Agenda Setting at the FASB: Evidence from the Role of the FASAC

52 Pages Posted: 18 Jan 2014 Last revised: 21 May 2018

See all articles by Abigail M. Allen

Abigail M. Allen

Brigham Young University - Marriott School

Date Written: October 30, 2014

Abstract

I examine the extent to which the FASB’s agenda determination is a function of the contemporaneous preferences of its primary constituents: auditors, preparers, and financial statement users. Using the FASB’s consultation with the FASAC as a lens through which to view constituent preferences, I find evidence that from 1982 to 2001 influence on FASB agenda decisions is concentrated among “Big N” audit firms, whereas from 2002 to 2006 the preferences of financial constituents appear most significant. Across both periods, I find no evidence of significant preparer influence in agenda formation, which is in contrast to their documented role in later stages of standard setting. Collectively, the results contribute to our understanding of the influence of constituents in standard setting and highlight a shift in that influence over time.

Keywords: accounting, FASB, politics, agenda, standard setting

JEL Classification: D72, D78, G18, K22, L51, M41

Suggested Citation

Allen, Abigail M., Agenda Setting at the FASB: Evidence from the Role of the FASAC (October 30, 2014). Available at SSRN: https://ssrn.com/abstract=2380328 or http://dx.doi.org/10.2139/ssrn.2380328

Abigail M. Allen (Contact Author)

Brigham Young University - Marriott School ( email )

Provo, UT
United States

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