Abstract/Details

ALIGNMENT OF SPECIAL-INTEREST SUBJECTS IN THE ACCOUNTING STANDARD-SETTING PROCESS: AN INVESTIGATION (FASB, DISCUSSION MEMOS)


1985 1985

Other formats: Order a copy

Abstract (summary)

Despite its surface appearance of precision, the establishment of accounting principles is an ongoing political process. This is because they affect different factions of the constituency in different ways. The Financial Accounting Standards Board (FASB) was structured so as to minimize potential undue influence by lobbyists. But is this independence illusory?

The present study replicates and extends prior work done by Brown (1981). "Influence attempts" was operationalized as comment letters written to nine FASB Discussion Memos (DMs). Two subsets of policy questions comprised the cues.

Letter writers were stratified into two subsamples. The "accounting group" contained the Big-Eight CPA firms plus five professional reporting societies. "Special-interest subjects" were drawn from Fortune-500 and specialized sampling frames.

Subjects' positions on each policy issue were obtained from their comment letters. The FASB's corresponding rulings were drawn from its Official Pronouncements.

A multidimensional scaling (MDS) was performed on each issue subset. Clusters of respondents holding similar positions were identified. A number of issues were discernible as dimensions in the perceptual spaces.

Several overall follow-up tests were performed. A Mann-Whitney U test was performed on the pairwise relative distances to the FASB. This was done for the accounting vs. special-interest subjects, and for Brown's vs. the additional policy issues.

There was no overall difference in average FASB alignment between accounting and non-accounting subjects. However, a marginal difference was evident between the two sets of policy issues. As a result, the Mann-Whitney U was rerun within each DM, with "issue subset" as a blocking factor. FASB alignment was closer to the accounting subjects for five sets, and to special-interest subjects for two sets.

Indexing (details)


Subject
Accounting
Classification
0272: Accounting
Identifier / keyword
Social sciences
Title
ALIGNMENT OF SPECIAL-INTEREST SUBJECTS IN THE ACCOUNTING STANDARD-SETTING PROCESS: AN INVESTIGATION (FASB, DISCUSSION MEMOS)
Author
DERESHIWSKY, MARY IRENE
Number of pages
364
Publication year
1985
Degree date
1985
School code
0118
Source
DAI-A 46/06, Dissertation Abstracts International
Place of publication
Ann Arbor
Country of publication
United States
University/institution
University of Massachusetts Amherst
University location
United States -- Massachusetts
Degree
Ph.D.
Source type
Dissertations & Theses
Language
English
Document type
Dissertation/Thesis
Dissertation/thesis number
8517097
ProQuest document ID
303407093
Copyright
Database copyright ProQuest LLC; ProQuest does not claim copyright in the individual underlying works.
Document URL
http://search.proquest.com/docview/303407093
Access the complete full text

You can get the full text of this document if it is part of your institution's ProQuest subscription.

Try one of the following:

  • Connect to ProQuest through your library network and search for the document from there.
  • Request the document from your library.
  • Go to the ProQuest login page and enter a ProQuest or My Research username / password.