Abstract

An accounting standard-setter writes standards that impact numerous interested parties, including governments, institutions and organizations, industry groups and individual users of financial accounting information. As a consequence the standard-setter is surrounded by groups that would like to influence standard-setting in a way which meets their particular goals and needs for information. The standard-setter itself also has interests that come into play, such as the need to create and maintain legitimacy in fulfilling its standard-setting functions. Maintaining legitimacy as a standard-setter often involves retaining governmental support and credibility with interested parties. In the case of an organization such as the International Accounting Standards Board (IASB), which is a free-standing private-sector body not funded by government, its existence depends upon institutions and businesses being willing to finance it and on regulators being willing to use its standards. Therefore, the potential for interested groups to influence standard-setting arises from multiple sources and directions.