Setting UK standards on the concept of control: An analysis of lobbying behaviour

Abstract

The present study aims to contribute to an understanding of the complexity of lobbying activities within the accounting standard-setting process in the UK. The paper reports detailed content analysis of submission letters to four related exposure drafts. These preceded two accounting standards that set out the concept of control used to determine the scope of consolidation in the UK, except for reporting under international standards. Regulation on the concept of control provides rich patterns of lobbying behaviour due to its controversial nature and its significance to financial reporting. Our examination is conducted by dividing lobbyists into two categories, corporate and non-corporate, which are hypothesised (and demonstrated) to lobby differently. In order to test the significance of these differences we apply ANOVA techniques and univariate regression analysis. Corporate respondents are found to devote more attention to issues of specific applicability of the concept of control, whereas non-corporate respondents tend to devote more attention to issues of general applicability of this concept. A strong association between the issues raised by corporate respondents and their line of business is revealed. Both categories of lobbyists are found to advance conceptually-based arguments more often than economic consequences-based or combined arguments. However, when economic consequences-based arguments are used, they come exclusively from the corporate category of respondents.

An examination of international accounting standard-setting due process and the implications for legitimacy

“…These recorded levels of involvement are broadly consistent with those of similar studies (e.g. Stenka and Taylor, 2010;Yen et al, 2007;Kwok and Sharp, 2005;Tutticci, Dunstan and Holmes, 1994) and thus indicate a long-term active support which is considered essential to establish levels of "taken for grantedness" (e.g. O'Dwyer, Owen and Unerman, 2011).…”

Lobbying na Regulação Contábil: Evidências do Setor Petrolífero

“…Georgiou (2010) Investigate the nature and volume of participation by UK investment fund managers in the standard-setting process of the IASB during 2001-2006. Stenka and Taylor (2010 Understand the complexity of lobbying activities on four exposure drafts.…”

Executive Remuneration: Achieving Accountability through Disclosure

“…In this sense, this setting differs from that found in prior studies that have generally considered lobbying arising in response to a single type of regulatory change, such as a change to accounting standards (Georgiou, 2004;Katselas et al, 2011;Stenka and Taylor, 2010).…”

“…Prior studies have generally considered lobbying arising in response to a single type of regulatory change (for example a change to accounting standards) (Georgiou, 2004;Katselas, Birt & Kang, 2011;Stenka & Taylor, 2010), and directed towards accounting standard setters (Walker & Robinson, 1993) whereas this study examines lobbying in response to the PC Inquiry whose recommendations had the potential to and ultimately did impact corporate reporting regulations at multiple levels. The recommendations were encapsulated in changes to accounting standards, corporate governance guidelines and corporations law.…”