Motives for user involvement in standard setting

reduced differential reporting in Australia

Karen Handley

Research output: Contribution to journalMeeting abstract

Abstract

Purpose: This paper explores the involvement of users and preparers of financial statements in the creation of an Australian standard for Small and Medium-sized Entities (SMEs). Originality: This is the first study known to the authors that extends to unlisted entities and that interviews writers of comment letters participating in creating a uniquely-Australian accounting standard. We extend the findings of Georgiou (2004, 2010). Methodology: An online survey was used to poll users and preparers of financial statements. Members of the Australian Accounting Standards Board (AASB) and comment letter writers were interviewed. Findings: Non-participation in the standard setting process is a result of perceived adequate representation by professional or industry bodies, and professed inability to change outcomes. Participants favoured comment letters and lobbying via professional and industry groups. Interviews revealed discussions amongst letter writers as well as between letter writers and the AASB. Comment letter writers admitted to overemphasis of particular positions and game behaviour. Roundtables were seen as necessary and positive by comment letter writers and standard setters. Practical and Social implications: This study confirms a variety of methods of participation in standard setting. It affirms the role of professional and industry bodies in the standard setting process, as a counter to apathy and disengagement from the process of users of financial statements.
Original languageEnglish
Pages (from-to)39-40
Number of pages2
JournalExpo 2011 Higher Degree Research : book of abstracts
Publication statusPublished - 2011
EventHigher Degree Research Expo (7th : 2011) - Sydney
Duration: 10 Oct 201111 Oct 2011

Keywords

  • accounting standards setting
  • lobbying
  • user participation

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