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An examination of comment letters to the IASC: Special purpose entities

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  • Larson, Robert K.

Abstract

While major strides toward the convergence of accounting standards have occurred, concern exists that self-interested political pressures, if effective, may create international accounting standards that are not always in the best interest of investors and others. This case study examines comment letters generated by an important accounting topic, Special Purpose Entities (SPEs), in order to gain further insight into whether concerns of political pressure in the development of international accounting standards have merit. Famous since Enron, SPEs are used in off-balance sheet financing vehicles that now involve trillions of dollars annually. During the period when the International Accounting Standards Committee (IASC) was trying to earn the support of the International Organization of Securities Commissions (IOSCO), the IASC’s Standing Interpretations Committee (SIC) issued Draft Interpretation 12 (DI-12), Consolidation of Special Purpose Entities. DI-12 required SPEs to be consolidated more frequently than under US GAAP.

Suggested Citation

  • Larson, Robert K., 2008. "An examination of comment letters to the IASC: Special purpose entities," Research in Accounting Regulation, Elsevier, vol. 20(C), pages 27-46.
    • Handle: RePEc:eee:reacre:v:20:y:2008:i:c:p:27-46
    DOI: 10.1016/S1052-0457(07)00202-0
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    2. Gordon, Elizabeth A. & Gotti, Giorgio & Ho, Joanna H. & Mora, Araceli & Morris, Richard D., 2019. "Commentary: Where is International Accounting Research Going? Issues Needing Further Investigation," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 37(C).
    3. Samira Demaria & Dufour Dominique & Moïse Louisy-Louis & Philippe Luu, 2012. "An exploratory study of the exposure draft of IAS 19 due process," Post-Print halshs-00721326, HAL.
    4. Hughes, Susan B. & Larson, Robert K. & Sander, James F. & Xiques, Glenn, 2017. "Difficulties converging US GAAP and IFRS through joint projects: The case of business combinations," Advances in accounting, Elsevier, vol. 39(C), pages 1-20.
    5. Rey, Andrea & Maglio, Roberto & Rapone, Valerio, 2020. "Lobbying during IASB and FASB convergence due processes: Evidence from the IFRS 16 project on leases," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 41(C).
    6. Anantharaman, Divya, 2015. "Understanding the evolution of SFAS 141 and 142: An analysis of comment letters," Research in Accounting Regulation, Elsevier, vol. 27(2), pages 99-110.
    7. Flasher, R. & Luchs, C.K. & Souza, J.L., 2018. "Sustainability assurance provider participation in standard setting," Research in Accounting Regulation, Elsevier, vol. 30(1), pages 20-25.
    8. Samira Demaria & Dominique Dufour & Moïse Louisy-Louis & Philippe Luu, 2012. "An exploratory study of the exposure draft of IAS 19 due process," Post-Print hal-00690943, HAL.
    9. McEnroe, John E. & Sullivan, Mark, 2013. "An examination of the perceptions of auditors and chief financial officers regarding principles versus rules based accounting standards," Research in Accounting Regulation, Elsevier, vol. 25(2), pages 196-207.
    10. Okamoto, Noriaki, 2017. "Norm entrepreneur lobbying and persuasion: A case study involving the IASB's modification of an exposure draft," Research in Accounting Regulation, Elsevier, vol. 29(2), pages 129-138.
    11. Adhikari, Ajay & Betancourt, Luis & Alshameri, Faleh, 2014. "The SEC's Proposed IFRS Roadmap: An analysis of comment letters using content analysis and textual software," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 23(2), pages 98-108.

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