Experimental Research on Standard Setting Issues in Financial Reporting

Abstract

The purpose of this paper is to encourage accounting academics who specialize in experimental methods to conduct research that directly informs accounting standard setters. We argue that experimental research has unique advantages that make it particularly well-suited to conducting studies that are relevant to standard setting. Despite these advantages, however, academic research that is of direct relevance to standard setting is relatively sparse. To facilitate future research in this domain, we compile the existing experimental research related to standard setting and classify it in categories that correspond to the FASB’s technical agenda. Next, we identify important areas in which research is needed. Finally, we draw on our own experiences to provide insights intended to help researchers conduct high-quality experimental research that is both relevant to standard setters and publishable in top accounting journals.