Relevance of Academic Research and Researchers' Role in the IASB's Financial Reporting Standard Setting

Rolf Uwe Fuelbier

University of Bayreuth

Joerg-Markus Hitz

University of Goettingen

Thorsten Sellhorn

Ludwig-Maximilians-Universitaet (LMU) Munich

March 2009

Abacus, Vol. 45, No. 2

The International Accounting Standards Board (IASB) faces a vast number of standard-setting issues at all levels of financial reporting. The purpose of this paper is to explore the relevance of academic research for financial reporting standard setting and the role of academic researchers in the standard-setting process. We contribute to the current debate surrounding International Financial Reporting Standards (IFRS) by drawing inferences from prior findings regarding the role of research in the IASB's standard-setting efforts. After defining three broad categories of standard-setting questions, we explore how the international heterogeneity of its constituency adds constraints to the IASB's work. We then investigate from an epistemological perspective whether and how academic research can inform policy makers. Based on a review of extant literature, we discuss the general criteria which a piece of research should fulfill in order to be perceived as relevant and useful by standard setters. This discussion is followed by more detailed considerations regarding the suitability of different research approaches for each of the three categories of standard-setting questions. We also touch on the subject of inferential problems inherent in most academic accounting research. Since our main objective is to contribute insights relevant to the IASB's efforts, we analyze academics' career systems and their incentives to engage in research intermediation, before discussing possible ways in which interested researchers can channel their insights into the IASB's standardsetting process. Overall, we emphasize the international dimension of IASB standard setting and its implications for relevant research.

Keywords: IASB, IFRS, standard setting, academic research, value relevance, financial reporting

JEL Classification: B40, M41, M44, M47

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Date posted: March 9, 2009  

Suggested Citation

Fuelbier, Rolf Uwe and Hitz, Joerg-Markus and Sellhorn, Thorsten, Relevance of Academic Research and Researchers' Role in the IASB's Financial Reporting Standard Setting (March 2009). Abacus, Vol. 45, No. 2. Available at SSRN: http://ssrn.com/abstract=1351744

Contact Information

Rolf Uwe Fuelbier
University of Bayreuth ( email )
Universitätsstraße 30
Bayreuth, 95447
+49(0)921 554820 (Phone)
+49(0)921 554822 (Fax)
HOME PAGE: http://www.irl.uni-bayreuth.de
Joerg-Markus Hitz
University of Goettingen ( email )
Platz der Goettinger Sieben 3
D-37073 Goettingen
+49 551 39 7313 (Phone)
HOME PAGE: http://www.uni-goettingen.de/en/110622.html
Thorsten Sellhorn (Contact Author)
Ludwig-Maximilians-Universitaet (LMU) Munich ( email )
Ludwigstr. 28 RG IV
Munich, Bavaria 80539
+49(0)89-21806264 (Phone)
+49(0)89-21806327 (Fax)
HOME PAGE: http://www.rwp.bwl.uni-muenchen.de/personen/professoren/sellhorn/index.html
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