Abstract
This study examines and clarifies the legitimacy of the global accounting standard setting mechanism and exposes the politicization of accounting regulation. In particular, we investigate the legitimation crises suffered by the IASB and IFRS in recent times and assess their restoration processes during the financial crisis by using the analytical framework proposed by Tamm Hallstrom (2004). We find that the IASB decoupled its normal due process in order to retain the endorsement of the EU and avoid a further carve-out. To meet concerns about the IASB’s governance from the U.S. and other non-European countries, the IASB established the Monitoring Board as a compromise to ease tension between independence and accountability. We also find that the IASB systematically prioritized the needs of the EU, its biggest customer.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
