Accounting Standard Selection and its Socio-economic Consequences

Abstract Accounting standards represent those resolutions pertaining to measurement and reporting which comprise the basis upon which various finanacial statements are prepared. Besides indicating the financial position and activities of the business, accounting standards represent an amalgamation of accounting customs and practices recognized over the years as being useful. They indicate the accounting procedures to be followed when preparing financial statements. In a narrow sense, accounting standards refers to practices decided upon by the various agencies responsible for establishing accounting standards, including the Business Accounting Standards Board in Japan, the Financial Accounting Standards Board (FASB) in the United States, the Accounting Standards Board (ASB) in the United Kingdom, and the International Accounting Standards Committee (IASC). In a broader sense, accounting standards might include various regulations pertaining to accounting passed by law. In the very broadest sense of the term, accounting standards include the rules and suggestions put forth by professional accounting organizations, etc.