Lobbying for changes to the Australian reduced differential reporting standard

Karen Handley, Elaine Evans, Sue Wright

Research output: Chapter in Book/Report/Conference proceedingConference proceeding contributionpeer-review

Abstract

A consultative process initiated by the Australian Accounting Standards Board (AASB) to create an Australian standard for Small and Medium-sized Entities (SMEs) provided an opportunity for users and preparers of financial statements to lobby for the inclusion of their views. This consultative process raises questions regarding its role in incorporating the notion of public interest into accounting standards. This paper presents evidence of self-interest and promotion of the private interests of influential stakeholders and clients, obtained by surveying financial statement users and preparers and interviews with AASB members and comment letter writers. We also find evidence of division amongst stakeholders and consider the impact of this on the incorporation of the public interest in accounting standards. This is the first study known to the authors which incorporates the views of the writers of comment letters about a national accounting standard for unlisted entities. It raises a challenge to the global accounting profession regarding its role in protecting the public interest in the standard setting process, to counter disengagement by users of financial statements.
Original languageEnglish
Title of host publication2012 AFAANZ conference
Subtitle of host publicationpapers
Place of PublicationMelbourne
PublisherAccounting and Finance Association of Australia and New Zealand
Pages1-37
Number of pages37
Publication statusPublished - 2012
EventAccounting and Finance Association of Australia and New Zealand Conference (2012) - Melbourne
Duration: 1 Jul 20124 Jul 2012

Conference

ConferenceAccounting and Finance Association of Australia and New Zealand Conference (2012)
CityMelbourne
Period1/07/124/07/12

Keywords

  • Accounting Standard Setting
  • Lobbying
  • IFRS for SMEs
  • Differential reporting

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