Purpose: To study political aspects of accounting standard setting. Originality: This aspect of the global financial crisis has not been addressed by the literature before. Key literature / theoretical perspective: Critical perspectives on accounting Design/methodology/approach: Historical narrative Findings: The paper narrates the history of mark-to-market accounting during the global financial crisis from 2008 to 2010. During that period the concept become deployed in the political armory of opposing interests. Banks claimed that mark-to-market had caused or exacerbated the crisis. Those opposed to the banks (accounting professionals, standard setters, advocacy groups) claimed that mark-to-market gave appropriate valuations of financial businesses that had mismanaged their own investment risks. These political differences reached a public climax in a US House of Representatives committee hearing. Following this, accounting standard setters were forced to mediate the accounting rules for investments to soften the impact of mark-to-market. Research limitations/implications: Implications for accounting standard policy. Practical and Social implications: Understanding of political activity.
|Number of pages||2|
|Journal||Expo 2010 Higher Degree Research : book of abstracts|
|Publication status||Published - 2010|
|Event||Higher Degree Research Expo (6th : 2010) - Sydney|
Duration: 19 Nov 2010 → 19 Nov 2010