The Politics of Fair Value Reporting and the Governance of the Standards-Setting Process: Critical Issues and Pitfalls from a European Perspective
AbstractAccounting is not simply a metric; rather it is a calculative practice which shapes the socio-economic environment. Therefore, looking only at the substance of accounting standards is sometimes inadequate. From a European Union perspective, this paper provides a general framework that deals with the potential changes in society produced by financial reporting. More specifically, it discusses fair value reporting from two points of view, which are strictly linked. The first relates to the politics of fair value accounting and its potential impact on the economic and social system, while the second relates to the governance of the standards - setting process. Financial regulation is one of the competencies of the European Union. Therefore, this paper claims that controversial issues in financial reporting should be examined in the framework of the Lisbon Treaty, which sets out the fundamental principles on which the European Union has decided to build and shape its future.
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Bibliographic InfoPaper provided by University of Turin in its series Department of Economics and Statistics Cognetti de Martiis. Working Papers with number 201353.
Length: 34 pages
Date of creation: Dec 2013
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-02-02 (All new papers)
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