Lola Otero, a new staff accountant, is confused because of the complexities involving accounting standard-setting. Specifically, she is confused by the number of bodies issuing financial reporting standards of one kind or another and the level of authoritative support that can be attached to these reporting standards. Lola decides that she must review the environment in which accounting standards are set, if she is to increase her understanding of the accounting profession.
Lola recalls that during her accounting education there was a chapter or two regarding the environment of financial accounting and the development of IFRS. However, she remembers that her instructor placed little emphasis on these chapters.
Instructions
a. Help Lola by identifying key organizations involved in accounting rule-making at the international level.
b. Lola asks for guidance regarding authoritative support. Please assist her by explaining what is meant by authoritative support.