First, in developing an accounting standard, the accounting
standard setters must select the ‘most appropriate’ policy from a
range of alternatives for inclusion in accounting standards. The
choice that they make is critical because it virtually determines
accounting practice. Second, if there is no accounting standard, or
if the standard either implicitly or explicitly allows a choice,
the preparers of financial statements must select the most
appropriate accounting policy for use in the preparation of
financial statements to become creative...