Guidance is not provided on how to “import” international standards into national legislative and regulatory systems, on the design and operation of appropriate regulatory frameworks, or on the interfaces with other regulatory instruments and institutions (such as those for banking and securities regulation) which could contribute to the monitoring and enforcement of international standards. As currently drafted, international accounting and auditing standards implicitly assume the existence of legal, institutional and policy conditions (“preconditions”) which are often undeveloped or absent in many countries. The structure of national economies, and the role played by high-quality external financial reporting, shape the.
