User involvement in the standard-setting process: A research note on the congruence of accountant and user perceptions of decision usefulness

Does greater user representation lead to more user focused standards? An empirical investigation of IASB’s approach to standard setting

“…"The release of these EU funding streams will therefore only be forthcoming upon sufficient reform to prevent conflicts of interest, which will bring about much-needed trust and scrutiny on how these highly influential public bodies operate" 3 Sharon Bowles MP, Chair, European Economic Affairs Committee Accounting standard setting bodies seek to advance accounting standards to guide the preparation of financial statements in order to aid users to make decisions (Brown, 1981;Hussein and Ketz, 1991;Johnson and Solomons, 1984;Sundem, 2002;Sutton, 1984, Whittington, 2008. However, researchers have shown concern that there exists scope for standard setting to favor preparers and professional accounting firms, over users of financial statements (analysts and investors) (Botzem and Quack, 2009;Camfferman and Zeff, 2007;Wallace, 1990) and evidence exists that users of accounting information traditionally engage with standard setters to a much lesser degree than preparers of accounting information (Harding and McKinnon, 1997;Carrington, 1973;Rahman, 1991;Durocher et al 2007). Given recent research evidencing the presence of internal lobbying within the IASB and its impact on standard setting processes (Dye and Sunder, 2001;Jorissen et al, 2013;Morley, 2016;Pelger, 2016), we seek to better understand how the IASB seeks feedback from users, and to balance this against the needs of preparers and the accounting profession.…”

Attitudes towards Uniform Accounting: Cultural or Economic Phenomena?

“…Other researchers have instead looked more directly at auditors' preferences for particular types of standards. The evidence here is conflicting with some arguing that auditors will generally prefer standards that reduce auditor judgement (Pong and Whittington, 1996) and others arguing for a preference for more complex standards (Harding and McKinnon, 1997).…”

The Role of Fair Value Accounting in Promoting Government Accountability

“…It is now broadly recognized that the opinions of the users of governmental financial statements play a key role in the endorsement of accounting standards (Christiaens, 2003; IFAC, 2011) and there have been many calls for greater user involvement in the standard setting process to boost the usefulness of decision taking (Balmford, 1977; Masel, 1983; Rahman, 1991; Harding and McKinnon, 1997). The quest to raise the quality of accounting standards is the foundation on which the users' needs model is built (CICA, 1990; GASB, 1987; AARF, 1990).…”