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This paper proposes a theoretical model to assess how stakeholders perceive a major change of an accounting regime: for example, the adoption of International Financial Reporting Standards [IFRS] or an IFRS-based financial reporting system. Using a theory borrowing approach, the model evolves from a review of key factors that have been reported to affect perceptions of change. These factors are drawn from literature dealing with management change, institutional arrangements, psychology, information systems, sociology and financial reporting. The proposed model implicates individual, technical, situational, and change process factors as major elements. Thereby, it highlights a multiplicity of matters that influence perceptions of a financial reporting change. The emerging model holds strong prospect of improving understanding of change processes in general, and financial reporting changes, in particular. The proposed model can be used to assess how any major national financial reporting reform is (or will be) perceived, and whether or not the reform will be successful. The practical insights arising from application of the model can be particularly relevant for regulators and standard-setters in devising appropriate strategies for coping with perceived implementation problems.

This is a response to questions raised by Kuruppu and Lehman (2016) and Thomson (2016) on Fontes, Rodrigues and Craig's (2016) model of Stakeholder Perceptions of a New Financial Reporting System. We clarify some matters that arise from the commentators' concerns about the intended contribution of the model, and its conceptual foundations. We also respond to concerns raised about the need to adopt a holistic and contextualized approach; provide further insights to the complex and dynamic nature of stakeholder perceptions and their formation; and elaborate on methodological assumptions underpinning the model. We argue that interpretative-based research offers an appropriate and challenging way to further improve and extend the model. We encourage researchers to adopt critical and interpretive-based methods to foster a reflective debate that will lead to improvements in the Stakeholder Perceptions model.

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