Investigating the Participation of Financial Statement Users in National Accounting Standard-Setting

Document Type : Original Article

Authors

1 Associate professor of accounting in Shiraz University and Certified Public Accountant

2 Faculty member of Accounting – Islamic Azad University – Shiraz Branch

10.22034/iaar.2013.104511

Abstract

Participation in standard-setting processes is known as a key indicator of standard setters’ legitimacy. This study investigates participation level of financial statement users and their influence on the process of setting accounting standards. This study reports the results of the questionnaire survey of the academics and auditors participation. Academicians and auditors are seen as two groups that have the potential to exert strong positive influence in the shaping of accounting standards. In order to answer the research questions, 6 hypotheses about timing of lobbying, lobbying methods and perceived influence of interested groups are tackled.
 The findings suggest that participation in the early and late stages have the same effectiveness. Respondents use different methods for lobby and they do not believe in their same influence. In general, auditors and academic communities’ participation in setting accounting standards were limited. Costs, probability of success and benefits are respectively explaining this limited level of participation.

Keywords

Accounting and Auditing Research
Volume 5, Issue 20
January 2014
Pages 90-107

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