English Abstract. This paper is an attempt to examine the role of accounting standards within the structure of the financial markets, particularly through the analysis of the impact of the new accounting standards from the International Financial Reporting Standards Board on the market for securities. The main conclusions of this paper are: (i) the active role played by accounting standards on the market for securities in that they are able to influence the choices of the users of financial information, and that accounting standards are in particular useful when risk is high, (ii) the fact that accounting standards are of particular importance for the measurement of some risks, (iii) the way accounting standards influence the behavior of the operators of financial markets in that they influence the determinants of the pricing of securities, including the form of prices and the price volatility, and (iv) the way accounting standards affect the way in which the role of financial intermediaries is defined by the banking sector, in particular with regard to the size of banks' loans, and that accountants play an important role in this respect.
The FASB is a part of the International Accounting Standards Board, which has recently proposed some new accounting standards, including the Accounting Standards Codification. These are expected to become mandatory by the second quarter of 2013. The new accounting standards may have profound implications for the way in which enterprises manage their financial information, and also for how the financial markets operate.
The examples in the post on January 25, 2013 are on the website of the Association of Chartered Certified Accountants.
The Associated Press, 28 January 2013. Standard Accounting Tool to Aid Cost and Economic Reporting: The five-volume Accounting Standards Codification (ASC) is being used by the U.S. government to report on more than $5 trillion in federal spending and tax receipts. The GSA, the government agency that oversees the ASC, plans to issue guidance on how to interpret the financial data in the first quarter of 2013.
. OECD/Europe, 9 September 2011. The Basel III Global Regulatory Framework for the Banking Industry (Basel Committee on Banking Supervision) is aimed at improving the resilience of the financial sector and enhancing banking stability. It sets out rules for the global financial sector and will be implemented through a series of new international regulatory initiatives, including the Basel III accord and the related implementation plans..
European Commission, 15 December 2012. The Basel III Global Regulatory Framework for the Banking Industry (Basel Committee on Banking Supervision) is aimed at improving the resilience of the ac619d1d87
Related links: