Relevance of Academic Research and Researchers' Role in the IASB's Financial Reporting Standard Setting

Fuelbier, Rolf Uwe; Hitz, Joerg-Markus; Sellhorn, Thorsten

doi:10.2139/ssrn.1351742

Cited by 15 publications

(22 citation statements)

References 115 publications

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“…7 Our method, which differs from (and complements) other methods employed in the literature (Fülbier et al, 2009) is to conduct a systematic, direct analysis of IFRS itself, categorizing each accounting standard according to whether or not it contains requirements for conservative accounting practice and, if so, what characterizes the nature of those requirements. In contrast with other empirical studies in the literature, this method has two advantages for our purposes.…”

Section: Conservatism In Ifrsmentioning

confidence: 99%

An Analysis of Concepts and Evidence on the Question of Whether IFRS Should be Conservative

Barker

McGeachin

2015

Abacus

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Do international accounting standards require conservative accounting? The IASB's conceptual framework suggests that they should not, while the research literature is largely silent on the matter, typically presuming conservatism to be an outcome of private contracting rather than standardized, public, general purpose financial reporting. In this paper, we analyze the actual requirements of IFRS. We find multiple examples of recognition requirements that lead to unconditional conservatism, measurement requirements that lead to conditional conservatism, and also presentation/ disclosure requirements that further support a conservative reporting environment. These findings complement, support and deepen existing evidence in the empirical literature that accounting is in practice conservative. We show, however, that the requirements for conservatism in IFRS conflict with, first, the IASB's stated position in its conceptual framework that accounting should not be conservative and, second, the private contracting explanation for conservatism that is generally accepted in the literature. What is missing, and lies behind both conflicts, is an acknowledgement and understanding of the role of an agency/contracting perspective in enhancing the decision-usefulness of general purpose accounting standards, given the information/incentive asymmetry and uncertainty that characterizes the real-world context in which those standards operate. From a policy perspective, such an understanding would reconcile the IASB's conceptual framework with the actual requirements of IFRS. From a research literature perspective, such an understanding would re-position accounting standards as central to the practice of accounting conservatism, which would in turn require revision to the generally accepted theory of a private contracting explanation for the empirical evidence of conservative accounting practice.

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Section: Conservatism In Ifrsmentioning

confidence: 99%

An Analysis of Concepts and Evidence on the Question of Whether IFRS Should be Conservative

Barker

McGeachin

2015

Abacus

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“…Also see Fülbier et al (). For signs of a possible rebirth of this interest in addressing the needs of standard setters, see Leuz () and Hoang et al ().…”

mentioning

confidence: 97%

A Personal View of the Evolution of the Accounting Professoriate

Zeff

2019

Accounting Perspectives

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“…Most publications on the international accounting standard setter relate to its structure, its influence, the financing system, and the functioning of the standard setter (e.g., Wallace 1990;Flower 1997;Kirsch 2006;Camfferman and Zeff 2007;Fulbier et al 2009;Botzem and Quack 2009;Burlaud and Colasse 2011;Bengston 2011;Königsgruber 2010;Zeff 2012). Fewer articles study in an empirical way constituents' participation in the international accounting standard setting process.…”

Section: The Participation Literaturementioning

confidence: 99%

Constituents’ Participation in the IASC/IASB’s due Process of International Accounting Standard Setting: A Longitudinal Analysis

Jorissen

Lybaert²,

Orens³

et al. 2014

Accounting and Regulation

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In order to increase its legitimacy as worldwide accounting standard setter, the International Accounting Standards Committee (IASC) reformed in 2001 its due process of standard setting with the purpose of instigating a more widespread constituents' participation in terms of stakeholder diversity and geographical diversity. Using a multi-period/multi-issue research design, this study sets out to analyze whether constituents' participation changed after the reform in comparison to the period before the reform. An analysis of 7,442 comment letters sent to the standard setter over the periods 1995-2007 reveal that conclusions are different according to the topic on the agenda of the standard setter. Constituents' participation with regard to financial-instruments-related issues did not change after the reform. These topics always generated widespread interest from all corners of the world and from all types of constituents. Participation in response to non-financial instruments-related proposals, increased after the reform, especially due to a much more active participation of constituents from G4+1 countries.This chapter includes the paper originally titled ''Lobbying toward the IASB: A multi-issues analysis of participation in the due process of standard setting'' and discussed at the Third International Workshop on Accounting and Regulation in 2007.

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Relevance of Academic Research and Researchers' Role in the IASB's Financial Reporting Standard Setting

Cited by 15 publications

References 115 publications

An Analysis of Concepts and Evidence on the Question of Whether IFRS Should be Conservative

An Analysis of Concepts and Evidence on the Question of Whether IFRS Should be Conservative

A Personal View of the Evolution of the Accounting Professoriate

Constituents’ Participation in the IASC/IASB’s due Process of International Accounting Standard Setting: A Longitudinal Analysis

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