The IASB has instituted four principles related to its funding to ensure that funding does not lead to politicization of standard setting. The standards specify that funding should be broad-based, compelling, open-ended, and country-specific. This differs from the funding process for AcSB and FASB.
Instructions
(a) Discuss the four principles and what impact they have on the standard-setting process.
(b) What issues might arise if these principles did not exist?
(c) AcSB and FASB do not have the same principles in place. Why might the same principles not work for AcSB and FASB?