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Have Academic Accountants and Financial Accounting Standard Setters Traded Places?

Author

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  • Glover Jonathan

    (Tepper School of Business, Carnegie Mellon University, Pittsburgh, PA, USA)

Abstract

The basic premise of this paper is that academic accountants and financial accounting standard setters have traded places in their normative vs positive orientations. Academics have shifted from normative to positive, while standard setters have shifted from positive to normative. This paper was developed from a speech given at the August 2012 American Accounting Association Annual Meeting, which was followed by speeches by Ross Watts, Richard Macve, and Steve Zeff on the same subject. Ross Watts argued that a lack of understanding about accounting history and evolution is a likely source of problems. He also summarized the recent evidence in (Allen and Ramanna (2013). Towards an understanding of the role of standard setters in standard setting. Journal of Accounting and Economics, 55(1), 66–90) on the association between standard setters’ backgrounds and the positions they take. Richard Macve added UK and IFRS perspectives (Macve, R. (2013). “Trading places”: A UK (and IFRS) comment. Accounting, Economics, and Law, 2014;4(1):1–14), and Steve Zeff provided a more in-depth historical perspective (Zeff, S. A. (2013). Some historical reflections on “Have academics and the standard setters traded places?” Accounting, Economics, and Law, 2014;4(1):1–8).

Suggested Citation

  • Glover Jonathan, 2014. "Have Academic Accountants and Financial Accounting Standard Setters Traded Places?," Accounting, Economics, and Law: A Convivium, De Gruyter, vol. 4(1), pages 17-26, February.
    • Handle: RePEc:bpj:aelcon:v:4:y:2014:i:1:p:17-26:n:6
    DOI: 10.1515/ael-2014-0001
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    References listed on IDEAS

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    1. Allen, Abigail & Ramanna, Karthik, 2013. "Towards an understanding of the role of standard setters in standard setting," Journal of Accounting and Economics, Elsevier, vol. 55(1), pages 66-90.
    2. Beaver, Wh, 1968. "Information Content Of Annual Earnings Announcements," Journal of Accounting Research, Wiley Blackwell, vol. 6, pages 67-92.
    3. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    4. Stephen Zeff, 2007. "The SEC rules historical cost accounting: 1934 to the 1970s," Accounting and Business Research, Taylor & Francis Journals, vol. 37(S1), pages 49-62.
    5. Joel S. Demski, 1998. "Performance Measure Manipulation," Contemporary Accounting Research, John Wiley & Sons, vol. 15(3), pages 261-285, September.
    6. Ball, R & Brown, P, 1968. "Empirical Evaluation Of Accounting Income Numbers," Journal of Accounting Research, Wiley Blackwell, vol. 6(2), pages 159-178.
    7. Michael Bromwich & Richard Macve & Shyam Sunder, 2010. "Hicksian Income in the Conceptual Framework," Abacus, Accounting Foundation, University of Sydney, vol. 46(3), pages 348-376, September.
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