Political participation in global accounting standard-setting: Content analysis of the comment letters for the establishment of the Accounting Standards Advisory Forum

Abstract

Purpose

This study aims to examine constituents’ political participation in the establishment of an Accounting Standards Advisory Forum (ASAF).

Design/methodology/approach

Based on a literature review, three hypotheses regarding political participation in global accounting standard-setting are constructed: regional disparity, professional dominance and financialization. These hypotheses are tested through a content and narrative analysis of the comment letters on the establishment of the ASAF.

Findings

Consistent with the regional-disparity hypothesis, neither Anglo–Saxon nor European Union countries were active advocates or positive supporters of ASAF’s establishment. However, no evidence supporting the professional and financialization hypotheses was found. Narrative analysis suggests a divergence of opinion among vested-interest groups in the International Accounting Standards Board (IASB), emerging nations and other groups, rather than the traditional conflicts between Anglo–Saxon and European countries. This suggests the possibility of a future-destabilizing factor in global standard-setting.

Originality/value

By discussing the IASB’s organizational and strategic changes and the constituents’ responses, this study describes the IASB’s organizational dynamics: how various stakeholders react to each other. Although prior studies primarily focused on comment letters regarding the contents of an accounting standard or the standard itself, this study examines such letters considering the size and composition of, and membership in, the ASAF, an organization within the IFRS Foundation (IFRSF). Therefore, the study reflects constituents’ opinions regarding their participation in the IFRSF/IASB more directly.

Citation

Miyauch, T. and Sanada, M. (2019), "Political participation in global accounting standard-setting: Content analysis of the comment letters for the establishment of the Accounting Standards Advisory Forum", Journal of Accounting & Organizational Change, Vol. 15 No. 3, pp. 357-381. https://doi.org/10.1108/JAOC-02-2018-0020