Integrating Prediction Markets into the Due Process of International Accounting Standard Setting - A Possible Path to Achieve Legitimate Accounting Standards

The article takes a political economy perspective on the current harmonization of accounting standards. It argues that the process not only signals a major shift in the mode of governance (towards private authority), but also in the substance of what is being governed. In political-economic terms, the most significant change which the International Accounting Standards Board (IASB) brings to accounting is an increased reliance on market values in the form of so-called Fair Value Accounting (FVA). The FVA paradigm represents a financial perspective on business operations. This perspective is matched by the process and structure of the institutions that govern international accounting standard setting, particularly the IASB and the European Financial Reporting Advisory Group which advises the Commission of the European Union on the adoption of IASB standards. A network analysis of the different committees and working groups of these two institutions demonstrates that financial sector actors wield substantially more influence than other categories of business actors within the governance of international accounting standard setting.

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The G4's role in the evolution of the international accounting standard setting process and partnership with the IASB

Journal of International Accounting Auditing and Taxation ◽

10.1016/j.intaccaudtax.2006.01.007 ◽

2006 ◽

Vol 15 (1) ◽

pp. 109-126 ◽

Cited By ~ 21

Author(s):

Donna L. Street

Keyword(s):

Standard Setting ◽

International Accounting ◽

Accounting Standard ◽

Setting Process ◽

Accounting Standard Setting ◽

International Accounting Standard

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International Accounting Standard Setting and Geopolitics

Accounting in Europe ◽

10.1080/17449480.2020.1795214 ◽

2020 ◽

Vol 17 (3) ◽

pp. 243-263

Author(s):

Kees Camfferman

Keyword(s):

Standard Setting ◽

International Accounting ◽

Accounting Standard ◽

Accounting Standard Setting ◽

International Accounting Standard

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Investigating international accounting standard setting: The black box of IFRS 6

Research in Accounting Regulation ◽

10.1016/j.racreg.2010.07.003 ◽

2010 ◽

Vol 22 (2) ◽

pp. 87-95 ◽

Cited By ~ 24

Author(s):

Corinne Cortese ◽

Helen Irvine

Keyword(s):

Standard Setting ◽

Black Box ◽

International Accounting ◽

Accounting Standard ◽

Accounting Standard Setting ◽

International Accounting Standard

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The Accounting Standard-Setting Due Process, Corporate Consensus, and FASB Responsiveness: Employers' Accounting for Pensions

Journal of Accounting Auditing & Finance ◽

10.1177/0148558x9501000308 ◽

1995 ◽

Vol 10 (3) ◽

pp. 555-564 ◽

Cited By ~ 22

Author(s):

Georgia R. Saemann

Keyword(s):

Conceptual Framework ◽

Due Process ◽

Accounting Standards ◽

Standard Setting ◽

Financial Accounting ◽

Financial Accounting Standards Board ◽

Accounting Standard ◽

Accounting Standard Setting

The Financial Accounting Standards Board (FASB) uses a due process to ascertain the views of its constituents and to build consensus while setting standards based on a sound conceptual framework. This study examines the responsiveness of the FASB and its success in building consensus among corporations in the due process on Employers' Accounting for Pensions. The findings indicate that the FASB is influenced by the number of opposing comments filed by its corporate constituents. Further, there is evidence that consensus was built throughout the due process for the highly controversial standard.

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