The second study by Ryan 1998 considered the introduction of accrual accounting

The second study by ryan 1998 considered the

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model on which Kingdon based the development of MS. The second study by Ryan (1998) considered the introduction of accrual accounting in the Australia public sector from 1976 to 1996. In the third study, Singh and Newberry (2009) analysed the agenda setting process in the application of International Financial Reporting Standards (IFRS) by developing countries at the International Accounting Standards Board (IASB). Mezias and Scarselletta (1994) examined the agenda setting processes of the U.S. Financial Accounting Standards Board (FASB) from 1978 to 1988. The purpose of their study was to “learn more about t he process by which the FASB selects a few issues from among many to put on its agenda” (Mezias and Scarselletta 1994, p. 1). Mezias and Scarselleta analysed published and unpublished FASB files to identify “all issues for which the FASB made agenda decisions and all issues considered by the Emerging Issues Task Force (EITF) from its foundation in 1984 until 1988” (1994, p. 11). They found that the EITF freed up time for the FASB to consider issues that were not related to whether or not an issue should be considered in more detail. The FASB approved 80% of the issues proposed by staff for closer consideration. Staff, in turn, were likely to recommend issues that had been proposed by the American Institute of Certified Public Accountants (AICPA). The authors also noted that the FASB became more efficient in deciding about agenda entrance of issues at the EITF.
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78 In addition, Mezias and Scarsellta investigated four criteria that the FASB had established to decide whether an issue made it onto the agenda by interviewing 35 participants in the agenda setting process. The criteria were: 1. Is the issue pervasive? 2. Is a solution available to improve financial accounting? 3. Is a technical feasible solution available? 4. Do the benefits of considering the issue outweigh the practical consequences? The authors found that there was disagreement among the interviewees on all four criteria and the interviewees expressed specific confusion about the application of the second and third criteria. In addition, the participants classified only two of six issues on the FASB agenda that were considered for the study as important. The study also found wide agreement among the interviewees that the accounting profession and SEC were the main groups that influenced the FASB agenda. Mezias and Scarselletta then re-examined their findings through an application of the concept of organised anarchies, as suggested by Thompson (1967). They found that the FASB reflected characteristics of an organised anarchy ’, as the participants “did n ot agree on the goals and they did not understand causes” that link the decisions with outcomes (Mezias and Scarselletta 1994, p. 4). The study has a number of limitations. It is not quite clear how the documents were analysed or how interview partners were selected. The application of the concept of organised anarchies appears to be descriptive rather than analytical. The garbage can model was not used, which would have provided deeper theoretical analysis. The
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  • Fall '13
  • Government, The Land, International Financial Reporting Standards, Financial Accounting Standards Board, Australian Accounting Standards Board, Snow

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