The document discusses perspectives on the regulation of financial accounting. The free market perspective argues that accounting information should be treated like other goods subject to supply and demand forces without regulation. Supporters argue private incentives exist for organizations to voluntarily provide credible information. However, others argue accounting information is a public good subject to market failure without regulation. Regulation is needed to protect public interests and create a level playing field. While free market advocates argue for minimal regulation, the document suggests accounting standard setting involves political and social considerations and compromise between various stakeholder groups.

1. The regulation of financial accounting Prepared By: Dewan Mahboob Hossain Assistant Professor; Dept. of Accounting & Information Systems; University of Dhaka; Dhaka; Bangladesh Financial Accounting Theory Craig Deegan Ch. 3