Professional Knowledge and the Historical Emergence of Accounting Norms

Basu, Sudipta; Madsen, Paul E.; Reppenhagen, David A.; Waymire, Gregory B.

doi:10.2139/ssrn.2249844

Cited by 5 publications

(2 citation statements)

References 38 publications

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“…The behaviour of the four technology‐oriented SSOs is similar to that of the International Accounting Standards Committee (IASC) which was also a volunteer‐led international effort to create new alternatives to the available standards. In its initial phase, the IASC operated without any formal legal powers or enforcement capability as it set norms for accounting practice (see also Sunder, ; Basu et al ., on the historical development of accounting based on voluntary norms developed in the private sector). The distinctive part‐time volunteer engagement and choice features of the IASC were removed when the SEC and the EU formally engaged with the IASC and transformed it into the IASB armed with some elements of authority.…”

Section: Competition Among Standard Settersmentioning

confidence: 99%

Monopoly versus Competition in Setting Accounting Standards

Jamal

Sunder

2014

Abacus

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Financial accounting standards are set by organizations granted a significant degree of monopoly power by various governments. While there has been considerable debate on the merits of national (e.g., US Financial Accounting Standards Board (FASB)) versus international (International Accounting Standards Board (IASB)) monopolies, little attention has been paid to the merits of using competing standard-setting organizations (SSOs) for setting accounting standards. We compare the standard-setting processes of the FASB/IASB to the processes of four technology-oriented SSOs to assess the role of competition. We also provide a case study of monopoly and competitive standards in telephony. Both telephony and accounting yield some gains from coordination, and similar arguments are used (under the labels of comparability and consistency of accounting) in debates about granting a monopoly to their respective SSOs. Our results show that a group of volunteers competing with the governmentsanctioned monopoly of International Telecommunications Union transformed the telephone industry. Thanks to this standards competition, we enjoy free video internet calling and massive cost savings. Implications for accounting standard setting are discussed.

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Section: Competition Among Standard Settersmentioning

confidence: 99%

Monopoly versus Competition in Setting Accounting Standards

Jamal

Sunder

2014

Abacus

View full text Add to dashboard Cite

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“…From the historical perspective, Littleton (1941;1968) and Yamey (1977) between 'markets' and 'regulation' (e.g. Sunder, 1997;Moran, 2010), as illustrated by 31 Consistent with Basu et al 2013. But cf.…”

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confidence: 99%