Applying the principles of accruals accounting and fair value valuation makes

Applying the principles of accruals accounting and

This preview shows page 25 - 30 out of 30 pages.

- Applying the principles of accruals accounting and fair value valuation makes sense to an accountant, but it may not have been beneficial to society.
Image of page 25
Economic interest group theory/ Private interest theory Regulator B D C A I H F G E J E.g. Large companies in regulated industry E.g. Consumer groups E.g. HM Treasury E.g. Trade Unions
Image of page 26
E.g. IAS 19 Employee benefits Explanation from the perspective of private interest theory: - The new amended standard provided large companies and other organisations with an excuse to close expensive pension schemes. Thus the standard was useful to these powerful players in society, whose support the IASB relies upon.
Image of page 27
6 . The rationale that ‘regulators will only propose and support regulation which leads to favourable outcomes for themselves’ is true for: A. Public interest theory of regulation B. Capture theory of regulation C. Economic interest theories of regulation D. None of the above
Image of page 28
So, why do accounting regulators produce particular regulations? It depends on your theoretical perspective: Are the accounting regulators neutral arbiters? Have accounting regulators been captured by the accounting industry? Do private interests in society have significant influence over the accounting regulators?
Image of page 29
Next week’s lecture Conceptual frameworks of accounting Essential reading: Young, J. (2006). Making up users. Accounting, organizations and society, 31, 579-600. Hines, R. (1989). Financial accounting knowledge, conceptual framework projects and the social construction of the accounting profession. Accounting, auditing and accountability journal, 2(2), 72-92. Useful additional reading: Deegan and Unerman, Chapter 6.
Image of page 30

You've reached the end of your free preview.

Want to read all 30 pages?

  • Fall '16
  • Ian Thomson

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes