The SEC interaction in the accounting standards setting process : an analysis of the FASB statements /
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| Other Authors: | , , |
| Format: | Thesis Book |
| Language: | English |
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1989.
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| Subjects: | |
| Online Access: | Link to OAKTrust copy |
| Abstract: | This study examines the SEC involvement with the FASB in setting accounting standards. Research methodologies included a descriptive evaluation of the process, a questionnaire and interview technique, and multidimensional scaling supported by multidiscriminant analysis. Evidence was extracted from various sources, including the FASB Public File, interviews with SEC members, and the general literature. A questionnaire was sent to a panel of experts, consisting of FASB Board members, SEC officials, and others familiar with the SEC/FASB relationship. These experts ranked nine selected standards showing varying patterns of involvement by the SEC and answered questions on contextual dimensions likely to influence SEC involvement in standard setting. Five of the nine standards were studied further in the multidimensional scaling technique and discriminate analysis to correlate systematic groupings of input preferences from users, auditors, and preparers with SEC interaction. Extending Brown (1981), policy questions were developed for the standards and expressed preferences were extracted and coded from responses to exposure drafts to form the data base. The descriptive analysis indicated a general SEC role of oversight. The questionnaire results on evaluating contextual characteristics able to predict or explain an interaction identified a lack of comparability ranking highest on highly interactive standards. Kendall's coefficient of concordance indicated significant agreement among the panel of experts in ranking the nine standards. Multidiscriminant analysis and multidimensional scaling identified no consistent groupings of users, auditors, or preparers as dictating SEC interaction. A trend appeared of FASB alignment with preparers for high interactive standards and with users for low interaction standards, supporting the idea that the SEC intervenes to protect the user of financial statements. Also, in the discriminant analysis, the FASB aligned with preparers in three out of the five standards. The overall conclusion was that the SEC interaction with the FASB appears to involve maintaining its oversight capacity, rather than dictating what issues should be considered or what the answers should be. SEC interaction although rare, appears to be standard specific and dependent upon the charactistics of the accounting issue itself, much more than the influence of management's attitude toward the standards or constituency groupings' preference positions. |
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| Item Description: | Typescript (photocopy). Vita. "Major subject: Accounting." |
| Physical Description: | x, 183 leaves : illustrations ; 29 cm |
| Bibliography: | Includes bibliographical references. |