Evaluation of institutional and financial factors of the international financial reporting standards foundation management from the perspective of the Eurasian Economic Union
Subject. The article addresses the impact of modern institutional and financial structure of the IFRS Foundation on the quality and functionality of international financial reporting standards. Objectives. The purpose is to identify risk factors in the activities of the IFRS Foundation caused by its institutional and financial structure, considering the previously highlighted problems of the IFRS Foundation management. Methods. The study draws on the comparative analysis of the content of the IFRS and the statistical data on quantitative characteristics of the IFRS Foundation’s regulatory bodies. Results. The institutional and financial structure of the IFRS Foundation is characterized by the disproportion of the current national, sectoral and financial representation in the management bodies of the Foundation. This creates risks of inharmonious development of IFRS. The EEU current position is marked by a significant imbalance between functional and financial representation in the Foundation's management system. It is possible to mitigate identified risks in the development of the IFRS system, if the revealed imbalances are reduced through diversifying the industry representation, introducing financial participation coefficients and national representation into the practice of the Foundation's management. Conclusions. The formulated proposals can be useful for the authorized federal governing bodies of the Russian Federation and the EEU governing bodies, when developing growth strategies in the field of accounting and reporting, determining the focus of efforts to improve international standards, ensuring the protection of the national economic interests of the EEU countries in the activities of the IFRS Foundation in modern conditions.
Agoglia C.P., Doupnik T.S., Tsakumis G.T. Principles-based versus rules-based accounting standards: The influence of standard precision and audit committee strength on financial reporting decisions. Accounting Review, 2011, vol. 86, no. 3, pp. 747–767. URL: Link
Liang L., Riedl E.J. The effect of fair value versus historical cost reporting model on analyst forecast accuracy. Accounting Review, 2014, vol. 89, iss.3, pp. 1151–1177. URL: Link
Kaya D., Kirsch R., Henselmann K. The role of non-governmental organizations (NGOs) as intermediaries of the European Union decision to adopt international accounting standards: 1973–2002. The Accounting Historians Journal, 2016, vol. 43, no. 2, pp. 59–127. URL: Link
Baker R.C., Barbu E.M., Le T.N. A historiographical review of research concerning accounting changes in post-communist economies. The Accounting Historians Journal, 2015, vol. 42, no. 1, pp. 1–36. URL: Link
Bhimani A., Bond D., Sivabalan P. Does greater user representation lead to more user focused standards? An empirical investigation of IASB’s approach to standard setting. Journal of Accounting and Public Policy, 2019, vol. 38, iss. 2, pp. 65–88. URL: Link
Kadous K., Mercer M. Can Reporting Norms Create a Safe Harbor? Jury Verdicts against Auditors under Precise and Imprecise Accounting Standards. The Accounting Review, 2012, vol. 87, no. 2, pp. 565–587.
Helfat C.E. Vertical firm structure and industry evolution. Industrial Corporate Change, 2015, vol. 24, iss. 4, pp. 803–818. URL: Link
Bajada C. An examination of the statistical discrepancy and private investment expenditure. Journal of Applied Economics, 2001, vol. 4, iss. 1, pp. 27–61. URL: Link
Preuss S., Königsgruber R. How do corporate political connections influence financial reporting? A synthesis of the literature. Journal of Accounting and Public Policy, 2020, vol. 40, iss. 1. URL: Link
Loughran T., Mcdonald B. Measuring readability in financial disclosures. Journal of Finance, 2014, vol. 69, iss. 4, pp. 1643–1671. URL: Link
Wagenhofer A. Trading off costs and benefits of frequent financial reporting. Journal of Accounting Research, 2014, vol. 52, iss. 2, pp. 389–401. URL: Link
Lev B. The deteriorating usefulness of financial report information and how to reverse it. Accounting and Business Research, 2018, vol. 48, iss. 5, pp. 465–493. URL: Link
Ashbaugh H., Pincus M. Domestic Accounting Standards, International Accounting Standards, and the Predictability of Earnings. Journal of Accounting Research, 2001, vol. 39, iss. 3, pp. 417–434. URL: Link
Richardson A.J. Merging the Profession: A Social Network Analysis of the Consolidation of the Accounting Profession in Canada. Account Perspectives, 2017, vol. 16, iss. 2, pp. 83–104. URL: Link
Farooque O. Sustainable financial reporting practice in Australian companies – Does quality matter? The Journal of Developing Areas, 2016, vol. 50, no. 6, pp. 175-189.
Riles A. Culture clash: Experts and the public, chapter 4. In: Riles A. (ed.) Financial Citizenship: Experts, Publics, and the Politics of Central Banking. Ithaca, London, Cornell University Press, 2018, pp. 35–42.
Camfferman K. International Accounting Standard Setting and Geopolitics. Accounting in Europe, 2020, vol. 17, iss. 3, pp. 243–263. URL: Link
Kim J., Koga Y. The value and credit relevance of IFRS versus JGAAP Accounting Information. Hitotsubashi Journal of Commerce and Management, 2020, vol. 53, no. 1, pp. 31–48.
Jorissen A., Lybaert N., Orens R., Van der Tas L. A geographic analysis of constituents’ formal participation in the process of international accounting standard setting: Do we have a level playing field? Journal of Accounting and Public Policy, 2013, vol. 32, iss. 4, pp. 237–270. URL: Link
Larson R.K. Constituent participation and the IASB’s International Financial Reporting Interpretations Committee. Accounting in Europe, 2007, vol. 4, iss. 2, pp. 207–254. URL: Link
Richardson A.J., Eberlein B. Legitimating transnational standard-setting: The case of the International Accounting Standards Board. Journal of Business Ethics, 2011, vol. 98, iss. 2, pp. 217–245. URL: Link
