A Standard on Accounting for Brand Names - Assignment Example

The paper 'A Standard on Accounting for Brand Names' is a great example of a finance and accounting assignment. To develop any accounting policy, the FASB considers the public interest before framing any accounting policy framework. Some different stakeholders and shareholders have a direct interest. All economic, financial, commercial, and credit-related activities directly affect the public interest. In this regard, it is important to mention that the public interest is defined as a stake that is commonly shared or owned by the general public, in this case, the general public is mainly represented by the shareholders, creditors, investors, institutional investors, employees, credit-rating agencies, customers, and local communities and all those who are directly or indirectly affected by the activities of the firms.

Such consideration is highly needed as they are the ones whose main interests are affected by this policy formulation process. In this regard, it is important to mention that the professional bodies, such as FASB, do not only represent the interests of firms but also need to protect, promote, and safeguard the general public's stakes. And the promotion of public interest can only be done through providing an effective and efficient accounting policy that should not protect the interest of one group at the cost of others; instead, the policy framing should ensure a confluence where the interests of the majority if not all stakeholders merge and they are collectively promoted and forwarded as well.

Users of accounting informationThe need for information users must also be considered. There are different types of information users, such as employees, shareholders, investors, creditors, and customers. And each one has unique and different expectations and requirements. In other words, each accounting policy must keep in mind the requirements and expectations of users before drafting any accounting policy. For example, shareholders, who are the real owners and main but significant stakeholders, always expect the firms to ensure transparency in their financial activities.