Lobbying during IASB and FASB convergence due processes: Evidence from the IFRS 16 project on leases

Rey, Andrea; Maglio, Roberto; Rapone, Valerio

doi:10.1016/j.intaccaudtax.2020.100348

Cited by 25 publications

(40 citation statements)

References 43 publications

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“…The Consultation Paper does not propose any changes to the financial statements, and hence preparers may be less inclined to respond. Another contrast of note is the 12.2% response rate from academia, which is higher than what is documented in other studies (Tandy and Wilburn 1996;Rey et al 2020). This result is likely driven by the large number of professors and students engaged in sustainability research having the expertise and interest sufficient to respond, which is consistent with prior findings for why academics are more likely to write comment letters (Tandy and Wilburn 1996).…”

Section: Profiling the Respondentscontrasting

confidence: 64%

“…At least 1 response was received from 46 different countries. These geographic response rates are generally comparable to the comment letter study on lease accounting standard changes by Rey et al (2020), although there are some notable differences. 42 Of the 734 responses received directly by the IASB on We categorize some responses by geographic region.…”

Section: Profiling the Respondentssupporting

confidence: 59%

“…The response profile focused on answers to the first two questions proposed in the Consultation Paper. This question concentration follows prior research on comment letter content analysis (Rey et al 2020). To ensure the reliability of the profiling, each response letter was independently read by at least three individuals, including at least one author and two research assistants.…”

Section: Methodsmentioning

confidence: 99%

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A Canadian Response to the Pursuit of Global Sustainability Reporting Standards*

Elkins

Entwistle

2022

Accounting Perspectives

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As business, government, and society continue to emphasize the importance of sustainability—both of individual organizations and of the natural world—accounting standard‐setting bodies want to be part of the process. In September 2020, in response to “urgent and growing demand” for more “consistent and comparable” sustainability reporting, the IFRS Foundation (the Foundation) released for comment a Consultation Paper on Sustainability Reporting. In the paper, the Foundation proposed the creation of a Sustainability Standards Board (SSB), which it would oversee alongside the IASB. The SSB would become, de facto, the global sustainability reporting standard setter. The Foundation received 577 responses to its proposal. These responses came from around the world and from a wide range of stakeholders. Thirty‐eight of the responses came from Canada. This study profiles the Canadian responses, contrasting them with the wider set of worldwide responses. Some uniquely Canadian features include user responses from a large number of pension funds and preparer responses solely from the energy sector. There was also a significant response from the Canadian accounting community, including from the full set of Canadian standard‐setting organizations. Five auditors general also responded. Overall, Canadian respondents supported both globalized sustainability reporting standards and the Foundation's creation of the SSB. This support aligns Canada's response with the worldwide response.

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Section: Profiling the Respondentscontrasting

confidence: 64%

Section: Profiling the Respondentssupporting

confidence: 59%

Section: Methodsmentioning

confidence: 99%

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A Canadian Response to the Pursuit of Global Sustainability Reporting Standards*

Elkins

Entwistle

2022

Accounting Perspectives

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“…The aim is none other than provide a clearer picture to users of financial reports regarding the reasons accountants use in the accounting and reporting process. In turn, the IASB and the FASB agreed on lease accounting as the last project in achieving accounting harmonization and convergence (Rey et al, 2020).…”

Section: Proposition 1 (P1)mentioning

confidence: 99%

Income Tax and VAT Issues Concerning Lease after IFRS 16 Convergence in Indonesia

Saptono

Khozen

2021

The Indonesian Journal of Accounting Research

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This study analyzes income tax and value-added tax (VAT) issues on lease transactions after IFRS 16 convergence in Indonesia into PSAK 73. The data collection is through in-depth interviews and literature review. We interviewed informants selected purposively. We also used secondary data from literature studies to enrich the analysis. This study concludes that the tax authorities need to make tax policies that can provide legal certainty. The new tax regulation needs to accommodate a more precise direction of the policy. Among the three available options, this study favors realization taxation as a more appropriate option for Indonesia's current situation, other than mark-to-market or hybrid taxation. To narrow the practical gap between accounting and tax, this study recommends that tax authorities initiate a discussion with relevant stakeholders to prevent potential tax disputes in the coming years. Tax authorities need to notice some issues with withholding tax when the lessee records interest expenses as well as transfer/delivery issues causing VAT payable when the lessee recognizes a right-of-use asset.

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“…After the publication of the memorandum, the proposal was sent to different official quarters for comment. Such consultation processes are known as lobbying processes, which are common in the field of accounting and standard setting (Arafat et al, 2020;Rey et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

An examination of comment letters concerning an increase in audit exemption thresholds. Evidence from Finland

Haapamäki

2021

Accounting Forum

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This study examines how interest groups have reacted to the suggested increase in the audit exemption thresholds in Finland. The results suggest that the lobbying opponents objected to the increase because of the benefits gained from the auditing of financial statements. Considerable reliance is placed on the audited accounts of Finnish small firms in maintaining societal functionality. Hence, the results are supported by the public interest theory. In contrast, the comment letters that supported the increase highlighted the need to follow international trends. The findings of the lobbying behaviour suggest that the interest groups collected information and strategically transferred it to the ministry with the objective of influencing the regulatory outcome. To conclude, this study contributes to a more detailed understanding of the role that the key arguments both for and against the proposed regulatory change played in the case of increasing the audit exemption thresholds. Finally, this study joins existing lobbying literature and contributes to this stream of research by shedding light on the importance of the argumentation strategies used in the Finnish case.

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Lobbying during IASB and FASB convergence due processes: Evidence from the IFRS 16 project on leases

Cited by 25 publications

References 43 publications

A Canadian Response to the Pursuit of Global Sustainability Reporting Standards*

A Canadian Response to the Pursuit of Global Sustainability Reporting Standards*

Income Tax and VAT Issues Concerning Lease after IFRS 16 Convergence in Indonesia

An examination of comment letters concerning an increase in audit exemption thresholds. Evidence from Finland

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