Are IASBS Qualitative Characteristics Reflected In IFRSS? IAS 29 As A Case Study
Abstract
The study investigates the ability of IAS 29 to reflect IASB'squalitative characteristics. A critical and evaluative approachis adopted to test three hypotheses. First, IASB requireshigh comparable information in financial statements andother financial reports. We find that IAS 29 leads to aninadequate comparability based on performance. As aharmonizing international body, IASB, through IAS 29, doesnot render any valid comparison which is supposed to be the most fundamental mission of IASB. Second, IAS 29 is purposively constructed to provide relevant information for economic decisions taken by shareholders. We find that IASB is ideologically biased. Finally, IAS 29 does not achieve faithful representation when historical cost information is restated through a general price index. We find that the official price index is far from being representative of the prices of goods and services and representative of the inflation rate. The measured consumer price index during the period of large price shock was biased. The results of this paper indicate that IAS29 does not reflect the qualitative characteristics espoused by the various pronouncements by IASB.
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