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In the UK, the role of the state in accounting regulation has been ambivalent for some decades. On the one hand, confidence has been openly expressed in the system of private sector accounting regulation1 while accounting standards have been granted legitimacy through recognition in company law2. On the other hand government has introduced some detailed regulation through company law and has always been involved in both the institutions and processes of private sector regulation. This involvement has not necessarily been passive, and has often been covert leading to reports of threats of counter‐action by the government on some specific issues (Robson, 1988). Indeed, it is felt that fear of intervention by the government provides some of the rationale for private sector regulation (Bromwich, 1981, Sharp, 1971, Taylor and Turley, 1986). Providing a sharp contrast to the UK government’s actions towards the standard setting body, the sunshine policy of the Financial Accounting Standards Board (FASB) in the US, means that governmental influence is overt whether in the area of a single issue or the future of the private sector standard setting (Beresford, 1993).

Prior studies have identified several factors associated with economic growth including a country's: legal system, banking system, stock markets, and accounting standards. This research examines cross‐country differences in accounting and auditing to assess their role in a country's economic development. We investigate the effects of the per capita number of practicing accountants, auditors, and tax preparers on economic wealth per capita. In addition, we investigate whether economic wealth results from the source of accounting standard setting (i.e., government, private sector or both). Finally, we investigate whether the professionalism of a country's internal audit activity, as measured by its ability to achieve the status of a chapter in the Institute of Internal Auditors (HA) relates to economic growth. The dependent variable for all tests, per capita GNP, was regressed on these variables to determine the type and strength of association between them. The results indicate that on average, countries with larger per capita numbers of accountants and auditors, and number of chapters of the IIAhad greater wealth per capita than those with smaller per capita number of accountants and auditors and number of chapters of the IIA. Also, countries that had input from both the private and public sectors in setting standards had higher per capita wealth.

The chapter contributes to on-going debates about the inclusion of smallholders in export value chains for high-value agricultural products. Specifically, it investigates the factors driving the procurement practices of exporter of fresh fruits and vegetables in sub-Saharan Africa, and specifically sourcing from smallholders. A survey is undertaken of exporters of fresh fruit and vegetables in sub-Saharan Africa. The resulting data are used to estimate econometrically the propensity of exporters to source from smallholders, and the intensity of sourcing among those exporters who do procure from smallholders. Explanatory variables include firm and market characteristics, supply chain costs, type of product, availability of alternative sources of supply, and judgments regarding the performance of smallholders and other sources of supply.The propensity to procure from smallholders is found to be negatively associated with being a small exporter and the performance of medium- and large-scale producers. Exporters are more likely to source from smallholders if they have their own production capacity and smallholders are judged to perform well. The requirement of customers to comply with private food safety standards is found to have no significant effect on the propensity to procure from smallholders. Conversely, compliance with private standards has a strong influence on the intensity of sourcing from smallholders. Exporters judging smallholders to perform well are more likely to source intensively from smallholders, but to source less if they judge their own production to perform well. High fixed costs tend to be associated with lower intensity of sourcing from smallholders. The results suggest that compliance with private food safety standards does not drive the exclusion of smallholders from export value chains; indeed, conversely, the requirement to comply with such standards is associated with greater intensity of sourcing from smallholders. Smallholders evidently play a key role in the defrayment of risk by exporters in that many exporters combine their own production with smallholder procurement. Costs of procurement from smallholders, however, remain an issue. Evidently, the fixed costs of smallholder supply chains increase appreciably with the intensity of sourcing. The research reported here provides a new perspective on the inclusion of smallholders in export value chains for horticultural products. The incorporation of smallholders into these value chains is seen as the outcome of the procurement decisions of exporters. Contrary to much of the discourse in this area, the results suggest that smallholders can and do compete in export value chains for horticultural products even in the context of exacting food safety standards.

The enormous success of International Financial Reporting Standards (IFRS) in becoming globally accepted accounting standards leads to challenges in the future. The purpose of this paper is to outline challenges that arise from political influences and from the pressure to sustain a successful path in the development of standards. It considers two strategies for future growth which the International Accounting Standards Board (IASB) follows: the work on fundamental issues and diversification to private entities.

The development of IFRS is discussed and evaluated against insights gained from accounting theory. In particular, results from information economics illustrate potential difficulties of the development of a new conceptual framework for international accounting standards.

The main findings are: the growth strategies adopted by the IASB are risky; the conceptual framework does not sufficiently take into account the diverse objectives of financial reporting; stewardship, prudence, and aggregation can be desirable characteristics of accounting information; and standards that are developed for listed companies need not be well suited for private entities.

The paper suggests that skepticism is warranted about the viability of a consistent framework that applies globally, and that there are benefits to constrained competition among different standards.

The paper reviews academic research that has implications for standard setting and identifies key issues in developing global accounting standards.

The last four decades have seen the rise of the International Accounting Standards Board (IASB) as the core locus of transnational accounting regulation. Initial steps of associational cooperation were superseded by establishing a standard setting organization that heavily draws on consultation procedures. The purpose of this paper is to focus on recent changes in governance and accountability of IASB in the aftermath of the financial crisis. Emphasis is given to the organizational configuration, the ambivalence of consultation procedures and reactions to mounting criticism after the crisis. The paper proposes that IASB is the heart of a new transnational regulatory constellation in accounting.

The material and analysis presented in the paper derives from an extensive review of official reports, consultation documents and related responses and a range of additional information available on IASB's web page.

The paper analyzes how IASB uses legitimation strategies to defend its position as a transnational standard setter. From analysis of recent changes, the paper reveals a growing reliance on – and domination through – consultation procedures. The paper also shows the IASB’S swift action to counter substantial criticism emerging with the financial crisis.

By highlighting developments surrounding IASB, its governance structure and the emphasis on consultation, the paper establishes the importance for public policy of further study and debate the operation of IASB. It could also contribute to re-politicize accounting regulation at the transnational level.

IASB is an integral player in global financial governance processes and is only recently receiving substantial academic accounting research. This paper seeks to provide an introduction and critical account of the organization's development.

The purpose of this paper is to exemplify, by means of a Belgian case study, the transition of multiple certification schemes currently employed in the food sector towards a single retail driven higher end spot market.

Data were obtained by means of focus group sessions, a survey, in depth interviews and a literature review. The theoretical framework builds upon institutional economics, the competitive forces as identified by Porter, and the theory of system innovations. The article illustrates the current institutional setting of certification, the drive towards a premium spot market and the consequences for the participants in the schemes.

This paper illustrates that a shift towards a premium spot market is indeed apparent. The paper furthermore argues that the dynamics of certification schemes are characterized by processes of contraction (mergers) followed by relaxation (diversification). The paper concludes that the retail sector is the primary beneficiary of the shift towards a single premium spot market. For the remainder of the food chain members, it is less clear whether the overall effect is positive.

The question of multiple certification schemes merging into a single retail driven scheme is approached from different stakeholders' point of views. Furthermore, the different factors steering this transition are elucidated and empirically confirmed. Both elements make this paper a valuable contribution to the existing literature on certification and coordination mechanisms in the food chain.

The study aims at reviewing a synthesis of disclosure, transparency, and International Financial Reporting Standards (IFRS) implementation in an attempt to provide directions for future research. Prior research overwhelmingly supports that the IFRS adoption or effective implementation of IFRS will enhance high-quality financial reporting, transparency, enhance the country’s investment environment, and foreign direct investment (FDI) (Dayanandan, Donker, Ivanof, & Karahan, 2016; Gláserová, 2013; Muniandy & Ali, 2012). However, some researchers provide conflicting evidence that developing countries implementing IFRS are probably not going to encounter higher FDI inflows (Gheorghe, 2009; Lasmin, 2012). It has also been argued that the IFRS adoption decreases the management earnings in countries with high levels of financial disclosure. In general, the study indicates that the adoption of IFRS has improved the financial reporting quality. The common law countries have strong rules to protect investors, strict legal enforcement, and high levels of transparency of financial information. From the extensive structured review of literature using the Scopus database tool, the study reviewed 105 articles, and in particular, the topic-related 94 articles were analysed. All 94 articles were retrieved from a range of 59 journals. Most of the articles (77 of 94) were published 2010–2018. The top five journals based on the citations are Journal of Accounting Research (187 citations), Abacus (125 citations), European Accounting Review (107 citations), Journal of Accounting and Economics (78 citations), and Accounting and Business Research (66 citations). The most-cited authors are Daske, Hail, Leuz, and Verdi (2013); Daske and Gebhardt (2006); and Brüggemann, Hitz, and Sellhorn (2013). Surprisingly, 65 of 94 articles did not utilise the theory. In particular, four theories have been used frequently: agency theory (15), economic theory (5), signalling theory (2), and accounting theory (2). The study calls for future research on the theoretical implications and policy-related research on disclosure and transparency which may inform the local and international standard setters.

Arguments prevail in Bahrain over whether to establish a body for setting local accounting standards or to continue to encourage the application of international accounting standards (IASs). This debate is driven by the opinions and attitudes of various concerned groups, including auditors, corporate accountants, and public accountants. This study examines the perceptions of accountants regarding whether or not local accounting standards should be set in Bahrain and, if so, which would be the most appropriate agency to achieve this aim. In addition, the study examines whether organizations in Bahrain should continue to comply with IASs. It provides empirical findings on these issues based on a questionnaire of 52 accountants. The study concludes that organizations in Bahrain should continue to comply with IASs, but that the application of these standards needs to be regulated. Differences in the socio‐political environment do not make IASs of less significance to users in Bahrain. Further, it is found that the need for compliance with IASs will better enhance users' understanding of accounting concepts and financial statements. The study recommends the establishment of a body of professional accountants who will act as the interpreters of IASs in Bahrain's environment.

Considering the worldwide importance granted to this topic, the purpose of this paper is to analyze, through a detailed pyramidal analysis, the intention of International Public Sector Accounting Standards (IPSAS) to respond better to the public sector characteristics.

The research methodology combines content analysis with the comparative and interpretive method, and also some statistical methods such as residual analysis, association coefficients, that come to bring added value to the public sector literature.

The main findings of the research concern the appreciation of consolidation approach in the public sphere under a dual aspect. The first one is theoretical, by presenting the evolution of the concept in literature, and the second one is empirical, by analyzing how IPSAS correlates with International Financial Reporting Standards (IFRS), how the Exposure Draft 49 (ED 49) respondents perceive its content and implications, along with the extent to which the publication of IPSAS 35 took into account the exposure draft stage. In the authors’ opinion, the study manages to capture, theoretically and empirically, the evolution and the stage of consolidation in the public sector. The main results of the study lie in the combination in the empirical sphere of the content analysis with the mathematical and statistical methods, in order to assess the correlation IPSAS/IFRS, the responses to ED 49, but also the influences on the final version of IPSAS 35.

The main limitations of the study are: the diversity of the received responses to ED and the number of comment letters submitted by the respondents.

The study addresses to a broad range of users: theoreticians, practitioners or professional bodies/legislators who will have a basis for analyzing what the acceptance and inclusion of IPSAS 35 in the national accounting rules would mean.

The paper offers the possibility to understand the evolution of the concept of public sector consolidation.

The first originality aspect is revealed by the theoretical documentation and the second one lies in the combination of the empirical sphere of the content analysis with the mathematical and statistical methods.

The aim of this paper is to identify and analyze critical factors/elements influencing standards compliance and their level of influence in a developing country food industry, with specific reference to India.

A total of 13 critical elements were identified and structured using pair‐wise comparisons. Structural and reachability matrices were formed and iterated to yield levels of hierarchical influence of each element. MICMAC analysis was also performed to determine dependency and driving power of these elements.

The analysis brought out a compelling need for “sensitive and responsive” action by developing country governments while competing globally. Food industries in developing countries tend to detour while complying with standards, owing to costs involved in setting up systems and procedures. While a strong surveillance mechanism is the high point of a good compliant system this has to be preceded by supporting measures such as linking of domestic and international markets, consolidation of institutional structures, strengthening of legal/regulatory systems, etc.

Use of interpretative structural modeling (ISM) is inspired by the versatility displayed by this method, as reported by researchers, across a wide spectrum of economic and competitive complexities affecting businesses.

The study is a hitherto unexplored attempt, using interpretative structural modeling, to analyze standards compliance in a developing country's food industry.