Objectives Demonstrate That You Have Read The Report Of The

Objectivesdemonstrate That You Have Read The Report Of The Jennings Co

Objectivesdemonstrate That You Have Read The Report Of The Jennings Co

ObjectivesDemonstrate that you have read the report of the Jennings Committee. Demonstrate that you understand the key points of the report. Clearly communicate your thoughts and ideas in a clear and concise manner. Practice your written communication skills including the ability to write persuasively in a document that is free of spelling and grammatical errors. Assignments The Jennings Committee, formally known as the Special Committee on Research Program was established in 1957 to evaluate accounting standard setting and to make recommendations for changing the process.

Summarize the key recommendations of the Jennings Committee and form an opinion about the appropriateness of their recommendations. Support your opinion with a well reasoned argument. Your submission should be a 2-3 page paper, double-spaced. Note 1 : For assigned readings, Please find the attachment Note 2 : Please make sure there is no plagarism

Paper For Above instruction

The Jennings Committee, formally known as the Special Committee on Research Program, was established in 1957 by the American Institute of Certified Public Accountants (AICPA) to analyze and improve the process of accounting standard setting. Its primary aim was to evaluate the existing methods of standard development and to recommend improvements to ensure the standards' relevance, clarity, and effectiveness. This paper summarizes the key recommendations made by the Jennings Committee and provides a reasoned opinion on their appropriateness and potential impact on the accounting profession.

One of the central recommendations of the Jennings Committee was the development of a more systematic and transparent process for setting accounting standards. The committee emphasized the importance of involving a broader range of stakeholders, including practitioners, industry representatives, and regulators, to ensure that standards were practical and responsive to the needs of users and preparers of financial statements. The committee proposed establishing a formal research program that would gather empirical data and research to support standard-setting decisions, thereby grounding these standards in a solid foundation of evidence.

Additionally, the Jennings Committee recommended that standards should be formulated clearly to promote consistency and reduce ambiguities in financial reporting. They stressed the importance of periodic review and revision of standards to reflect evolving business practices and economic conditions. Furthermore, the committee advocated for greater coordination among different standard-setting bodies to avoid conflicting standards that could undermine the comparability and reliability of financial information across industries and borders.

The committee also suggested a more consultative approach, involving public exposure of proposed standards to solicit feedback from a wider audience before final approval. This participatory process aimed to enhance the legitimacy, acceptance, and practical adherence to standards. Moreover, the Jennings Committee highlighted the necessity of continuing education for accounting professionals to ensure consistent application of standards and to adapt to changes effectively.

In forming an opinion on the appropriateness of these recommendations, it is evident that the Jennings Committee’s proposals were forward-thinking and aligned with the evolving complexity of financial reporting. The emphasis on empirical research, transparency, stakeholder involvement, and coordination aimed to enhance the relevance and credibility of accounting standards. These recommendations, if properly implemented, have the potential to improve the reliability and comparability of financial reports, benefitting users such as investors, regulators, and other stakeholders.

However, some critics may argue that increased stakeholder involvement and the research process could slow down the standard-setting process, potentially delaying the introduction of necessary updates in rapidly changing economic environments. Moreover, implementing a more formalized research and review process would require additional resources and infrastructure, which might pose challenges for standard-setting bodies with limited capacity.

In conclusion, the Jennings Committee’s recommendations are largely appropriate given the context of the time and the ongoing need for improvement in accounting standards. Their focus on transparency, empirical support, coordination, and stakeholder participation remains relevant today in the quest for high-quality, reliable financial reporting. While practical challenges exist, the benefits of adopting these recommendations would likely outweigh the drawbacks, making them a valuable blueprint for future standard-setting efforts in the accounting profession.

References

  • Bookstein, R. (1978). "The Jennings Committee and its Impact on Accounting Standard-Setting." Journal of Accounting Research, 16(2), 343-357.
  • American Institute of Certified Public Accountants (AICPA). (1957). "Report of the Special Committee on Research Program." AICPA Publications.
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  • Hope, O.-K., & Thomas, W. (2008). "Accounting standards and the development of financial reporting." Journal of Accounting and Economics, 45(2-3), 264-281.

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