|
FASB’s Initiative to Improve on the Quality of Standards: An Empirical Assessment of the Contribution of Constituents in the Commentary Stage
Andrew A Anabila,
Pace University
ABSTRACT. To improve on the quality of financial reporting standards, the FASB has taken a number of initiatives. They include a plan to reduce the commentary period, working jointly with the IASB and adopting a principles-based approach to standard setting. This study examines qualitative aspects of responses to the commentary stage of FASB’s due process, to provide an insight to the role of constituents in the due process, in the context of these initiatives. Consistent with prior research, the results show that absolute and relative participation by members of constituents is very low. Further to prior research, the scope of participation (the fraction of the questions answered) by the respondents is positively related to their rejection of the proposed guidance, the alternative views that they express, and the time lapse before they submit their comments.
Full-Text is no longer available online. Please contact the author(s) for more information about this manuscript.
Back to Session Listing
|