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What is Economic Consequences of Accounting Standards about?

This document discusses accounting standard setting from an economic consequences perspective, with a focus on information inductance in a cost-benefit framework. It outlines how standard setting involves social choices that impact resource allocation and wealth distribution. While technical accounting considerations previously dominated standard setting, regulators now recognize the need to analyze economic impacts on various stakeholders. The goal of accounting standards should be to maximize social welfa

Author

Fabian Quinche

Language

EN