The Comparison of Political and Technical Influence of the IASB Standard-Setting Process: Based on Key-Actors Model

Abstract

The International Accounting Standards Board (IASB) is the setter and issuers of international accounting standards, with a goal to establish high-quality, easy-to-understand and feasible international accounting standard around the world. However, the truth is that IASB has not yet reach its goal. This article aims to discuss the factors influencing the process to reach a fair international accounting standard. By defining and analyzing political and technical influence respectively, we mainly illustrated the relationship and effects between influential institution in the standard-setting process with the help of Key-actors Model. We concluded that the IASB standard setting process is more influenced by political factors than technical, and joint efforts between each related institutions are needed to reach a balance between these two factors and formulate a fair international accounting standard.