IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v155y2019i4d10.1007_s10551-017-3527-1.html
   My bibliography  Save this article

Accountability in an Independent Regulatory Setting: The Use of Impact Assessment in the Regulation of Financial Reporting in the UK

Author

Listed:
  • Anna Samsonova-Taddei

    (University of Manchester)

  • W. Stuart Turley

    (University of Manchester)

Abstract

The growing reliance on non-governmental independent regulators in many social and economic domains, including corporate financial reporting, has brought to the fore concerns over their regulatory accountability. This study looks at one aspect of the regulatory due process-regulatory impact assessment (IA). Drawing on the analytical framework developed by Bovens (Public accountability: a framework for the analysis and assessment of accountability arrangements in the public domain. CONNEX papers, Research Group 2, Democracy and Accountability in the EU, 2006, Eur Law J 13(4): 447–468, 2007), we evaluate the contribution of IA as an instrument for enhancing regulatory accountability in the context of the Financial Reporting Council, an independent regulator for the accountancy profession in the UK. The study’s findings suggest that, despite an increasing level of sophistication in the manner in which IA is used within FRC, the contribution of IA to regulatory accountability remains limited. Specifically, there are concerns as to whether IA is used to achieve a transparent and fair regulatory process or simply to maintain an image of good governance and justify policy decisions that would have been made even in the absence of IA.

Suggested Citation

  • Anna Samsonova-Taddei & W. Stuart Turley, 2019. "Accountability in an Independent Regulatory Setting: The Use of Impact Assessment in the Regulation of Financial Reporting in the UK," Journal of Business Ethics, Springer, vol. 155(4), pages 1053-1076, April.
    • Handle: RePEc:kap:jbuset:v:155:y:2019:i:4:d:10.1007_s10551-017-3527-1
    DOI: 10.1007/s10551-017-3527-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10551-017-3527-1
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10551-017-3527-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alan Richardson & Burkard Eberlein, 2011. "Legitimating Transnational Standard-Setting: The Case of the International Accounting Standards Board," Journal of Business Ethics, Springer, vol. 98(2), pages 217-245, January.
    2. MaryAnn Reynolds & Kristi Yuthas, 2008. "Moral Discourse and Corporate Social Responsibility Reporting," Journal of Business Ethics, Springer, vol. 78(1), pages 47-64, March.
    3. Colin Kirkpatrick & David Parker (ed.), 2007. "Regulatory Impact Assessment," Books, Edward Elgar Publishing, number 3846.
    4. Yves Fassin, 2009. "Inconsistencies in Activists’ Behaviours and the Ethics of NGOs," Journal of Business Ethics, Springer, vol. 90(4), pages 503-521, December.
    5. Claudio M. Radaelli, 2004. "Getting to Grips with Quality in the Diffusion of Regulatory Impact Assessment in Europe," Public Money & Management, Taylor & Francis Journals, vol. 24(5), pages 271-276, October.
    6. Durocher, Sylvain & Fortin, Anne & Cote, Louise, 2007. "Users' participation in the accounting standard-setting process: A theory-building study," Accounting, Organizations and Society, Elsevier, vol. 32(1-2), pages 29-59.
    7. Crawford, L. & Ferguson, J. & Helliar, C.V. & Power, D.M., 2014. "Control over accounting standards within the European Union: The political controversy surrounding the adoption of IFRS 8," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(4), pages 304-318.
    8. Sofia Yasmin & Roszaini Haniffa & Mohammad Hudaib, 2014. "Communicated Accountability by Faith-Based Charity Organisations," Journal of Business Ethics, Springer, vol. 122(1), pages 103-123, June.
    9. Hoffmann, Sebastian & Zülch, Henning, 2014. "Lobbying on accounting standard setting in the parliamentary environment of Germany," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(8), pages 709-723.
    10. Alan Richardson, 2008. "Due Process and Standard-setting: An Analysis of Due Process in Three Canadian Accounting and Auditing Standard-setting Bodies," Journal of Business Ethics, Springer, vol. 81(3), pages 679-696, September.
    11. X. Meng & S. Zeng & C. Tam, 2013. "From Voluntarism to Regulation: A Study on Ownership, Economic Performance and Corporate Environmental Information Disclosure in China," Journal of Business Ethics, Springer, vol. 116(1), pages 217-232, August.
    12. Bamber, Matthew & McMeeking, Kevin, 2016. "An examination of international accounting standard-setting due process and the implications for legitimacy," The British Accounting Review, Elsevier, vol. 48(1), pages 59-73.
    13. Julie Froud & Rebecca Boden & Anthony Ogus & Peter Stubbs, 1998. "Controlling the Regulators," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-14632-1, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stenka, Renata & Jaworska, Sylvia, 2019. "The use of made-up users," Accounting, Organizations and Society, Elsevier, vol. 78(C).
    2. Molina Sánchez, Horacio & Bautista Mesa, Rafael, 2018. "La participación en el /Participation in the IASB Due Process," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 36, pages 429-458, Mayo.
    3. Marius Gros & Daniel Worret, 2016. "Lobbying and Audit Regulation in the EU," Accounting in Europe, Taylor & Francis Journals, vol. 13(3), pages 381-403, September.
    4. La Torre, Matteo & Dumay, John & Rea, Michele Antonio & Abhayawansa, Subhash, 2020. "A journey towards a safe harbour: The rhetorical process of the International Integrated Reporting Council," The British Accounting Review, Elsevier, vol. 52(2).
    5. Bailey, Wendy J. & Sawers, Kimberly M., 2018. "Moving toward a principle-based approach to U.S. accounting standard setting: A demand for procedural justice and accounting reform," Advances in accounting, Elsevier, vol. 43(C), pages 1-13.
    6. Esther Pittroff, 2021. "The legitimacy of global accounting rules: a note on the challenges from path-dependence theory," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(2), pages 379-396, June.
    7. Wim Marneffe & Lode Vereeck, 2011. "The meaning of regulatory costs," European Journal of Law and Economics, Springer, vol. 32(3), pages 341-356, December.
    8. Stenka, Renata, 2022. "Beyond intentionality in accounting regulation: Habitual strategizing by the IASB," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 88(C).
    9. Noël, Christine & Ayayi, Ayi Gavriel & Blum, Véronique, 2010. "The European Union's accounting policy analyzed from an ethical perspective: The case of petroleum resources, prospecting and evaluation," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 21(4), pages 329-341.
    10. Crawford, Louise, 2019. "Exploring the emancipatory dimensions of globalisation: The struggle over IFRS8 and country-by-country reporting," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 63(C).
    11. Baudot, Lisa & Cooper, David J., 2022. "Regulatory mandates and responses to uncomfortable knowledge: The case of country-by-country reporting in the extractive sector," Accounting, Organizations and Society, Elsevier, vol. 99(C).
    12. Rouba Chantiri-Chaudemanche, 2012. "Quand Normalisation Comptable Et Rhetorique Font Bon Menage ... Un Essai D'Organisation De La Litterature," Post-Print hal-00936631, HAL.
    13. Isabel Gallego‐Álvarez, 2018. "Assessing corporate environmental issues in international companies: A study of explanatory factors," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1284-1294, December.
    14. Bamber, Matthew & McMeeking, Kevin, 2016. "An examination of international accounting standard-setting due process and the implications for legitimacy," The British Accounting Review, Elsevier, vol. 48(1), pages 59-73.
    15. Denis Cormier & Charlotte Beauchamp, 2016. "Le rôle des acteurs dans la normalisation comptable internationale : Le cas de la norme IFRS 9," Post-Print hal-01902328, HAL.
    16. Samindi Ishara Hewa & Rajni Mala & Jinhua Chen, 2020. "IASB's independence in the due process: an examination of interest groups’ influence on the development of IFRS 9," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(3), pages 2585-2615, September.
    17. Himick, Darlene & Brivot, Marion, 2018. "Carriers of ideas in accounting standard-setting and financialization: The role of epistemic communities," Accounting, Organizations and Society, Elsevier, vol. 66(C), pages 29-44.
    18. Dillard, Jesse & Vinnari, Eija, 2017. "A case study of critique: Critical perspectives on critical accounting," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 43(C), pages 88-109.
    19. Morales, Jérémy & Sponem, Samuel, 2017. "You too can have a critical perspective! 25 years of Critical Perspectives on Accounting," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 43(C), pages 149-166.
    20. Melinda Timea Fulop, 2014. "Analyze of IASB Futures Priorities Based on Responses at 2011 Agenda Consultation and IASB Actions," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(1), pages 240-251, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jbuset:v:155:y:2019:i:4:d:10.1007_s10551-017-3527-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.