Methodological Foundations of Accounting Standardsetting

One of the existing issues in accounting principle and standard setting is providing financial accounting standards which are acceptable for the common sense; because collective choice issues has distributional effects. In other words, the decisions of standardsetting bodies would have effects on the distibution of wealth. Therefore, as accounting standard-setting followed by some economic effects, standard setting bodies apply the distributional principles to legitimate the standard-setting process and justify the redistribution of wealth among users. In this research, the issue of choosing distributional principle which is one of the standard-setting bodies’ problems is examined.Based on results conclusive choice between the two principles seems infeasible, at least in the current state of information about security market agents.