Chapter 12, Problem 12.3Q

To determine

Introduction: Accounting principlesare set of rules to record and measure the economic activity in a business, methods used to measure economic activity is different around the world. Many factors influences development of accounting standards in a country, including its economy, legal, educational and political systems, etc. these differences have led to significant diversity in accounting standards from one nation to another. The lack of uniform set of accounting standards creates problems for companies, and its users. Significant steps have been taken by global economies to overcome this barrier, one of them is to move towards a single set of globally accepted reporting standards.

The standard setting process of IASB