Repoliticalization of Accounting Standard Setting — The IASB, the EU and the Global Financial Crisis

Posted: 20 May 2011 Last revised: 11 Feb 2014

See all articles by Elias Bengtsson

Elias Bengtsson

Halmstad University; University of Gothenburg - School of Business, Economics and Law

Date Written: April 19, 2011

Abstract

Since its inception, the IASB has been able to set standards with relatively little political influence in its governance or standard setting process. But this changed with the outbreak of the global financial crisis. Political bodies began to view accounting standards as a contributing factor that amplified the consequences of the crisis on banks, financial markets and the overall economy. Regaining control over accounting standard setting was seen as imperative. In this article, we investigate how the EU sought to gain control over the IASB and how the global standard setter responded to limit political influence. Our findings show that a re-balancing of power in favor of political interests has occurred between the stakeholders of international accounting standard setting. Further research in this area looks promising. We suspect that the heightened influence of political actors may lead to further power struggles and efforts to cope with on-going changes in the institutional environment.

Suggested Citation

Bengtsson, Elias, Repoliticalization of Accounting Standard Setting — The IASB, the EU and the Global Financial Crisis (April 19, 2011). Critical Perspectives on Accounting, 2/6, 2011, Available at SSRN: https://ssrn.com/abstract=1840292

Elias Bengtsson (Contact Author)

Halmstad University ( email )

301 18 Halmstad
Sweden

University of Gothenburg - School of Business, Economics and Law ( email )

Vasagatan 1
Goteborg, 40530
Sweden

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