis are different in different countries?( tax systems like gst, vat etc)

Recommendations?(uniformity of accounting). Give arguments (standardization- emphasis) not harmonization.

Discussion on varieties of choices by countries, cultures, cost benefit calculations made by bodies such as the FASB or IASB might have little relevance in some other countries.