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A Multi-Issue/Multi-Period Analysis of the Geographic Diversity of IASB Comment Letter Participation

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  • Robert K. Larson
  • Paul J. Herz

Abstract

The International Accounting Standards Board (IASB) establishes accounting standards now used in some form in over 100 countries. Diverse geographical participation in International Financial Reporting Standards (IFRS) standard-setting is seen as desirable as it may improve the consistency of IFRS applications, reduce criticism of regional over-influence, and promote the legitimacy of the IASB. This study investigates country participation and the regional and institutional factors that influence the geographic diversity of comment letters (CLs) in the IASB's standard-setting process. Using CLs regarding 57 IASB issues from 2001 through 2008, we find that countries with EU membership, G4+1 membership, donations to the IASB, and larger equity market development are associated with larger numbers of CLs and CL writers. Analysis of a subsample of more developed countries finds some evidence that countries with more historic divergence in accounting standards from IFRS also have more CL writers. In most countries, one of several major stakeholder interest groups, such as professional accountancy bodies, accounting standard-setters, and public accounting firms, send at least half of the CLs. While response levels for most countries vary greatly depending upon the nature or topic of an IASB issue, overall response levels remain low at just over 100 responses per issue and did not increase over time. While geographic diversity and response rates are greater than its predecessor the International Accounting Standards Committee, they are lower than those of many national standard-setters, possibly raising due process and legitimacy issues for the IASB.

Suggested Citation

  • Robert K. Larson & Paul J. Herz, 2013. "A Multi-Issue/Multi-Period Analysis of the Geographic Diversity of IASB Comment Letter Participation," Accounting in Europe, Taylor & Francis Journals, vol. 10(1), pages 99-151, June.
    • Handle: RePEc:taf:acceur:v:10:y:2013:i:1:p:99-151
    DOI: 10.1080/17449480.2013.772716
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    References listed on IDEAS

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    1. Benston, George J. & Bromwich, Michael & Litan, Robert E. & Wagenhofer, Alfred, 2006. "Worldwide Financial Reporting: The Development and Future of Accounting Standards," OUP Catalogue, Oxford University Press, number 9780195305838.
    2. Camfferman, Kees & Zeff, Stephen A., 2007. "Financial Reporting and Global Capital Markets: A History of the International Accounting Standards Committee, 1973-2000," OUP Catalogue, Oxford University Press, number 9780199296293.
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    Cited by:

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    3. Bamber, Matthew & McMeeking, Kevin, 2016. "An examination of international accounting standard-setting due process and the implications for legitimacy," The British Accounting Review, Elsevier, vol. 48(1), pages 59-73.
    4. Crawford, Louise, 2019. "Exploring the emancipatory dimensions of globalisation: The struggle over IFRS8 and country-by-country reporting," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 63(C).
    5. 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.
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    7. Marius Gros & Daniel Worret, 2016. "Lobbying and Audit Regulation in the EU," Accounting in Europe, Taylor & Francis Journals, vol. 13(3), pages 381-403, September.

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